The House and Senate passed a stop gap measure this morning in order to continue government funding and operations. This “continuing resolution” was an expected maneuver, and is customary in the event a formal budget has not been agreed to in time for the end of the current fiscal year, June 30.         

The resolution authorizes the director of the budget to continue to allocate funds for recurring expenditures for current operations by state departments, institutions, and agencies, as authorized in the previous year’s budget. The resolution keeps vacant positions open that are subject to proposed budget reductions, keeps state employee salaries from increasing or decreasing, prohibits any salary raises for state employees or teachers while the resolution is in effect, continues funding for public schools, and requires the Department of Health and Human Services to prepare amendments and waivers in anticipation of the formal budgetary reductions or expansion items to Medicaid. Perhaps most important of all, the resolution is set to expire August 14 of this year, and sends the message that both the House and the Senate hope to have a formal budget compromise by at least that date.

Conference appointments should be coming forward soon, and budget negotiations will be taking place soon thereafter. With both bodies taking the week after the fourth of July off, it is expected that the following week will be the start of the long process to compromise.

We will continue to keep you informed of all actions at the North Carolina Legislature, and as always, please contact us if you have any questions or concerns.

Sincerely,