(The Center Square) – Thirty-seven days late and counting, a two-year fiscal spending plan for North Carolina remains elusive while first-term Democratic Gov. Josh Stein signed a mini-budget sent forward by Republican majorities in the General Assembly.
Late Wednesday, Stein said he was pleased to sign an expedited eviction of squatters bill that had been adjusted because of his veto a month ago. And to no surprise, he stamped out a 15th veto for lawmakers’ plan to be first in the nation with a school choice tax program bill opting into the signature education initiative of second-term Republican President Donald Trump.
Stein, who on Day 1 pledged to work with the General Assembly he consistently litigated against as attorney general for eight years, has vetoed about 1 in 5 of the 84 bills sent to his desk.
The full two-year budget was to be enacted July 1. Two years ago, it was 84 days late. Unlike the federal government, no part of state government shuts down because of the 2016 law requiring spending levels to remain on the previous plan until changed.
“This Band-Aid budget fails to invest in our teachers and students, fails to keep families safe, fails to value hardworking state employees, and fails to fully fund health care,” Stein said in a release. “With federal cuts on the horizon, the Legislature’s forced $319 million cut to Medicaid will be particularly painful. Despite these serious reservations, I am signing this bill into law because it keeps the lights on.
“We have so much going for us here in North Carolina, but we cannot just rest on our laurels, do the bare minimum, and expect to continue to thrive. The General Assembly needs to get serious about investing in the people who make this state great.”
The state budget plans of each chamber in the General Assembly were $65.9 billion for two years, and Stein was at $67.9 billion. The House plan included larger raises for state employees than the Senate offered and smaller income tax cuts. Stein wants larger raises for teachers.
Continuing Budget Operations, known also as House Bill 125, was approved 47-2 in the Senate and 91-23 in the House.
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.
“The State Auditor’s Office is prepared to establish the Division of Accountability, Value, and Efficiency,” Boliek said. “We had a team meeting earlier today on strategy, and look forward to getting to work on behalf of North Carolinians. The DAVE Act gives our office the tools we need to take a data-driven approach and bring accountability to government in North Carolina.”
Educational Choice for Children Act, known also as House Bill 87, was a party line vote in the Senate (30-19) and House of Representatives (69-47). Under the Trump plan signed into law July 4 in what is known as the One Big Beautiful Bill Act, a federal tax credit of up to $1,700 can start in 2027. Rep. Brian Biggs, R-Randolph, told colleagues on the floor July 30 the cost to North Carolina is zero.
No Republicans in either chamber voted against the bill. In the House, Democratic Reps. Carla Cunningham of Mecklenburg County and Shelly Willingham of Edgecombe County crossed the aisle in favor – signaling Stein’s veto may wind up impotent.
“Either you support school choice, or you don’t,” said 13th term Republican Senate President Pro Tempore Phil Berger, R-Rockingham. “Governor Stein could have made North Carolina a leader in school choice and parental freedom by signing the Educational Choice for Children Act, but instead, he’s attempting to usurp the General Assembly’s authority to set tax policy. I look forward to holding Governor Stein accountable and overriding his veto to ensure North Carolina can participate in President Trump’s signature school choice initiative.”
Expedited Removal of Unauthorized Person, known also as Senate Bill 55, has stiff penalties if rightful property owners wrongly accuse. In the form of House Bill 96, it got a late amendment before going to the governor. He cited the possible enabling of puppy mills in the bill language and rejected it July 9.
The law goes into effect Dec. 1.
