North Carolina reduces statutory cap on General Fund operating budget growth to six percent of state personal income

Original title: Further Limit General Fund Operating Budget.

Last action · April 14, 2025: Ref to the Com on Appropriations, if favorable, Rules, Calendar, and Operations of the House (House action)Sponsors: Dennis Riddell and 7 others

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Would Do

North Carolina reduces the statutory cap on the annual operating budget from seven percent to six percent of projected total , effective July 1, 2025.

Why it matters

Lowers the maximum allowable state spending growth relative to resident personal income, affecting the baseline calculations for annual legislative appropriations beginning in 2025-2026.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

State agencies

State agencies face a lower statutory ceiling on General Fund operating budget allocations beginning July 1, 2025.

Directly affected

North Carolina taxpayers

Taxpayers are subject to a restricted state spending cap tied to projected total State personal income.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is the new percentage cap on the General Fund operating budget?

The operating budget is capped at six percent (6%) of projected total , down from the previous seven percent (7%) limit.

Can the budget exceed this six percent cap?

Yes, funds in excess of the limitation can be spent if approved by a two-thirds vote of the membership present and voting in both the Senate and the House of Representatives.

When does this change take effect?

The act becomes effective July 1, 2025, and applies to budgets adopted on or after that date.

What else do you want to know?

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Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

3 actions

Apr 14, 2025House
Ref to the Com on Appropriations, if favorable, Rules, Calendar, and Operations of the House
Apr 14, 2025House
Passed 1st Reading
Apr 10, 2025HouseIntroduced
Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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