Continuing Resolution for Budget is Passed

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Over the last few weeks, debates in the North Carolina legislature have focused on the budget and the stark differences between the House and Senate versions. This week I would like to discuss more of the politics of the budget process and what that means for spending measures.

North Carolina operates on a fiscal year beginning July 1^st and ending June 30^th of each year.  If the legislature does not come to an agreement by June 30^th, a temporary spending measure will be enacted to fund state operations until negotiations are completed.  This is formally known as a continuing resolution, and by definition it is a type of appropriations legislation used by the government to fund agencies if a formal budget bill has not been signed into law by the end of the state’s fiscal year.  Since 200, only two budgets have been signed into law before the June 30^th deadline, one of those being signed before the deadline, the other being signed on the 30^th.

While some will begin the doomsday conversations of a state government shutdown, the truth is, a final budget deal doesn’t have to be decided by the end of the fiscal year.  More budgets than not are passed after the deadline with the accompaniment of a continuing resolution.  Unlike most other states and our neighbors, North Carolina has no formal limit on legislative sessions.  In theory, there is some political pressure to wrap things up and for legislators to go home, but in practice few voters pay attention to the Raleigh politics in the middle of the summer.  An interesting coincidence, most budgets are passed before, or shortly after the beginning of the school year. 

The continuing resolution for the current budget cycle was ratified today.  Both chambers came together and passed a continuing resolution to fund state government through August 14, 2015.  The resolution will continue state funding at current levels, with a few minor adjustments.  Those adjustments are: (1) continuing to fund school districts so they can prepare for the upcoming school year, (2) providing the funding to raise starting teacher pay to $35,000/year, (3) funding selected cooperative early college high schools across the state, and (4) continuing to fund drivers education.

It is very clear that budget negotiations will continue between the House and Senate through the end of the summer.  We can hope that the budget will be agreed upon before the August 14^th deadline of the continuing resolution.  Below is a brief history of NC budget legislation:

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