(The Center Square) – North Carolina is one of three states late on an enacted budget for July 1.
Lawmakers in Pennsylvania and Oregon are also late, according to research by The Center for Square and the National Association of State Budget Officers. Michigan’s fiscal year begins Oct. 1 and is the other state without a spending plan in place for the coming year.
The North Carolina fiscal year runs July 1-June 30, and two-year budgets are required by law in the odd-numbered years. These are also known as the long sessions of the two-year legislative calendar.
“As states enter fiscal 2026, they are contending with a combination of increasing spending demands, slowing revenue growth, and federal fiscal uncertainty,” the national organization said. “They are facing budget pressures in a number of areas such as Medicaid, employee health care, education, housing affordability, and disaster preparation and response.”
The Legislature adjourned in late June without having passed a budget bill.
However, under legislation passed in 2016, there will be no state government shutdown, with spending remaining the same as it was under the previous budget.
The North Carolina House and Senate disagree on raises for state employees and the size of income tax cuts.
The legislative budgets total $65.9 billion while Gov. Josh Stein proposed $67.9 billion in spending.
Two years ago, the North Carolina budget was 84 days late before it was signed into law.
Although the lack of a budget has not affected government services in North Carolina, it has in Oregon, where the impasse prompted the state’s department of transportation to announce 483 layoffs.
“Consequences to essential transportation services are imminent across the state,” Gov. Tina Kotek said in a July 7 statement. “This is not business as usual. These layoffs constitute an emergency in Oregon’s transportation system that will hurt every part of Oregon.”
