As budget talks stall, NC Senate comes up with a funding stopgap -- for now

Luciana Perez Uribe Guinassi and Avi Bajpai, The Charlotte Observer on Jun 23, 2025

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North Carolina Senate lawmakers on Monday transformed a bill about the state star into a 44-page measure that funds agencies and programs, as budget talks with the House remain stalled.

The bill could be on the Senate floor as soon as Monday night.

Senators also unveiled their reworked version of a House bill to fund more aid in Western North Carolina.

The spending bill, drafted by Republicans who control both chambers of the legislature, was introduced at about 4:30 p.m. during an Appropriations Committee meeting. House Bill 125 previously had been a symbolic measure making the Moravian star the official state star of North Carolina.

Republicans offered an additional amendment to adjust community-college enrollment projections, among other changes. That was approved.

Budget negotiations between the House and Senate have stalled, and any hope of passing a budget by the end of June has dissipated, as previously reported by The News & Observer. Failure to pass a budget by the deadline is common in North Carolina.

The House and Senate, both controlled by Republicans, have spent weeks at odds over the budget, mainly over key spending issues such as tax cuts, raises and major projects, including a planned children’s hospital.

Tax cuts, raises and the major projects causing debate were not included in the Senate’s spending bill released Monday.

Among other provisions, HB 125 allocates $1.2 million in the coming year and $3 million the following year to the struggling Division of Motor Vehicles for 61 new DMV driver’s license examiner positions, with the goal of cutting wait times.

The bill transfers $1.14 billion to a savings reserve and provides $40 million for pre-Helene disaster relief.

When asked whether Sen. Greg Meyer, a Democrat from Chapel Hill, could offer additional amendments, Rep. Brent Jackson, an Autryville Republican and chairman of the committee, said no and that he should “save it for the floor.” Meyer replied, “It’ll be a fun day when it gets there.” Jackson replied, “That should be tonight.”

Asked about the bill by The News & Observer, Sen. Ralph Hise, a Spruce Pine Republican, said he did not view it as what is known as a mini-budget bill — “which is where we make decisions.”

“This is merely looking at the continuing resolution and recognizing that on July 1 we will be under the continuing resolution. What are the things we need to make sure we continue to see state government operate as intended?” he said.

A continuing resolution keeps state government funded and operating when the state legislature fails to pass a budget. State government doesn’t shut down like the federal government would under such circumstances. Instead, it keeps spending at the level of previous years until a budget is passed.

Hise told reporters after the committee meeting that instead of running separate bills for different state agencies, the overhaul of the bill was aimed at filling areas that need addressing because a budget isn’t coming any time soon: ”We know it’s going to be a while before that comes to fruition.”

Asked whether the House would support the bill, Hise said, “House members and others have received copies of both.”