10/24/2025
While much of the media attention was on the new Congressional Maps, the House was actively working to increase pay for teachers and public employees, support Medicaid and mental health agencies, and provide $690 million for Medicaid Rebase.
The following bills were debated, and passed, on Wednesday:
π§Ύ Senate Bill 599 β Compensation & Appropriations
Overview:
This bill provides salary increases and bonuses for public employees, including teachers, state workers, and law enforcement officers.
Key Provisions:
β’ $881M (General Fund) and $25M (Highway Fund) for salary increases.
β’ $40M reserved for local law enforcement bonuses.
β’ Teachers: 6.4% average raise, reinstated education-based supplements, and bonuses.
β’ Principals: 2.5% raise + bonuses.
β’ Assistant Principals: Teacher raise + 19%.
β’ Central Office & Noncertified Staff: 2.5% raise.
β’ State Employees: 2.5% raise.
β’ State Law Enforcement: 13% raise.
β’ Correctional & Juvenile Justice Staff: 13% raise.
β’ Probation/Parole Officers: 6.5% raise.
β’ Local Law Enforcement: $1,750 annual bonus (2025β2027), paid in November.
β’ COLA bonus: 1% of the beneficiary's annual retirement allowance payable as of October 1, 2025
π₯ House Bill 491 β Medicaid Funding Support (PCS)
Overview:
This bill supports Medicaid operations by allocating reserve funds and continuing required payments from local mental health agencies.
Key Provisions:
β’ $190M from the Medicaid Contingency Reserve to cover rising Medicaid costs.
β’ LME/MCOs must continue intergovernmental transfers to the state, adjusted for county realignments.
β’ DHHS may reallocate funds as needed.
β’ Effective Date: Retroactive to July 1, 2025.
ποΈ Senate Bill 405 β Medicaid & DHHS Budget Adjustments (PCS)
Overview:
This bill adjusts Medicaid funding, reduces certain DHHS and capital expenditures, and directs efficiency measures.
Key Provisions:
β’ $690M/year for Medicaid rebase and $49.2M/year for administration.
β’ $34.4M (one-time) from ARPA for Medicaid admin (2025β2026).
β’ LME/MCOs must continue intergovernmental transfers.
β’ $30M/year cut to single-stream funding, with no service reductions.
β’ Opioid Funds: Redirects $1.85M from a repealed pilot and adds $14M/year to offset funding cuts.
β’ DHHS Vacant Positions: Must eliminate enough to save $33.99M/year.
β’ Targeted Cuts:
β¦ Whole Child Health: -$100K/year
β¦ Medical Eye Care: -$110K/year
β’ Medicaid Efficiency Plan: Due by April 1, 2026.
β’ Medicaid Redetermination Audit: Required by State Auditor.
β’ Capital Cuts: -$42.2M/year from Future Building Reserves.
β’ Effective Date: July 1, 2025
It is a privilege to represent North Carolina's 73rd District, and I will continue to work hard to improve the lives of the citizens of this great State.