Stein proposes $1.4 billion ‘critical needs’ budget with Medicaid funding and pay raises
Governor Stein Proposes $1.4 Billion Critical Needs Budget to Keep North Carolina Strong, Including $319 Million for Medicaid and Raises for Law Enforcement, Teachers, Nurses and Other Public Servants
Fast-Tracked Budget Would Target Immediate Needs and Prevent Greater Damage
(RALEIGH) Today Governor Josh Stein called on the General Assembly to fast-track a $1.4 billion Critical Needs Budget focused on addressing North Carolina's most urgent needs while lawmakers continue work on a comprehensive state budget.
“North Carolina has gone nearly two and a half years without passing a new state budget – the only state in the country to finish 2025 without one,” said Governor Josh Stein. “While lawmakers work toward a full, fiscally responsible budget this spring, there are urgent needs facing our state right now like fully funding Medicaid and giving law enforcement, teachers, and other public servants a long-deserved pay raise. This budget invests in critical public safety, education and health care services for the people of North Carolina that cannot wait.”
Saving Medicaid
Medicaid provides health coverage for more than 3 million North Carolinians, including children, seniors, people with disabilities, expectant mothers, and working families. It also supports rural hospitals, nursing homes, and health care providers across the state. The Governor's budget recommends $319 million to fully fund Medicaid and protect access to care for families and communities that depend on it.
“The health of three million North Carolinians who depend on North Carolina Medicaid is in jeopardy,” said NC Health and Human Services Secretary Dev Sangvai. “We are counting on our partners at the General Assembly to fully fund Medicaid so our friends, neighbors, and communities can continue to receive the essential care they need to be and stay healthy.”
Promoting Public Safety
North Carolina ranks 49th in starting salaries for state troopers and correctional officers. Low pay has contributed to severe staffing shortages and vacancy rates across the state. To keep families safe, Governor Stein’s budget helps make public safety careers competitive and reflect their high-risk responsibilities. This includes pay raises for correctional officers, law enforcement officers, youth counselors, probation and parole officers, nurses, and behavioral health technicians. It also supports operational stability for the Department of Adult Correction and the State Burea of Investigation.
“Our troopers respond to crashes, criminal activity, and emergencies across all 100 counties. Our telecommunicators are the calm voices behind the radio, coordinating responses and ensuring help gets where it is needed,” said Colonel Freddy Johnson, Commander of the State Highway Patrol. “Providing competitive salaries is essential if we want to keep the experienced professionals we have and attract the next generation of troopers and telecommunicators.”
Respecting Teachers
An investment in North Carolina’s teachers is an investment in North Carolina’s future. However, the state’s teachers have been waiting for a meaningful pay raise, and the state remains in the bottom 10 nationally in average teacher pay. Governor Stein knows that competitive compensation is essential to attracting and retaining the best educators. That's why his budget raises starting and average teacher pay, restores master's degree pay, and increases compensation for senior teachers and other critical school personnel who keep students safe and healthy.
“If we truly want a highly qualified teacher in every classroom, then our students have to see teaching as a career worth pursuing—one with dignity, stability, and a respectable salary,” said John Lassiter, President of the North Carolina Principals and Assistant Principals’ Association and a Perquimans County principal. “We need a raise that reflects the dignity and prestige this profession was once known for. And we need to compete for great teachers across state lines so North Carolina classrooms don't become training grounds for other states' workforces."
Supporting State Employees & Addressing Workforce Shortages
State employees perform essential services every day, from clearing roads during winter storms to serving veterans and military families. As costs rise due to inflation and health care premiums increase, state employees have not received pay adjustments to keep pace, let alone get ahead. The Governor’s budget increases pay for state employees and provides a cost-of-living adjustment for retired state employees to offset rising costs.
Maintaining Essential Services
Without a comprehensive state budget, many of North Carolina’s most essential services have been stretched beyond their limits. The Governor’s budget proposal makes targeted investments for a safer, stronger, healthier North Carolina. The proposal helps supports child care access and affordability, protects scholarships for children of veterans, and maintains key government services.
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