RALEIGH (April 29, 2026) – As legislators returned to Raleigh last week, Gov. Josh Stein made his own proposal for a 2026-27 state budget that they would be wise to heed: Long-overdue raises for K-12 teachers, affordable child care and free community college in high-demand fields.
Stein’s proposed budget would give the state’s teachers – who haven’t received a raise since 2023 and now rank 46th in the country in average pay1 – with an average raise of 11%, a bonus of $1,000 for teachers and school employees, and an additional $500 for those who make less than $75,000.
In a state that loses 10% of its teachers every year, it would raise starting teacher pay to the highest in the Southeast and restore added pay for teachers with master’s degrees.
And in a state that panics over inadequate school supplies every August, it would also restore a sales-tax holiday for school supplies and give each teacher $300 for supplies.
“If we’re going to continue to build our economic success, there’s one area where we cannot afford to fall behind: Our public schools,” Stein said. “Our children are our future, and investing in them and the educators that help them learn will pay off for generations to come.”
“Between investing in North Carolina or giving money to corporate shareholders, I choose North Carolina’s kids, families, and future every time,” he said.2
The governor’s recommended budget would also provide $115 million to repair and renovate schools across the state, and $85 million into free school breakfast for all students.
Stein likes to point out that there is only one child-care spot available for every five families that need one. To make child care more affordable and and available, he proposes to put $80 million into reimbursements to child-care providers and implement nearly $380 million in tax cuts aimed at working families.
IN HIGHER EDUCATION, the governor would fund $59 million in enrollment growth at state universities, including an additional $5 million for the NC Promise Tuition Program at four universities.
His proposed budget would also make community college tuition-free for students who pursue short-term credentials in high-demand fields.
HOW WOULD Stein afford his proposals?
The crux of the standoff for the past year between Republicans who control both the state House and Senate – making North Carolina the only state in the nation that hasn’t adopted a budget for 2025-26 – is taxes.
The state Senate has insisted on clinging to a plan to cut taxes that legislators agreed upon several years ago. The House – sensing uncertainty in cuts from the federal government, a precarious national economy and a projected decline in revenue under the planned tax cuts – wants to pause the tax cuts.
Stein has praised the House proposal. He would hold the state’s personal income tax rate at 3.99% and its corporate tax rate at 2%, preserving $896 million to make long-overdue investments in North Carolina’s teachers, its public schools, its children and its workforce.3
1 https://npr.brightspotcdn.com/32/05/e1779ac340aca83b8d5ce60a78bc/2026-rankings-and-estimates-report.pdf.
2 https://governor.nc.gov/news/press-releases/2026/04/21/governor-stein-announces-budget-keep-north-carolina-strong.
3 https://www.osbm.nc.gov/fy2026-27-budget-rec-budget-book/open.
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