Since early July, Franklin’s two state legislators have been awaiting word to return to Raleigh and the N.C. General Assembly to vote on the biennium state budget. It looks like that vote won’t come until mid-August at the earliest, but it needs to happen before the month ends.
Rep. Karl Gillespie of Franklin, a freshman state representative who campaigned on delivering a timely budget, isn’t happy with the wait.
“I think it should have been done quicker, it should be done in a timely fashion,” Gillespie said on July 31. “For me, the budget is the No. 1 priority in January (when the session starts). It would be a priority for me until it’s complete. I’m very disappointed we don’t have a budget. For the citizens of North Carolina, it’s one of the basic things they should expect out of the legislature. Cities and towns are relying on the dollars.”
Sen. Kevin Corbin of Franklin said he gets updates once or twice a week, but like most of the other state legislators, he’s waiting.
“There’s no reason to be there for us rank and file members,” Corbin said.
When asked when he feels a budget vote will occur, Gillespie said, “At this point, your guess is as good as mine.
“Like everybody else, I want to get the budget behind us.”
The wait continues as Senate President Pro Tem Phil Berger and House Speaker Tim Moore work toward a compromise on the tax package and reserve amount.
“The tax package is the big deal,” Corbin said on July 28. “We have in there personal income tax cuts, and so there’s some negotiation going on about how much those cuts will be going forward, not just this year, but through 2026. It’s a fairly big deal how those will be implemented.”
The other big-ticket item being debated, according to Gillespie, is how much will remain in state reserves.
On Twitter (the social media platform recently rebranded as “X”) on July 28, Berger said he and Moore have “agreed on a tax package and resolved other key differences,” adding that negotiations on other aspects will continue.
Moore said “significant progress” had been made in the budget in the past week and he’s “looking forward to passing a full budget for North Carolina in mid-August.”
Gillespie believes there will be a session the week of Aug. 7, but doesn’t foresee a budget vote that week, instead taking up several veto override votes that piled up through July.
The budget will be for the 2023-2025 fiscal years, going back to July 1. Unlike the federal government, the state of North Carolina continues to operate even without an approved budget.
“Although the new fiscal year officially began on July 1, North Carolina state government will continue to operate under the previous year’s budget until a new budget is agreed upon,” Gillespie said in his late July newsletter. “A few years ago, the state legislature passed this law to ensure North Carolina avoids shutdowns like those that occur in other states and in Washington D.C.”
Once a new state budget becomes law, new salary structures, such as proposed teacher pay raises, if part of the final version, will be provided with back pay.
Corbin, who is chair of the Senate Select Committee on Appropriations on Health and Human Services, worked with the other appropriation committee chairs (public safety, judicial, education and transportation to name some) to craft their budgets and pass them on to the “corner offices” (Berger and Moore).
“We finished three-four weeks ago, prior to July 4,” Corbin said of the budgeting process.
The N.C. Department of Health and Human Services (NCDHHS) announced last week that Medicaid expansion, signed into law earlier in 2023, will be implemented on Oct. 1. However, that law requires passage of the state budget to be implemented, according to its language. Thus, the NCDHHS says it will need the state budget approved by Sept. 1.
“To launch expansion on Oct. 1, NCDHHS will still require action by the N.C. General Assembly — either through “de-coupling” expansion from the budget or through an enacted budget — by Sept. 1,” the NCDHHS stated on July 26. “The work the department is doing now will reduce the original implementation period, from 90-120 days upon receiving legislative authority, to 30 days so enrollment can begin more quickly.”
Corbin said legislators knew the Medicaid schedule and “has every reason to believe that it’ll be in place.”
The legislative “summer break” has been criticized by state Democrats, including Gov. Roy Cooper. Corbin acknowledged that criticism but said the NCGA normally doesn’t convene after June 30.
“It’s not like congress, it’s not a full-time job,” Corbin said of being a state legislator.
The state budget needs to pass both the state House and Senate in separate votes. Once approved, Cooper has either 10 days if the NCGA is in session or 30 days if the NCGA is out of session to sign into law, veto or let it become law without his signature after the time period ends. If Cooper vetoes, the NCGA can override that veto with a 60% supermajority vote by both chambers. Republicans have a slim supermajority in both chambers.