North Carolina could remain without a new budget until at least April. Lawmakers had scheduled their first session of 2026 this week but aren't planning to hold any votes.
North Carolina is the only legislature in the country that didn't pass a budget bill last year. That's because House and Senate Republicans continue to disagree on whether to delay scheduled income tax cuts.
Any hopes of a quick resolution this month were dashed when the legislature held a no-vote session Monday. Monday's House and Senate sessions lasted less than two minutes each, and only a few legislators were present in Raleigh. House Speaker Destin Hall and Senate leader Phil Berger weren't in the room, and they'd previously told lawmakers there's no need to come to the capital this week.
Another session is on the calendar for February, but a spokeswoman for Berger told WUNC News that no votes are expected in the Senate until April. In addition to the budget stalemate, the state's Medicaid program still faces a looming funding shortfall that could trigger drastic cuts in the spring, according to Gov. Josh Stein's administration.
Berger told PBS North Carolina a full budget agreement isn't likely before then. "I think comprehensive budget talk is not going to result in a comprehensive budget until maybe the short session," he said during a recent interview on the show "State Lines." "We'll see when we get back in April whether or not it does. The Senate is really determined that we promised people a tax cut, and that tax cut ought to take place."
House Republicans, as well as Democrats, worry those tax cuts could leave the state with a budget deficit in the coming years. House Speaker Hall has said his proposed budget would increase the "trigger" amounts in state law that prompt a lower tax rate, setting amounts that better reflect inflation.
Democrats like Rep. Rodney Pierce, D-Halifax, say they're disappointed there's been no progress in funding Medicaid or passing raises for teachers and state workers.
"We're ready to work," Pierce said. "But we don't control the calendar. We don't control the agenda. We don't control budget negotiations. ... It's just sad and a shame that we're the only state in the country that doesn't have a budget, and the fact that we may not get one until after the primaries."
Pierce says he's been hearing from teachers and state employees in his district who are upset they haven't received a raise, and some are considering leaving their jobs or taking a similar position across the state line in Virginia.
The salary for an entry-level teacher in Greensville County, Va. — a short drive north from Roanoke Rapids — is $51,787 this school year, according to the district's website. North Carolina's starting salary for teachers this year is $41,000, although many districts offer local salary supplements that increase the amount.
"These are people who are dealing with cost-of-living increases but are not dealing with any cost-of-living increase in terms of raises," he said. "And it particularly hurts in rural communities like ours, because we don't have the economic resources to make up the difference."
While there won't be any action on bills, several legislative oversight committees will meet later this week. They'll get updates on Medicaid, federal changes to the SNAP (food stamp) program, and discuss possible changes to property taxes.
