NC Lawmakers Return To Raleigh But Fail To Pass New State Budget
Thursday, October 23, 2025
by: Bill O'Donnell | Legislative Affairs & Policy Manager

Section: Budget & Finance




Lawmakers returned to Raleigh this week and came to an agreement on two issues: S249: Realign Congressional Districts for a redrawn U.S. House map and S449: Continuing Budget Operations Part IV, the latest “mini-budget” as lawmakers have yet to reach an agreement on a comprehensive state budget. Both the House and Senate have been in a stalemate over future tax cuts, Medicaid, funding a children’s hospital, and teacher raises.
 
The latest mini-budget S449 had a few K-12 impacts with investments in virtual cooperative innovative high schools and additional funding for the Pay Plan Reserve to support teacher step increases previously approved by the General Assembly this session. For more information about those K-12 provisions click here. A more comprehensive bill digest outlining all bill provisions can be found here. S449 was approved by both chambers and sent to the Governor.
 
After the Senate left for the week, the House passed S599 State Teacher/Employee Pay & Local LEO Bonus on Wednesday that would give teachers and state employees the same raises as in the spring House budget proposal, along with additional raises for law enforcement officers higher than the Senate's most recent proposal.
 
Under S599, teachers would get raises this year of 6.4% on average, and most state employees and noncertified school personnel would get a 2.5% raise. Other raises of 13% would be given to correctional officers, certain juvenile justice employees, and state law enforcement officers.
 
The raises would only happen with "that comprehensive budget negotiation that we are all waiting on," said Rep. Erin Paré, a Wake County Republican and budget writer.

It’s unlikely that the Senate will consider any of the House measures passed this week anytime soon. In fact, the Senate chamber refused acceptance of S599 today and deemed the bill ineligible according to session parameters outlined in the adjournment resolution. Lawmakers have sessions scheduled for November and December, but leaders of both chambers indicated they didn’t anticipate those dates to be actual voting sessions.