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Short a full spending plan, lawmakers send mini-budget to governor

Last updated: July 31, 2025 4:46 am
Oliver James
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4 Min Read
Short a full spending plan, lawmakers send mini-budget to governor
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(The Center Square) – Thirty days late on enacting a two-year budget per North Carolina law, the mini-budget of the General Assembly’s bicameral committee on Wednesday morning was approved for presentation to the governor.

On the floor of the House of Representatives, Rep. Donny Lambeth, R-Forsyth, said the 34 senators and 45 members of the House like everyone else wished for things to be in place. However, the uncertainty and changes that have arisen – he cited Medicaid, and the federal government – have forced time into the equation and he and others in the committee didn’t think it a total bad thing.

Continuing Budget Operations, known also as House Bill 125, was approved 47-2 in the Senate on Tuesday and 91-23 in the House on Wednesday morning. None of the 96 Republicans opting to vote in either chamber was against it; 42 Democrats (17 Senate, 25 House) were for it.

First-term Democratic Gov. Josh Stein will have 10 days to sign, veto or allow to become law without his signature.

There has not been a shutdown of the state government because of a 2016 law – within that year’s budget – keeping the previous spending plan adopted in 2023 in place.

For the most part, the bill handles basic functions of state government. Included and drawing the ire of Democrats, however, is what was formerly known as the DAVE Act. The Division of Accountability, Value, and Efficiency within the office of state auditor – first-term Republican Dave Boliek – is similar in nature to the federal Department of Government Efficiency.

Senate Bill 474, as it was introduced in April, passed out of the chamber 29-17 with Sen. Dan Blue, D-Wake, the lone supporter from the minority party. It remained parked in the rules committee of the House shortly thereafter.

“The DAVE Act creates exactly the type of government efficiency initiatives that North Carolina needs,” Boliek said Wednesday. “Our team is prepared to take a data-driven approach in its evaluation of North Carolina’s government. If cuts to government need to be made, or agencies need to be reorganized or eliminated, we’re not going to shy away from making those recommendations.”

Another issue cited by Democrats on the House floor Wednesday was the $15 million provided to the State Board of Elections. Sam Hayes, executive director, said it would be used to replace the state’s outdated election management system.

In the budget impasse, both chambers arrived at $65.9 billion for the two years – $2 billion less than Stein. The routes to the number differed.

The House plan included larger raises for state employees and smaller income tax cuts than does the Senate. Stein wants larger raises for teachers, though he did offer praise for the amount from the House.

On Tuesday, in part trying to deflect attention from eight of his 14 vetoes rendered impotent by overrides, Stein said in a statement, “Without a state budget, our teachers will start the school year without a well-deserved pay raise, law enforcement agencies will have a harder time recruiting and retaining the best, the DMV won’t be able to hire the employees it needs to reduce wait times, and the North Carolina Medicaid program will face cuts to essential health care. I urge the General Assembly to come together and pass a budget that invests in our people and their futures.”

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