North Carolina Lawmakers Reach Budget Deal With 3% Raises and Tax Cut to 3.49%
Updated
Updated · WRAL News · Jun 29
North Carolina Lawmakers Reach Budget Deal With 3% Raises and Tax Cut to 3.49%
3 articles · Updated · WRAL News · Jun 29
Summary
Sunday’s deal would end North Carolina’s status as the only state without a full budget for the fiscal cycle that began July 1, 2025, with House and Senate votes targeted this week.
The plan keeps last month’s framework: most state employees get 3% raises, teachers average 8%, prison and law-enforcement workers get 10.1% to 17.7%, plus one-time bonuses of $1,000 or $1,750.
It also preserves scheduled income-tax cuts, lowering the rate from 3.99% to 3.49%, while leaders back a constitutional amendment to bar future legislatures from raising taxes above that level.
$105 million more would go to a new children’s hospital in Apex, lifting the state commitment above $425 million, while the sports-betting tax would rise to 23% and UNC and NC State would join revenue sharing.
Left out of the compromise was a funding mechanism for a $1.7 billion Raleigh MLB stadium; Democratic Gov. Josh Stein will still have 10 days to sign, veto or let the budget become law.