The budget received bipartisan support in both the House and Senate, but it also drew criticism from lawmakers and advocacy groups over what it includes and what it leaves out.
The spending plan includes pay raises for state employees, with some law enforcement agencies, including the State Highway Patrol, State Bureau of Investigation and Alcohol Law Enforcement, slated to receive double-digit percentage increases.
Full proposed budget
However, state employee advocates say many workers will see much smaller gains.
"We know the state of North Carolina needed to pass a budget, but this is a very disappointing budget," said Flint Benson, a political strategist and lobbyist for the State Employees Association of North Carolina.
Benson noted many state employees are slated to receive a 3% raise over two years, while retirees would receive a one-time bonus rather than a cost-of-living adjustment.
"We have a lot of state employees that are receiving a 3% raise, which when you say that's over a two-year period, that's a one-and-a-half percent raise," Benson said.
North Carolina has continued operating under its 2023 budget while lawmakers worked to reach an agreement. New pay rates included in the budget will not be retroactive, although some employees will receive bonuses.
Benson said he remains concerned about the state's ability to recruit and retain workers, even in areas receiving larger raises.
"When you start dividing even a 13% raise over two years, that's barely keeping up with inflation as it is. I don't think they're going to solve a whole lot of the vacancy problems in state government, especially in our very hard to fill positions. It's going to take a commitment by the lawmakers and they have to make them a priority," said Benson.
Lawmakers also acknowledged the lengthy process it took to finalize the spending plan following a prolonged budget stalemate between Republican leaders in the House and Senate.
"There are many states who finish the budget in March, or April or May -- not wait until June or July," said Rep. Donny Lambeth, a Republican who represents Forsyth. "These budgets have gotten so much more complicated."
SEE ALSO: NC budget plan could boost Durham schools, workforce
Democrats also criticized the delay.
"One of our most fundamental responsibilities is to pass a balanced budget," said Rep. Sarah Crawford, a Democrat who represents Wake. "Yet here we are, nearly a year after that work should have been completed."
The budget also includes funding for health and environmental initiatives.
One provision directs $15 million to North Carolina Collaboratory for PFAS research and remediation efforts at fire stations, including temporary water supplies and filtration systems.
PFAS, often called "forever chemicals," have been linked to a range of health concerns.
"Firefighters are unique population because of the potential exposure that they have to PFAS in firefighting foam and the protective gear that they use," said Preston Clark, who formerly worked as a firefighter and is now Program Manager with North Carolina Collaboratory.
Clark said efforts to address PFAS must focus on both current contamination and future prevention.
"When you identify what the concern is and what the problem is, how do you respond to that?" Clark said. "Now looking forward, where does the research take us? For example, transitioning to new foams? What are those new foams that are coming on the market? How effective are they in performing fire suppression? Do they have any other elements in them that we need to be aware of?"
During floor debate Thursday, lawmakers highlighted other portions of the spending plan.
"Medicaid Expansion, which is a big deal for this state, we adjusted it," said Lambeth. "There's no new cost and there's no cost to the state to continue expansion,"
Crawford pointed to concerns over additional responsibilities being shifted to local governments.
"We are also shifting additional responsibility onto counties, including increased costs for administering SNAP, one of our most effective tools in this country for reducing hunger," Crawford said.
The budget also includes $208.5 million for North Carolina Children's Hospital, a joint venture between UNC Health and Duke Health that would create the state's first freestanding children's hospital.
In a statement, NC Children's Director of Communications and Marketing Will Arey said the funding will help move the project forward.
"We are grateful to our state leaders for their continued investment into North Carolina Children's and our shared goal of creating a brighter, healthier future for our children. We continue to make great progress toward opening the state's first independent, dedicated children's hospital, and remain on track to break ground in late 2027."
A spokesperson for Stein said the governor's office is reviewing the proposal. Stein has 10 days to sign the budget, veto it or allow it to become law without his signature.