RALEIGH, N.C. — Democratic Gov. Josh Stein signed a new two-year budget passed by North Carolina's GOP-led state legislature on Tuesday.
During a news conference, Stein emphasized bipartisan support for the new state budget. He noted that he didn't agree with every provision in the bill, but highlighted what he called "real wins."
The budget fully funds Medicaid for the year and it also includes pay increases for teachers and state law enforcement officers — plus, bonuses for local law enforcement. Stein said it will prompt the largest starting teacher pay raise in nearly 50 years and the largest overall raise for the position in the last 15 years.
Additionally, the sales tax exemption for data centers was eliminated because of the new budget. Across the state border, this issue stalled budget negotiations in Virginia.
"I won't sweep this budget's flaws under the rug," Stein said.
The governor pointed out that the budget will slash over 1,000 state government positions, something he said will make it harder to meet North Carolinians' needs. The budget also will eliminate the Office of Minority Health and Health Disparities, another action that faced criticism from Stein on Tuesday.
Watch related coverage: Hatteras ferry toll coming? State budget includes fees for all NC ferry routes
Regarding impacts on the Outer Banks, the state budget will require the North Carolina Department of Transportation (NCDOT) to implement tolls on all ferry routes, including the Hatteras to Ocracoke for the first time. The tolls are meant to provide funding to help establish and maintain an already aging ferry fleet.
In a statement sent to News 3, Stein called this provision another flaw within the larger budget.
"This budget has real flaws, including a requirement for the North Carolina Department of Transportation to establish tolls on all ferry routes by January 1, 2027. North Carolina’s ferries for many are not a luxury; they’re an essential part of our state’s transportation system that residents rely on for daily life. In many cases, ferries are the only practical way for families to access jobs, schools, and health care," Stein said.
GOP Senate Leader Phil Berger highlighted tax cuts, expansion of private school access and funding for hurricane recovery efforts in a statement sent to News 3 after the state budget received Stein's approval.
"For over 15 years, Republicans in the General Assembly have meticulously crafted budgets to rein in the runaway spending Democrats were dependent on. After decades of fiscal recklessness, Republicans right-sized state government and sent billions of dollars back to residents in the form of regular personal income tax cuts and reforms.
"Our fiscal policies resulted in an incredible decade of success and economic growth. Senate Republicans fought to secure a budget that would continue those efforts, and the budget Gov. Stein signed does just that. It continues to slash tax rates for all North Carolinians and prioritize the needs of our citizens, not bureaucrats.
"This budget supports educational access, from our K-12 public schools and private schools to expanding community college workforce programs and our UNC System campuses. We replenished our savings account and ensured hurricane recovery efforts can continue. We also addressed critical healthcare needs and chipped away at archaic certificate-of-need laws that drive up costs for patients.
"I'm glad Gov. Stein recognizes how vital this budget is for the people of North Carolina."
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