End NCAE’s taxpayer-subsidized dues check-off privilege

On May 1, the North Carolina Association of Educators held another large rally in downtown Raleigh. The date was not accidental. May 1 is International Workers’ Day, and NCAE used the occasion to protest, pressure lawmakers, and push a sweeping legislative agenda.

The rally wasn’t simply symbolic. Schools across North Carolina closed or changed their schedules due to staff absences. Parents had to scramble. Students missed classroom time. Lawmakers were pressured to adopt the NCAE’s demands, including large pay increases, more government spending, an end to Opportunity Scholarships, changes to tax policy, and even the repeal of North Carolina’s ban on collective bargaining for public employees.

That is the NCAE’s right. The organization may lobby. It may rally. It may demand tax hikes, spending increases, and labor law changes. But taxpayers should not be forced to help administer its political and lobbying operation through government payroll systems.

North Carolina law currently allows certain employee associations to receive dues through payroll deduction — commonly known as dues check-off. This means the state or local government automatically withholds dues from an employee’s paycheck and sends the money directly to the association, just like it does with taxes or health insurance premiums.

For local school board employees, the statute allows deductions for dues and voluntary contributions to a domiciled employees’ association only if that association has at least 40,000 members, a majority of whom are public school teachers.

That threshold matters. It is not a suggestion. It is a legal condition for a government-administered benefit.

Recent reporting raises serious questions about whether the NCAE still meets that condition. Within the past week, WRAL and the News & Observer reported that the NCAE had roughly 27,000 members in 2024, citing a State Auditor report.

The report itself is even more direct. In its findings, the State Auditor listed the NCAE’s total membership count at 26,946 and stated that the Office of the State Auditor “did not identify any employees’ associations with at least 40,000 members,” the threshold state law sets for dues and voluntary contributions through local school board payroll deduction.

That should be the end of the dues check-off privilege unless and until the NCAE can demonstrate that it currently complies with the law.

This is not about silencing the NCAE. It is not about preventing educators from joining an association or restricting anyone’s freedom of speech. Teachers and school employees are free to join, support, contribute to, and attend rallies for the NCAE’s agenda.

The question is whether state and local government payroll systems should continue serving as the collection agent for a labor organization that may no longer qualify under the law.

The answer is no.

The NCAE is organized as a 501(c)(6) nonprofit. Unlike a traditional charity, a 501(c)(6) professional or trade association can engage in lobbying and political activity subject to applicable tax-law limits. Dues revenue is a major driver in sustaining the organization’s broader work. When government payroll systems collect and transmit those dues, taxpayers are effectively providing administrative support to an organization that lobbies them for higher spending, higher taxes, and more power over public policy.

That is a bad arrangement even when the organization satisfies the statutory requirements. It is indefensible if the organization does not.

The North Carolina General Assembly should fix this now with a neutral, statewide rule. Any organization receiving dues or voluntary contributions through public payroll deduction should have to prove that it meets every statutory condition for that privilege.

Current law appears to set eligibility requirements but lacks teeth. It does not clearly say who verifies compliance, how often eligibility must be certified, what evidence must be submitted, or who can terminate deductions when an organization no longer qualifies.

Because dues check-off is a statewide statutory privilege, compliance should not be left to the 115 local school districts to interpret on their own. The cleanest solution is to require the State Controller to determine eligibility, require annual certification and supporting documentation, notify affected payroll offices, and suspend or terminate deductions for noncompliant organizations.

The State Auditor could also have a role in verifying membership claims or auditing certifications. That would strengthen accountability. But the operational decision should rest with one statewide officer, and the State Controller is the most logical choice.

The fix does not have to be complicated: any organization receiving public payroll deductions should annually certify that it meets the law’s requirements and provide documentation sufficient to verify its membership and eligibility. If it fails to certify, refuses to provide documentation, or falls below the statutory threshold, payroll deductions should stop.

This should not be a law against the NCAE; it should simply enforce the law and enforce it equally on all organizations.

But the NCAE is the obvious case study. It lobbies aggressively, organizes rallies that disrupt school operations, demands higher taxes and spending, and pushes a one-sided political agenda. If it no longer meets the legal threshold for dues check-off, taxpayers should not be forced to subsidize its fundraising through public payroll systems.

Public employees who wish to support the NCAE can still do so directly. But the State of North Carolina’s payroll system should not serve as a pass-through fundraising mechanism for political pressure groups.

The General Assembly should clarify the law so that eligibility is enforced statewide and the state determines compliance annually. A statutory privilege without enforcement is not really a law.

It is a loophole that needs closing.

“End NCAE’s taxpayer-subsidized dues check-off privilege” was originally published on www.carolinajournal.com.