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North Carolina Releases $34.4 Billion Budget as Stadium Funding Is Left Out

Republican leaders finalized a package that locks in large teacher and state-employee raises, a phased personal income tax cut schedule and major one-time disaster and Medicaid spending ahead of expedited floor votes this week.

Overview

  • Republican leaders released the $34.4 billion budget on Tuesday and scheduled expedited House and Senate floor votes for Wednesday, July 1 and Thursday, July 2.
  • The plan guarantees an average 8% teacher raise and a 3% raise for most state employees while larger increases are set for several law-enforcement and public-safety roles.
  • Personal income tax rates are set to fall on a multi-year schedule with the rate dropping to 3.49% for tax years 2027–2029 and further phased cuts through 2034.
  • The budget directs roughly $700 million for Hurricane Helene recovery, commits more than $1 billion to Medicaid including recurring and contingency funding, and adds new oversight rules for high-growth services.
  • A high-profile Senate framework to help finance a roughly $1.7 billion Raleigh MLB stadium was not included in the package and remains a separate, unresolved political fight.