North Carolina’s School Funding Rankings Drop

This year’s Making The Grade education funding rankings show North Carolina dropping in all categories

RALEIGH, NC, UNITED STATES, December 16, 2025 /EINPresswire.com/ -- The Education Law Center’s Making the Grade 2025 report released on Wednesday highlights North Carolina’s low rankings in educational funding and effort when compared to other states. North Carolina ranks 50th of 51 states (DC is included) for education funding. Only Idaho is worse. The report’s data is from the 2022-23 school year, so the rankings don't yet account for the relatively flat funding over the past two years or the lack of a 2025-26 state budget.

Making the Grade ranks states in three areas: funding level, funding distribution, and funding effort

Funding Level (NC Grade F; Rank = 50 out of 51). Funding level is determined by dividing combined state and local revenue for PK-12 education by student enrollment and adjusting to account for regional variation in labor market costs. In other words, the rankings account for the fact that some states are more expensive to live and work in than others.

North Carolina spent $5,660 per student less than the national average in 2022-23 ($12,193 in North Carolina compared to the $17,853 national average). This is a drop from the previous year when North Carolina spent $12,252 per student and ranked 48th in funding level.

Funding Distribution (NC Grade C; Rank = 17 out of 48). Funding distribution describes the relationship between district-level, per-pupil funding and student poverty in each state. In other words, to what extent does education funding help offset some of the inequities created by different levels of poverty in communities across the state? This year’s C grade and rank of 17 are lower than last year when North Carolina received B and a rank of 12. So although North Carolina spends very little money on education compared to other states, North Carolina distributes its few dollars more equitably than most.

Funding Effort (NC Grade F; Rank = 50 out of 50). Funding effort ranks states on effort measured as PK-12 spending as a percentage of the state’s economic strength—gross domestic product (GDP). Like funding level, the effort calculation includes both state and local funding. North Carolina ranks lower than all other states, dropping from 49 in last year’s report.

Making the Grade provides useful data points for states to consider when evaluating their commitment to public education and whether more investment is needed to remain competitive.

Heather Koons
Public Schools First NC
info@publicschoolsfirstnc.org
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