North Carolina House Republicans have proposed a state budget amendment, seeking to increase salaries for teachers and state employees, as well as provide financial aid to childcare providers. The move comes as negotiations with Senate Republicans have stalled, with the two chambers unable to reach a consensus on spending.
The House budget plan, worth $31.7 billion, includes 4% salary increases for state employees and an average 4.4% raise for teachers. First-year base teacher salaries would increase from $39,000 to $44,000, aiming to make North Carolina a more competitive hiring market. The plan also proposes a 9% raise for correctional, probation, and parole officers to address recruiting and retention challenges.
The bill allocates $135 million in one-time funds to replace federal childcare stabilization grants, which will end in July. This funding will help keep childcare centers open and allow parents to remain in the workforce while the state develops a more sustainable model for childcare costs.
The measure also includes provisions adding more than $460 million to the state’s Opportunity Scholarship program, aiming to eliminate waiting lists for nearly 55,000 eligible students seeking scholarships to attend private K-12 schools. The bill appropriates $350 million from a state Medicaid reserve fund to address a program shortfall and $150 million from another reserve for transportation projects related to a new Toyota electric battery plant in Randolph County.
The House bill does not include additional income tax reductions beyond those already scheduled for next year. House Republicans will debate and vote on the bill later this week. Senate President Pro Tempore Phil Berger has threatened to halt negotiations and adjourn the Senate indefinitely if no agreement is reached by June 30.
