General Assembly Leadership Announces Budget Framework Deal
Yesterday, Senate Leader Phil Berger and North Carolina House Speaker Destin Hall held a press conference to announce that the two chambers reached a deal of the basic framework for state budget. Last year, the two chambers did not pass an updated state budget, so state government continued to operate based on funding levels from the previous budget. Notably this is framework for the budget, significant work needs to be done before the final product is released.
Speaker Destin Hall said, “The House and Senate have reached a deal on some major outstanding issues that is going to allow us to move forward and get a budget done. As you know, House Republicans have been fighting to make sure that we take care of our teachers, and out state employees and this budget will do that.”
Senate Leader Phil Berger said, “YOU get to keep more of YOUR money. Senate Republicans went to the mat to secure a tax cut for all North Carolinians next year. This budget slashes your tax rate from 3.49%, and it will continue to drop to 2.99%. We’re protecting the taxpayers by fighting against increases.”
Democrat Governor Josh Stein said, “It is past time that our teachers, state law enforcement officers, and state employees get a meaningful raise and recognition for their service to the people of North Carolina. Today’s announcement is only a framework, but if the final budget actually includes real salary increases, it would be welcome. The proof, however, will be in the pudding.”
Some key highlights from the budget deal:
All state employees would get raise of at least 3%, while certain occupations would receive even higher salary increases.
Teachers would receive an average raise of 8%. Highway Patrol officer would receive a 17.7% raise, and 13% for other law enforcement officers. Prison workers would receive a 15.4% raise, and 10.1% raise for probation and parole officers. Additionally, some hard to fill positions would receive cash bonuses.
The current income tax rate is 3.99%, down from 4.25% in 2025. The new budget would institutes graduate decreases to 2.99% in 20233. The deal also make no changes to the planned cuts to the corporate income tax, which is 2% now and set to reach 0% in 20230.
Additionally, Republicans announced their support to legislation to limit property tax increases and a proposed constitutional amendment to cap income taxes at 3.99%, helping lock tax cuts.
