Budget prioritizes western NC rebuilding

Nearly two years after Hurricane Helene devastated western North Carolina, the state’s new budget answers one of the region’s biggest questions: What comes next for recovery?

The answer is another $700 million in state support.

North Carolina Gov. Josh Stein on Tuesday signed the state’s $34.4 billion budget into law, ending more than two years without a comprehensive spending plan and authorizing another round of funding for Hurricane Helene recovery. The legislation continues investments in housing, infrastructure, transportation, public safety, and local governments across western North Carolina while providing the state match needed to unlock additional federal disaster assistance.

Although Stein sharply criticized several policy provisions included in the Republican-written budget, he said funding for public education, law enforcement, Medicaid, and western North Carolina recovery ultimately outweighed his objections.

“North Carolinians expect their elected officials to come together across our differences to deliver for people,” Stein said during the bill signing.

Stein described the legislation as an example of divided government producing bipartisan results. He pointed to the largest starting teacher pay raise in nearly 50 years, significant raises for state law enforcement officers, bonuses for local law enforcement, full Medicaid funding, and continued Hurricane Helene recovery as the budget’s most significant accomplishments.

For western North Carolina, the budget appropriates more than $700 million to continue rebuilding communities still recovering from Helene.

According to legislative leaders, the funding package includes $450 million to meet state and local matching requirements for federal disaster recovery programs, including FEMA Public Assistance and Hazard Mitigation grants. Another $65 million is directed to FEMA-ineligible local government capital projects, including up to $30 million for volunteer fire departments.

The budget also includes $43 million for nonprofit housing and private road and bridge recovery projects, $40 million in temporary relocation assistance for displaced families, and $22 million for state-supported repairs to private roads and bridges. Additional appropriations support infrastructure reconstruction, local governments, wildfire preparedness, dam repairs, regional tourism, and other long-term recovery efforts.

State Rep. Karl Gillespie, R-Macon, an appropriations vice chairman, said lawmakers intend to continue supporting mountain communities throughout the recovery process.

“Western North Carolina has come a long way since Helene, but our work is far from done,” Gillespie said. “Our mountain communities have shown incredible resilience, but as families rebuild their homes and businesses get back on their feet, they need a partner that has their backs. That’s why this budget invests more than $700 million to continue western North Carolina’s recovery. We made a promise to stand with these communities for the long haul, and we’re keeping that promise.”

State Rep. Dudley Greene, R-Avery, who also serves as an appropriations vice chairman, said recovery remains a years-long effort.

“I experienced Helene firsthand, and I’ve seen how long the recovery process really takes,” Greene said. “Nearly two years on, people across the western part of our state are still dealing with the storm’s aftermath and are trying to get their lives back to normal. It’s going to take more work to finish the job, but the budget helps clear the path forward by supporting the recovery efforts still ahead.”

The enacted budget also creates a $350 million State Emergency Response and Disaster Relief Fund reserve. The legislation transfers $355 million to the Office of State Budget and Management for disaster-related purposes and appropriates $5 million to the Department of Public Safety for the North Carolina National Guard.

Housing also remains a significant focus. The budget reserves $35 million in nonrecurring funding for the Housing Reserve, with the money scheduled to transfer to the North Carolina Housing Finance Agency during the 2026-27 fiscal year.

Transportation funding, another key component of western North Carolina’s recovery, totals approximately $3.38 billion through the Highway Fund and an additional $2.57 billion through the Highway Trust Fund for maintenance, construction, strategic transportation investments, public transportation, aviation, rail, ferries, and municipal street aid.

The legislation also includes provisions intended to strengthen oversight of taxpayer dollars. State agencies administering directed grants must provide quarterly reports to the General Assembly’s Fiscal Research Division detailing grant amounts, recipient compliance, and disbursement status until all funds have been distributed and spent.

While highlighting the budget’s accomplishments, Stein devoted much of his remarks to provisions he believes fall short.

“This budget has real flaws,” Stein said. “The legislature is slashing more than 1,000 state government positions, making it harder for us to meet the people’s health and safety needs.”

Stein also criticized provisions affecting executive branch authority and argued that many state employees remain underpaid despite raises included in the budget.

Republican lawmakers have said many of the eliminated positions had remained vacant for extended periods and that the savings would be redirected to higher-priority needs.

The discussion follows a January performance audit from State Auditor Dave Boliek, which found 8,846 long-term vacant positions across 46 state agencies, representing approximately $1.04 billion in lapsed salary funding. The State Employees Association of North Carolina has argued that many of those vacancies stem from compensation that has not kept pace with the labor market.

Despite those concerns, Stein said compromise ultimately guided his decision.

“The Legislature has accepted many of my big-ticket budget recommendations,” he said. “Democracy has always run on compromise for the common good.”

The budget’s enactment ends one of the longest periods in recent history without a comprehensive state spending plan. Since 2023, North Carolina had relied on continuing appropriations, mini-budgets, and targeted spending measures while negotiations continued between Stein and the Republican-controlled General Assembly.

The final budget passed the Senate by a 35-10 vote and the House by an 88-21 vote with bipartisan support. No Republican voted against the measure in either chamber, though three Senate Republicans and six House Republicans were excused. Eight Senate Democrats, 21 House Democrats, and two unaffiliated House members voted in favor of the legislation.

Stein also signed House Bill 56, making technical corrections to North Carolina’s budget law under Senate Bill 257.

As communities continue rebuilding homes, businesses, roads, bridges, and public infrastructure damaged by Hurricane Helene, the state budget provides another major infusion of recovery funding while positioning local governments to access additional federal disaster assistance through the required state matching funds.

“Budget prioritizes western NC rebuilding” was originally published on www.carolinajournal.com.