"North Carolinians, frankly, don't deserve the fact that we are now at 268 days going without a state budget," said Batch, a Democrat.
Republican leadership in the House and Senate has been engaged in a months-long stalemate about a proposed budget. Without a new budget signed into law, the prior budget has essentially remained in effect.
"They're asking people to survive on 2023 income, especially our state employees and our teachers, despite the fact that we have 2026 problems and costs," said Batch.
That means that proposed pay raises for teachers remain on hold.
"Teachers haven't had a raise in two years. For a lot of teachers, because of increasing cost of living and also increasing healthcare costs by the state, that is equated to a pay cut," said Sara Howell, Associate Director of Policy and Research with The Public School Forum of North Carolina.
"We know that underfunding of programs in a high-cost environment is inevitable. We know that the same dollar that North Carolina spent in 2024 isn't going to buy the same level of services in our communities. That's just what we've all experienced with inflation, and it happens in government, too," said Alexandra Sirota, Executive Director of the North Carolina Budget & Tax Center.
According to the National Education Association, North Carolina ranks 39th nationally in average teacher starting pay and 43rd in average teacher salary, based on data from the 2023-24 fiscal year.
"There are some real financial implications for them in their lives. They have to make choices. They have childcare costs of their own. They have health care costs of their own. So as much as they may want to teach, without a real income or a meaningful raise, they just can't afford to do it," said Howell, a former teacher with Durham Public Schools.
Earlier this month, Gov. Josh Stein proposed a "critical needs" budget, addressing several issues while taking a more piecemeal approach.
"I think mini budgets are probably more likely than a big budget because fundamentally the House is still standing by the fact that they have to freeze the triggers right, the income. And the Senate, at least Sen. (Phil) Berger said no," said Batch.
In a statement, Lauren Horsch, Deputy Chief of Staff for Communications for Senate President Berger, wrote:
"Sen. Berger and Senate budget writers have been ready and willing to negotiate a budget. With the short session beginning in a few weeks, they anticipate renewed conversations about the budget to take place."
On Tuesday, an report released by the Fiscal Research Division at the General Assembly showed that though North Carolina is projected to take in less revenue in the next fiscal year, it's still on track to hit a trigger which would lead to a lower personal income tax rate.
"That will hurt our ability to fund the things that people prioritize in their communities, good schools, access to good jobs," said Sirota.
"While we just got the revenue forecast and it was modest growth of 1.1%, I would also tell you that our inflation is 2.4%. That's problematic," said Batch.
The forecast shows $35.079 billion in revenue for the 2025-26 fiscal year and $35.72 billion in revenue for the 2026-27 fiscal year.
In a statement, Berger wrote:
"Today's forecast once again confirms that Republican-led, pro-growth fiscal policies have transformed North Carolina into an economic juggernaut. As we prepare for the legislative session, this forecast provides a roadmap to continue those efforts and ease the tax burden for hardworking North Carolinians."
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In a statement, House Speaker Destin Hall wrote:
"Today's announcement of a surplus demonstrates the success of the fiscally responsible policies enacted by our Republican majority over the last 15 years. Unfortunately, this surplus revenue will be entirely consumed by a projected billion-dollar Medicaid rebase. This program must be reformed in order to preserve our ability to fund public safety, education, and other priorities.
"We must protect North Carolina's hard-earned reputation for fiscal strength by passing a responsible budget sooner rather than later."
Hall's office acknowledged the projected revenue trigger leading to further tax cuts in 2028, "increasing the chances of a significant recurring deficit and underscoring the need for a responsible budget."
Despite his primary loss, Berger plans to complete his term as Senate President. Batch said to this point, Democrats have been left out of budget negotiations in the chamber. Though Republicans have a supermajority in the Senate, they only hold a simple majority in the House.
"There are no excuses left. Not a single excuse left as to why we don't start working in a bipartisan fashion on a budget," Batch said.
Lawmakers are due back in the General Assembly for the start of the short session in April.