NC lawmakers reach deal on 'mini budget' plan to fund some basic state functions

Republican lawmakers have reached a deal on some state budget issues, they announced Tuesday, even as the biggest debates still remain under negotiation.

The so-called mini budget is intended to fund the more basic functions of state government that are needed since the new fiscal year began earlier this month without a new budget.

Public schools, colleges and universities are funded largely based on their enrollment numbers, and addressing that was one of the main reasons behind the new mini budget deal. Without its updated numbers, any growing schools would be forced to kick off the new school year with last year’s smaller, outdated budget — while the state would likewise find itself sending too much money to shrinking schools.

The UNC Board of Governors voted last week to shift some funds around between shrinking versus growing universities, but leaders said they were waiting on more formal action like this from the legislature.

The mini budget will also fully fund the state pension plan and pump an additional $100 million into the State Health Plan, the state Treasurer’s office said Tuesday. The State Health Plan is facing a $500 million shortfall and plans to raise premiums on members next year.

The vote on exactly how much to raise the premiums is slated for Aug. 15, and Health Plan leaders had been hoping for that $100 million from the legislature, to help keep the premium hikes relatively low. "These funds are critical to making the plan solvent for our hard-working state employees," State Treasurer Brad Briner said.

The premiums won’t be the same for all state employees, a drastic shift from years past. Instead, state employees who make less money will now also pay less for health insurance than their more highly paid colleagues.

The budget deal wasn't made public Tuesday until just minutes before the state Senate voted on it; it passed 47-2 with little debate.

The budget doesn't contain most of the large projects proposed in either the House or Senate versions of budget proposals that passed those respective chambers earlier this year, nor does it contain tax cuts or raises for teachers and other state workers — issues that have deeply divided Republican leaders in the House and Senate. The Senate wants to give small raises in order to afford large tax cuts, while the House wants to do bigger raises and cut taxes by some, but not as much as the Senate wants.

“We want to give some significant raises, and so we’re continuing to talk to the Senate about that," House Speaker Destin Hall told reporters Tuesday. "No deal reached yet. But we’ll continue to try."

The legislature took most of the past month off. And after the House votes Wednesday to pass the mini budget and send it to Democratic Gov. Josh Stein to sign, the legislature plans to adjourn again and then continue meeting just once a month for the rest of the year — something that irked Rep. Deb Butler, D-New Hanover.

"North Carolina expects better of us," Butler said. "They expect one thing from us, which is to pass a budget. But here we are, folding our cards and heading home. I think it's bad policy. I think it's bad governance. We ought toroll up our sleeves, re-invent the art of compromise, put a budget forward for all of North Carolina — vote it up, vote it down — and then go home."