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Gov. Josh Stein sent a letter to General Assembly leaders on Thursday, urging them to pass a comprehensive state budget — or at least fund teacher pay raises, Medicaid, and public safety initiatives in their September session, according to a press release.
Legislators were supposed to pass a comprehensive budget for the 2025-27 biennium by July 1, when the new fiscal year started. Instead, the General Assembly passed a “mini-budget” at the end of July to keep the state government operating.
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North Carolina is now one of only two states without a comprehensive budget three months into the fiscal year, according to Stein’s letter. The General Assembly is set to reconvene on Monday, Sept. 22, through Thursday, Sept. 25.
“In the absence of a comprehensive budget, the following items cannot wait and demand your attention in your September session,” Stein wrote.
Teacher pay raises
In the letter, Stein called on lawmakers to fund a $451.6 million request to provide teachers with an average 5.9% pay increase, restore master’s pay, and give other school personnel a 3% increase. Another $226.5 million request would fund a 2% raise for other state employees.
His original budget proposal in March included an average raise of 10.6% for teachers over the next two years, with higher raises for beginning teachers.
“Teachers outweigh all other classroom factors in determining how well students perform,” the February proposal said. “For North Carolina to attract and retain excellent teachers, the state must pay them more.”
Disaster relief
He also urged legislators to fund relief efforts for small businesses in western North Carolina still recovering from Hurricane Helene. He said he had requested $13.5 billion from the federal government, but small businesses would still need assistance for this year’s peak tourism season.
In a separate disaster recovery request, Stein asked lawmakers to provide $26.75 million in funding for recovery from Chantal, the tropical storm that damaged central North Carolina in early July.
Medicaid funding
In his letter, Stein also said he’d be willing to compromise on funding for the Medicaid rebase — the updated level of funding necessary for the program, following the passage of the federal budget bill in July.
Stein said that the Office of State Budget and Management and Department of Health & Human Services concluded the rebase requires an additional $319 million. However, he will accept the General Assembly’s proposed $190 million increase and a reevaluation in January, he wrote.
“North Carolina is also on the clock to fully fund Medicaid,” Stein wrote. “I am committed to working with the General Assembly to find a solution that keeps the program running so that North Carolinians do not lose their health care. Let’s come together to do right by the people of North Carolina and prioritize the things that make North Carolina strong.”
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Public safety
He also reiterated his request for $195 million for pay increases and bonuses for law enforcement.
“After the horrific murder of Iryna Zarutska, we must help people feel safer in our state,” Stein wrote, referring to the murder of a 23-year-old Ukrainian refugee in Charlotte on Aug. 22. “The General Assembly needs to make investments in public safety to put more cops on the beat, ensure that the magistrate system effectively holds criminals accountable, and keep people safe on public transportation and on our streets.”
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