North Carolina budget nears completion with focus on pay raises

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Tuesday, June 30, 2026 3:51AM
North Carolina budget nears completion with focus on pay raises

RALEIGH, N.C. (WTVD) -- North Carolina lawmakers are nearing agreement on a new state budget that Rep. Zack Hawkins says could bring long-awaited stability to agencies and employees who have been operating under 2023 spending levels.

Hawkins, a Democrat representing Durham, said Monday that legislators are close to finalizing the budget after waiting 1,000 days since the last budget passed

"We're going to potentially meet the June 30, July 1 deadline, so that there's stability for all the agencies and all the entities that depend on the state budget," Hawkins said.

Hawkins said the prospect of a finalized budget offers needed certainty.

"The opportunity for them to have a budget means stability," he said.

The expected spending plan centers on pay increases for educators and state employees. State workers could receive an average 3% raise and a $1,700 bonus for those earning under $75,000. Hawkins said the goal is to ensure workers have a "strong and respectable pay scale."

"State employees know that they're not going to get rich, but we need to make sure that they have a strong and respectable pay scale, bonuses that keep up with inflation, and the benefits, of course, that the state of North Carolina brings, and so we're hoping that we value them in this budget," he said.

Teachers could see an average 8% raise. Hawkins, a former educator, said he hopes North Carolina can lead the South in teacher pay.

"And eventually beating the national average. But alongside that, we really want to make sure that there's an opportunity to keep and retain teachers who've been teaching for 10, 15 and 25 years," he said.

The budget is also expected to include a 13% pay raise for law enforcement, according to a post from Rep. Brenden Jones, who celebrated the finalization of the budget.

The budget could come with a plan to reduce the personal income tax rate and a higher tax rate for sports gambling operators. The rate would increase from 18% to as high as 23%, a change Hawkins supports.

"We can bring in even more revenue, because it's going to some really good places, it's going to universities, athletic departments, it's going to support youth sports, it's going to support outdoor opportunities and grants," he said.

One proposal not included in the budget is funding for a Major League Baseball stadium in Raleigh. Hawkins said the Senate-led idea was not the right fit this year.

"Because we have to make sure that we're taking care of our basic obligations, our people," he said.

Hawkins said agencies have been operating under the 2023 budget, affecting hiring and pay raises. Many are waiting for Tuesday's release of the new spending plan.

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