North Carolina
Slight raises, budget cuts proposed in NC Senate state spending plan
North Carolina Senate leaders are proposing a $32.6 billion budget that includes small raises and bonuses for teachers and state employees, while cutting programs and vacant positions across state government — all as they expand controversial scheduled income tax cuts.
Most state workers would get a 1.25% raise starting in July, along with bonuses totaling $3,000 over two years. Teachers would receive an average 2.3% pay raise and would also get bonuses.
Overall, the tight budget proposal would increase state spending by about $800 million, or 2.75%, over the current year — far less than budget proposals from recent years. Senate Leader Phil Berger said Republican budget subcommittee chairs looked to find cuts to make room for their spending priorities.
“They have taken a fine-tooth comb to area budgets to try to find as much cost savings as possible, from eliminating obsolete programs to slashing some of the bloated portions of the bureaucracy, all in an effort to better serve the people of the state of North Carolina,” he said at a news conference Monday.
Gov. Josh Stein has called on lawmakers to pause scheduled corporate and personal income tax cuts, pointing to a projected revenue decrease even as the state grows. But the Senate budget sticks to the rate cuts and even adds further cuts in future years, assuming the state hits certain revenue targets. The personal income tax rate could eventually drop as low as 1.99% under the bill; it’s currently at 4.25%.
Berger was dismissive of revenue forecasts produced by nonpartisan economists working for the legislature and Stein’s administration.
“As long as the economy continues to grow, it is our belief … that revenue to the state will be more than adequate to address the funding requirements that we have as far as the state budget is concerned,” he said.
The budget does, however, significantly increase the tax rate paid by sports betting operators.
Senate Minority Leader Sydney Batch, D-Wake, called the budget bill “a blueprint for neglect and cowardice.”
“It offers pathetic raises to public servants, abandons our law enforcement officers, and shortchanges the public infrastructure North Carolina desperately needs,” Batch said in a news release. “At a time when families are squeezed by rising costs, schools can’t find teachers for their classrooms, and emergency services are stretched to the brink, Senate Republicans have made the active choice to sit on billions of taxpayer dollars.”
Batch was referring to Republicans’ decision to move money back into the rainy day fund, bringing the savings amount to $4.75 billion.
Jobs, programs on the chopping block
Berger was hesitant to discuss details of proposed budget cuts during Monday’s news conference, but here are some examples in the bill:
- Hundreds of vacant positions across numerous government agencies would be eliminated. State agency leaders have said for years that they’ve been struggling to fill positions. The budget targets those that have been vacant longest.
- A handful of positions that aren’t vacant would be eliminated, including several jobs related to environmental justice, science and employment discrimination. Some are leadership roles, such as the chief scientist at the Office of State Budget and Management.
- $57 million would be cut from the state’s community college system.
- The N.C. Innocence Inquiry Commission, which investigates wrongful criminal convictions, would be eliminated.
- The Office for Historically Underutilized Businesses would be shut down. It helps firms owned by minorities, women and people with disabilities access state government contracts.
- PBS North Carolina would have its funding cut by $4 million, nearly half of what it receives from the state.
- The Minority Male Success Initiative, which helps non-white students, would be eliminated.
Big policy changes tucked inside
As lawmakers have in past budgets, the Senate’s 439-page budget bill is filled with policy proposals, including the entire text of several bills that were introduced separately – some of which have already passed the Senate.
They include:
- New tolls on state ferry services that are currently free. A trip from Hatteras to Ocracoke, for example, would cost up to $40.
- An increase in the maximum weekly unemployment benefit from $350 to $400 (a figure the House has voted to set higher)
- Elimination of Certificate of Need regulations on new healthcare facilities and equipment
- A mandate that UNC-Chapel Hill and N.C. State University play against each other regularly in basketball
- A requirement that school districts enact policies restricting students’ use of cell phones and electronic devices in the classroom.
- The creation of a new Board of Motor Vehicles that would appoint the commissioner of the Division of Motor Vehicles (currently appointed by the secretary of transportation)
- Legislation eliminating a mandate that Duke Energy reduce its carbon dioxide emissions by 70% before 2030
What’s next
The Senate plans to hold committee hearings on the bill Tuesday, with floor votes scheduled for Wednesday and Thursday.
That won’t be the final step in developing a spending plan. The House will develop its own proposal in the coming weeks, and then leaders from both chambers will meet privately to hash out a compromise between the two budget bills.
Then it’s up to Stein to decide if he’ll sign it or veto it. And if he picks the latter approach, House Republicans are one vote short of a veto-proof majority this year.
It’s also possible a budget bill might never make it to the governor’s desk. That’s what happened last year when the House and Senate couldn’t reach an agreement on the details, which meant spending levels remained unchanged from the previous fiscal year.
Kate Barr is a Democrat.
But when voters in North Carolina’s 14th Congressional District open their ballots in the March primary they’ll find an “R” next to her name.
She is literally a RINO or Republican In Name Only.
Barr considers herself a Democrat but said she’s running as a Republican to make a point about gerrymandering.
“Fundamentally… I hate gerrymandering. That is pretty much my core motivation for everything I do in politics,” Barr told Spectrum News 1.
The district, west of Charlotte, is solidly Republican.
The current congressman won by 16 points last election.
Barr said it speaks to just how gerrymandered North Carolina is. State Republican lawmakers recently approved a congressional map that favors Republicans in 11 of the state’s 14 congressional districts.
That’s in a state that only voted for President Donald Trump by three points in 2024 and elected a Democrat for governor.
“When the North Carolina state legislature passed the new congressional maps that further gerrymandered this state it became clear there has to be a political price for this behavior,” Barr said.
This is not the first unusual campaign for Barr.
In 2024 she ran as a Democrat in a district that heavily favored Republicans. The focus again was to draw attention to gerrymandering.
Her motto was “Kate Barr can’t win.”
She did not win, losing by 30 points.
But Barr was encouraged by some of the results she saw and in November launched her campaign for Congress.
This time she decided to run as a Republican.
She’s hoping that gives her an edge because in North Carolina voters not registered with either major party, known as unaffiliated, are the largest voting block in the state, and can participate in the Democrat or Republican primaries.
“Voters understand that the way to have a say is to choose which primary is actually going to elect their leader and vote in that primary,” Barr said. “I can absolutely win in this one… because primary turnout is so low it just doesn’t take that many people showing up and saying we’ve had enough to unseat an incumbent.”
Barr faces former North Carolina Speaker of the House and incumbent Republican congressman Tim Moore. His campaign told Spectrum News 1 that “Kate Barr’s latest stunt is an insult to Republican voters. Folks know a far-left fraud when they see one, and she doesn’t belong in our primary.”
Whether she wins or not, Barr hopes to encourage a fix to gerrymandering, an issue that’s front and center in North Carolina and around the country.
“Gerrymandering is wrong no matter which party is doing it, and we need to put an end to it. Period,” Barr said. “The goal, end result, is to have an independent commission in every state made up of citizens.”
Follow us on Instagram at spectrumnews1nc for news and other happenings across North Carolina.
POLK COUNTY, N.C. (WLOS) — Two people are dead after a truck ran off the road in Polk County, according to the North Carolina Highway Patrol.
HIGHWAY PATROL SEEKS PUBLIC’S HELP IN FATAL HIT-AND-RUN THAT CLAIMED LIFE OF LEICESTER MAN
Highway patrol says the fatal collision occurred at approximately 12:55 p.m. when an F-150 was traveling east on North Carolina 108 near Farm Lane.
The truck ran off the road and struck a tree, catching fire and being consumed by the flames.
According to the Highway Patrol, the driver and passenger were trapped in the vehicle and died as a result of the collision and the fire.
UPDATE: MULTI-CAR CRASH ON ASHEVILLE BRIDGE NOW CLEARED
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Highway Patrol says it is working with the Medical Examiner’s Office to identify the deceased.
Charleston Southern Buccaneers offensive lineman Andrew Threatt has committed to transfer to the North Carolina Tar Heels. He spent the last three seasons at Charleston Southern.
“It’s not every day you can get coached by a well-experienced staff like North Carolina,” Threatt said. “Even excluding Coach [Bill] Belichick there is at least 10+ years of experience across the board, not to much the academic prestige of the University of North Carolina.”
This decision comes after North Carolina made Threatt an important target in the Transfer Portal this offseason. He was on campus on Saturday, January 3rd, on a visit.
“It was a great visit,” Threatt said. “I really enjoyed the experience and am excited to see what coach Belichick is building in Chapel Hill. The staff is truly one of a kind, and the fan base is even more amazing.”
Andrew Threatt played his high school football at Chesterfield in South Carolina. At the time, he had been overlooked as a recruit. That’s despite being a three-time All-State and All-Region selection during his high school career.
Over the past three seasons, Threatt has started 32 consecutive games for Charleston Southern. Those seasons have widely been considered rebuilding seasons for the Buccaneers under head coach Gabe Giardina. Still, at 10-25 over those three years, it’s been a frustrating run in terms of wins and losses.
As a freshman in 2023, Threatt began his time with Charleston Southern as a right tackle. Later, he’d kick inside to left guard as a sophomore. That was before returning to right tackle. So, it’s going to be interesting to see where North Carolina wants to use him along the offensive line. Regardless, it’s clear he brings some versatility to the Tar Heels in 2026. At 6-foot-3, 315-pounds, he profiles as an interior offensive lineman in the ACC.
Andrew Threatt would be named First Team All-Conference (OVC/Big South) in 2025. He has one season of eligibility remaining.
North Carolina’s first season under legendary head coach Bill Belichick was a frustrating one. The Tar Heels went just 4-8. However, there was some growth by the end of the season, and North Carolina finished winning two of their final five games.
Neither rushing yards nor sacks allowed are entirely the fault of the offensive line, but the offensive line does play a key role in success there. Those stats also tell an interesting story about North Carolina. The Tar Heels were 122nd nationally in rushing offense, averaging 105.25 yards per game. North Carolina was also 55th in sacks allowed, giving up 1.83 per game. So, there is room to improve.
Certainly, Belichick is looking to make changes on offense. Bobby Petrino is coming in as a new offensive coordinator for North Carolina. The Tar Heels have also already added a new transfer quarterback in Billy Edwards Jr.
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