Bill
HB 1017
The bill funds extensive reforms to recruit, support, and diversify teachers and leaders, expand mentoring and residency programs, and adjust funding to ensure a sound basic educat
HB 1017 Summary – Sound Basic Education for Every Child (North Carolina, Session 2025)
Purpose and overarching goal
- Create a comprehensive reform package aimed at ensuring a sound basic education for every child in North Carolina.
- Focuses on expanding and supporting high-quality teachers and school leaders, modernizing compensation, increasing educator diversity, expanding leadership development, and aligning funding to a more equitable, student-centered system.
Key provisions by part
Part I. Well-Prepared, High-Quality, and Supported Teacher in Every Classroom
1) PEPSC Positions
- Small General Fund appropriation of $200,000 recurring for FY 2026-2027 to add two staff positions to the Professional Educator Preparation and Standards Commission (PEPSC) to boost coordination on recruiting, preparing, retaining, and supporting teachers.
2) Educator Licensure and Compensation Reform Plan (Section 1.2)
- State Board of Education must develop a plan for licensure and compensation reform to restore respect for teaching, diversify the workforce, and boost instructional capability.
- Plan must include: early inclusive pathways, rewards for excellence and advancement, and retention strategies.
- Report plan details and any legislative changes to Joint Legislative Education Oversight Committee, F&R Division, and OSBM by March 15, 2027.
- $50,000 nonrecurring funding to develop the plan.
3) Educator Preparation Program Capacity Study (Section 1.3)
- State Board of Education, with UNC System Office, to study how to increase capacity to recruit/prepare/graduate at least 5,000 in-state teachers annually and increase graduates of color.
- Report due March 15, 2027.
- $25,000 nonrecurring funds for the study.
4) Alternative Pathways Teacher Recruitment Models (Section 1.4)
- $5.8 million recurring for FY 2026-2027 to support Grow-Your-Own and 2+2 recruitment programs (including Teacher Cadet, Teaching as a Profession, TA to Teachers, etc.).
- $1.0 million recurring to establish new Grow-Your-Own/2+2 programs in high-need units.
5) Study on Consolidating/Coordinating Recruitment and Retention (Section 1.5)
- Plan to coordinate statewide recruitment/retention efforts; report by March 15, 2027.
- $25,000 nonrecurring funds for development.
6) Expand NC Teaching Fellows Program (Section 1.6)
- Reforms to expand and revise the NC Teaching Fellows Program to recruit/prepare/retain teachers in NC; increase focus on diverse candidates and effective programs.
- Major funding: $37,000,000 recurring for FY 2026-2027 to fund revised program.
- Applications for the 2026-2027 year onward.
7) Recruitment Bonus Pilot Program for Teachers in Low-Need/High-Need Schools (Section 1.7)
- Establish grant program to provide multi-year recruitment bonuses for teachers committing to teach multiple years in low-performing or high-need schools.
- RFP required by Sept 1, 2026; proposals due Dec 1, 2026.
- Up to 10 LEAs selected (by Feb 15, 2027) for up to 3-year grants; cap $500,000 per LEA per year.
- Up to $7.7 million in recurring funds for FY 2026-2027; evaluation by independent firm due Sept 1, 2029.
- Annual DPI reporting starting March 15, 2027.
- Carryforward of unspent funds allowed.
8) Teacher Preparation Residency Pilot Grant (Section 1.8)
- Grants to support teacher residency programs (tuition, stipends, coursework, clinicals, induction).
- 10 LEAs selected by Apr 15, 2027; grants up to 3 years; max $500,000/year.
- $25 million recurring for FY 2026-2027; evaluation by independent firm due Sept 1, 2030; DPI annual reporting from 2027.
- Carryforward allowed.
9) DRIVE Grant Program (Section 1.10)
- DRIVE grants to increase diversity of educators of color through partnerships among LEAs, institutions, and community groups.
- Proposals must include partnerships and strategies across recruitment, placement/induction, and retention.
- RFP by Oct 1, 2026; awards by Feb 1, 2027 (up to 5 grantees; representation across state; projects may run up to 5 years).
- Annual reporting starting Jan 1, 2028; evaluation by independent body due Sept 1, 2028.
- $2 million recurring for FY 2026-2027; $2 million carryforward provision.
10) Expanded Partnership Teach (Section 1.9)
- $200,000 recurring to expand Partnership Teach to up to two more hub sites, including staffing and mentoring.
11) Annual Educator Diversity Report (Section 1.11)
- Adds formal duty to monitor educator diversity via new statutory section §115C-299.7.
- Education entities must report annual diversity metrics for educators and future educators (numbers, applications, retention, mobility, etc.) by July 30, 2027, and annually thereafter.
- Statewide annual DPI report and public statistical profile update; confidentiality protections included.
12) Establish Office of Equity Affairs (Section 1.12)
- Creates Office of Equity Affairs within DPI to oversee compliance with sound basic education and diversification goals.
- Office conducts policy/program reviews and can propose adjustments to improve efficacy.
- Deputy Superintendent of Equity Affairs created; reporting structure designed to preserve independence.
- $400,000 recurring in FY 2026-2027 to hire up to four staff (including at least one attorney); staff report to Deputy Superintendent only.
13) North Carolina New Teacher Support Program (Section 1.13)
- $48.5 million recurring for FY 2026-2027 to provide mentoring/coaching for beginning teachers in low-performing/high-poverty schools at no cost to LEAs.
14-18) Advanced Teaching Roles, Professional Development, Compensation Studies, and NBPTS Support (Sections 1.14–1.18)
- Class size flexibility for ATR schools (kindergarten–3rd grade) for up to 3 years if state funds are awarded; effective FY 2026-2027.
- Establish Educator Professional Development Allotment (effective July 1, 2026) with $128.45 million recurring for targeted PD, literacy training, mentoring, etc.
- DPI to report compensation study findings by March 1, 2027; large ongoing funding for teacher salary increases ($731.8 million recurring in FY 2026-2027), with intent to adjust in 2027-2028 per study.
- NBPTS certification fee reimbursement expansion: $900,000 recurring for FY 2026-2027.
Part II. Well-Prepared, High-Quality, and Supported Principal in Every School
15-18) Expanded NC Principal Fellows and School Leadership Academy
- $13.2 million recurring for 2026-2027 to fund more principal fellowship forgivable loans.
- Plan for a School Leadership Academy to support school leaders, equity training, mentorship, coaching, and peer networks; DPI to report by Feb 15, 2027; implement starting 2027-2028.
- Principal/Assistant Principal salary schedules updated to reflect growth, performance, and local school growth; significant funding for leadership compensation increases ($30.5 million for principal raises in 2026-2027; $14.3 million for AP raises); plan to adjust in 2027-2028 per compensation study.
Part III. Finance System that Provides Adequate, Equitable, and Efficient Resources
19-46) Budget Flexibility, Weighted Funding, and Related structures
- Complex revisions to budget transfers and flexibilities; emphasis on allowing transfers within certain categories under DPI oversight, while preserving dedicated earmarks (e.g., textbooks, special ed).
- Additional funding to:
- Children with Disabilities: $450.324 million recurring for weighted funding based on cost of services; shift to 2026-2027.
- Low-Wealth Counties: $154.1 million recurring for 2026-2027 with a roadmap to reach 110% of state average funding per student by 2027-2028.
- Limited English Proficiency: $181 million recurring for LEP services.
- Teacher Assistant Allotment: $201.5 million in 2026-2027; $280.3 million in 2027-2028 onward; target ratios for K-3 assistants (1:30 in 2026-2027, 1:27 thereafter).
- School Health Personnel: $614.8 million in 2026-2027; $796.6 million from 2027-2028 onward; staffing rules and ratios (psychologists, counselors, social workers, nurses) with a push for full-time hires or contracted services where necessary.
- Instructional Support: $49.4 million in 2026-2027; $73.4 million from 2027-2028 onward; media coordinators ratio targets (1:608 in 2026-2027; 1:547 thereafter).
- Consolidation of multiple allotments into a single framework (Section 3.6).
Overall fiscal picture and timelines
- The bill authorizes substantial recurring and nonrecurring funding across multiple programs and mandates payment schedules beginning in FY 2026-2027, with phased rollouts into 2027-2029 for various components.
- It requires numerous plans, reports, and RFPs with concrete deadlines (mostly 2026–2027) and ongoing evaluation by independent researchers.
- Establishes an Office of Equity Affairs with reporting obligations and budget to support staff.
Who is affected
- Students and families: through improved instruction quality, literacy initiatives, and access to a diverse teaching workforce.
- Teachers and prospective educators: through new pathways, loan forgives, stipends, salary supplements, and enhanced professional development.
- Principals and school leaders: through elevated compensation, leadership development, and School Leadership Academy.
- Local school districts and charter schools: via funding formula shifts, new grant programs, and staffing requirements.
- Higher education and educator-preparation programs: via capacity-building, admission standards, and partnerships.
- DPI, State Board of Education, UNC System, and DPI-affiliated commissions: new offices, reporting obligations, and oversight mechanisms.
Procedural and timeline highlights
- 2026-2027 fiscal year: most new funds become available; multiple RFPs and pilot programs commence.
- 2027-2028: scaling of funding and implementation of leadership and educator-support initiatives.
- Annual and semiannual reporting requirements to JLEOC, F&D, OSBM; independent evaluations planned for several programs (GRANT/DRIVE/Residency).
Note
- The bill is broad in scope, touching licensure, compensation, recruitment, diversity, leadership, and finance structures, all aimed at systemic improvements to ensure a sound basic education for every child.
Compiled from official sources — confirm details with the bill’s official record.
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