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Continuing Budget Operations

PassedHouse
Erin PareRepublican

Ch. SL 2025-892025-08-06

91 Yea23 Nay2025-07-30

This law continues North Carolina state government operations for the 2025-2027 fiscal biennium by appropriating funds for various state agencies and programs. It makes budget adjustments across education, health and human services, economic development, transportation, and other state functions. The bill also addresses disaster recovery funding following Hurricane Helene, adjusts employee compensation and benefits, and establishes new initiatives in broadband access and government efficiency.

  • Supporters argue this bill provides necessary funding to keep state agencies operating during continuing budget authority periods.
  • It includes $142 million in disaster relief for agricultural losses from Hurricane Helene, supports economic development projects like a manufacturing facility in Guilford County, increases funding for DMV services, and provides for employee salary adjustments and benefits.
  • The bill also establishes a new Division of Accountability, Value, and Efficiency to review state spending and recommend agency consolidations.
  • Opponents contend the bill cuts funding from several education and health programs, including reductions to community college nursing faculty adjustments, mental health services funding, and specialized education programs like Plasma Games STEM software.
  • Medicaid funding undergoes complex adjustments that some argue limit flexibility.
  • The bill also reduces funding for certain scholarship programs and eliminates the Longleaf Commitment Community College Grant Program.
  • Critics may question whether these cuts harm vulnerable populations and whether the large economic development investment ($118+ million) represents the best use of state resources.

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