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Stein Proposes $1.4 Billion Critical-Needs Plan as GOP Leaders Reject It

North Carolina is still operating on a 2023 spending plan, with Medicaid facing a $319 million shortfall.

Overview

  • Gov. Josh Stein unveiled a $1.4 billion stopgap to cover immediate needs, led by Medicaid funding and targeted pay increases for state workers.
  • The proposal includes $319 million to rebase Medicaid, which Stein warns is running low for a program covering about one in three residents.
  • Pay proposals feature 10% raises for corrections officers, state troopers and other law enforcement, 10% for state nurses, a 13% boost to starting teacher pay, and an average 6% raise for teachers, with retroactive pay and a retiree COLA requested.
  • House leaders criticized the plan for lacking cost controls and flagged spending on GLP-1 drugs, and Senate Republicans warned it would create a recurring deficit and pressure taxes.
  • House-passed raises already on the table include an average 8.7% for teachers, 13% for law enforcement, and 2.5% for other state employees, highlighting unresolved differences as the budget stalemate continues.