Mixed reaction to NC budget framework, proposed pay raises

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Wednesday, May 13, 2026 9:30PM
Mixed reaction to NC budget framework, proposed pay raises

RALEIGH, N.C. (WTVD) -- North Carolina lawmakers say progress is being made toward a new state budget after House and Senate leaders agreed on a framework addressing several major issues, including pay for state employees.

The deal comes after months of stalemate between the two chambers, which has left North Carolina operating without a new budget and delayed raises for state workers. Leadership from both chambers announced the agreement on key issues Wednesday, sharing topline figures that outline where negotiations are headed.

Under the framework, state employees would see an average 3% raise, while teachers would receive an average 8% increase, along with one-time bonuses based on experience.

"Most state employees were an afterthought in this budget. We're kind of used to that drill. The problem is it's affecting the public," said Ardis Watkins, executive director of the State Employees Association of North Carolina.

Watkins said the proposed average raise does not keep pace with rising costs.

"You're looking at 3% to cover two years of raises, and those jacked-up health care premiums. I mean, that's not going to work. Food Lion and Duke Energy don't take promises. They don't take goodwill or good thoughts," she said.

Keith Poston, president of WakeEd Partnership, described the proposed raise for teachers as "much deserved," but said more information is needed.

"The late Gov. Jim Hunt used to always say, 'great start, more to do.' And that's how I think about this," Poston said.

He said questions remain about how raises are structured and whether longstanding issues are being addressed.

"Do we still have a pay plateau where teachers don't get a raise for 12, 13 years? Is it all front-loaded? There's a lot of things that we need to know. There's no, there's no mention to Master's pay being reinstated, which we certainly think should be, should happen. I want to see the details," Poston said.

The framework also addresses funding for the new North Carolina Children's Hospital, which had been a sticking point in negotiations. The agreement releases $208 million for the project, with further discussions planned to determine whether more funding will be needed.

In a statement, Alan Wolf with UNC Health wrote:

We are grateful to our state leaders for their continued support of North Carolina Children's and our shared goal of creating a brighter, healthier future for our children. We continue to make progress toward opening the state's first independent, dedicated children's hospital, and remain on track to break ground in late 2027.

Several law enforcement agencies would see double-digit percentage raises, with more than $40 million separately allocated towards one-time bonuses for local law enforcement.

"The proposed budget provisions definitely will help address salary issues and funding issues for both officers being recruited, but equally important for officers that are currently serving," said Eddie Caldwell Jr., Executive Vice President and General Counsel of the North Carolina Sheriffs' Association.

Pay raises for law enforcement would include an average 20.3% bump for SBI and ALE officers, a 17.7% hike for State Highway Patrol officers, 15.4% for correctional officers, and 13% for State Capitol Police.

"Law enforcement is a complex and complicated profession and a dangerous one, of course. We need to adequately fund our personnel so that we can get the best and brightest available to serve in those very critical positions in our society," Caldwell said.

The funding toward correctional officers is particularly timely. In January, Gov. Josh Stein shared that more than 1/3 of the state's positions were vacant, and North Carolina had the 49th lowest starting pay rate in the country.

"It will get people interested, and it was a nice bump, but they need to work on fill in the vacancies because working in the prison is a very, very dangerous job for all staff," said Elmer Hulen Jr., a retired correctional officer. He also serves with the State Employees Association of North Carolina Employees Political Action Committee.

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Hulen is disappointed by the 2.5% one-time bonus for retirees, believing the figure falls short.

"Inflation keeps going up, my gas keeps going up, the groceries keep going up. But my paycheck that supported me, that I support the state, is not helping. A lot of us retirees have to go get another job after working 30 years with State."

Further, he expressed concerns about potential recruitment if retiree benefits were not strengthened.

"You invest into the state, so we're asking the state to invest into the workers," Hulen said.

One unresolved question is how the increases would be funded and whether job cuts could play a role.

"In the last 20 years, the state of North Carolina has not added any state employees; we have 2 million more people in the same number of state employees serving them. So now we have more people in the retirement system drawing a check than putting into it," Watkins said.

If passed, the pay increases would take effect when the budget is enacted and would not be retroactive to the start of the fiscal year. Lawmakers say negotiations over final details are expected to continue in the coming weeks.

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