(The Center Square) – State budget negotiations have stalled between North Carolina Republican leaders in the General Assembly and the calendar year appears headed to an end without a new two-year spending plan.
The budget by state law was due July 1 and Wednesday represented Day 114. Lawmakers from both chambers did send through a mini-budget legislation to help recovery from Hurricane Helene, schools and infrastructure.
Speaker Destin Hall, R-Caldwell, said it is unlikely the House of Representatives will consider more votes this year. State government does not shut down; rather, a 2016 law instituted by Republican majorities and Republican Gov. Pat McCrory has the state on the previous spending plan until a new budget is passed.
As for six vetoes awaiting possible override votes, the House has until Dec. 31, 2026 – the entirety of the two-year legislative session – to take them up.
Continuing Budget Operations Part IV, known also as Senate Bill 449, extends Golden LEAF bridge loans tied to Hurricane Halene; allows delay of state cashflow loans until after FEMA reimbursements are received; and helps infrastructure repairs not covered by FEMA Public Assistance reimbursement.
There is $25 million for the state Pay Plan Reserve; $20.85 million for the North Carolina Integrated Budget Information System; $12 million for broadband fiber damaged by Helene; $7.5 million from State Fair receipts for repair and renovation at the State Fairgrounds; $7 million for ferry maintenance and dry docking; and $1.18 million for a new human resources system.
There is money for education in allotments for Cooperative Innovative High Schools and NC Promise programs. Agriculture and environment programs are ticketed for $3 million associated with avian flu response, and five full-time positions are being added at the Environmental Management Commission with a cost of $700,000.
On Tuesday, passage was 46-0 in the Senate and 104-6 in the House. The bill went to first-term Democratic Gov. Josh Stein on Wednesday, which is Day 0 in the 10 days he has to sign, veto or allow to become law without his signature.
The two-year proposal of Stein is $67.9 billion, both chambers of the General Assembly suggested $65.9 billion, and the Senate and House of Representatives need compromise for their routes to that figure before addressing Stein’s route.
The House plan included larger raises for state employees and smaller income tax cuts than does the Senate. Stein wants larger raises for teachers, though he did offer praise for the amount from the House.
The most recent chamber action on the 2025 Appropriations Act, known also as Senate Bill 257, was the appointment of conference committee members from each chamber June 3 (Senate) and June 5 (House of Representatives). The 34 senators and 45 members of the House include nine Democrats.
Being late is nothing new. Four years ago, Gov. Roy Cooper received the budget on July 1 and affixed his signature on July 11 – the last of a 10-day window he could either sign, veto or allow to become law without his signature.
Two years ago, the deal was 84 days late that put universal school choice in the budget so Medicaid could be expanded. Cooper didn’t sign that one.
Of Cooper’s eight years as governor and four two-year budget proposals, he signed one, allowed one to become law without a signature and vetoed two. He also vetoed a pair of midterm adjustments.
