State Board of Community Colleges Launches Propel NC, Spotlights Student-Built Affordable Housing

RALEIGH — The North Carolina State Board of Community Colleges marked the first budget cycle under the Propel NC funding model, set a start date for incoming interim President Dr. Monty Sullivan, and spotlighted a student-built affordable housing project at Pitt Community College when it met last week. 

First Budget Under Propel NC 

Propel NC was built into the System’s budget for the first time following passage of the 2026 state budget in July, which carried a $57.5 million allocation. The model replaces a funding formula untouched since 2013, prioritizing high-wage, high-demand sectors and establishing parity between workforce continuing education and curriculum programs under a new umbrella of instructional funding. 

“We don’t have curriculum and continuing education anymore. It’s now called instructional funding. Basic skills is now referred to as adult literacy,” said Lisa Estep, Finance Committee chair. 

To track results, NCCCS Vice President of Government and External Relations Alex Fagg outlined a two-part accountability approach. The framework will first capture colleges’ initial needs and plans, then their actual expenditures and returns on investment, both current and projected. The data will be presented to legislators when the General Assembly reconvenes for its long session in January 2027. 

Sullivan to Start Aug. 24 

The State Board approved the contract and appointment of Sullivan as interim system president. Sullivan, who previously led Louisiana’s community college system, is scheduled to begin Aug. 24. His nomination now goes to the General Assembly for confirmation. 

J.B. Buxton, president of Durham Technical Community College and chair of the North Carolina Association of Community College Presidents, voiced support for the appointment, citing Sullivan’s experience with the issues Propel NC addresses and his record working with legislators across the aisle.

“We believe deeply that his success is our success,” Buxton said. 

Workforce and Community Initiatives 

The Board reviewed several workforce and community efforts funded by the new budget, along with local innovations: 

• Pitt Community College housing partnership: A scalable model developed with the City of Greenville, in which construction students build affordable housing units on campus as coursework, to be relocated for qualifying families.
• NC workforce credential list: Cecilia Holden, president of myFutureNC, presented an employer-validated credential list organized into foundation, gateway, career, and advanced tiers, aligned with the state’s 2030 attainment goal.
• Workforce Diploma Program: A $2.25 million allocation to contract with third-party providers, extending adult high school programs to the eight community colleges that still lack them.
• Access to Achievement expansion: Authorization to expand the initiative into 10 additional colleges, supported by a $640,000 recurring allocation for statewide business and industry engagement roles.
• Short-term workforce development grants: Up to $750 per course for in-state students entering high-demand, family-sustaining training programs such as manufacturing, healthcare, and construction. 

Disaster Preparedness Toolkit 

The Accountability and Audit Committee presented an initial report on a disaster preparedness toolkit drawn from insights across two-thirds of the system’s colleges after Hurricane Helene. The toolkit is anchored by six commitments — practicing preparedness, prioritizing relationships, readying resources, staying connected, centering people, and shaping recovery — and provides checklists for colleges facing future emergencies. It launches publicly in September, with a training session at the system conference in October. 

Other Business 

• Employee bonuses: $22.4 million for one-time bonuses — $1,750 for staff earning $65,000 or less, $1,000 for those earning more — scheduled for distribution around Oct. 15, 2026.
• Audits and risk management: The internal risk assessment identified ERP implementation, cybersecurity, and paper record retention as very high-risk areas. Financial audit findings were noted for Caldwell Community College and Technical Institute, Central Piedmont Community College, Durham Technical Community College, Gaston College, and Southwestern Community College.
• Accreditation: SACSCOC reaffirmed accreditation for Asheville-Buncombe Technical Community College, Isothermal Community College, Rowan-Cabarrus Community College, Wayne Community College, and Wilkes Community College. Edgecombe Community College remains on warning status for standard 8.2.a.
• Tuition pilots: Tri-County Community College requested to move its “Success Without Borders” in-state tuition pilot for neighboring Georgia counties into standard operational status.
• Leadership academies: $55,000 from reserve funds to launch a statewide Change Leadership Academy for Student Success, plus $40,000 to extend the Student Leadership Development Program.
• Personnel: Mark Merritt returns to the State Board, filling the seat previously held by Chaz Beasley. Dr. Bill Starling, president of Sampson Community College, will retire in spring 2027. 

The next State Board meeting is scheduled for Sept. 17-18, 2026. 

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