North Carolina lawmakers reach 'starting point' for budget deal

North Carolina is the only state in the country without a new budget, but GOP lawmakers say they've reached a deal on taxes and state employee raises, two of the main sticking points.
Posted 5/13/2026, 6:05:42 PM Updated 5/13/2026, 10:13:26 PM

WAS TAKEN INTO CUSTODY OR WHAT

LED TO THE STABBING. CUTS COULD

BE COMING WITH THE NEW BUDGET

STATE. REPUBLICAN LAWMAKERS ARE

CELEBRATING A BUDGET DEAL THAT

INCLUDES RAISES FOR STATE

EMPLOYEES.

>> AND TAX CUTS AFTER A YEAR

LONG STANDOFF. BUT THE RAISES

COULD COME AT A COST WITH

POSSIBLE CUTS TO STATE

GOVERNMENT WROC GOVERNMENT

REPORTER CAROLINE OFTEN IS LIVE

AT THE LEGISLATIVE BUILDING.

CAROLINE, WHAT ARE LAWMAKERS

SAYING ABOUT THIS TODAY?

>> SO, JERROLD, IN ASHLEY,

BEHIND THESE DOORS, WE'VE BEEN

TALKING TO REPUBLICAN LAWMAKERS

ALL DAY AND THEY'RE SAYING

THEIR NEW BUDGET DEAL IS A HUGE

WIN FOR NOT ONLY WORKERS, BUT

ALSO TAXPAYERS IN NORTH

CAROLINA WHO HAVE NOT GONE

RAISES IN SEVERAL MONTHS.

BUT IT COULD COME WITH SOME

TRADEOFFS IN THE FORM OF CUTS.

>> LEADERS OF THE HOUSE AND THE

SENATE ARE EXPECTED TO LOOK

FOR SAVINGS AS THEY LOOK FOR

WAYS TO PAY FOR THOSE RAISES

AND OTHER PERKS IN THE BUDGET.

IT'S A TRICKY BALANCING ACT.

LAWMAKERS AGREED TO KEEP THEIR

PROMISE IS CONTINUING TO REDUCE

TAX RATES. BUT AT A SLOWER RATE

WHILE AT THE SAME TIME, COSTS

ARE GOING UP. AND THAT MEANS

CUTS COULD BE ON THE TABLE.

ANYTHING IS REALLY POSSIBLE.

BUDGET PROPOSALS APPROVED BY

THE HOUSE AND THE SENATE LAST

YEAR CALLED FOR CUTTING JOBS

THAT HAVEN'T BEEN FILLED,

FREEING UP MILLIONS OF DOLLARS.

I ASKED SENATE LEADER PHIL

BERGER TODAY ABOUT WHETHER CUTS

WOULD BE NEEDED, BUT WE'RE

STILL WORKING THROUGH SOME

THINGS. BUT YOU KNOW, WE WE

FULLY ANTICIPATE THE UNEXPECTED

PAY RISES. SO WITHOUT ANY REAL

DIFFICULT BERGER SAYS

POPULATION GROWTH AND WAGE

GROWTH WILL HELP BOOST TAX

REVENUE.

>> ADVOCATES FOR STATE

EMPLOYEES SAY OF JOB CUTS ARE

ON THE TABLE.

>> THE PROCESS NEEDS TO BE

TRANSPARENT.

>> EXTREMELY CONCERNED. AND I

HOPE THAT THERE WILL BE

THOROUGH PUBLIC MEETINGS WITH

AGENCY HEADS REPORTING TO

EXPLAIN. WHAT THEIR AGENCY DOES

SO THAT WE KNOW THAT THESE CUTS

HURT THE PUBLIC.

>> PEOPLE FAMILIAR WITH THESE

BUDGET NEGOTIATIONS. TELL WRAL

THAT LAWMAKERS HAVE ALSO

CONSIDERED A PROPOSAL THAT

WOULD BOOST TAXES ON SPORTS

GAMBLING AND THE STATE LOTTERY.

AND NOW THE FINAL BUDGET

AGREEMENT IS EXPECTED TO ROLL

OUT IN THE COMING WEEKS.