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North Carolina creates school financial flexibility pilot program allowing districts to hire unlicensed teachers

Original title: School Financial Flexibility Pilot Program.

Last action · April 10, 2025: Ref To Com On Rules and Operations of the Senate (Senate action)Sponsors: Todd Carver and 2 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Eligible North Carolina school districts may submit a Financial and Hiring Flexibility Plan to the State Board of Education by January 15, 2026, to gain operational and financial autonomy starting in the 2026-2027 school year. The measure allows participating districts to employ unlicensed teachers for up to fifty percent of classroom positions, provided they are college graduates in core subjects and complete specialized preservice training. Districts must meet specific student performance, teacher retention, and career development goals by the conclusion of the 2030-2031 school year or face plan termination.

Why it matters

Participating school administrative units gain broad discretion over state funds and hiring requirements while facing strict academic accountability benchmarks and annual reporting duties through 2031 and beyond.

Background
  • North Carolina local school administrative units operate under state-defined teacher licensure mandates and funding allotment regulations set in Chapter 115C of the General Statutes. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Eligible local school administrative units

Local boards gain operational, financial, and hiring flexibilities alongside mandatory reporting and academic target obligations.

Directly affected

Teachers

Up to half of the teaching staff in participating schools may be employed without standard state licenses if specific training and degree criteria are met.

Directly affected

Students in participating districts

Students experience modified school calendars, altered staffing rules, and district-level goals concerning career development and academic growth.

Key Facts

  • Eligible school districts must have the authority to levy and lay special taxes for bond payments and had an allotted average daily membership of at least 5,000 for the 2023-2024 school year.
  • Local boards must submit an FHFP to the State Board of Education by January 15, 2026, to begin operations in the 2026-2027 school year.
  • Plans must detail how districts will ensure 100% of students complete a career development plan by senior year, achieve a 90% teacher retention rate, improve average growth index to 0.50 or greater, and raise subgroup growth rates above the state average by the end of the 2030-2031 school year.
  • Beginning July 1, 2026, up to 50% of teachers in each school within an operating district may be unlicensed, provided they are college graduates if teaching core subjects (mathematics, science, social studies, and language arts) and complete mandatory preservice training.
Show all 10 facts
  • Unlicensed teachers must complete preservice training in disability identification and education, positive behavior management, de-escalation communication, and safe seclusion and restraint practices before instructing.
  • All schools in a participating district are deemed to have continuously operated under a modified calendar since the 2003-2004 school year.
  • State funds allocated to participating districts are unrestricted except for federal restrictions, grant conditions, or State Board rules, notwithstanding standard statutory spending limits.
  • The State Board must review participating districts after the 2030-2031 school year and at least every three years thereafter, and must terminate plans if a majority of schools are identified as low-performing for two consecutive years before review.
  • The Superintendent of Public Instruction must report annually to the Joint Legislative Education Oversight Committee starting no later than November 15, 2027.
  • Participating districts must submit annual reports to the Superintendent no later than July 15, 2027, detailing staffing, academic gap-closing actions, and spending breakdowns.

Frequently Asked Questions

Which school districts are eligible for the financial and hiring flexibility pilot program?
Eligible districts are local school administrative units that have the authority to levy and lay special taxes for bonds issued by their governing body and had an allotted of at least 5,000 students for the 2023-2024 school year.
Are unlicensed teachers required to have a college degree under this pilot program?
Yes. All teachers teaching in the core subject areas of mathematics, science, social studies, and language arts must be college graduates.
What happens if a participating district fails to meet its academic goals or fiscal standards?
The State Board of Education shall terminate the Financial and Hiring Flexibility Plan if the district fails to meet academic strategic goals, if a majority of its schools are identified as low-performing in the two years preceding review, or if it violates fiscal management standards or laws.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently passed chamber. The next step in the legislative lifecycle is Law.

Procedural history

14 actions
  1. Apr 10, 2025Senate
    Ref To Com On Rules and Operations of the Senate
  2. Apr 10, 2025Senate
    Passed 1st Reading
  3. Apr 10, 2025Senate
    Regular Message Received From House
  4. Apr 10, 2025House
    Regular Message Sent To Senate
  5. Apr 9, 2025House
    Passed 3rd Reading
  6. Apr 9, 2025House
    Passed 2nd Reading
Show 8 earlier actions
  1. Apr 3, 2025House
    Placed On Cal For 04/09/2025
  2. Apr 3, 2025House
    Cal Pursuant Rule 36(b)
  3. Apr 3, 2025House
    Reptd Fav
  4. Apr 1, 2025House
    Re-ref Com On Rules, Calendar, and Operations of the House
  5. Apr 1, 2025House
    Reptd Fav
  6. Feb 21, 2025House
    Ref to the Com on Education - K-12, if favorable, Rules, Calendar, and Operations of the House
  7. Feb 21, 2025House
    Passed 1st Reading
  8. Feb 17, 2025HouseIntroduced
    Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Connected Entities

Joint Legislative Education Oversight Committee, Retirement Systems Division, Department of Public Instruction and 5 more
OrganizationJoint Legislative Education Oversight Committee“Receives annual progress reports from the Superintendent”Map →
OrganizationRetirement Systems Division“Receives transmitted funds for delinquent contributions”Map →
OrganizationDepartment of Public Instruction“Calculates and distributes state funds to districts operating under an FHFP”Map →
OrganizationState Treasurer“Draws warrants and receives default notifications”Map →
OrganizationOffice of State Budget and Management“Notified of retirement system defaults”Map →
OrganizationBoard of Trustees of the Teachers' and State Employees' Retirement System“Notifies officials regarding default on district contributions”Map →
OrganizationState Board of Education“Responsible for approving and reviewing Financial and Hiring Flexibility Plans”Map →
PersonSuperintendent of Public Instruction“Receives annual reports and recommends plan terminations”Map →

Sources

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz35
    Current news / social attention level

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