May 21, 2025
RALEIGH — Donald Bryson, President and CEO of the John Locke Foundation, issued the following statement in response to the North Carolina Senate and House Budget proposals:
The competing versions of the 2025 state budget reveal two very different approaches to government accountability and fiscal discipline. The North Carolina Senate’s budget plan reflects a more responsible and limited view of government, while the House proposal takes bold steps to correct past mistakes in spending.
The Senate’s plan deserves praise on several fronts. It holds the line on taxes, avoids new recurring spending obligations, and wisely replaces permanent salary hikes with a one-time bonus — limiting long-term budget bloat. It also eliminates the outdated Certificate of Need (CON) law and establishes a new DAVE system to evaluate state debt — two significant victories for health care access and fiscal transparency. Notably, the Senate plan removes North Carolina’s interim carbon emissions target, reducing the risk of rushed and economically harmful environmental mandates.
At the same time, the House budget takes an important and commendable step by clawing back the full $500 million endowment previously granted to NCInnovation. That move represents a significant win for taxpayer accountability. The House also moves to eliminate unfilled government positions, helping trim the size of the bureaucracy and align state personnel with actual service needs.
The budget will inevitably be negotiated between chambers, and we urge budget conferees to adopt the strongest elements of each plan: retain the Senate’s approach to taxation, recurring costs, regulatory reform, and climate policy, while incorporating the House’s needed rollback of the NCInnovation endowment, reduction in pork-style capital projects, and elimination of vacant state jobs.
North Carolinians deserve a budget rooted in transparency, limited government, and long-term sustainability. With thoughtful leadership, this budget process can deliver exactly that.