June 5, 2026
Old North State Report – June 5, 2026
UPCOMING EVENTS
- June 10: Annual NC General Assembly Appreciation Event
- June 22: Thinkers Lunch: A Look at NC’s Economic Development Efforts
- July 15: North Carolina Healthcare Association Summer Meeting
- October 15: 2026 NC Professional Lobbyists Association Annual Meeting
- October 22: Association of Executives of North Carolina 2026 Fall Conference
LEGISLATIVE NEWS
NC BUDGET STILL IN LIMBO AS JUNE DEADLINE APPROACHES
North Carolina lawmakers still have not released a state budget, and uncertainty continues to build as June 15 is floated—but not guaranteed—as a possible release date. Gov. Josh Stein said he doubts the legislature will meet that target, noting that early deadlines rarely hold, though he described current negotiations among his office, the House, and the Senate as constructive.
The budget framework under discussion includes an average 8% raise for teachers along with bonuses, which legislators say would give North Carolina the highest starting teacher pay in the South. State employees would receive a 3% raise and bonuses, though Stein argues this fails to keep up with inflation and rising health plan costs. Law enforcement agencies would see some of the largest increases, with double‑digit percentage raises for SBI, ALE, Highway Patrol, correctional officers, and probation and parole staff, plus a one‑time bonus for local law enforcement.
Tax changes remain a major point of debate. The personal income tax rate would continue its scheduled decline to 2.99% by 2034, with triggers that could push it as low as 2.49%. A constitutional amendment to cap property tax levies will appear on the November ballot, and lawmakers are considering an additional cap on personal income tax rates. Stein criticized that idea as a “millionaire protection cap,” warning that deep long‑term revenue limits could weaken public services.
Other state agencies are also feeling strain. Secretary of State Elaine Marshall said her office is overwhelmed by record business filings and needs more staff and competitive pay to keep up. The broader context is that North Carolina has not passed a full two‑year budget since October 2023, leaving agencies and employees in a prolonged state of uncertainty.
The Carolina Journal (Opeka) 6/2/26
NC LAWMAKERS OVERRIDE STEIN VETO OF EDUCATION TAX BILL
The North Carolina Senate voted to override Governor Josh Stein’s veto of an education bill, marking the ninth time state lawmakers have overturned one of his vetoes. The override passed on a 30–19 party-line vote, with all Republicans supporting it and all Democrats opposed.
With the override, House Bill 87 becomes law and puts North Carolina into a federal tax‑credit program that allows taxpayers to receive up to $1,700 in credits for donating to organizations that provide scholarships and other educational services.
Supporters said the program broadens educational options for families, while Governor Stein and Democratic lawmakers opposed it, citing uncertainty about federal guidelines and concerns about its potential impact on public school funding.
The News & Observer (Vaughan) 6/4/26
HOUSE TURNS HOSPITAL WAIVER BILL INTO BROAD 2026 REFORM PACKAGE
North Carolina’s House approved a greatly expanded version of Senate Bill 445, which began in 2025 as a one‑page hospital disaster‑relief measure after Hurricane Helene but has now become a 23‑page Regulatory Reform Act of 2026. The House passed it 85–28, with some Democratic support, and removed the original language that would have automatically adopted federal health‑care waivers.
The bill now spans multiple policy areas. It restricts schools from giving protected‑information surveys without parental consent and includes changes to student learning tools, admissions testing, education savings accounts, teacher‑prep rules, and school capital funding. It lengthens development, vesting rights from two to five years, expands alternate inspection methods, allows residential use in certain commercial districts, and blocks local governments from requiring employer negotiations with labor organizations. It updates subpoena powers for the State Bureau of Investigation, raises fines for intentional or reckless littering, and bans telephone solicitors from misrepresenting call origins while prohibiting carriers from enabling such practices.
The Center Square (Wooten) 6/3/26
HOUSE MOVES QUICKLY ON DATA CENTER LIMITS
On Wednesday, the North Carolina House voted 69–44 to approve a revised version of Senate Bill 730, now called the “Ratepayer Protection Act,” which combines new regulations for data centers with major shifts in state energy policy. Republican sponsors argued that rapid data growth and existing energy mandates are driving up electricity costs, and they framed the bill as a way to ensure data centers contribute fairly while protecting grid reliability. The bill moved quickly through two committees before reaching the floor.
Lawmakers added an amendment clarifying what qualifies as a data center and giving the Department of Environmental Quality authority over water‑use standards. Democrats praised the inclusion of some of their requested changes, calling the regulatory framework a necessary first step, though they still raised concerns about other parts of the bill.
The most contentious element is a provision preventing the retirement of existing baseload power plants unless they are replaced with nuclear generation. Supporters say this guarantees reliable energy, but critics argue that building enough nuclear capacity could take decades, effectively extending the life of fossil‑fuel plants in the meantime. Several Democrats urged the legislature to consider solar, wind, and battery storage as viable alternatives, noting that nuclear projects often face cost overruns and delays that ultimately fall on ratepayers.
Democratic leaders also objected to combining data‑center regulations with sweeping energy policy changes, saying the two issues deserved separate debate. They warned that the bill could raise electricity costs by locking the state into expensive energy sources, despite utility analyses suggesting cheaper options exist. Republicans countered that intermittent renewables cannot replace baseload power and insisted the bill would protect consumers over time.
The measure now returns to the Senate, where lawmakers may revisit the concerns raised in the House.
NC SENATE ADVANCES SOCIAL MEDIA AND AI SAFETY BILL
North Carolina’s Social Media and AI Safety Bill, House Bill 301, is moving forward in the state Senate after receiving approval from the Senate Judiciary Committee with a favorable vote and moving on to the Senate Rules Committee on June 3. The bill aims to restrict social media access for children under 16 by requiring platforms to verify users’ ages and by increasing parental involvement. Lawmakers argue that social media poses significant risks to minors, including exploitation by human traffickers, and that stronger safeguards are needed.
The bill also adds artificial intelligence literacy to K–12 computer science standards. Supporters say students need these skills, while some critics worry the state may overreach or create a burdensome, centralized curriculum. Others argue the bill either does not go far enough or gives government too much authority over parental decisions.
A Meta representative told lawmakers that age verification at the app store level would be the most effective approach and noted that several other states have adopted similar laws. Legislators expect the bill to continue evolving, but for now it moves next to the Senate Rules Committee.
The Carolina Journal (Zehnder) 6/4/26
STEIN MOVES TO IMPROVE SERVICES FOR MILITARY FAMILIES
Governor Josh Stein has signed a new executive order aimed at strengthening North Carolina’s military communities by improving coordination, communication, and support across state agencies. The order requires every cabinet‑level agency to appoint a Military Affairs Coordinator responsible for understanding how their agency’s work affects service members and for collaborating with the Department of Military and Veterans Affairs (DMVA).
The DMVA will regularly convene these coordinators to identify gaps in services, improve information‑sharing, and develop strategies to better support active‑duty personnel, Guard and Reserve members, veterans, and military families. Stein emphasized that North Carolina has one of the largest military populations in the country and that the state must modernize its support systems to match that scale.
State officials noted that the military is North Carolina’s second‑largest economic sector, influencing areas like health care, education, housing, and workforce development. They said stronger coordination is vital for both military readiness and the well‑being of military families across the state.
The Carolina Journal (Opeka) 6/3/26
LATEST POLLS
RealClear Polling: North Carolina Senate- Whatley v. Cooper
WHAT WE’RE LISTENING TO
Tying It Together with Tim Boyum
