No NC budget deal between governor and GOP, but could be enough for both ‘to be happy’

Four months late, the $25.7 billion North Carolina state budget is finally moving ahead next week with votes at the General Assembly.

That means thousands of teachers and other state employees could get raises, tax cuts could be on their way and construction projects all across the state could get rolling. And a comprehensive state budget could be passed for the first time in three years.

Lawmakers are ready “come hell or high water” to pass a budget, a top Republican told The News & Observer Wednesday evening.

After more than two months of negotiating a compromise budget with Democratic Gov. Roy Cooper, the Republican-majority state legislature plans to pass a budget next week to send to Cooper’s desk.

And both sides might be able to claim victory, even without a deal.

“There’s not a deal. The conversations have been good, and there are certainly accommodations in the conference report. We had an extended conversation” with Cooper, said Rep. Jason Saine, a Lincolnton Republican and head budget writer in the House. “The members are ready; come hell or high water they want to get a budget.”

“We’ve been bombarded by state employees and everyone else that they’re ready for a budget too,” he said.

Saine said negotiators got to a point at which they knew they weren’t going to get to a deal with Cooper, but have incorporated a lot of what the governor wants into the conference budget, which is the final version of the budget to be passed by the Republican-majority legislature.

Saine said once final votes are taken, expected Thursday, Cooper will have a decision to make.

“He could claim victory and say that he’s had a noticeable influence on what our conference report looks like,” Saine said about Cooper. “It’s not everything he wanted; no one gets everything they want.”

Saine said there is “probably a 33% chance” each that Cooper will sign it, let it become law or veto it.

Votes next week

Earlier versions of the budget passed the House and Senate with enough Democrats to give them veto-proof majorities, and Republicans are confident the three-fifths supermajorities needed for veto overrides would still be there.

Saine said that the conference budget will come out on Monday in the Senate, with votes there Tuesday and Wednesday and then House votes Wednesday night and Thursday, sending it to Cooper. Cooper would then have 10 days to sign, veto or let it become law without his signature.

Saine said Democrats have had a large part in influencing and changing the budget.

“There’s enough in there for everybody to be happy,” he said.

Raises for public employees in the final version are likely to be closer to the House budget proposal, with tax cuts closer to the Senate’s proposal.

Saine said he can’t give specifics yet, but that education spending was also increased significantly from earlier budget proposals, which is something Cooper wants.

“There’s certainly — in directions the governor wanted to go — you’ll see that needle move,” Saine said. “I think he can walk away with a win, too.”

One budget proposal that Cooper hasn’t liked, and he vetoed a separate bill on, would limit his emergency powers. Saine wouldn’t say if it will be in the budget.

“I can’t talk about that because it’s a policy matter. We included some of the policy in there,” he said.

The timing of the budget finally going for a vote involves a combination of the several weeks of negotiations, holidays approaching and the fiscal year having begun on July 1.

“The calendar is driving it as much as the fact that we’ve gone through the motions, had great conversations, and I think everyone knows where everyone’s at and there’s not much more to be said,” Saine said.

Cooper tweeted a statement on Wednesday evening about the latest on budget negotiations. Lawmakers have confirmed his recent offers had included Medicaid expansion and increased education funding.

“Republican leaders have informed the Governor that they will release a budget on Monday that will have a number of the Governor’s priorities that were proposed in his budget and discussed in negotiations over the last few weeks, including increases in education funding,” Cooper tweeted.

“They also informed him that Medicaid Expansion would not be included because the Speaker could not get enough Republican House members to support it. When he has reviewed it, the Governor will make a decision to sign or veto the budget based on what is best for the people of North Carolina,” Cooper’s statement said.

The News & Observer previously reported that House Speaker Tim Moore said there aren’t enough House votes for Medicaid expansion to include it in the budget, though the Senate was open to it.

Compromises in budget

Senate Majority Whip Jim Perry, a Lenoir County Republican, serves on the budget conference committee, which includes the Democrats who voted for early versions of the Republican-written budget.

“It’s been a long process. Everyone’s tired and grumpy, but there have been fantastic efforts put into finding something that everybody can be reasonably happy with,” Perry told The N&O on Wednesday.

Rep. Abe Jones, a Wake County Democrat, isn’t on the conference committee, nor did he vote for the earlier budget proposal. But he’s ready to vote for the conference budget next week and wants a full, comprehensive budget, not the smaller budget bills that passed after the 2019 budget stalemate between Cooper and Republicans.

“I think we need a [comprehensive] budget,” Jones said. “A budget is much more efficient for the people of North Carolina. It works better. We’ve lost a lot — a lot slips when you piecemeal it like we’ve been doing since when, 2018?”

“It’s time. I would rather have more in it, but it’s not enough to lose my vote,” Jones told The N&O.

While he’s ready to vote yes on the conference budget, he said he’s not committed to a override vote if Cooper vetoes it.

“I don’t want to stand Roy down. But I’ll vote for the conference budget,” Jones said.

For more North Carolina government and politics news, listen to the Under the Dome politics podcast from The News & Observer and the NC Insider. You can find it at link.chtbl.com/underthedomenc or wherever you get your podcasts.