The North Carolina legislature has reached a stalemate over how much of the state's $1 billion surplus to spend in the fiscal year that starts July 1.

And it could be months before a solution is reached.

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The GOP-controlled House and Senate have their own proposals, which largely align on big-ticket items such as funding private school vouchers, childcare stabilization and a road project by the massive Toyota plant in Rockingham County.

But the one-year budget proposals — both over $31 billion — differ greatly in terms of money spent. The House plan spends over $500 million more than the Senate wants, according to Senate calculations.

House Speaker Tim Moore, R-Cleveland, told reporters the chambers were, at one point, only $30 million apart on a nearly $32 billion budget.

"Might need to buy a calculator," said Senate leader Phil Berger, R-Rockingham.

Berger said the sides have not yet agreed on a top-line number for the budget. The House gave final approval to its plan Thursday. The Senate will vote on its own plan Monday night. Neither chamber will take up the other's proposal.

Both leaders said they plan to have their chambers work next week before leaving for the Juy 4th holiday — and what could be an extended break.

A return in September "would be fine with me," Moore said. "A lot of hot temperatures right now, maybe the best thing is a little time for things to cool down."

Said Berger: "If they, at whatever point, decide to get serious about the spending number, we are willing, able and ready to engage."

Lawmakers passed a two-year budget last fall. In even years, lawmakers can modify the budget to account for increases or decreases in revenue projections or other contingencies.

Both chambers call for spending $463 million to fully fund the Opportunity Scholarships program, $136 million to bridge the federal funding gap on childcare and $150 million for road construction near the Toyota factory in Randolph County. But the House wants to give teachers and state workers additional raises, beyond the 3% established in the two-year budget passed last year.

"A lot of members are extremely frustrated with what the Senate is doing and not doing," Moore said.

The Senate’s plan calls for a 5.5% increase in spending over 2023-24. The House calls for a 6.5% increase.

"We've been good stewards of your tax dollars and we're not going to change course now," said Sen. Brent Jackson, a Sampson County Republican, during Thursday's committee hearing.

The chambers also have disagreement about other pieces of legislation, including medical marijuana — which the Senate favors, but a majority of the House GOP caucus does not.

Sen. Michael Lee, a New Hanover County Republican, said Wednesday the chances of a new budget in 2024 were "slim to none."

"We're going to send them a measure Monday that I would say contains a lot of the things that's in their budget," Berger said. "And if they're serious about doing the things we agree on — based on the measure they're sending and the measure we're sending — they should just concur in what we send to them."

Democrats on the Senate committee challenged their GOP colleagues over the millions being used for private school vouchers, the lack of additional raises for teachers and state workers and the gap in childcare funding. The proposal replaces about 75% of federal grant money for stabilization.

Last year's budget removed the income eligibility cap for tuition scholarships. About 55,000 individual students are on the waitlist since there was only money to accept 15,500 students, almost all from the lowest income tier (just over $57,000 for a family of four).

Sen. Dan Blue, a Wake County Democrat and minority leader, said the budget prioritizes higher-income families with money for private school over teachers and state workers making less money.

"It gives me a real sense that in this budget working people are not a priority," Blue said.

But private school vouchers were a key legislative accomplishment for Republicans, who see the higher-than-expected demand as proof the program is working.

"That's an amazing testament to the popularity of this program," Moore said.

Lawmakers in both chambers were hopeful to end the so-called "short session" before the July 4 holiday. But talks began to break down in May, Berger said.

Even with Republicans holding supermajorities in both chambers, disagreements between the House and Senate are not uncommon. Last year's budget was held up over inter-chamber disagreements over rural tourism districts, which would have allowed for the construction of four casinos across the state.

"There are a lot of shared priorities," Moore said. "But we believe that the full budget we are proposing is the way to go."

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