Special Education Funding in NC: Public School versus ESA+ Voucher Program

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Public School Funding

In North Carolina, public school districts are funded through a complex resource-allocation model that determines the total cost of education based on the cost of resources needed such as teachers, supplies, and student characteristics (e.g., at-risk, students with disabilities, English learners, low-wealth).  As part of this model, districts receive the same additional allotment for each student with a diagnosed disability (SWD) regardless of the severity of their need. In 2025-26, districts received $5,593 per student. Students who require more services do not get the extra funding to meet those needs and are left with inadequate services unless the school district identifies resources to cover the costs. 

In 2024-25 (most recent update from NC Public Schools Statistical Profile), the state average per pupil expenditure (PPE)—which includes state SWD funding—was $8,152. Federal dollars contributed an average of $1,498, and local governments added $3,417 for a total average PPE of $13,068. Funding for SWD is primarily the responsibility of federal and state governments, so a reasonable comparison to private school voucher funding is the total state + federal average PPE of $9,650 ($8,152 + $1,498). 

ESA+ Voucher Funding 

Funding for the Education Savings Account Program (ESA+) voucher program for students with disabilities comes from the state. Each SWD is eligible for a base allotment of $9,000/year. Students with one of five identified disabilities (hearing, orthopedic, or visual impairment, autism spectrum disorder, and moderate or severe intellectual disability) are eligible for up to $17,000/year. 

Public School Funding Gap 

NC public schools currently serve more than $200,000 SWD; 21% have disabilities that would qualify them for $17,000 through the ESA+ voucher program. However, public school funding is less than $6,000 per SWD. This funding gap identifies a severe inequity in public school versus ESA+ voucher funding, especially for the 21% of public school SWD eligible for $17,000 through the ESA+voucher. View the county breakdown here.

The disparity between the funding for SWD is problematic for many reasons. NC private schools often have policies that discriminate on the basis of disability In some instances, SWD find their only option in the private sector is to attend a school specifically for children with disabilities or receive services at home, which isolates students from their non-disabled peers. This has negative impacts on the SWD in addition to their non-disabled peers who lose the opportunity to interact with students who are different from them.

Parents who accept ESA+ voucher funding must sign a release form stating that they understand that “children who are placed in an ESA+ Eligible School full-time by their parents do not have a right to receive all of the special education and related services that they would receive if enrolled in the public schools.” 

North Carolina’s taxpayer-funded voucher system that explicitly requires families to waive their child’s right to special education services is currently funded at a much higher per pupil rate than the public school system that is legally required to serve all SWD.  

The funding disparity for special education is especially concerning in light of North Carolina’s national funding rank of 50th in both education funding level and education funding effort. In 2023, North Carolina’s average PPE was $5,600 below the national average. If North Carolina were providing more money per student in overall funding, then SWD would also have more funding. 

In summary, North Carolina is failing to appropriately fund ALL public education students, and funding for SWD is especially poor. As public schools come under increasing legal scrutiny for failing to provide adequate services to SWD, addressing the funding inequities between public schools and the taxpayer-funded voucher program should be part of the remedy.

Last updated September 2026

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