Jonathan D. Miller for NC Senate

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Our parents deserve more choices. Our teachers deserve a competitive wage. Our schools need competition to stay competitive. Most importantly our children have a right to a better education. 

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2027
SENATE BILL 1
Short Title: Education Choice and Performance Act.
(Public)
Sponsors: Senator Jonathan D. Miller.
Referred to: Education/Higher Education.

A BILL TO BE ENTITLED
AN ACT TO ENHANCE EDUCATIONAL CHOICE AND FLEXIBILITY IN NORTH CAROLINA BY STRENGTHENING PUBLIC SCHOOL TEACHER COMPENSATION THROUGH PERFORMANCE INCENTIVES, ESTABLISHING UNIVERSAL EDUCATION SAVINGS ACCOUNTS FOR FAMILIES, AND SIMPLIFYING THE PROCESS FOR LICENSED TEACHERS TO ESTABLISH INNOVATIVE SCHOOLS, WHILE PRESERVING AND SUPPORTING THE EXISTING PUBLIC SCHOOL SYSTEM.
The General Assembly of North Carolina enacts:

SECTION 1. This act shall be known and may be cited as the Education Choice and Performance Act of 2027.

SECTION 2. Article 9 of Chapter 115C of the General Statutes is amended by adding a new Part to read:
Part 10. Performance Incentives for Public School Teachers.
§ 115C-XXX. Definitions.
For the purposes of this Part:
(1) Eligible teacher means a teacher employed in a public school unit who holds a valid North Carolina teaching license.
(2) Performance goal means that at least eighty percent (80%) of the students in the teacher's assigned classes achieve a grade of seventy-five percent (75%) or higher in core subjects, as measured by end-of-year assessments or equivalent metrics approved by the State Board of Education.
§ 115C-XXX. Starting Salary and Performance-Based Raises.
(a) Beginning with the 2027-2028 school year, the starting base salary for eligible teachers in public school units shall be fifty thousand dollars ($50,000) per year, adjusted annually for inflation based on the Consumer Price Index.
(b) Eligible teachers shall receive an annual performance-based raise of up to five thousand dollars ($5,000) if the performance goal is met for the prior school year. Raises shall accumulate year over year, with a maximum salary cap of one hundred fifty thousand dollars ($150,000) after thirty (30) years of service.
(c) The State Board of Education shall adopt rules for verifying performance goals, including adjustments for special education students, socioeconomic factors, and alternative assessment methods where appropriate.
(d) Funding for increased salaries under this Part shall be provided from the State Public School Fund, with allocations prioritized to support recruitment and retention in high-need areas.

SECTION 3. Chapter 115C of the General Statutes is amended by adding a new Article to read:
Article XX. Universal Education Savings Accounts.
§ 115C-XXX. Establishment and Administration of Accounts.
(a) Beginning with the 2027-2028 school year, the State shall deposit eleven thousand dollars ($11,000) per eligible student per year into an individual Education Savings Account (ESA) managed by the State. The amount shall be adjusted annually for inflation.
(b) Eligible students include all resident children aged five (5) through eighteen (18) enrolled in public schools, private schools, homeschooling, or other approved educational arrangements.
(c) ESA funds may be expended for any reasonable educational purposes, including but not limited to:
(1) Tuition, fees, and related costs at private schools or alternative learning programs.
(2) Homeschool curricula, textbooks, instructional materials, and supplies.
(3) Tutoring services, online courses, or supplemental educational programs.
(4) Educational travel, field trips, museum visits, and experiential learning opportunities.
(5) Technology, tools, equipment, or other resources directly supporting instruction in core academic or vocational subjects.
(6) Any other expenses that directly contribute to the student's education, as determined by the parent or guardian and subject to reasonable audit and verification by the Department of Public Instruction.
(d) Funds not expended in a given year shall roll over to subsequent years and may be used until the student reaches age twenty-one (21) or completes high school graduation requirements, whichever is later. Any remaining funds thereafter shall revert to the State for redistribution to other ESAs.
(e) The Department of Public Instruction shall administer the program, including development of a user-friendly online portal for account management, expenditure tracking, and reimbursement requests. The Department may partner with private entities to assist in administration.

SECTION 4. Article 39 of Chapter 115C of the General Statutes (relating to nonpublic schools) is amended by adding a new Part to read:
Part XX. Licensing for Teacher-Led Educational Programs.
§ 115C-XXX. Simplified Licensing for Certified Teachers.
(a) Any individual holding a valid North Carolina teaching certificate may apply to operate a private school, micro-school, learning pod, or other educational program upon meeting basic health, safety, and local zoning requirements.
(b) Such programs shall be eligible to enroll students funded through Education Savings Accounts under Article XX of this Chapter.
(c) Teacher-led programs licensed under this section shall not be subject to State-mandated curriculum, standardized testing, or enrollment limitations applicable to traditional public schools, provided they demonstrate student progress through parent-approved assessments or accreditation by a recognized private entity.
(d) The State Board of Education shall approve applications within thirty (30) days of receipt, with application fees not to exceed five hundred dollars ($500). Denials shall include written reasons and may be appealed to the Office of Administrative Hearings.

SECTION 5. This act becomes effective July 1, 2027, and applies beginning with the 2027-2028 school year. The General Assembly shall appropriate funds from the General Fund as necessary to implement this act, including initial allocations for Education Savings Accounts and teacher salary adjustments based on projected student enrollment and teacher participation.

SECTION 6. If any provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications that can be given effect without the invalid provision or application.