The implementation of Medicaid expansion in North Carolina may face delays, as the final state budget won’t be passed until September, according to House Speaker Tim Moore. Governor Roy Cooper’s administration had hoped for the expansion to begin in early fall, but the ongoing negotiation of spending and policy issues has pushed back the timeline.
Despite progress on major items such as tax cuts and worker raises, unresolved details and limited availability of lawmakers due to travel and vacations have hindered the budget process. Moore expressed skepticism that a final budget could be passed by the end of August, citing logistical challenges and potential absences of Senate members.
The expansion of Medicaid, which could provide coverage for up to 600,000 low-income adults, is contingent upon the enactment of a state budget law. Governor Cooper signed a separate law in March to initiate the expansion.
In March, Cooper’s Secretary of Health Kody Kinsley unveiled a plan for Medicaid expansion to begin on October 1, provided that legislators give formal approval by September 1. If not, implementation could be delayed until at least December 1. However, legislative leaders have insisted on waiting for the budget to be passed before permitting expansion.
While details on pay raises for state employees and teachers, as well as income tax rate reductions, remain scarce, Moore assured that any pay raises would be retroactive to July 1. Recent revenue surpluses have allowed the state government to spend more, borrow less, and reduce tax rates.
The Office of State Budget & Management reported that government revenues for the fiscal year ending June 30 exceeded expectations by $3 billion, totaling $33.5 billion. However, Cooper and State Budget Director Kristin Walker have expressed concerns that deeper income tax cuts proposed by GOP legislators could lead to funding shortfalls for education.
Moore and Senate leader Phil Berger have stated that the tax agreement includes provisions for deeper rate reductions only if specific revenue thresholds are met. Further budget talks between Berger and Moore are planned for the coming week.
Moore also anticipates that legislators will return to Raleigh next week to vote on overrides for several vetoes issued by Governor Cooper. In addition to budget-related matters, other non-budget business may also be addressed during this time.
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