Progress towards State Budget

North Carolina lawmakers say they are finally making progress toward a long-overdue state budget agreement after months of negotiations between Republican leaders in the House and Senate.

House Speaker Destin Hall and Senate leader Phil Berger announced this week they have reached what they called a “starting point” for a compromise budget plan. The agreement is expected to serve as the framework for a final state budget after nearly a year of delays.

One of the biggest highlights of the proposal includes an average 8% pay raise for North Carolina teachers. Veteran teachers could also receive bonuses of up to $1,000, while newer teachers may receive $500 bonuses. State employees are also expected to see raises and bonuses under the plan.

The compromise would also slow down previously planned income tax cuts. Lawmakers say the change would help free up additional money for teacher pay raises, law enforcement funding, and other state priorities.

Republican leaders said there is still plenty of work to do before a final budget is approved, but both chambers appear more optimistic than they have in months.

Governor Josh Stein responded positively to the possibility of raises for teachers and state workers, but also raised concerns about a proposal that could place a constitutional cap on the state income tax rate.

North Carolina has been operating without a full new budget agreement since last year, although state government services have continued operating under existing funding levels.

Lawmakers hope to finalize and vote on a complete budget package sometime next month.