NC lawmakers announce 'starting point' for a budget deal, after a year of negotiations

Key Points:

• North Carolina lawmakers have reached a preliminary agreement on a comprehensive state budget, ending a yearlong impasse, which includes raises for all state employees, with teachers and law enforcement officers receiving larger increases.
• The deal proposes at least 3% raises for all state workers, averages of about 8% for teachers, and raises for law enforcement, prison, probation, and parole officers, along with possible bonuses based on experience and pay level.
• Both chambers agreed on a less aggressive income tax cut than Senate conservatives wanted but plan to place two anti-tax constitutional amendments on the November ballot, focusing on property tax reform and capping future income tax rates.
• Some state employee advocates and Democratic leaders criticized the raise levels as insufficient to keep up with inflation and rising health care costs, warning it could increase turnover and recruiting expenses.
• If approved by the legislature, the budget will go to Democratic Governor Josh Stein, who may veto it; Republicans hold a veto-proof Senate majority but lack a supermajority in the House, complicating override efforts.