RALEIGH, N.C. (NCN News) — A breakthrough on the long delayed state budget. State House Speaker Destin Hall and Senate President Pro Tem Phil Berger appeared jointly to announce they have a agreement on a state budget “top line” framework
Both emphasized that the agreement was a starting point rather than a finished product and said talks have been productive with budget chairs to begin hold meetings quickly and move the process along.
Raises for teachers, other workers
Hall highlighted the main compensation provisions. The framework includes an average 8% teacher pay raise with increases across the salary schedule, along with longevity-style bonuses: $1,000 for teachers with more than 16 years of service and $500 for those
with fewer than 16 years. For state employees, the plan provides an average 3% raise plus one-time bonuses—$1,750 for employees making under $65,000 and $1,000 for those above that threshold. State retirees would receive a 2.5% bonus. Leaders said the raises would take effect when the budget becomes law.
Berger outlined larger increases for law enforcement, including step increases. The framework contemplates pay growth of 20.3% for SBI/ALE officers, 17.7% for Highway Patrol, 15.4% for correctional officers, 10.1% for probation and parole, and 13% for other state law-enforcement officers. The plan also includes $40.1 million for $1,750 one-time bonuses for local officers.
Modifications on tax triggers
On taxes, Berger said the package would set the personal income tax rate at 3.49% beginning Jan. 1, 2027, with scheduled reductions and future triggers that could lower it to 2.49% long term. He also described a proposed constitutional amendment for the November ballot that would lower the income-tax cap to 3.5%.
Berger said that the approach aims to extend “tax relief” while remaining responsible under existing trigger laws enacted in 2023, citing revenue-forecast uncertainty but improved information expected this spring, including a potential near-term upgrade in “recording revenues.”
Asked about other sticking points, the NC Children’s Hospital and NC Innovation, Berger said 2023 funds were being released and additional 2023 ARPA funds would be dedicated to the children’s hospital, totaling $208 million, with discussions ongoing about any further funding.
Both agreed that the major structural issues were largely set, and appropriations chairs
would now work through line items over the coming days or weeks. North Carolina is the only state in the nation without a newly adopted budget.