Stein Signs $34 Billion North Carolina Budget, Cutting Income Tax to 3.49%
Updated
Updated · WRAL News · Jul 7
Stein Signs $34 Billion North Carolina Budget, Cutting Income Tax to 3.49%
3 articles · Updated · WRAL News · Jul 7
Summary
$34 billion in spending became law Tuesday when Gov. Josh Stein signed North Carolina’s first comprehensive budget in more than 1,000 days, ending agencies’ reliance on 2023 spending levels.
The plan gives all state employees 3% raises, averages 8% for teachers and up to 17% for some law enforcement officers, while lowering the personal income tax rate from 3.99% to 3.49% next year.
Stein said he signed despite major flaws, citing more than 1,000 state positions being cut and raises that often trail inflation; Democrats also attacked a provision barring State Bar funding for civil legal groups.
Lawmakers passed the budget 88-21 in the House and 35-10 in the Senate after roughly a year of Republican infighting over taxes and capital spending, giving it veto-proof support.
The package also directs more than $700 million to Hurricane Helene recovery and funds projects including a new children’s hospital in Apex, while omitting a financing mechanism for a proposed Raleigh MLB stadium.