(The Center Square) – Day 252 of North Carolina’s wait for a state budget included a brief gaveling in of the General Assembly, a $1.4 billion critical needs budget proposal from the governor, and a swift rejection from General Assembly leadership.
While the Republican majority Senate was not expected to find favor with first-term Democratic Gov. Josh Stein’s proposal, it remains under close watch for whether its leader moves to lame duck status amid the proposals. Sen. Phil Berger, R-Rockingham, and Rockingham County Sheriff Sam Page are on track for a recount in their Republican primary, with Page holding a modest lead of 23 votes from more than 26,000 cast.
The two-year state budget was due to be enacted July 1. Per a 2016 law, the state operates under the previous spending plan when a new one is awaited after the deadline. Lawmakers in 2025 passed what are called mini-budgets to help bridge the absence.
The House of Representatives, led by Speaker Destin Hall, R-Caldwell, has already approved a budget with average pay raises for teachers at 8.7%; average raises of 13% for law enforcement officers; and 2.5% raises for other state employees. Stein’s offer on Monday was for 6% average raises for teachers, 10% for lawmen and 2.5% for other state employees.
Additionally, Stein wants $319 million to fully fund Medicaid. The Medicaid rebase is fully funded through April, according to his administration and cited by Hall’s office.
The Senate’s difference with the House on the budget is tied to teacher pay raise amounts, and the parameters on the declining state income tax.
Speaking for Hall, spokeswoman Demi Dowdy said, “Governor Stein’s budget proposal raises serious concerns. His health care plan refuses to include basic cost controls and guardrails to protect taxpayer dollars. Instead, he proposes directing funds toward high-cost initiatives, like GLP-1 drugs, and programs with a history of fraud and abuse.
“The House has committed to making necessary investments in health care, but it must be done in a way that ensures transparency and responsible stewardship of taxpayer funds.”
Speaking for Berger, spokeswoman Lauren Horsch said, “Senate Republicans remain committed to addressing the state’s most pressing needs in a responsible, fiscally sound manner. Governor Stein’s proposal is the opposite of that. It would create a recurring budget deficit and force the state to increase taxes on working families.”
