Why NC legislature’s ‘financial lag time’ is frustrating public school teachers
The start of school is less than a month away, and public school teachers say they again face uncertainty because the North Carolina General Assembly still hasn’t passed a new budget.
Amid a stalemate between the House and Senate, the legislature fell short of approving a new budget for the 2025-26 fiscal year by its start on July 1. Each side approved its own version of the budget earlier this year, and the chambers clashed over tax cuts and raises for state employees, including educators.
It’s not the first time educator raises have been delayed by state budget deliberations, especially in recent years. But local educators told The Charlotte Observer they’re frustrated by uncertainty about when they’ll get raises and for how much.
What’s going on in NC General Assembly?
The House proposed a two-year budget that would raise teacher pay by an average of 8.7%, with higher raises for early career teachers. The Senate, however, proposed a plan that would give teachers an average 2.3% raise this fiscal year, with an average pay increase of 3.3% over the next two years. It also included a $3,000 bonus. Gov. Josh Stein’s plan called for the highest raises of all, with an average increase of 10.6% and bringing starting teacher pay up to $51,200 by 2027.
Without a new state budget, the government doesn’t shut down. Instead, spending levels remain at the same amount as the previous budget. That means educators will be paid according to last year’s salary schedule until the legislature passes a new budget, which could be well into the fall. If raises are approved in the new budget, educators will be paid retroactively for the first part of the school year.
However, Republicans proposed a mini budget, House Bill 125, as a stop-gap to fund the basic functions of government until it can pass a full budget. The mini budget, which passed the Senate Tuesday, is expected to pass the House of Representatives Wednesday.
The mini budget includes funding for step-increases to teacher pay. That’s not a raise; those increases are based on years of service. They’re outlined in the previous state budget but must be approved each year in order for funding to be disbursed.
Under the current salary schedule, beginning teachers in North Carolina make a base salary of $41,000 and receive step-increases based on how long they’ve been teaching. If the mini budget passes, $41,000 will remain the base salary until a new full budget is passed, but the step-increases for years of service outlined in the current teacher salary schedule will still be funded.
Charlotte-Mecklenburg Schools makes a budget each year based on what funding it predicts it will get from the state and federal government, based on prior years. This year, the district predicted teachers would get an average raise of 3% from the state when it was building its budget.
“That assumption does not guarantee that a 3% raise will be included in the final state budget once it is passed. Any increase approved by the General Assembly could differ in amount or structure,” said CMS Chief Financial Officer Kelly Kluttz. “CMS remains committed to providing fair and competitive compensation for our educators and will adjust accordingly once the state budget is finalized.”
CMS educators affected
School starts in CMS on Aug. 25, and if there is no new budget by then, educators will start the year without the 3% raise the district projected.
Educators said the budget limbo makes it hard to plan for the future.
“We’ve seen it occur at least three times since 2019, with delays in 2021 and 2023 being particularly problematic,” Amanda Thompson, president of the Charlotte-Mecklenburg Association of Educators, told The Charlotte Observer. “Each time, educators returned to work under an outdated pay schedule, and they’ve consistently expressed frustration about the financial lag time, the impact on planning and the message it sends about prioritizing public education.”
Thompson said the salary supplement increases that Mecklenburg County approved earlier this year can help provide some relief in the meantime. County commissioners approved a 5% average pay increase for CMS educators in June.
Justin Parmenter, a middle school English teacher in Charlotte-Mecklenburg Schools, said this year’s delay is particularly worrying, amid uncertainties around federal funding for education and what impact new tariff policies will have on the cost of living.
“Having North Carolina legislators provide no raise in time for the opening of schools is a major concern,” Parmenter said. “At the district level, it makes hiring difficult when you can’t tell applicants what their salary will be.”
This story was originally published July 30, 2025 at 5:00 AM.
