Bill > H996

This bill aims to reduce the maximum size of North Carolina's General Fund operating budget from seven percent to six percent of the state's total personal income. Currently, the state limits its operating budget to a percentage of total personal income, and this bill would lower that cap, effectively constraining government spending. The bill also introduces a new provision that allows the budget to exceed the six percent limit if both the Senate and House of Representatives approve with a two-thirds majority vote. This means that in extraordinary circumstances, the legislature can still authorize additional spending beyond the new cap by achieving a high level of consensus. The changes will take effect on July 1, 2025, and will apply to General Fund operating budgets adopted by the North Carolina General Assembly on or after that date, giving state policymakers and budget planners time to adjust to the new spending limitation.

Budget and Finance

https://www.ncleg.gov/BillLookUp/2025/H996