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Press Release

Report Ranks North Carolina Last in School Funding Equity and Adequacy

Albert Shanker Institute study finds most North Carolina students attend underfunded districts, with the state ranking near the bottom nationally in fiscal effort and school funding adequacy.
NCAE
Published: April 20, 2026

Raleigh, NC — As North Carolina’s public schools remain chronically underfunded, a recent report from the Albert Shanker Institute is highlighting how state leaders are continuing to neglect the 1.5 million children attending public schools across the state. The report ranks North Carolina dead last when it comes to providing adequate and equitable funding for all students, despite having the ninth-highest public school enrollment in the country. North Carolina is also one of only 10 states in which half of students attend districts that are chronically underfunded.

The national report analyzed three core indicators to calculate funding-level grades for public school districts, with North Carolina ranking near the bottom in both fiscal effort and state adequacy.

North Carolina ranked 49th out of 50 states in Fiscal Effort, a measurement of how much of a state’s total resources are devoted directly to public K–12 education. This ranking is reflective of the General Assembly prioritization of funding private school vouchers with tax payer dollars that could be used to fund public schools and lawmaker unwillingness for years now to pass a budget that would fully fund school needs.

According to the report, North Carolina’s fiscal effort to fund public schools was lower than its 2006–2012 levels in every year from 2016 to 2023. This decline falls below the national average and trails not only all neighboring states, but every state in the South. This is another statistic highlighting the General Assembly’s continued disinvestment in North Carolina’s public schools. The report also notes that if fiscal effort had returned to 2006 levels, K–12 public schools would have received more than $28 billion in additional funding between 2016 and 2023.

The report also ranked North Carolina 41st in Statewide Adequacy, a measure that compares actual per-pupil spending with the estimated amount needed to achieve the modest goal of average U.S. test scores.

The data shows that just over 87% of students attend districts funded below adequate levels, and more than 59% of students are in districts that are chronically underfunded. Both metrics rank 44th nationally, with 1st representing the most adequate funding levels.

“This is yet another report highlighting the failures of our General Assembly to invest in public schools over the years," said NCAE President Tamika Walker Kelly. " How many more reports will rank North Carolina at the bottom when it comes to adequately funding our schools before lawmakers take action and do what’s best for students, working families, and the future of our state?”

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A leading voice for educational excellence

The North Carolina Association of Educators (NCAE) is our leading voice for educational excellence, for children and their families, and for the public schools they count on. As the public school employees union and the largest association of professional educators in North Carolina, our membership extends to all 100 counties and includes teachers, non-classified school staff, administrators, students, retirees, and community allies. NCAE believes that every child has a right to a high-quality education, an excellent teacher, and a well-funded school.