A master’s degree in teaching costs about $6,400 a semester for a full-time North Carolina resident attending East Carolina University’s College of Education, meaning a four-semester program would cost about $26,000. But, according to the North Carolina state legislature, that doesn’t mean it’s worth anything.

In the most recent state budget passed by the state legislature and signed by the governor last week, North Carolina lawmakers eliminated a provision – which exists in many states – that granted automatic pay raises to public school teachers who completed master’s degrees. It was one of several changes the budget made to teacher compensation and working conditions, including ending teacher tenure, but it is the one likely to have the largest impact on the state’s higher education institutions.

The elimination of the benefit could have a significant effect on enrollment in education schools at North Carolina colleges and universities. And since many of those programs generate net revenues for the institutions, enrollment declines could affect their bottom lines....