Senate budget proposal draws praise, concern across NC

Senate Republicans’ new budget proposal has sparked a wide range of reactions from North Carolina policy analysts, business leaders, and elected officials, some of whom offered praise for lawmakers’ decisions as prudent, while others criticized Republicans’ priorities as backwards.

North Carolina Senate leaders unveiled their proposed $66 billion biennial budget Monday evening, which appropriates $32.6 billion in spending for the first year and $33.3 billion for the second. It includes key provisions related to education, raising public employee pay, hurricane-recovery funding, tax cuts, and other policy changes.

Senate Democrats were quick to respond with criticism to the proposal. Senate minority leader Sydney Batch, D-Wake, offered a scathing critique, criticizing the budget for underfunding public infrastructure and public employees and prioritizing corporate tax breaks over community needs. 

“The Senate Republican budget is a blueprint for neglect and cowardice,” said Batch. “Their priorities are backwards, and it’s our communities that will pay the price for their reckless choices.”

The Senate Republican budget fails to fund public safety, offers pathetic pay raises for public servants, and hoards billions of $$$ while families struggle. It’s a blueprint for neglect, not success—and North Carolinians are paying the price. #ncpol pic.twitter.com/AdK4oYp1Lw

— Sydney Batch (@friendsforbatch) April 14, 2025

Though Democrats focused on what they felt was underfunding, other groups applauded the budget for focusing on tax cuts and other economic issues.

The NC Chamber expressed strong support for the budget’s business focus, especially its economic development investments and tax reforms. Key elements earning their praise include a reduction in the personal income tax rate and the elimination of trigger-based cuts in the years ahead.

“While the NC Chamber does not take a position on specific appropriations, North Carolina must continue to prioritize its competitive position,” said Gary J. Salamido, president and CEO of the NC Chamber. “A continued commitment to strategic investments in workforce, economic development, and people in communities across the state will ensure our state remains a top destination for business and opportunity.”

The NC Chamber also applauded reducing the franchise tax on North Carolina businesses by exempting the first $5 million of a business’s net worth — up from the current $1 million threshold.

North Carolina FreeEnterprise Foundation’s executive director, Alex Baltzegar, also commended the tax breaks as a smart, strategic move to attract top talent from across the country and around the world.

“The Senate’s budget, as proposed, would keep North Carolina on track to be the most attractive state for businesses in the country — cutting taxes, rolling back red tape, and letting markets lead,” Baltzegar said in a comment. “Simplifying and cutting the franchise tax is a big deal for small and mid-sized businesses. These are the job creators that power our economy, and lowering their fixed costs makes it easier for them to grow, hire, and invest. Raising the exemption threshold to $5 million means fewer businesses are getting punished just for existing — it’s a smart, pro-growth reform.” 

Meanwhile, the progressive North Carolina Budget and Tax Center disapproved of the budget’s “cruel cuts” that the organization argues would leave North Carolina unprepared for recessions, federal cost shifts, and climate disasters. The group raised concerns over state revenue shortfalls that they believe could come from the scheduled tax cuts, though legislators beg to differ.

The Senate’s proposed investment in the State Health Plan, fully funding the pension plan, and helping with critical infrastructure needs drew praise from State Treasurer Brad Briner. The proposal represents about a 5% increase from last year’s contribution to the health plan, more than the recent average of 3.3%, signaling a strong commitment to state employee health.

“This budget provides a historic investment in the State Health Plan which will be vitally important as the department continues to work to make the plan solvent for our hard-working state employees,” said Briner in a press release. “The Senate proposal also offers funding for GLP-1’s [weight loss drugs] that state employees have made clear is a priority for them.”

Joseph Harris, a fiscal policy analyst at the John Locke Foundation, pointed to the Senate’s mindful spending, aiming to restore the Rainy Day Fund to $4.75 billion. Due to Hurricane Helene recovery funding, it now stands at $3.61 billion.

“I think it was prudent to limit the increase in net General Fund appropriations to only about $1 billion and replenish the Savings Reserve to its pre-Helene level of $4.75 billion,” Harris said in a comment.

On education matters, BEST NC praised the Senate’s proposed investment in the Advanced Teaching Roles (ATR) initiative, which expands the program statewide and provides meaningful salary increases for effective educators. The budget allocates over $36 million across two years, offering up to $10,000 in salary supplements — with some districts adding more — for teacher-leaders who mentor teams and deliver real-time classroom support.

“We are pleased to see the Senate budget make a strong investment in Advanced Teaching Roles, which have been shown to have positive effects for teachers and students,” said BEST NC CEO Brenda Berg in a press release.

Budget debates are taking place throughout three different Senate committees on Tuesday at the General Assembly. After the Senate passes its budget, which is expected this week, negotiations with the House will begin, which could take weeks or many months.

SEE ALSO: Senate Republicans unveil $66 billion budget plan for 2025–27

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