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Taxes, salaries, vacancy cuts make plain differences over rival North Carolina GOP budgets
- The North Carolina House approved a $32.6 billion preliminary budget on May 21, 2025, setting key spending and tax policies for the fiscal year starting July 1.
- This budget follows years of Republican-led tax cuts and concerns about stagnant university funding, rising voucher costs, and state employee salary disagreements with the Senate.
- The House plan proposes a 2.5% minimum raise for most state workers, an 8.7% average increase for K-12 teacher salaries over two years, elimination of 3,000 vacant jobs, and new tax reforms benefiting lower-income residents.
- Key figures include a proposed 3.99% income tax rate starting in 2026, $126.3 million annual cost for tax cuts, and over 14,000 current government vacancies, with the House budget passing 93-20 including support from 27 Democrats.
- The House and Senate will negotiate a final budget amid disagreements on taxes, raises, and job cuts, while Democratic Governor Stein supports the House plan but warns of potential fiscal challenges starting in 2026.
17 Articles
17 Articles
Associated Press News
Taxes, salaries, vacancy cuts make plain differences over rival North Carolina GOP budgets
The North Carolina House’s reveal of its state government budget proposal makes plain the differences on taxes, salaries and job cuts between Republicans who control both General Assembly chambers.
NC House votes to approve spending plan, setting up showdown with Senate
The GOP-controlled North Carolina House of Representatives passed a spending proposal that seeks larger state employee raises and smaller income tax cuts than a proposal the state Senate passed in April.
NCHA Statement on House Budget Proposal
NCHA Statement on House Budget Proposal House Budget Media Statement May 21, 2025 The North Carolina Healthcare Association (NCHA) thanks House leaders for listening to concerns from providers in their proposed state budget bill. In particular, NCHA is grateful the House did not include many of the harmful policies being considered or levy new taxes on hospitals. Although there is more work to be done towards the development of a compromise b…
House budget retains North Carolina’s 18% tax rate in Senate disagreement
North Carolina’s planned online sports betting tax hike from 18% to 36% has been delayed after the House’s budget failed to replicate the Senate’s proposed increase. In April, the Senate’s budget for 2025-27 was approved and included a 100% tax increase for operators in the Tar Heel State. However, the House’s version of the budget failed to match the increase, instead retaining the existing level of 18%. The House budget did include some change…
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