North Carolina Faces Budget Impasse Alongside Pennsylvania and Oregon
Raleigh, NC — The Center Square reports that North Carolina stands among three states without an enacted budget as the new fiscal year began on July 1. In addition to North Carolina, Pennsylvania and Oregon are experiencing similar delays, with Michigan being the only other state not prepared for its upcoming fiscal year starting October 1.
North Carolina’s fiscal year runs from July 1 to June 30, requiring two-year budgets in odd-numbered years. The delay comes as the state faces rising spending demands and slowing revenue growth amid federal fiscal uncertainties, particularly in critical areas such as Medicaid, education, and housing.
The state legislature adjourned its sessions in late June without passing a new budget, resulting in a standstill primarily driven by disagreements regarding pay raises for state employees and the extent of proposed income tax cuts. The House and Senate have put forward budget proposals totaling $65.9 billion, while Governor Josh Stein’s proposal amounts to $67.9 billion.
Despite the lack of a formal budget, North Carolina is protected from a state government shutdown due to a 2016 law that maintains spending at previous levels until a new budget is enacted. This contrasts sharply with Oregonians, where the budget impasse has led to significant consequences, including 483 layoffs announced by the state’s Department of Transportation due to funding uncertainties.
Governor Tina Kotek remarked on the emergency nature of the cuts, emphasizing that the situation is far from business as usual and poses a risk to essential transportation services statewide.
As North Carolina continues navigating these budgetary challenges, all eyes will be on future negotiations to avert potential disruptions in state services.
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