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Governor Stein’s 2026-2027 Budget: Teacher Pay, Tax Relief, Safety Priorities

Governor Stein Unveils Ambitious Budget to Strengthen North Carolina’s Future

In a bid to fortify North Carolina’s future, Governor Josh Stein has revealed his comprehensive budget proposal for Fiscal Year 2026-2027. The plan aims to elevate starting teacher salaries to the highest in the Southeast, provide significant tax relief to working families, and ensure continued investment in essential areas such as public safety, education, child care, workforce development, and health care.

The proposed budget aligns with the Governor’s previous efforts to address critical needs and support hurricane recovery efforts, balancing immediate challenges with long-term planning.

Investing in Education and Child Care

Governor Stein’s budget proposes nearly $2.3 billion to enhance public education and child care. North Carolina currently ranks near the bottom in per-pupil spending, trailing neighboring states in starting teacher pay. The budget seeks to correct this by increasing starting teacher salaries to the highest in the region and providing substantial raises for all teachers.

“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,” said Governor Josh Stein. Initiatives include free school breakfasts, improved student support services, and more school health personnel.

Additionally, the budget aims to make child care more accessible by raising subsidy rates and investing in the NC Pre-K program. These measures are designed to stabilize child care programs and offer competitive wages to early educators.

Providing Financial Relief to Families

Addressing the financial strain on families, the budget outlines nearly $380 million in targeted tax relief. Governor Stein emphasizes prioritizing families over corporate interests, stating, “Between investing in North Carolina or giving money to corporate shareholders, I choose North Carolina’s kids, families, and future every time.”

Tax cuts are aimed at helping families manage rising costs, including child care, while maintaining the state’s fiscal health by preserving current tax rates.

Ensuring Safety and Health

Governor Stein’s proposal includes more than $970 million to bolster public safety and health care. The budget supports law enforcement with pay raises and bonuses and addresses behavioral health needs by investing in the workforce and expanding co-responder teams.

To safeguard health, the budget fully funds Medicaid and invests in clean water infrastructure. It also proposes initiatives to combat opioid misuse within correctional institutions and establish a Fentanyl Control Unit.

Strengthening the Economy and Workforce

The budget plans over $448 million in investments to expand workforce opportunities, particularly in high-demand fields. This includes funding for free community college tuition for short-term credentials and apprenticeships.

Governor Stein highlights the importance of economic development as a collaborative effort, stating, “Economic development is a team sport, and Team North Carolina is the best in the business.”

Enhancing Government Services

To meet the demands of a growing population, the budget proposes nearly $338 million to improve government efficiency and service delivery. This includes upgrading digital services, expanding DMV hours, and supporting state employees with pay raises.

Governor Stein underscores the need for effective use of resources, emphasizing, “We need people to be able to feel how their government is working for them and maximize the value of every taxpayer dollar.”

Click here to read Governor Stein’s recommended budget.

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