North Carolina House Republicans proposed a state budget amid a spending dispute with their Senate colleagues, advocating larger salary increases for teachers and state employees and increased financial aid to childcare providers.
Because negotiations with Senate GOP counterparts have failed to reach a consensus, they are now advancing a bill to adjust the second year of the state government budget enacted last fall.
Senate President Pro Tempore Phil Berger has complained that House GOP leaders are pushing for higher expenditures than what Republicans in his chamber are willing to approve, including drawing from reserves.
The enacted second year of the budget already includes 3% raises for rank-and-file state employees and teachers.
Instead, the $31.7 billion House plan includes 4% salary increases for state employees and an average 4.4% raise for teachers.
First-year base teacher salaries would increase from $39,000 this school year to $44,000 in the fall, a step aimed at making North Carolina a more competitive hiring market.
The House GOP is also proposing a 9% raise for correctional, probation, and parole officers to address recruiting and retention challenges in those fields.
In addition, the bill allocates $135 million in one-time funds to replace federal childcare stabilization grants that began during the pandemic but will end in July. These grants have primarily increased worker wages, but the Senate has been hesitant to provide additional funding.
“We cannot leave Raleigh without addressing the childcare crisis,” Republican Rep. Donny Lambeth, a senior budget co-chairman, said in a news release.
“The House budget continues 75% of current stabilization grants to keep childcare centers open and parents can remain in the workforce, while giving the state time to develop a more sustainable model for childcare costs,” Lambeth added.
The measure also includes Senate-approved provisions adding more than $460 million to the state’s Opportunity Scholarship program. That funding aims to eliminate waiting lists for nearly 55,000 eligible students seeking scholarships to attend private K-12 schools this fall, following the removal of income eligibility caps last year, which led to a surge in applications.
The bill appropriates $350 million from a state Medicaid reserve fund to address a program shortfall and $150 million from another reserve for transportation projects related to a new Toyota electric battery plant in Randolph County, which is expected to create thousands of jobs.
The House bill does not include additional income tax reductions beyond those already scheduled for next year.
House Republicans will debate and vote on the bill later this week.
Berger said last week that he might halt negotiations with the House and adjourn the Senate indefinitely if no agreement is reached by June 30.
Despite the new fiscal year beginning on July 1, the existence of a two-year budget already in place means there is less urgency to enact adjustments.
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Final spending measures would go to Gov. Roy Cooper (D-NC), who proposed his own budget in April, advocating higher raises for teachers and state employees along with increased funding for childcare and early education initiatives.
With narrow veto-proof majorities in both chambers, Republicans can pass these measures without Cooper’s support.