The North Carolina Division of Child Development and Early Education (DCDEE) contracted the American Institutes for Research® (AIR®) to help the state move toward a more equitable and adequate funding formula for North Carolina Prekindergarten (NC Pre-K). The NC Pre-K Program provides free Pre-K to 4-year-old children from families with incomes up to 75% of the state median income (SMI). The program also allows up to 20% of the slots to be given to children from families with incomes above 75% of the SMI if those children have other identified risk factors. This study provided DCDEE with information that can inform a more equitable funding allocation formula to support the full NC Pre-K system.