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2026 Governor's Budget

IntroducedSenate
Michael LeeRepublican

Re-ref Com On Appropriations/Base Budget2026-04-30

No floor votes recorded.

This is North Carolina's budget bill for the 2026-2027 fiscal year. It appropriates approximately $35.4 billion in General Fund spending for state operations, includes tax policy changes, sets employee salaries and compensation, funds K-12 and higher education, and authorizes capital improvement projects. The bill also modifies existing tax rates and creates new tax credits.

  • Supporters argue this budget directs resources toward education funding improvements, including teacher salary increases, literacy programs, and school resource officers.
  • It provides funding for disaster recovery and community health initiatives, establishes new tax credits for working families and education expenses, and includes strategic workforce development investments through community colleges.
  • The budget also maintains accountability measures and creates new programs aimed at improving student outcomes.
  • Critics may contend the budget relies on negative reserves (special funding mechanisms requiring asset sales and procurement savings) to balance spending, which raises questions about sustainability.
  • Some object to specific tax policy changes or their impact on different income groups.
  • Others may question whether education funding increases adequately address all school needs, or debate the priorities reflected in capital project allocations and agency spending levels.
  • The bill's complexity and length (161 pages) also makes comprehensive fiscal impact analysis challenging.

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