State House and Senate leaders still haven’t reached an agreement on a budget for the fiscal year that started this month, but on Tuesday they introduced a “mini-budget” bill to fund urgent needs like teacher pay and Medicaid coverage.
The 31-page bill doesn’t resolve the biggest budget sticking points between House and Senate Republicans, including raises for state employees, the future of scheduled income tax cuts and funding for a new children’s hospital.
Instead, it reflects spending priorities where both chambers are in agreement. It would allow teachers to get their scheduled “step” increases based on their experience level (although broader teacher pay increases will still have to wait) and provide funding for enrollment growth at K-12 schools, community colleges and universities.
Gov. Josh Stein held a news conference Tuesday morning blasting Republicans for their inaction on a broader spending plan.
“I urge the General Assembly to focus on what matters: helping us hire more good teachers, helping us hire more talented, public-spirited law enforcement officers, making sure that Medicaid covers our North Carolinian people who are desperate for health care, fixing the DMV. These are things that a budget can solve.”
The “mini-budget” legislation was released hours after Stein’s press conference. The Senate immediately approved it in a near unanimous vote, and the House is scheduled to vote on it Wednesday.
"It is a compromise, but these things that we have narrowed it down to address the pressures that we know of at this moment, that without these adjustments, there would be major problems come here shortly, in a few weeks for our agencies and for a lot of North Carolina citizens," said Sen. Brent Jackson, R-Sampson.
Other highlights of the “mini-budget” bill include:
- $1.2 million for the Division of Motor Vehicles to hire more driver’s licenses examiners
- Funding for the DMV to open new offices in Brunswick County, Fuquay-Varina, Cabarrus County and the small Sampson County town of Garland
- $600 million for Medicaid “rebase” funding to cover changing expenses in the state’s Medicaid program
- $118 million to fund infrastructure related to the planned JetZero plant in Guilford County
- The “DAVE Act” to create a government efficiency review team housed under State Auditor Dave Boliek
- $10 million to Wilson Community College for a new biologics training center
- $823 million for ongoing state government construction projects
- Funding to open 13 state historic sites on Sundays
Stein highlights effects of budget impasse
The governor said during his news conference that the mini-budget may resolve some of the budget issues, but a broader plan is needed.
"We have a lot of issues in North Carolina," Stein said. "[Some] may be included in a mini-budget. But not everything will be."
"I urge the General Assembly — let's set aside our differences. Let's come together on a budget that is sound, balanced and in the interest of the people," he continued.
Stein invited a teacher, sheriff's deputy, DMV customer and Medicaid recipient to speak alongside him Tuesday morning, urging lawmakers to act.
Rachel Candaso, a middle school teacher from Greenville, said educators are starting the new year without concrete salary expectations.
"Inflation in North Carolina has risen nearly 20% over the past five years, yet our salary schedule hasn't kept up," Candaso said. "Too many teachers are forced to take on second or third jobs to make ends meet."
Joanna Parker, from Garner, was automatically enrolled in Medicaid two years ago when North Carolina expanded access.
Healthcare allowed Parker to address the disease giving her severe back pain, and to get her first mammogram, which revealed a precancerous growth that doctors will continue monitoring.
"I am grateful, and I am afraid to see how drastically my health and life will change without Medicaid. I hope North Carolina lawmakers do what is right," Parker said.
Sarah Morgan, who lives in Durham County, said she's tried going to the DMV six times this summer to get a real ID bearing her new address. She urged lawmakers to hire more employees and invest in the state agency.
"Every time I go to the website, all I see is location after location with no appointments available," Morgan said. "And I, like many other North Carolinians, have a job where I cannot just take days off in a row to spend hours at the DMV on the chance that I might be seen."
Kimberly Lane, a captain overseeing recruitment at the Durham County Sheriff's Office, said law enforcement officers need more money from every level of government.
"Officers do more with fewer resources, often to the detriment of their own health. This has been the norm for several years now, and I fear this methodology cannot sustain itself," Lane said. "This is not meant to be a scare tactic. It is merely a wake-up call and a reality check."
Senate leader Phil Berger says talks are continuing over remaining disagreements between the House and Senate on a full budget. The Senate, however, has wrapped up its work and will not hold any votes until Aug. 26 at the earliest.
