North Carolina Democratic Governor Josh Stein speaks about his two-year government budget proposal at the Albemarle Building in Raleigh, N.C., on Wednesday, March 19, 2025. (AP Photo)

North Carolina Budget 2025: North Carolina Governor Josh Stein has unveiled his first two-year state government budget proposal, which includes a bold plan to boost teacher salaries and significantly reduce funding for private school vouchers. On March 19, 2025, Stein, a Democrat who took office in January, presented his proposal, urging lawmakers to roll back tax cuts and scale back private school funding for families of all income levels. The budget, which aims to address fiscal challenges while boosting education spending, marks a significant step in Stein’s leadership as he pushes for long-term fiscal stability and equity in public education.
The proposed budget would allocate $33.65 billion in the first year starting July 1, 2025, representing an increase of approximately $2 billion over the current fiscal year. For the following year, Stein plans to boost the budget by another $700 million. As reported by the Associated Press, Stein emphasized the importance of meeting the needs of public school students while addressing the state’s financial constraints.
Teacher pay raises as a top priority
A key feature of Stein’s proposal is a historic pay raise for North Carolina’s teachers. The governor’s plan includes average salary increases of 10.7% over the next two years, with an emphasis on helping early-career educators. This proposal aims to position North Carolina as a leader in teacher compensation, with the goal of raising starting teacher pay from near the bottom of the Southeast to the highest in the region by 2027. “We have to meet the needs of our public school students,” Stein said during his budget announcement, as quoted by the Associated Press.
This teacher pay raise is a crucial part of Stein’s broader educational agenda, which aims to enhance public education and address teacher shortages in the state. However, the proposed salary increases come with a significant trade-off, as Stein has also called for cuts to the Opportunity Scholarship program.
Cuts to school vouchers
Stein’s budget plan includes phasing out taxpayer-funded scholarships for students to attend private schools. This program, which was expanded in 2023 to provide vouchers for families of all income levels, currently benefits nearly 80,000 students. As reported by the Associated Press, Stein views this as a necessary step to ensure adequate funding for public education.
Republicans in the state legislature, however, have strongly opposed this move. They argue that the private school scholarships provide essential educational freedom and support for families in need. “This proposal rips educational freedom and parental choice from hardworking families,” said a spokesperson for Senate Republicans, as quoted by the Associated Press.
As North Carolina faces a projected $825 million revenue shortfall in the coming fiscal years, the debate between Stein’s proposed reforms and Republican resistance is likely to shape the state’s educational and fiscal landscape in the months ahead.