North Carolina public schools face nearly $18 billion in projected construction and renovation needs over the next five years, raising concerns about how school districts will pay for aging buildings and expanding infrastructure requirements.

A statewide facilities needs report presented to the North Carolina State Board of Education in November 2026 estimated total needs at approximately $17.96 billion for fiscal years 2027 through 2031.

The figure represents an increase of more than $5 billion compared with the previous five-year assessment, which estimated approximately $13 billion in required school facility improvements.

The findings are based on information submitted by all 115 local school systems during the 2025–2026 school year.

Aging school buildings contribute to rising costs

A significant portion of the projected spending involves renovating existing school facilities.

According to the report, renovation requirements account for approximately 54% of identified facility needs. Renovation costs have increased by 76% compared with the previous assessment.

State education officials also highlighted the age of school infrastructure. Approximately two-thirds of school buildings reported by districts are more than 30 years old.

Construction costs have also risen considerably. The estimated baseline cost for new school construction reached approximately $350 per square foot in 2026, compared with $138 per square foot in 2011.

The report identifies plans for 88 new schools across 56 districts, along with renovation projects involving 1,416 schools.

Where will the funding come from?

Funding remains one of the biggest challenges facing school districts.

North Carolina has relied on a combination of state appropriations and local school bonds to support construction and renovation projects.

During the previous five-year period, state funding provided approximately $2.8 billion for school facility needs. Eight counties also approved local school bonds totaling approximately $5.88 billion.

However, education officials have expressed concern that existing funding sources may not be sufficient to address the statewide requirements.

The issue could become particularly important as local governments consider future borrowing and property tax policies.

What happens next?

The facilities needs report is expected to help guide discussions about future education funding and state budget decisions.

For families, students and local communities, the condition of school buildings can affect classroom capacity, maintenance, safety and the availability of modern educational facilities.

The final funding decisions will depend on state lawmakers, local governments and the financial priorities of individual school districts.

Sources