State Budget Delivers Historic Investment in North Carolina Community College System

RALEIGH, N.C. — The North Carolina Community College System will see one of its largest funding increases in recent years under the state budget passed by the North Carolina General Assembly and signed into law by Governor Josh Stein, with new money aimed squarely at the workforce development that fuels the state’s economy. 

The FY2026-27 budget fully funds community college enrollment growth at $99 million and modernizes how the state pays for workforce programs, allocating $57.5 million in recurring funds to update the funding formula behind Propel NC — the System’s effort to align college funding with the high-demand fields driving North Carolina’s job market, from advanced manufacturing and healthcare to construction and information technology. 

For the faculty and staff behind that work, the budget provides a 3% salary increase, along with one-time bonuses of $1,750 for employees earning $65,000 or less and $1,000 for those earning more. 

“This budget is a historic investment in North Carolina’s future and a powerful statement that workforce development is an economic priority,” said Tom Looney, Chair of the State Board of Community Colleges. “By modernizing workforce funding through Propel NC, supporting record enrollment growth, expanding apprenticeships, and investing in technology, the General Assembly is giving our community colleges the tools to move at the speed of business and innovation. We are committed to treating both our students and our employers like the valued customers they are delivering a seamless experience that prepares talent faster, strengthens our economy, and provides an outstanding return on the taxpayers’ investment.” 

The budget reaches beyond the classroom into the infrastructure that supports it. It includes $3.1 million in recurring funds to sustain and expand ApprenticeshipNC, $10 million for a statewide platform to help colleges recruit and retain students, and $25 million for enterprise resource planning modernization to upgrade the System’s core financial and operational technology, and create a single, standard operating system for the 58 colleges. It also funds the expansion of workforce development for adults with intellectual and developmental disabilities and the launch of a digital wallet platform to give students portable records of their credentials. 

“Local boards of trustees are grateful for this investment in our students and communities,” said Gene Rees of the North Carolina Association of Community College Trustees. “These resources strengthen the ability of our boards to support their colleges in delivering the workforce development that rural North Carolina and high-demand sectors like healthcare depend on.” 

“The North Carolina Community College presidents are thankful to the General Assembly for their support and the opportunities that this budget provides to us,” said Amanda Lee, President of the North Carolina Association of Community College Presidents and President of Bladen Community College. “The modernized Propel NC funding formula provides the flexibility to respond more effectively and efficiently to workforce demand. The infrastructure investments support resources our colleges will use to better serve students and our communities.” 

The investment comes as North Carolina works to close a persistent gap between the number of skilled workers its economy demands and the number its workforce pipeline produces — a shortfall that falls hardest on rural communities and high-demand sectors like healthcare. 

About the North Carolina Community College System

The North Carolina Community College System (NC Community Colleges or System) is the engine for workforce development in North Carolina and the only public entity dedicated to providing affordable college access to anyone in the state. The System is governed by the NC State Board of Community Colleges with administration from the NC Community College System Office, and support from the NC Community Colleges Foundation, and is powered by the 58 community colleges and their respective foundations. Together, the System serves 600,000 students and awards more than 60,000 degrees, diplomas, and certificates annually. For more information, visit https://www.nccommunitycolleges.edu/