RALEIGH — Both chambers of the North Carolina General Assembly have dropped mini-budgets before the end of the state’s fiscal year, but neither were enacted before the summer recess.
The House passed its mini-budget, House Bill 192, on June 24 by a vote of 96-17, with 29 House Democrats voting for passage. The bill now sits in the Senate Rules and Operations Committee.
House Bill 192 was originally a teacher pay raise study bill, but the language was stripped and replaced by a committee substitute. The substitute bill’s primary focus is education funding, teacher and state employee raises, bonuses for teachers and certain Medicaid funding adjustments.
The House mini-budget would give most state employees a 2.5% raise and boost teacher pay an average of 6.4%. The House proposal includes a 2.5% cost-of-living adjustment for general state employees, and retirees would get a one-time cost-of-living adjustment of 1%.
The Senate passed its mini-budget (House Bill 125) on June 23, which did not include the pay raises but did have teacher pay schedule “step” increases. The passage vote was 39-6.
House Bill 125 is a much broader budget continuation bill covering reserve fund modifications, disaster recovery, education funding, Medicaid and health services, and capital project funding.
The Senate version includes items from its main budget proposal, such as Senate Leader Phil Berger’s DAVE Act, which establishes the Division of Accountability, Value, and Efficiency in the state auditor’s office.
JetZero’s $252 economic incentive package, as well as a shift of $1 billion to the state’s Rainy Day reserve fund, are also pulled into the Senate mini-budget from its original proposal.
“The Senate and the House failed to come together to meet the needs of North Carolinians before the start of the new budget year,” Gov. Josh Stein said. “While I am gratified that the legislature took action to get more Helene funding out the door, we face many other urgent challenges across the state that need to be addressed through a fiscally responsible, full budget.
“Our teachers, law enforcement, and other state employees deserve real pay raises so we can recruit and retain the best. In addition, at a time when the federal government is proposing severe cuts to Medicaid, leaving Raleigh without taking steps to fully fund North Carolina’s Medicaid program is irresponsible.
“I stand ready to work with the General Assembly to invest in our people and expand opportunities so every person can succeed.”
On June 26, the House failed to concur with the Senate’s proposal, and a conference committee may be assigned.
