While North Carolina has a small budget surplus, Republican lawmakers say they hope to trim more spending from state government. STATUS: Gov. Pat has signed the $20.6 billion state budget for the fiscal year that began July 1, 2013.
Rewriting the state budget is annual tax for state lawmakers. The $20.2 billion budget passed in 2012 expires June 30.
For the past four years, lawmakers have been dealing with deficits that required hundreds of millions of dollars worth of cuts to state spending. This year, tentative budget projects show the state's fiscal picture has improved and that North Carolina may be running a small surplus. The one area that's a possible exception, according to lawmakers, is the perennially problematic Medicaid health insurance program for the poor and disabled.
While lawmakers will not be forced to cut because of a crises this year, Senate leader Phil Berger said he believes Republicans will endeavor to further trim state spending. After the governor presents his budget, the state Senate will draft its spending plan. The House will then generate a budget and the three versions will be reconciled into a final compromise budget.
Although negotiators are working on a compromise plan, they expect to miss the July 1 deadline for passing a new spending deal before the beginning of the fiscal year. A temporary budget, known as a continuing resolution, will be put in place to ensure the government continues to operate while a final deal is worked out.