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North Carolina Supreme Court throws out longtime suit over education funding

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North Carolina Supreme Court throws out longtime suit over education funding
News

News

North Carolina Supreme Court throws out longtime suit over education funding

2026-04-03 09:41 Last Updated At:09:50

RALEIGH, N.C. (AP) — The North Carolina Supreme Court on Thursday threw out longtime litigation over education funding in the state, a decision that's likely to keep intact the power to decide how much money to spend and where with the legislature, not judges.

The 4-3 ruling, led by Republican justices on the court, set aside a landmark ruling in 2022 when the court, then with a Democratic majority, ruled that a lower court judge had the authority to order that taxpayer money be directed to state agencies to address longstanding education inequities.

The following year, another trial judge calculated that the state owed $678 million to fulfill two years of an eight-year, multibillion-dollar comprehensive remedial plan in part to improve teacher recruitment and salaries, expand prekindergarten and help students with disabilities.

In Thursday's ruling, Chief Justice Paul Newby wrote that what started as a modest lawsuit over education spending in one county “became a full-scale, facial assault on the entire educational system enacted by the General Assembly.” Since then, Newby said, judicial actions had gone too far.

When the case expanded “the trial court’s authority to hear the case likewise ceased,” Newby wrote while ordering the school funding litigation be dismissed.

The decision came more than two years after the court heard oral arguments. Republicans who control the General Assembly won’t be obligated to comply with the remedial plan as it writes state budgets, including one for this year that’s now several months late.

Democratic Gov. Josh Stein will have to rely more on persuading lawmakers and using his veto stamp to spend more on his favored education programs and initiatives. Stein was North Carolina's attorney general when the 2022 ruling was handed down.

“The Supreme Court simply ignored its own established precedent, enabling the General Assembly to continue to deprive another generation of North Carolina students of the education promised by our constitution,” Stein said in a statement Thursday.

Two Democratic justices and one Republican dissented in Thursday's ruling.

Associate Justice Anita Earls, a Democrat, said the decision seemed more about dealing with how the 2022 decision was reached than what happens to students.

“Allowing the state to escape judicial scrutiny for constitutional rights violations through its behavior during litigation quickly turns constitutional rights into words on paper — morally compelling but functionally useless,” she wrote.

Attention will now turn toward crafting the next state education spending proposal. The General Assembly reconvenes this month. Close to 40% of the state’s more than $30 billion in annual spending to operate government goes to K-12 funding alone.

Republican Senate leader Phil Berger said in a news release that “liberal education special interests have improperly tried to hijack North Carolina’s constitutional funding process in order to impose their policy preferences via judicial fiat. Today’s decision confirms that the proper pathway for policymaking is the legislative process.”

Critics of GOP education spending have pointed in part to taxpayer-funded scholarships for K-12 students to attend private schools as evidence more could be done for public school children.

The litigation began in 1994, when several school districts in low-income areas and families of children sued and accused the state of violating North Carolina's constitution by not providing adequate education funding.

The case is often referred to as “Leandro” — for the last name of one of the students who sued.

Supreme Court decisions in the case from 1997 and 2004 found the state constitution directs all children must receive the “opportunity to receive a sound basic education,” and that the state remained poorly equipped to comply with that dictate. Many say it's a problem still unresolved.

“The people paying the price for our leaders’ failure are not abstractions. They are the generations of children in rural communities, past and present, who waited for 30 years for a promise never fulfilled,” Tamika Walker Kelly, president of the North Carolina Association of Educators, said in a news release.

The court’s Democratic majority in 2022 had determined that those Supreme Court decisions along with the constitution’s “right to the privilege of education” and years of inaction by elected officials created an “extraordinary” situation that gave the late Judge David Lee power to order funds be spent without a specific law enacted by the General Assembly.

FILE - North Carolina Supreme Court Chief Justice Paul Newby addresses the audience at the North Carolina Medal of Valor Ceremony at the Legislative Building, in Raleigh, N.C., July 10, 2024. (AP Photo/Makiya Seminera, File)

FILE - North Carolina Supreme Court Chief Justice Paul Newby addresses the audience at the North Carolina Medal of Valor Ceremony at the Legislative Building, in Raleigh, N.C., July 10, 2024. (AP Photo/Makiya Seminera, File)

PORTLAND, Ore. (AP) — While the Portland Trail Blazers have emphasized developing young talent in recent years, new owner Tom Dundon says that mindset is shifting toward loftier goals.

“We've tried to get this message through the last couple of days that that was fun, and probably necessary, but it's more fun to win," Dundon said. "It's more fun to do the things that lead to success and hopefully we'll start creating more habits, that those processes lead to the kind of winning that I expect, and I think everybody expects.”

Dundon spoke Thursday along with fellow investors in the “Rip City Rising” ownership group. The NBA Board of Governors on Monday approved the reported $4.25 billion sale of the team by Paul Allen's estate and the new owners took over the team on Tuesday.

The Blazers sit at 39-38 in the Western Conference, a half-game back of the eighth-place Los Angeles Clippers. Having already clinched a play-in spot, if Portland can move into the eighth spot it is an easier one-game shot at advancing to the playoffs.

The new owners group includes Dundon, Portland-based Sheel Tyle, the co-founder of investment firm Collective Global; Marc Zahr, co-president of Blue Owl Capital; the Cherng Family Trust, the investment firm of the co-founders of Panda Express; Stan Middleman of Freedom Mortgage who also owns a stake of the Philadelphia Phillies, and others.

In addition to the Trail Blazers, the acquisition includes the Rip City Remix in the NBA G League and Rip City Management, which operates the Moda Center.

Earlier this month, Dundon sold a portion of the NHL’s Carolina Hurricanes to three new minority owners, a transaction reportedly worth $332.5 million for 12.5% of the team.

Dundon bought a stake in the Hurricanes in 2017, became the majority owner in 2018 and took sole possession of the club in 2021. He is chairman and managing partner of the Dallas-based firm Dundon Capital Partners.

Dundon said he won't shy from pulling off the big deal, adding Blazers general manager Joe Cronin had a possible deal at the trade deadline that would have made a splash.

“If that opportunity exists, I'm probably more aggressive than most," Dundon said. "If it doesn't exist, then you've got to go about finding the pieces to continue to get better, then decide if you can get good enough to win a championship, or you have to take a step back.”

Portland has built in recent years around a nucleus of young players, including Scoot Henderson, Shaedon Sharpe, Toumani Camara and Donovan Clingan. The team's top scorer is Deni Avdija, in his fifth season.

The sale of the Trail Blazers comes after the Oregon Legislature approved funds for the renovation of the Moda Center in early March. The measure gives the state joint ownership of the 30-year-old arena with the city and provides a mechanism to secure $365 million for the building’s renovation ahead of the women's NCAA Final Four in 2030.

Allen, the Microsoft co-founder who died in 2018, bought the Blazers in 1988 for $70 million. His estate announced last May it had begun the process of selling the team. Allen also owned the NFL’s Seattle Seahawks and a minority share of Major League Soccer’s Seattle Sounders.

Allen stipulated in his will the eventual sale of his teams, with the proceeds to be given to philanthropic endeavors. Allen’s estate announced it began the process of selling the Seahawks in mid-February, about two weeks after the team captured the franchise’s second Super Bowl championship.

AP NBA: https://apnews.com/hub/NBA

Portland Trail Blazers general manager Joe Cronin, left, and Sheel Tyle, Blazers alternate governor, center, listen as during a news conference with new owner and governor Tom Dundon, right, on Thursday, April 2, 2026, in Portland, Ore. (AP Photo/Jenny Kane)

Portland Trail Blazers general manager Joe Cronin, left, and Sheel Tyle, Blazers alternate governor, center, listen as during a news conference with new owner and governor Tom Dundon, right, on Thursday, April 2, 2026, in Portland, Ore. (AP Photo/Jenny Kane)

Portland Trail Blazers new owner and governor Tom Dundon, left, speaks during a news conference on Thursday, April 2, 2026, in Portland, Ore. (AP Photo/Jenny Kane)

Portland Trail Blazers new owner and governor Tom Dundon, left, speaks during a news conference on Thursday, April 2, 2026, in Portland, Ore. (AP Photo/Jenny Kane)

Portland Trail Blazers new owner and governor Tom Dundon, center, speaks as alternate governors Andrew Cherng, right, and Sheel Tyle listen during a news conference on Thursday, April 2, 2026, in Portland, Ore. (AP Photo/Jenny Kane)

Portland Trail Blazers new owner and governor Tom Dundon, center, speaks as alternate governors Andrew Cherng, right, and Sheel Tyle listen during a news conference on Thursday, April 2, 2026, in Portland, Ore. (AP Photo/Jenny Kane)

Portland Trail Blazers new owner and governor Tom Dundon speaks during a news conference on Thursday, April 2, 2026, in Portland, Ore. (AP Photo/Jenny Kane)

Portland Trail Blazers new owner and governor Tom Dundon speaks during a news conference on Thursday, April 2, 2026, in Portland, Ore. (AP Photo/Jenny Kane)

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