Overview
- A joint announcement Tuesday from Senate leader Phil Berger and House Speaker Destin Hall outlined a framework that settles teacher and state‑worker pay, a multiyear income‑tax cut, and $208 million for a new children’s hospital in Apex.
- Teachers would see an average 8% raise with starting pay set at $48,000 before local supplements, most other state employees would get about 3%, teachers and state workers would receive bonuses, and retirees would get a 2.5% bonus.
- Targeted law‑enforcement boosts include average raises of about 20% for SBI and ALE officers, nearly 18% for Highway Patrol, about 15% for correctional officers, and roughly 10% for probation and parole officers.
- The plan keeps the corporate tax phase‑out on track, drops the personal income tax rate to 3.49% in 2027–2029 and then to 2.99% by 2033–2034, advances ballot measures to cap the income tax at 3.5% and limit local property taxes, and would repeal a power‑bill tax break for data centers.
- Funding for NCInnovation and Medicaid for the 2026–27 year remains unresolved, with leaders drafting bill language now, a mid‑June conference vote goal, cautious support from Gov. Josh Stein, and final passage shaped by a veto‑proof Senate and a House one vote short of a supermajority.