‘No budget, no pay’ bill targets lawmakers as deadline pressure mounts

North Carolina lawmakers have filed a proposal that would dock their own pay if they fail to pass a state budget on time — an idea that appears to have overwhelming public support.

The “No Budget, No Pay Act,” filed this week in the General Assembly, would require legislative salaries to be placed in escrow if a budget for the 2026-27 fiscal year is not approved by June 30, 2026.

The bill lays out the requirement in detail:

“If, by midnight of June 30, 2026, the presiding officers of the Senate and the House of Representatives of the North Carolina General Assembly have not ratified a Current Operations Appropriations Act for the 2026-27 fiscal year, the Legislative Services Officer shall direct the General Assembly Controller to deposit in an escrow account all compensation and allowances earned by or accruing to each member of the General Assembly on or after July 1, 2026.”

The measure includes a provision to release the withheld pay once a budget is passed or the session ends, meaning legislators would eventually receive their compensation, just not on schedule. 

The bill’s patrons say the measure is designed to create urgency to pass a balanced budget before the start of the new fiscal year. Budget delays have been a recurring issue in North Carolina, with lawmakers in recent years missing the statutory deadline amid negotiations among the House, the Senate, and the governor.

The proposal aligns with strong voter sentiment on the issue.

A March Carolina Journal poll found that 84.4% of likely general election voters support requiring state legislators to forgo their pay from the time a state budget expires until a new biennial budget is passed. Just 7.5% of voters opposed the idea, making it the issue with the highest level of agreement among respondents.

The findings suggest broad bipartisan frustration with prolonged budget stalemates and a strong appetite for mechanisms that increase accountability for elected officials.

The proposal has drawn criticism from those who argue it lacks substantive impact.

“The bill is a political stunt rather than a serious proposal,” said Andy Jackson, director of the John Locke Foundation’s Civitas Center for Public Integrity. “In the unlikely event it is enacted, it would only hurt the relatively small number of legislators who depend on legislative compensation to pay their bills. Legislative pay is so low that most members would hardly notice going weeks or months without it, especially since they would eventually get back pay once a budget is passed.”

Jackson added that while the concept may have limited practical impact, there is some precedent for tying legislative pay to performance.

“That said, there is a precedent for pay-for-performance in legislatures,” he said. “In Iowa, legislators are not paid the per diem for their office expenses if their session extends past the statutory limit.”

It remains unclear whether the North Carolina proposal will gain traction in the current session. Lawmakers have previously debated structural reforms aimed at preventing prolonged budget impasses without success.

If enacted, the measure would take effect immediately.

“‘No budget, no pay’ bill targets lawmakers as deadline pressure mounts” was originally published on www.carolinajournal.com.