State Budget Lands on Governor Stein's Desk: What Eastern NC Workers, Teachers and Schools Stand to Gain

While $706 million in Hurricane Helene recovery money for western North Carolina grabbed headlines, the state budget now sitting on Governor Josh Stein's desk contains a different set of numbers that matter more to teachers grading papers in Goldsboro, cafeteria workers serving lunch in Kinston, and parents watching class sizes grow in New Bern. The question isn't whether eastern NC is in this budget — it's whether what's there is enough.

Governor Stein confirmed this week that the $34 billion spending plan for fiscal year 2026-27 has landed on his desk. It passed with bipartisan support — 88–21 in the House, 35–10 in the Senate — the first comprehensive state budget in nearly three years, ending a prolonged standoff. The package includes $706 million for Hurricane Helene recovery in western North Carolina, with $450 million covering the state's share of federal disaster programs.

Beyond those storm recovery funds, the budget contains concrete wage increases for teachers and state employees and funding growth for schools and community colleges that directly benefit eastern NC communities like Goldsboro, Kinston, and New Bern — places that often feel overlooked in Raleigh.

What Teachers Get

The budget puts $19.4 billion toward education, including approximately $600 million for teacher salary increases and bonuses. Teachers will see an average 8% salary increase. Beginning teacher salary jumps from $41,000 to $48,000 — approximately 17% — bringing North Carolina just below the national average and first in the Southeast for starting pay. With state and local supplements combined, no teacher will make less than $50,000 annually.

Teachers with 15 to 25-plus years of experience will see salaries increase from approximately $55,950 to $59,000, about a 5.5% raise. Those with 16 or more years of experience will receive a one-time bonus of $1,000; those with fewer than 16 years will receive $500. The salary increases and bonuses are not retroactive and begin with the 2026–27 fiscal year starting July 1, 2026, meaning teachers who received no raises in 2025–26 will not be compensated for that gap.

State Employees and School Staff

Most state employees (SHRA employees) will receive a 6% salary increase effective July 1, 2026, plus one-time bonuses of $1,000 or $1,750 depending on salary level.

Non-certified school staff — bus drivers, cafeteria workers, teaching assistants — will receive a smaller 3% raise. Custodial and nutrition staff will receive a $1,750 bonus by October 31. School principals will receive a 3% salary schedule increase plus a $1,000 bonus.

Prison and law enforcement employees receive much larger salary increases ranging from about 10% to nearly 18%.

Community Colleges

Community college employees, both faculty and non-faculty, will receive an across-the-board 6% increase effective July 1, 2026. The North Carolina Community College System receives approximately $1.86 billion in state funds plus nearly $518 million in receipts.

The budget provides approximately $99.2 million tied to historic enrollment growth at community colleges, reflecting a 6.2% FTE increase, and creates a $6 million enrollment increase reserve for colleges experiencing enrollment spikes. Wayne Community College in Goldsboro serves approximately 10,000 individuals annually with a student-to-faculty ratio of 10:1 and saw curriculum enrollment increase by 10.4% since 2021 and 4.6% since 2023.

The budget also funds the new Propel NC workforce-driven funding model with $57.5 million recurring, compared to the $68.5 million requested. ApprenticeshipNC receives $3.1 million in state allocation to replace lost federal grant support.

K–12 School Funding

The budget includes $100.5 million in the first year specifically to fund K-12 enrollment growth. State funding for public schools in 2025–26 totaled $12.75 billion with funded student enrollment of 1,533,889, implying roughly $8,300 in state funding per pupil.

Wayne County Public Schools serves 17,368 students across 33 schools in Goldsboro and surrounding areas. Lenoir County Public Schools in Kinston serves approximately 8,331 students across 17 schools. Craven County Schools in New Bern serves 12,584 students across 26 schools, with 56.6% qualifying as economically disadvantaged.

The budget also includes $115 million from the State Capital and Infrastructure Fund to repair and renovate public school facilities and $100 million for technology devices and school broadband access.

What the Raises Mean in Eastern NC

Eastern North Carolina rural schools face severe teacher shortages driven by record-high attrition rates, particularly in high-poverty districts where attrition reached 33% in some years, with beginning teachers facing a 15.10% attrition rate. The 17% raise for beginning teachers represents the state's bet that competitive pay can slow the exodus from classrooms in districts where one in three teachers leave.

Rural eastern NC teachers also face professional and geographic isolation: research shows teachers prefer to work within 15 miles of their hometown, but rural areas have a smaller pool of local candidates, forcing districts to recruit from outside where retention is difficult. The more modest 5.5% raises for mid-career teachers may do less to address those retention challenges for experienced educators facing limited advancement opportunities in small districts. Many of North Carolina's most economically distressed counties are in the northeast, where schools serving low-income students and students of color have significantly higher teacher attrition rates than in western NC.

How far the raises stretch depends on where you live. Kinston has median home values around $101,000 and median rent around $698 per month, making it one of the most affordable housing markets in the state. Goldsboro has a median home price of $259,900 and median rent of $1,350, with a housing cost index of 54.3% compared to the state average. New Bern's housing costs run 46.6% higher than Kinston's, with monthly cost of living for singles at $2,618 compared to Kinston's $2,088. In relatively affordable Kinston, a $48,000 starting salary offers meaningful purchasing power, but in New Bern the raises may barely keep pace with inflation and housing pressures.

What Happens Next

Governor Stein has up to 10 days to sign, veto, or allow the budget to become law without his signature. He stated his team is reviewing it closely to ensure it truly invests in the people of North Carolina, noting the budget contains both good and bad provisions he must weigh. If signed, salary increases and bonuses take effect July 1, 2026, with custodial and nutrition staff bonuses arriving by October 31.