Budget and Financial Operations

Comprehensive State Budget Passes House And Senate, Sent To Governor

After a year long wait, the General Assembly has approved the $34 million state budget for the 2026-27 fiscal year. It passed with a bipartisan mix of support and opposition in both chambers. In addition to multiple K-12 funding and provisions, the proposal lowers the personal income tax rate from 3.99% this year to 3.49% next year and extends a possible cut to 2.49% from 2029 to 2034.

Comprehensive State Budget Passes House And Senate, Sent To Governor Read More »

NC House Overrides Federal Education Tax Credit Bill

On Wednesday (May 20) the NC House overrode Gov. Josh Stein’s veto of H87: Educational Choice for Children Act (ECCA) that permits North Carolina to participate in a federal school-choice tax credit program passed under the Trump administration’s 2025 One Big Beautiful Bill Act.

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State Budget Update

North Carolina Lawmakers Announce Framework For A State Budget Deal

Senate Leader Phil Berger (R-Rockingham) and House Speaker Destin Hall (R-Caldwell) held a press conference on Tuesday to announce the framework for a state budget deal that has been more than a year in the making. The House and Senate each passed budget proposals in March and April of 2025 but quickly ran into roadblocks centered around personal income tax rates that derailed negotiations.

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Senate Education Committee Advances Bills On Weighted  Student Funding Study And Foundational Mathematics

The legislature was busy this week as lawmakers announced a “starting point” for a budget deal and education committees met in both chambers. While the House heard an update from the Department of Public Instruction (DPI) on student achievement data, the Senate advanced two bills impacting local public schools – S990: Students First Act and S1044: Foundational Mathematics Act.

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NCGA Kicks Off 2026 Short Session, Gov. Stein Releases FY 26-27 Budget Proposal

The North Carolina General Assembly kicked off the 2026 short legislative session this week with bi-cameral agreement on HB 696, a bill designed to address the $319 million Medicaid shortfall for FY 25-26. In addition to the Medicaid agreement, both chambers filed bills and received bills passed by one chamber in 2025 that will be

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Partial Federal Shutdown Approaches As U.S. Senate Considers Agency Spending Bill

Parts of the federal government — including the U.S. Department of Education (DOE) — could shut down again this weekend.
 
The U.S. House approved a bipartisan Fiscal Year 2026 appropriations bill last Thursday (Jan. 22) , which included DOE funding. The U.S. Senate appeared to be on track to do the same this week.

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Congress Releases Fiscal Year 2026 Budget Proposal That Includes Some Program Increases And Key Budget Timing Provisions

On Tuesday (Jan. 20), Congress released a bipartisan, bicameral Fiscal Year (FY) 2026 Labor, Health and Human Services, and Education funding package. The U.S. House of Representatives is debating the bill today before the Senate considers the proposal next week.

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Lawmakers Return To Raleigh But Fall Short On K-12 Action

North Carolina lawmakers returned to session this week but were unable to agree on a comprehensive two-year state budget or make any significant investments in K-12 education. Lawmakers were able to approve H358: Continuing Budget Operations Part II that included investments in disaster relief, economic development and construction projects. H358 contained K-12 provisions that clarified

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School Leaders Convene In Raleigh For School Law And Policy Symposium

Over 350 school leaders attended NCASA’s 2025 School Law and Policy Symposium (SLPS) this week in Raleigh. Participants enjoyed a wide range of hot topics delivered by a stellar team of legal and policy experts.

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DPI Issues Key Guidance On Central Office Salaries,Military Families, MSA Intern Stipends, And Test Fees

With year-round schools already open and others starting the new year this month, the Department of Public Instruction (DPI) has issued guidance recently on compliance with new K-12 laws and the impacts of ongoing state budget negotiations.

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Legislature Recesses Without Passing Budget or Stop Gap Measures

The legislature will recess without having passed a comprehensive budget before the start of the new fiscal year on July 1. Both chambers passed stop-gap measures intended to fund some basic elements of the budget such as student enrollment growth. The Senate version H125: Continuing Budget Operations passed the Senate chamber on Tuesday. The H125 legislative staff

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