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Bill

HB 1178

The NC Teacher Pay Competitiveness Act.

2025-2026 Session Introduced by Eric Ager and 38 co-sponsors

The bill creates a phased, growth-based teacher pay schedule with a dedicated reserve to fund ongoing raises through 2033-34, aiming to attract and retain teachers.

Passed 1st Reading
0
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Bill Summary · HB 1178

Summary of HB 1178 (Session 2025, North Carolina) – The NC Teacher Pay Competitiveness Act

Date Filed: April 30, 2026 | Sponsor: Rep. Rubin (with several co-sponsors)

Purpose and overall intent
- The bill aims to increase teacher compensation in North Carolina and establish a phased framework for ongoing pay increases through at least the 2032-2033 school year.
- It seeks to make NC teacher pay competitive with neighboring Southeastern states, address concerns about teacher recruitment and retention, and reduce funding for the Opportunity Scholarship (private school voucher) program while creating a dedicated reserve to fund teacher pay rises.
- The measure also emphasizes structural changes to ensure more predictable, sustained investor in public education staffing, particularly in light of budget impasse issues.

Key provisions and changes

Part I. Permanent Teacher Raises
- New statewide salary schedule for 2026-2027:
- Establishes a monthly salary schedule for licensed teachers (A schedule) scaled by years of experience (0 through 25+ years).
- Example baseline (2026-27) shows monthly salaries ranging from about $4,387 (0 years) to $5,987 (25+ years) for “A” teachers, with step increases by year.
- Phased annual increases:
- 2027-2028 through 2032-2033: Each step of the salary schedule increases by 3.67% annually.
- 2033-2034 onward: Each year’s increases tied to the 12-month percent change in the Employment Cost Index for elementary/secondary school workers (as reported by BLS).
- Salary supplements (various categories):
- NBPTS (National Board Certified Teachers): +12% of their monthly “A” schedule salary.
- “M” teachers: +10% of their monthly “A” schedule salary.
- Education level-based supplements:
- Six-year degree level licensure: +$126/month (in addition to “M” supplement).
- Doctoral degree licensure: +$253/month (in addition to “M” supplement).
- Certified school nurses: +10% of their monthly “A” salary (plus any “M” supplement).
- Counselors (master’s degree or higher): +$100/month.
- School psychologists, speech pathologists (master’s or higher), and audiologists (master’s or higher): first step aligned with sixth step of “A” schedule; monthly supplements of 10% plus a $350 monthly add-on; additional alignment to higher-education licensure pay scales; 26th step pay bump of 7.5% over 25th step.
- Longevity payments consolidated into the salary schedule (from 2014-2015 fiscal year forward).
- Reporting requirement: DPI must publish and report the upcoming year’s salary schedule by February 15 each year to the Joint Legislative Education Oversight Committee and on its website.
- Coverage: “Teacher” includes instructional support personnel.

  • Teacher Salary Reserve (Section 115C-302.5C):

    • A dedicated reserve funded from the General Fund to support teacher raises per the new schedule.
    • Initial appropriations listed for 2026-2033 escalating from about $825 million to $2.164 billion, then increasing by $283.2 million annually thereafter.
    • Purpose: to protect and fund ongoing pay increases even if annual operations budgets face delays.
  • Supplemental funds for teacher compensation (Section 115C-302.6):

    • State Board of Education distributes available funds to eligible local units to fund additional salary supplements.
    • Allocation methodology is county- and unit-based, with caps (up to $5,000 per State-funded teacher), and requires adherence to a nonsupplant provision (keeping non-State funds at least 95% of maintenance of effort).
    • Detailed definitions of eligible counties, units, and supplements are outlined.
    • Annual reporting requirement (April 15) on allocations, supplement amounts, and retention impact.
  • Charter schools: Funds for this section may be allocated to charter schools under existing statutes.

  • Effective date for Part I: Applies beginning with the 2026-2027 school year.

Part II. Revise Eligibility Requirements and Reduce Funds for the Opportunity Scholarship Program
- Redefines “eligible student” and modifies eligibility criteria for the Opportunity Scholarship (private school vouchers), including income thresholds and eligibility conditions.
- Scholarship grant awards:
- Grants are tied to income levels relative to the federal lunch program and prior-year averages of State per-pupil funding (with several tiered funding amounts up to 100% of the prior-year average per pupil allocation, varying by income and other factors).
- Tuition and fees limits: scholarships may cover tuition and fees up to the stated grant amounts; nonpublic schools may include necessary costs (books, transportation, equipment, etc.).
- Additional support: for students in grades 3, 8, and 11, the Authority provides funding to cover the cost of required standardized testing.
- Opportuity Scholarship Fund Reserve (115C-562.8):
- Also revises multi-year appropriations for the Opportunity Scholarship Reserve, with phased funding levels for 2027-2028 through 2031-2032 and a fixed amount thereafter (825 million in later years with separate allocations for reserve vs. ongoing use).
- Transitional provisions:
- Certain provisions guarantee scholarship eligibility continuity (e.g., students who received a scholarship in 2026-2027 remain eligible in 2027-2028 at the same amount, under specified conditions).
- Effective date: Part II provisions take effect for the 2027-2028 school year.

Part III. Effective Date
- General effective date: The act becomes law upon passage, with specified sections applying as noted (Part I 2026-27 school year; Part II 2027-28 school year).

Potential impact

  • Public schools: Substantially higher, more predictable teacher compensation, with explicit salaried steps and supplements designed to attract and retain teachers, and a long-term target to match or exceed Southeastern peers by 2032-2033.
  • Private schooling/vouchers: Reduced growth or revised funding for the Opportunity Scholarship program; shift toward different funding structures and caps for scholarships.
  • Fiscal planning: Creation of a dedicated Teacher Salary Reserve to stabilize funding for teacher pay despite biennial budget gaps; requires ongoing General Fund appropriations through 2033-2034 and beyond.
  • Local districts: Greater control over distributing supplemental funds, but with a nonsupplant requirement and reporting obligations to monitor retention and equity.
  • Equity and access: Income-based scholarship adjustments could affect which students participate in private schooling via vouchers.

Notes
- The bill includes an explicit stance against budget impasses by creating a protected funding mechanism for teacher pay, alongside a cautious approach to private school voucher funding.
- Several numbers are specified (monthly salary steps, annual increases, reserve appropriations, and scholarship amounts) to provide a concrete fiscal framework.

Compiled from official sources — confirm details with the bill’s official record.

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