What's the hold up on North Carolina's new budget?

State Senator Phil Berger conceded defeat Tuesday in his GOP primary to Rockingham County Sheriff Sam Page. Berger led the GOP in the State Senate for more than two decades. One of the most immediate impacts we could see is a potential breakthrough in state budget negotiations.
Posted 3/25/2026, 11:22:00 PM Updated 3/26/2026, 3:34:33 AM

GO DOWN TO ABOUT 3 MILLION

DEAD. OKAY. APRIL 1ST. SO I

GUESS WE'LL BE PAYING

ATTENTION. ERIC, THANK YOU.

I DO WANT TO GET TO A GOOD

QUESTION THAT WE GOT SOME FROM

FROM SOME VIEWERS IN THE

07:00PM IN INBOX. LOTS OF

PEOPLE WRITING IN THE 07:00PM

AT WRAL DOT COM.

>> A VIEWER NAMED MICHAEL ROAD.

AND WHAT'S THE HOLDUP WITH THE

STATE BUDGET? YES, CHRISTINE

WANTED TO KNOW TO SHE WROTE,

I WAS WONDERING IF YOU CAN DO A

STORY ON THE STATE BUDGET AND

HOW WE ARE STILL WITHOUT ONE

AND GREGORY, RIGHT, WRITING

THAT NO ONE WANTS TO TALK ABOUT

WHY NORTH CAROLINA DOESN'T HAVE

A BUDGET. CAN SOMEONE PLEASE

HELP ME WITH YOU KNOW, LOOK, IT

KIND OF SOUNDS LIKE LOTS OF

PEOPLE DO WANT TO TALK ABOUT

THE BUDGET. AND YES, WE CAN

HELP YOU WITH THIS BECAUSE

RIGHT NOW AS A REALLY GOOD TIME

TO BRING THE SHOP'S SENATE

LEADER. PHIL BERGER JUST LOST

THAT PRIMARY RACE TO SAM PAGE.

BERGER IS A MAJOR FACTOR IN

THE BUDGET NEGOTIATIONS AND HE

WILL BE OUT OF THE LEGISLATURE

NEXT YEAR. SO WHAT DOES THAT

MEAN FOR THE BUDGET OR LACK

OF ONE. DOES HIS ELECTION LOSS

MOVED THE NEEDLE AT ALL.

AND LIKE MICHAEL SAID, WHAT

IS THE HOLDUP IN THE FIRST

PLACE? ASHLEY ROSE SPOKE TO

WRAL. STATE GOVERNOR REPORTER

WILL DOOR.

WILL WE GET SO MANY QUESTIONS

ABOUT THE BUDGET? TELL US WHERE

THINGS STAND RIGHT NOW. IT

DOESN'T LOOK LIKE THINGS HAVE

CHANGED.

>> NO, YOU'RE RIGHT. THIS FOR

MONTHS WE HAVE GONE WITHOUT A

NEW STATE BUDGET LEGISLATURE

COMES BACK NEXT MONTH OF APRIL.

SO WE MAY KNOW MORE THAN

GOVERNOR STEIN HAS BEEN

PRESSING LAWMAKERS.

>> TO GO AHEAD, IMPASSIVELY

SOMETHING YOU SAID A FULL

BUDGET. YOU KNOW, JUST SOME

CRITICAL NEEDS THAT HE'S

OUTLINED. BUT THERE'S REALLY NO

SENSE YET THAT REPUBLICAN

LEADERS IN THE HOUSE AND SENATE

ARE GOING TO LISTEN TO HIM.

THEY ARE STILL VERY MUCH AT

ODDS OVER TAX POLICY. SO WE

DON'T EVEN KNOW HOW MUCH THE

STATE MIGHT HAVE TO SPEND LET

ALONE WHERE AND HOW WE'RE GONNA

SPEND THAT MONEY. ONE OF THE

MAIN LEADERS WHO HAS BEEN A

PART OF THESE BUDGET

NEGOTIATIONS IS SENATE LEADER

PHIL BERGER. WE NOW KNOW THAT

HE LOST THE PRIMARY. HE

CONCEDED THIS WEEK.

>> AND WITH THAT CONCESSION,

KNOWING THAT HE IS KIND OF OUT

OF THE PICTURE, AT LEAST NEXT

YEAR, MOVING FORWARD, WHAT DOES

THAT? HOW DOES THAT PLAY INTO

THESE BUDGET NEGOTIATIONS?

IT'S A FASCINATING QUESTION AND

ONE THAT'S GOING TO PLAY OUT

OVER THE NEXT FEW MONTHS.

THE YOU KNOW, THIS WHOLE SPRING

SESSION THAT THE LEGISLATURE IS

GOING TO HAVE.

>> COULD BE FILLED BURGERS.

LAST HURRAH AFTER 30 YEAR

POLITICAL CAREER, IT IS TIME

TO CEMENT HIS LEGACY AND SO

WILL HE FACE MORE PRESSURE TO

NEGOTIATE A BUDGET ACTUALLY GET

SOMETHING DONE OR WILL HE SAY,

YOU KNOW, I I LIKE WHERE THINGS

ARE RIGHT NOW BECAUSE IF WE

DON'T HAVE A BUDGET, THEN TAX

CUTS ARE GOING TO CONTINUE

GOING INTO PLACE. HE LIKES TAX

CUTS. HE COULD HAVE SOME

INCENTIVES NOT TO NEGOTIATE AT

ALL. SO WE DON'T KNOW YET

EXACTLY HOW THIS IS ALL GOING

PLAY OUT. BUT IT IS JUST A

FASCINATING POLITICAL QUESTION

NOW THAT WE DO HAVE THIS KIND

OF TICKING CLOCK DOWN TOWARDS

THE END OF HIS CAREER. NOT ONLY

ARE WE WATCHING THAT TICKING

CLOCK TOWARDS THE END OF HIS

CAREER, BUT WE'RE ALSO WATCHING

WHAT'S GOING ON WITH THE THE

DOLLARS AND CENTS IN OUR STATE

GOVERNMENT.

>> AND THE FORECAST IS NOT

LOOKING GREAT. THERE. NO, EVEN

BEFORE PHIL BERGER, LEE'S

OFFICE, WHICH WILL BE IN

JANUARY IN JULY, THE START OF

THE NEW FISCAL YEAR. THE

STATE'S ECONOMY IS JUST SAID

THIS WEEK THAT WE'RE ACTUALLY

EXPECTING TO START LOSING

MONEY. HUNDREDS OF MILLIONS OF

DOLLARS LESS FOR THE NEXT

FISCAL YEAR THAN WE'VE GOT TO

SPEND THIS YEAR. SO, YOU KNOW,

COULD THAT ACESS TO TAKE CUTS

TO STATE SPENDING, POSSIBLY?

>> IT COULD ALSO MEAN THAT WE

JUST PUT LESS MONEY INTO

SAVINGS. YOU KNOW, WHICH HURTS

OUR ABILITY TO RESPOND TO

RECESSIONS ARE, YOU KNOW, BIG

STORMS IN THE FUTURE. BUT I

MEAN, VERY REAL QUESTIONS

COMING UP AGAIN, LITERALLY IN A

FEW MONTHS. AND IN JULY WHEN WE

COULD START SEEING ALL THESE

CUTS GOING INTO PLACE, YOU TALK

ABOUT CUTS TO STATE GOVERNMENT.

>> HOW MUCH OF THAT HAS TO DO

WITH THE LACK OF WHAT BECAUSE

OF THE TAX CUTS ISSUE WITH THE

BUDGET OF THE STATES.

ECONOMISTS HAVE IDENTIFIED

EXACTLY THE TAX CUTS AND THIS

IS A BIPARTISAN TEAM. BOTH

REPUBLICANS AND DEMOCRATS.

>> WORKING ON THIS ANALYSIS

ISHAN THEY'VE SAID, YOU KNOW,

FOR YEARS, YOU KNOW, EVEN

THOUGH WE HAVE BEEN CUTTING

TAXES AND NORTH CAROLINA

ANNUALLY FOR THE LAST 15 YEARS,

WE'VE HAD ENOUGH MONEY BECAUSE

OUR POPULATION HAS BEEN

GROWING. WAGES BEEN GROWING TO

KEEP UP. BUT WE'RE FINALLY

HITTING THAT MARK WHERE THE TAX

CUTS HAVE GOTTEN TOO AGGRESSIVE

AND THE POPULATION GROWTH AND

WAGE GROWTH JUST HASN'T KEPT