North Carolina lawmakers recently passed the 1000 day mark since they last passed a comprehensive state budget. After missing the initial deadline for a state budget last June due to infighting between Republican chamber leaders, this year makes three years since lawmakers have passed a budget.
Since 2025 Governor Josh Stein has been urging lawmakers to pass a budget, releasing several budget recommendations himself. His Critical Needs Budget, released this May, addresses funding for several areas like teacher pay, public safety and state programs that Stein argues cannot wait.
“Without passing a comprehensive budget in two and a half years, this action is long overdue.” Stein said in a statement.
Stein’s Critical Needs Budget calls for a Medicaid Rebase funding for the state’s Medicaid program; Teacher & Instructional Support Raises with 13% for starting employees and a 5.8% on average, Certified Public Safety & Law Enforcement Officer Raises Nurses and Other Health Care Personnel Raises at 10%; Raises for All State Employees at 2.5%; Retirees Adjustment by 2.5% and a $20 million investment in child care.
Following Stein’s budget announcement, Senate leader Phil Berger and House Speaker Destin Hall held a press event to announce that they have come to an agreement on the framework for a budget. During the press event they spoke about agreed raises of 3% for most state employees, 8% for teachers and raises for law enforcement.
“So there were some words in this framework about raising pay for educators and state employees. They looked good, but I really need to see the final product,” Stein said.
However, the press event hosted by Berger and Hall was now six weeks ago and as the short session moves forward there has been no legislative action towards a budget.
July 1 is when the new fiscal year begins for 2026-27, and if the legislature does not pass a budget by that deadline the state will operate under a budget continuation: meaning the state will run off of the funds assigned in the last budget– save funds that were set as non recurring.
For North Carolina that has gone over 1000 days since a new budget, meaning teachers, state agencies, law enforcement and state programs will be running off funds assigned years ago with no adjustment for rising costs, increased population and inflation.
Stein points out that the lack of action from lawmakers will hurt the state’s ability to hire and retain teachers, fund state programs and hire and retain state workers to serve the growing population.
“Persistent inflation has driven up the cost of almost everything, from raw materials to contracted services. The state added 326,000 new residents since the 2023 budget was passed. And the federal funding landscape has dramatically shifted for the worse,” Stein said in his Critical Needs Budget.
Budget writers have said that their work in the budget process is done, and now it comes down to negotiations between Republican chamber leaders. Things like funding for a children’s hospital, and funding to prepare for a possible Major League Baseball team in Raleigh are still being debated. One of the budget writers for the House, Republican Rep. Donny Lambeth, says budget writers in both chambers have given the Hall and Berger about 5 pages of details they still need to sort out as the deadline quickly approaches.
