North Carolina House gives initial approval to its budget proposal. Senate to debate its spending priorities next

The House passed a one-year budget Wednesday, fully funding private school vouchers, giving larger raises to state employees and providing money for child care centers.

The proposal now goes to the GOP-controlled Senate, which has been at odds with the House over how to spend a $1 billion surplus. The Senate is scheduled to debate its own spending proposal early Thursday.

The state's two-year budget, which became law last fall, covers the fiscal year that begins July 1. Lawmakers can make adjustments in even years to account for changes to revenue estimates or other contingencies.

Four Democrats joined all present Republicans in voting for the proposal.

It calls for the state to spend a record-high $31.8 billion, including more than $460 million for private school vouchers over two years, $350 million to cover cost overruns in Medicaid, $225 million on raises for teachers and state employees, up to $180 million for NC State's Poe Hall, and $150 million on road construction for massive Toyota factory being built in Randolph County.

"I'm proud of this budget," said House Speaker Tim Moore, a Cleveland County Republican.

The Senate has rejected the House's proposal, saying it spends too much money. Senate leaders have suggested they are fine leaving the current budget in place and adjourning without any changes.

"If you sit and do nothing, and we sit and do nothing and let the second year come into play, yes, the world continues to move," said Rep. Jeff Elmore, a Wilkes County Republican. "Our state government continues to move, but you are missing out."

Sen. Michael Lee, a New Hanover Republican and top budget writer, said Wednesday that the odds of passing a budget before 2025 were "slim to none."

Said Elmore: "Our neighboring chamber wants to do nothing. They have no care to do nothing."

The Senate appropriations committee will consider the chamber's own budget proposal early Thursday morning. It proposes spending $31.4 billion, including similar money on private school vouchers, known officially as Opportunity Scholarships, childcare and road construction around the Toyota plant.

The Senate spends less overall and does not include further raises, above those included in last year's budget for teachers and state workers.

"It's a negotiation, and we'll get through it," said Moore, who was not aware the Senate was going to release its own version.

"There are key differences that are worthy of discussion and where the House believes we ought to have a budget that recognizes that," he said.

Under the budget already in place for 2025, teachers and other state workers would receive 3% raises.

The House plan bumps that to 4% for most state workers, except probation and parole officers and corrections officers who would see a 9% raise. The average teacher would see a 4.4% raise.

Democrats blasted the House budget as a giveaway to private schools and wealthier families who already send their children to private schools. They called for more funding for public schools, teachers and child care.

"The budget priorities shown in this budget are a choice," said Rep. Julie von Haefen, a Wake County Democrat. "They are a choice to give millions to private schools while we let low paid early educators either lose their jobs or get a pay cut."

Added Buncombe County Democratic Rep. Lindsey Prather: "This is not a budget bill. This is a taxpayer-funded private school voucher bill."

Business interests and other advocates have warned about a funding cliff for child care with federal funds set to expire at the end of the month. House Republicans said the budget supports child care centers at 75% of COVID-era levels.

"There's no way you could continue those revenue streams without assistance from the federal government," said Rep. Larry Potts, a Davidson County Republican. “We had less money than we had needs."

The House voted on 20 amendments to the budget, adopting nine, including one to divert nearly $3 million from other sources into PFAS or so-called "forever chemical" remediation and prevention.

The House and Senate would need to agree on a budget before sending it to Democratic Gov. Roy Cooper, who opposes school vouchers. Cooper could choose to veto or sign the budget, or let it pass without his signature. His veto power is weakened by the fact that Republican carry a veto-proof majority in both chambers.