NC Budget Delays & the Real Costs to Our Communities

As June 30th (the start of the new fiscal year) rapidly approaches, North Carolina still lacks a finalized budget. In normal years, this date marks the launch of the biennial budget cycle. This time, however, lawmakers from both parties remain deadlocked over priorities like Medicaid, education, tax cuts, and natural disaster funding.

Medicaid Underfunded

Both the House and Senate budgets fall significantly short of funding the Medicaid “rebase”—the annual cost adjustment. Gov. Stein’s proposal earmarks $700 million, but legislative plans include just $500 million. This shortfall jeopardizes coverage for the nearly 3 million North Carolinians who depend on Medicaid. Without a full rebase, healthcare providers and rural clinics could struggle to serve those in need.

Deep Cuts to Vital Health Programs

The budgets also propose cutting or suspending the “Healthy Opportunities” pilot, which provides food, transportation, and other supports to vulnerable rural communities. Surveys show it saves roughly $1,020 per person per year, yet it's now on the chopping block. Eliminating this program risks reversing real health gains in places much like Harnett County.

Teacher Pay vs. Empty Classrooms

On the education front, the House plan includes a 2.5% raise for state employees, with beginning teacher salaries rising from $41,000 to $48,000 (then $50,000). However, this funding is achieved in part by eliminating thousands of vacant and currently filled positions, raising concerns about future capacity and quality.

Looming Revenue Crisis

Nonpartisan analysts warn that this budget impasse comes amid a projected $2 billion annual shortfall by 2027–28, driven by tax cut mechanisms built into the current law. If passed as proposed, North Carolina would face declining revenue in the coming years—while demand for public services continues to climb.

What You Can Do:

  • Call or email your NC legislators asking them to invest fully in Medicaid and the Healthy Opportunities pilot—especially for rural communities like ours.
  • Stay informed and engaged. Let’s continue to fight for a North Carolina where health, education, and economic opportunity are treated as basic rights, not privileges.
  • Get ready to vote this fall: these budget decisions reflect policy priorities more than party lines. Let's build a North Carolina that invests in its own people.