State lawmakers are hopeful that they can reach an agreement on budget adjustments by June 17. The House and Senate have reached a deal on a total spending amount of roughly $30 billion. The two chambers are now working on how the budget will be allocated.
With North Carolina expecting more than $6 billion in projected tax revenue surplus, Senate President Pro Tempore Phil Berger has said his priority for the short session is reducing taxes. Both House and Senate leadership have said that they support further reductions in personal income tax rates.
NCACPA is working with Finance Committee leaders in both chambers to get an opportunity to review and comment upon any tax code changes before a deal is finalized.
Governor Roy Cooper’s budget proposal does not include tax cuts, but he indicated that he might support a $200 gas tax rebate proposed by Senate Democrats.
“I would support relief for everyday people,” said the Governor. “And the gas pump is one place to do that versus more overall corporate cuts and more overall income tax cuts…I would rather them go that route, but obviously these are all part of budget negotiations right now.”
In addition to tax cuts, Medicaid expansion could play a role in this year’s budget negotiations. Governor Cooper has consistently pushed for Medicaid expansion, and the Senate recently passed HB 149—Expanding Access to Healthcare, which includes Medicaid expansion. Speaker of the House Tim Moore has repeatedly stated that House Republicans do not want to vote on Medicaid expansion this year.
Even if there is no agreement on a budget this session, there is a spending plan already in place for the upcoming fiscal year. The biennial budget that was passed at the end of last year is already in effect.
If you have questions about this issue or other policy matters, please contact NCACPA Director of Advocacy Robert Broome, CAE.