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By N.C. Representative Jeff Zenger

In Raleigh, the Legislators and Senators are back in session. Each year following an election is known as a long session. It starts with swearing in all members and solidifying chairmanship appointments for all the legislative committees. But most importantly, the long session contains the drafting and passing of the state budget, which is set every two years. 

Here’s how it works. Each term, the budget switches to originate in a different chamber, either the House or the Senate. This year, the budget will originate in the Senate. Each chamber has a number of appropriation committees which break the budget down into smaller pieces and each appropriation committee handles their piece in the budget. For example, I am a member of the Transportation Appropriation Committee, which will work on a portion of the budget that deals with new roads and bridges, rail and airports.

Once each committee finishes their evaluation, the Senior Appropriation Committee has the challenging job of compiling the whole budget. The governor also has input into the final budget process. Ultimately, the senior chairs from both the House and Senate will sit down and negotiate a final budget.

Once there is consensus, each chamber will vote and then send the budget to the governor. The governor can either sign the budget as is; take no action for 10 days, which would allow the budget to become law without his signature; or he can veto the budget. If the governor vetoes the budget, the General Assembly will attempt to override his veto.

Despite how complex this process sounds, I’m grateful to report that North Carolina ranks consistently in the top 10 most fiscally sound states in the nation. We have a great record of ensuring financial stability for our state during our budgeting process.

Here are just a few facts that demonstrate how you can be proud of North Carolina’s fiscal management. Firstly, as of Jan. 1, 2025 the tax rate was cut to 4.25 percent and will drop to 3.99 percent in 2026. Secondly, the last two budgets, 2021 and 2023, have generated $1 billion surpluses. A surplus is excess revenue above our budget needs, These surpluses are sent back to local communities and serve the needs of our constituents. For example, in District 74 we purchased four new fire engines paid for out of the budget surplus from fiscal year 2021. Forsyth County received over $95 million in the last budget in 2023 for capital needs, which include renovation of the performing arts center on 4th Street for example. Here in North Carolina, your elected representatives make the state budget work for you.

As this year’s long session convenes in Raleigh, here are some factors that will impact the formation of this year’s budget. First priority is to keep all of the state government funded and operating efficiency. The largest expenditure is education at 60 percent of the state budget with everything else we do in state government coming out of what remains.

And finally, this year’s budget must account for the great financial needs in the western part of the state due to the devastation wrought by Hurricane Helene. Remarkably, over the last 12 years and past six budget cycles, the state has put at least $500 million annually in a rainy-day fund. In October 2024, our rainy-day fund amounted to $6 billion ready to serve the needs of North Carolinians. But the current needs of our state’s efforts to rebuild after Helene require more funding. This will impact the formation of our budget this year. Thankfully, sound fiscal policy has put us in a good position to handle even these needs, which gives every North Carolinian something to be proud of. 

While compiling and voting on a solid state budget can prove challenging, I have great faith that our Senate and House members can work together. Continuing to craft a sound financial foundation for North Carolina and leaving an exemplary fiscal legacy for our children is greatly important to me as I approach this year’s budget. I’m proud of North Carolina’s financial history, and I hope you can be, too.

Jeff Zenger is a Republican member of the North Carolina House of Representatives who has represents the 74th district.