From $6B to $2B, budget negotiation has less ground to cover

(The Center Square) – Starting teacher pay is slightly less, as are the raises. Master’s pay restored is in both.

Comparing what Democratic Gov. Josh Stein wants in North Carolina’s two-year budget plan to what the members of the House of Representatives are sending going to send forth isn’t as far apart as two years ago. The 2025 Appropriations Act, or Senate Bill 257, has substitutes both chambers will reconcile as the negotiation ensues to bring the governor and two chambers to a spending plan.

“We evaluated every area of the state budget, cutting wasteful spending wherever we found it to fund significant pay raises for our teachers and other state employees with no tax increase,” said Rep. Dean Arp, senior appropriations chairman. “What we have proposed is a sensible, credible plan that invests in our people and reflects the priorities of the people of North Carolina.”

July 1 starts the fiscal year. A 2016 law passed by Republican majorities and governor enables the state to keep the current spending plan in the event a budget is not in place by then, rather than have a state government shutdown.

In addition to education, there are several other differences. But a big one compared to two years ago is that the lawmakers are not $6 billion apart from the governor. Stein proposed a $67.9 billion plan; the General Assembly appears set at $65.9 billion.

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In 2023, then-Gov. Roy Cooper proposed a plan of about $67 billion compared to the two chambers each being at $60.7 billion. He wanted the minimum teacher salary at $46,000, raises on average of 18% with 10% in 2023 and 6% in 2024, retention bonuses and restoration of master’s pay for educators.

Stein this year is requesting $53,000 for starting teacher pay, 10.6% in raises over two years, and restoration of master’s pay. The lawmakers plan for $50,000 starting teacher pay, 8.7% in raises over two years, and restoration of master’s pay.

Rep. Kyle Hall, a senior appropriations chairman, said the proposal slashes “bloated bureaucracy” and redirects “dollars to the classrooms and communities where they belong.”

“I’m proud to support a budget that prioritizes our students and educators,” said Rep. Hugh Blackwell, another chairman of appropriations. “By raising teacher pay, we’re not only recognizing the essential work teachers do every day but also helping to attract and retain top talent in our schools.”

Though Stein is in lawsuits against the lawmakers, his opening day pledge to work together has better optics before the negotiations even begin. He didn’t comment directly on the House plan, though he did offer Tuesday afternoon that the state’s next six months should be “focused on investing in the local economy; creating safe places to live; strengthening infrastructure; restoring farmland; preventing wildfires; supporting families and children; and matching federal recovery dollars.”

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