Budget framework draws cautious response from Stein
RALEIGH — Gov. Josh Stein responded cautiously Tuesday to a developing state budget framework, welcoming the possibility of pay raises for teachers, state law enforcement officers and state employees while criticizing a proposed constitutional amendment that he said could limit North Carolina’s ability to fund core public services.
Stein’s statement came after Republican legislative leaders announced they had reached a framework on major budget issues following months of negotiations. The governor said the announcement was not yet a final budget and that details would determine whether the proposal delivers meaningful raises.
“It is past time that our teachers, state law enforcement officers, and state employees get a meaningful pay raise and recognition for their service to the people of North Carolina,” Stein said. “Today’s announcement is only a framework, but if the final budget actually includes real salary increases, it would be welcome. The proof, however, will be in the pudding.”
The governor also criticized a proposed constitutional amendment tied to the negotiations, saying it could restrict future budget decisions.
“The proposed constitutional amendment would put North Carolina in a financial straight jacket that could wreak havoc on our public schools and public safety,” Stein said. “If we want to continue to be the best state to live, work, and raise a family for years to come, we must be fiscally responsible and not make working families bear an unfair burden.”
The governor’s office did not release a full budget document with the statement. As of the announcement, the framework had not yet been filed as final budget legislation, leaving key details unresolved, including exact salary schedules, agency spending levels, tax provisions, recurring costs and whether the plan can pass both chambers.
WRAL reported that Republican lawmakers described the agreement as a “starting point” for a budget deal after a year of negotiations, with taxes and state employee raises among the main issues. The outlet reported that if a final agreement passes the General Assembly, it would go to Stein, who could sign it, veto it or allow it to become law without his signature.
WUNC reported that House Speaker Destin Hall and Senate leader Phil Berger announced the framework Tuesday afternoon for the fiscal year that began last July. Spectrum News also reported that Hall and Berger described the framework during a news conference, while WBTV reported that Berger said more details still needed to be discussed between the chambers.
The budget fight has centered partly on tax policy and public employee compensation. Earlier this year, Stein proposed maintaining the personal income tax rate at 3.99% after 2025, rather than allowing further scheduled reductions, according to House Bill 1146, his governor’s budget bill filed May 4.
A prior Senate budget plan moved in a different direction. The Associated Press reported in 2025 that Senate Republicans advanced a budget plan that continued income tax cuts and provided more modest public employee raises than Stein had sought. The House later proposed a more cautious tax approach than the Senate, according to AP, highlighting the divide between the two Republican-led chambers before the latest framework.
The current framework, if it becomes a final budget bill, could become one of the most consequential pieces of legislation of the short session. Pay raises would affect teachers, state workers and law enforcement agencies dealing with recruitment and retention pressure. Tax and constitutional amendment provisions could have longer-term effects on how future legislatures fund schools, public safety, health care, infrastructure and other state services.
For now, Stein’s response signals both an opening and a warning. The governor indicated he would welcome “real salary increases” in a final budget, but he framed any constitutional tax limit as a threat to future flexibility. That sets up the next phase of negotiations around not just how much the state spends this year, but how much room future lawmakers would have to respond to growth, emergencies and service demands.
A final budget agreement would still need approval from both the House and Senate. If Stein vetoes the budget, Republican lawmakers would need enough votes to override him. WRAL reported that Republicans hold a veto-proof majority in the Senate, while the House is one seat short of a supermajority.
Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.
