NC Republican legislators agree on a limited budget to cover the basics and a few GOP priorities

Republicans released a so-called “mini-budget” Tuesday that allows the DMV to hire more license examiners, supports an economic development project in Greensboro, and funds a new government efficiency office the state Auditor would run.

It authorizes step salary increases for teachers, principals, and state employees who are eligible to receive them. It does not give raises greater than those in established salary schedules.

The state Senate approved the budget 45-2 with no debate. The House is expected to vote Wednesday.

Republicans in the House and Senate have not been able to agree on a new budget for the fiscal year that started July 1. House and Senate Republicans were at odds over raises for teachers, future cuts to individual tax rates, and other issues.

The House proposed a budget in May that included average teacher raises of 8.7% over two years and an increase in starting teacher pay from $41,000 a year to $48,000 this year and $50,000 next year. The Senate wanted an average raise of 3.3% for teachers over two years and a $3,000 bonus over two years.

“On the House side we want to give some significant raises,” House Speaker Destin Hall (R-Caldwell) told reporters. “We continue to talk to the Senate about that. No deal reached yet.”

Senate leader Phil Berger (R-Rockingham) told reporters the disagreement between Senate and House Republicans over tax cuts has been resolved, and the two sides decided there would be no changes to their earlier agreement on future tax cuts.

The mini-budget does not address any shortfalls that result from federal budget cuts.

Congressional Republicans passed a massive budget reconciliation bill signed into law by President Donald Trump that includes deep cuts to social programs and tax cuts for the wealthy.

North Carolina will see a decrease in federal funding for its Medicaid program of billions of dollars over 10 years. The federal cuts jeopardize Medicaid expansion, under which more than 600,000 North Carolinians have health insurance.

“We’re looking at what the impact of the federal legislation will have on the Medicaid program and state-level funding,” Berger said. “We’re not at the point now where the modifications have taken place or done the analysis that we need to do in order to make the kinds of changes or decisions that need to be made.”

The mini-budget covers what are considered to be crucial items that House and Senate negotiators could agree on, said Sen. Brent Jackson (R-Sampson), a budget committee chairman.

“It’s not perfect. It’s not everything we wanted. It’s a compromise,” he said.

The hope is that legislators will have a complete budget shortly, he said.

Here’s what’s the mini-budget includes:

• money to cover enrollment at community colleges and public schools
• $1.2 million to hire 40 driver’s license examiners in the first year of the budget and $2.99 million to hire another 21 driver’s license examiners in the second budget year. Long lines and long waits for appointments are constant citizen complaints.
• $13.3 million in the first year and $2.7 million in the second year to open and staff four new DMV offices.
• $118.1 million for the JetZero aircraft manufacturing plant at the Piedmont Triad International Airport. The company has promised to invest more than $4.7 billion in Greensboro and create 14,560 jobs by 2063.
• $6 million for state Auditor Dave Boliek to set up a government accountability division to assess government efficiency and spending. The division would be authorized to use artificial intelligence to perform its tasks.