Gov. Stein signs North Carolina’s $34B budget

RALEIGH — North Carolina Gov. Josh Stein signed the $34 billion state budget on Tuesday, ushering in raises and bonuses for state workers and retirees and allowing new state projects to begin.

State lawmakers in both the House and Senate granted final approval for the budget last week. The budget received bipartisan support, marking the first time in over a year that North Carolina has a new budget in place.

The budget also includes raises for law enforcement and money for Hurricane Helene relief. Income tax was cut from 3.99% to 3.49%.

Dominique Moody Act

One of the budget’s key provisions is the Dominique Moody Act in response to the death of the six-year-old Charlotte girl. The act creates a Child Welfare Escalation Team, which will step in to help investigate high-risk cases when there are signs of abuse and neglect. The budget added $650,000 to fund those positions.

I-77 controversy

Another area focuses on the Interstate 77 toll lane project.

Communities opposed to the plan will now have to pay back the state for sunk costs.

The state spent more than $60 million on the project before the Charlotte Regional Transportation Planning Authority pulled the plug.

All projects in opposed municipalities will be paused until the state is paid back, and the share each city and town must pay aligns with their vote share on the CRTPO.

Despite signing the budget, the governor had pointed words.

“It makes real the General Assembly’s wrong-headed threats of retribution against Charlotte,” Stein said. “Charlotte needs to enhance road safety and minimize community impact, and that balancing process should be collaborative.”

In favor

Mecklenburg County Democratic State Sen. Woodson Bradley was one of eight Democrats in the State Senate to vote in favor of the budget.

Iryna’s Law modified

In a separate action, Gov. Stein also signed a law on Monday that modifies Iryna’s Law.

This part of North Carolina law, which passed last year, previously required police to take some individuals to emergency rooms or clinics for involuntary commitment instead of jails.

Medical workers had warned that this requirement could overwhelm hospitals. Under the recent changes, some involuntary commitment evaluations can now be conducted at jails rather than hospitals.

The modification also doubles the maximum length of court-ordered outpatient treatment to 180 days. Additionally, a pilot program will be launched to use telehealth in jails for involuntary commitment evaluations.

The legislative changes made to Iryna’s Law are set to take effect in July 2028.