North Carolina’s first full state budget in more than two years becomes law, with teacher and law-enforcement raises
Gov. Josh Stein signed Senate Bill 257 on July 7, 2026, making North Carolina’s 2026-27 state budget law after what the governor described as more than two years without a full state budget.
The measure is now Session Law 2026-41. It appropriates money for state departments, institutions and agencies for the 2026-27 fiscal year, establishing the state’s spending framework while also making changes to compensation policy, public safety policy and state government structure.
The budget’s statewide reach includes agencies, public schools and public-safety programs. Its most prominent compensation provisions provide pay raises for public-school teachers and law-enforcement personnel. Stein’s office described those increases as historic.
Raises are enacted, but schedules determine individual pay
The teacher and law-enforcement raises are part of enacted legislation, rather than a proposal awaiting further approval. The law therefore puts the compensation changes into the state budget for the 2026-27 fiscal year.
However, the available official materials do not provide one pay percentage or schedule that can be applied to every teacher or law-enforcement employee. The sources support that raises are included in the budget, but not a conclusion that all affected workers will receive the same increase.
That distinction matters for employees and agencies reviewing how the budget applies to particular jobs. The governor’s announcement identifies the raises as a major feature of the legislation, while the enacted law provides the broader appropriations and statutory framework for the fiscal year.
Staffing reductions are cited by the governor
Stein’s July 7 announcement also said that more than 1,000 state-government positions were cut. The approved material attributes that figure to the governor’s announcement.
The available information does not establish that every agency will experience the same staffing effect. It also notes that the governor and legislative leaders characterized some budget provisions differently, particularly the staffing reductions and their policy effects.
Beyond appropriations and compensation, Session Law 2026-41 creates the North Carolina Capital Facilities Finance Agency. The agency’s creation is among the law’s state-government and public-finance changes included in the budget package.
Highway Patrol report due Oct. 1
The law also contains provisions affecting State Highway Patrol policies. It requires a report to the Joint Legislative Oversight Committee on Justice and Public Safety by Oct. 1, 2026.
That Oct. 1 deadline is the next specific implementation date identified in the available materials. The report requirement places a scheduled oversight step alongside the broader rollout of the 2026-27 budget across state departments, institutions, agencies, schools and public-safety programs.
Stein signed the bill in Raleigh, and the law applies statewide. Its enactment ends the period identified by the governor’s office as more than two years without a full state budget, while setting funding and policy provisions for the 2026-27 fiscal year.
Sources
- Governor Stein Signs State Budget, Enacting Historic Pay Raises for Teachers and Law Enforcement, Office of the Governor of North Carolina
- Session Law 2026-41, North Carolina General Assembly