Restore Benefits to Educators/State Employees.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 865

Short Title: Restore Benefits to Educators/State Employees. (Public)
Sponsors: Senators Mohammed and Waddell (Primary Sponsors).
Referred to: Rules and Operations of the Senate
April 29, 2026
*S865-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MAKE CHANG ES TO PROVISIONS OF LAW RELATED TO THE 2
COMPENSATION OF EDUC ATORS, TO RESTORE CE RTAIN RETIREE MEDICA L 3
BENEFITS, AND TO EXPAND THE TEACHING FELLOWS PROGRAM. 4
The General Assembly of North Carolina enacts: 5
6
PART I. REINSTATE EDUCATION -BASED SALARY SUPPLEM ENTS FOR 7
TEACHERS AND INSTRUCTIONAL SUPPORT PERSONNEL 8
SECTION 1.(a) G.S. 115C-302.10 is repealed. 9
SECTION 1.(b) Notwithstanding any other provision of law, for the 2026 -2027 10
fiscal year, State Board of Education po licy TCP-A-006, as it was in effect on June 30, 2013, 11
shall be used to determine (i) whether teachers and instructional support personnel are paid on 12
the "M" salary schedule and (ii) whether they receive a salary supplement for academic 13
preparation at the six-year or doctoral degree level. 14
SECTION 1.(c) There is appropriated from the General Fund to the Department of 15
Public Instruction the sum of eight million dollars ($8,000,000) in recurring funds beginning in 16
the 2026 -2027 fiscal year to reinstate educa tion-based salary supplements for teachers and 17
instructional support personnel in accordance with this act. 18
SECTION 1.(d) This section becomes effective July 1, 2026. 19
20
PART II. RESTORE LONGEVITY PAYMENTS FOR EDUCATORS 21
SECTION 2.(a) Section 9.1(d) of S.L. 2014-100 is repealed. 22
SECTION 2.(b) For the 2026 -2027 fiscal year, annual longevity payments for 23
teachers and instructional support personnel shall be at the rate of one and one -half percent 24
(1.5%) of base salary for 10 to 14 years of State service, two and twenty-five hundredths percent 25
(2.25%) of base salary for 15 to 19 years of State service, three and twenty -five hundredths 26
percent (3.25%) of base salary for 20 to 24 years of State service, and four and one -half percent 27
(4.5%) of base salary for 25 or more years of State service. The longevity payment shall be paid 28
in a lump sum once per year. 29
SECTION 2.(c) For the 2026 -2027 fiscal year, longevity payments for principals 30
and assistant principals shall be as provided for State employees under the North Carolina Human 31
Resources Act. 32
SECTION 2.(d) There is appropriated from the General Fund to the Department of 33
Public Instruction beginning in the 2026 -2027 fiscal year the sum of one hundred forty million 34
three hundred thousand dollars ($140,300,000) in recurring funds to restore longevity payments 35
for educators pursuant to this act. 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 865-First Edition
SECTION 2.(e) This section becomes effective July 1, 2026. 1
2
PART III. PREVENT THE ELIMINATION OF RETIREE MEDICAL BENEFITS FOR 3
MEMBERS FIRST EARNIN G SERVICE ON OR AFTE R JANUARY 1, 2021, UNDER 4
THE NORTH CAROLINA T EACHERS' AND STATE E MPLOYEES' RETIREMENT 5
SYSTEM, THE CONSOLID ATED JUDICIAL RETIRE MENT SYSTEM, THE 6
LEGISLATIVE RETIREME NT SYSTEM, OR THE OP TIONAL RETIREMENT 7
PROGRAMS 8
SECTION 3.1.(a) Subsections (c) and (d) of Section 3 5.21 of S.L. 2017 -57 are 9
repealed. 10
SECTION 3.1.(b) This section is effective retroactively to December 31, 2020. 11
SECTION 3.2.(a) There is appropriated from the General Fund to the Department 12
of State Treasurer the sum of two million dollars ($2,000,000) in recurring funds for the 13
2026-2027 fiscal year to be used to address the increased cost to the North Carolina State Health 14
Plan for Teachers and State Employees as a result of the continuation of retiree medical benefits 15
under this act. 16
SECTION 3.2.(b) Subsection (a) of this section becomes effective July 1, 2026. 17
18
PART IV. EXPAND NC TEACHING FELLOWS PROGRAM 19
SECTION 4.(a) G.S. 116-209.62 reads as rewritten: 20
"§ 116-209.62. North Carolina Teaching Fellows Program established; administration. 21
… 22
(f) Program Selection Criteria. – The Authority shall administer the Program in 23
cooperation with up to 10 11 institutions of higher education with approved educator preparation 24
programs selected by the Commission that represent a diverse selection of both post secondary 25
constituent institutions o The University of North Carolina and private postsecondary institutions 26
operating in the State. At a minimum, the Commission shall select North Carolina Agricultural 27
and Technical State University, a designated historically black college and university (HBCU), 28
to participate in the Program. The Commission shall adopt stringent standards for selection of 29
the other institutions for the most e ffective educator preparation programs, including the 30
following: 31
(1) Demonstrates high rates of educator effectiveness on value-added models and 32
teacher evaluations, including using performance -based, subject -specific 33
assessment and support systems, such as edTPA or other metrics of evaluating 34
candidate effectiveness that have predictive validity. 35
(2) Demonstrates measurable impact of prior graduates on student learning, 36
including impact of graduates teaching in qualifying licensure areas. 37
(3) Demonstrates high rates of graduates passing exams required for teacher 38
licensure. 39
(4) Provides curricular and co -curricular enhancements in leadership, facilitates 40
learning for diverse learners, and promotes community engagement, 41
classroom management, and reflection and assessment. 42
(5) Requires at least a minor concentration of study in the subject area that the 43
candidate may teach. 44
(6) Provides early and frequent internship or practical experiences, including the 45
opportunity for participants to perform practicums in d iverse school 46
environments. 47
(7) Is approved by the State Board of Education as an educator preparation 48
program. 49
(8) For an educator preparation program enrolling loan recipients in a program of 50
study leading to licensure in elementary education (K -6), provides training 51
General Assembly Of North Carolina Session 2025
Senate Bill 865-First Edition Page 3
that is aligned with the Science of Reading in accordance with 1
G.S. 115C-269.20. The Commission shall contract with a third-party entity to 2
biennially evaluate whether a program identified in this subdivision is 3
providing training that is aligned with the Science of Reading. 4
(g) Awards of Forgivable Loans. – The Program shall provide forgivable loans to selected 5
students to be used at up to 10 selected the participating institutions for completion of a program 6
leading to initial teacher licensure as follows: 7
(1) North Carolina high school seniors. – Forgivable loans of up to five thousand 8
dollars ($5,000) per semester for up to eight semesters. 9
(2) Students applying for transfer to a selected educator preparation program at 10
an institution of hi gher education. – Forgivable loans of up to five thousand 11
dollars ($5,000) per semester for up to six semesters. 12
(3) Individuals currently holding a bachelor's degree seeking preparation for 13
teacher licensure. – Forgivable loans of up to five thousand doll ars ($5,000) 14
per semester for up to four semesters. 15
(4) Students matriculating at institutions of higher education who are changing to 16
an approved program of study at a selected educator preparation program. – 17
Forgivable loans of up to five thousand dollar s ($5,000) per semester for up 18
to four semesters. 19
Forgivable loans may be used for tuition, fees, the cost of books, and expenses related to 20
obtaining licensure. 21
…." 22
SECTION 4.(b) This section becomes effective July 1, 2026, and applies beginning 23
with the 2026-2027 academic year. 24
25
PART V. EFFECTIVE DATE 26
SECTION 5. Except as otherwise provided, this act is effective when it becomes 27
law. 28