2025 promises to be a year of transition for North Carolina's children, accompanied by both significant challenges and tremendous opportunities. Local public schools will play a unique and central role as the state contends with leadership changes across all levels of government, rapid technological and economic transformation, and demographic growth and change. Furthermore, recent devastation from Hurricane Helene serves as a sobering reminder of the potential impact of natural disasters on school communities, and students and educators in Western North Carolina will be recovering for years to come. The next legislative biennium presents a critical moment to serve and equip students, their families, and their communities for all that lies ahead. In the face of ongoing political, technological, and cultural change, local public schools remain open to all, ready to tackle these challenges and to prepare children for life. This report discusses the following education issues and policy actions for 2025-6: (1) ensure the school funding system is equitable, adequate, and flexible to meet students' unique needs; (2) make educator pay competitive in North Carolina; (3) address critical needs to support child well-being and success both in and outside of school; and (4) adopt assessment and accountability policies that are fair and effective.