Gov. Josh Stein announces 2025-2027 budget proposal

Gov. Josh Stein unveiled his $67.9 billion budget proposal for 2025-2027 last week. The key components of his plan are affordability, education, childcare, healthcare and safety. 

Stein’s plan includes a 10.6 percent average salary increase for teachers and reinstating master’s pay. 

Barbara Fedders, member of the Chapel Hill-Carrboro City Schools Board of Education, said reinstating master’s pay will be extremely helpful in recruiting and retaining teachers. She said it will also support districts like CHCCS that have a supplemental tax from the city, but for lower-income districts, it will be even more impactful.

Fedders also said the state should reinstate income limits of voucher eligibility, like Gov. Stein has pushed for. She said vouchers take public money and give it to private schools, some of whom discriminate. 

"I think that vouchers can't really coexist with a healthy public education system," she said. 

Stein's proposal also includes $4 billion bond to improve school infrastructure. Fedders said that Chapel Hill-Carrboro has been able to raise local funds for new schools, but not all districts have that option.

Stein’s budget also proposes free community college for students entering high-demand industries like health care and information technology, the expansion of apprenticeship programs and new tax credits for middle- and low-income families. 

Stein's plan keeps the individual tax rate at 4.25 percent and the corporate tax rate at 2.25 percent.

The budget also proposes to increase subsidized child care rates for greater access to high-quality early education and open 1,000 additional N.C. Pre-K slots to address North Carolina’s childcare crisis. These measures come as federal stabilization grants expire and centers struggle to stay open, Theresa Roedersheimer, executive director of NC Early Childhood Foundation said.

While these investments may help slow childcare center closures, long-term policy solutions are needed to stabilize the industry, Roedersheimer said.

She also said workforce shortages and rising operational costs remain major challenges, with many educators leaving for higher-paying jobs in other sectors.

Rodersheimer said the state need long-term solutions to truly fix the system and families alike rely on stable childcare, and this is a critical moment to invest in it.

“It's a good start in the right direction, and really hoping that we could get some good bipartisan work done to help push these things through, because families need help,” Rodersheimer said. 

To address healthcare workforce shortages, Stein’s budget allocates funding to recruit and retain medical professionals, expand nursing programs and improve Medicaid reimbursement rates. Key investments include $20 million for primary care and OB-GYN providers in Medicaid, $10 million for nursing workforce development and $5 million to support professionals assisting people with disabilities.

Stein’s proposal aims to boost recruitment and retention of law enforcement officers by raising salaries, offering signing bonuses and expanding resources to combat the fentanyl crisis.

Aaron Moody, assistant communications director for the North Carolina Department of Transportation, said Stein's recommended budget supports road safety. 

"We have the second largest state maintained highway system in the country,” Moody said. “So roadways are a big part of our access, and having good, reliable roads is important." 

The budget also includes funding for body cameras to enhance transparency and accountability in policing.

As the proposed budget moves forward, the Republican-led legislature will need to negotiate and approve the final budget, requiring bipartisan support.

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