News from Jones Street

June 19, 2026
One Thousand Days Later
This week marked a milestone that few lawmakers are likely to celebrate.

North Carolina has now gone approximately 1,000 days since the last comprehensive state budget became law.

For most people, that number may seem hard to believe. After all, lawmakers pass mini-budgets and other spending bills throughout the year. But the state’s last full budget was approved in September 2023. Since then, disagreements over tax policy, State Employee raises, and State Retiree compensation have left North Carolina operating without a comprehensive budget agreement.

The good news is that the finish line finally “appears” to be in sight.

Budget negotiations have now entered their final phase, with House Speaker Destin Hall and Senate President Pro Tempore Phil Berger meeting directly to resolve the remaining differences between the House and Senate plans. Both leaders have indicated progress is being made, and Berger recently said having a budget ready by the end of June remains achievable.

The delay has largely been the result of disagreements within the Republican majority itself. Last year, House leaders pushed for higher raises for teachers and state employees, and a pension supplement for state retirees, while Senate leaders prioritized additional tax reductions. That impasse kept a full budget from moving forward throughout 2025. Last month, however, legislative leaders announced they had reached agreement on these major issues, clearing the way for final negotiations.

For state retirees, the budget remains the most closely watched issue of the legislative session. While some budget details remain unresolved, one important provision appears to have survived the major House and Senate negotiations. RGEA worked throughout the budget process to ensure that the proposed 2.5% one-time pension supplement for state retirees from the House’s original budget remained part of the final agreement reached between House and Senate leaders. RGEA would like to thank the House leadership for standing strong during these negotiations. Many details of the final budget remain unresolved, including funding for various state projects and priorities. However, preserving the State Retiree bonus through the most significant phase of negotiations was a crucial step forward.

After nearly three years of delays, lawmakers are once again saying the finish line is near. North Carolina citizens have heard that before. Big question is, will the legislature finally deliver?

June 12, 2026
Last week, the State Health Plan Board of Trustees met to address one of the most significant financial challenges facing the plan in recent years. With less than 24 hours’ notice to the public, the Board approved changes to the Medicare Advantage plans that will increase out of pocket costs for many retired state employees beginning in 2027. The changes were presented as part of a broader effort to address rising healthcare costs and strengthen the long-term financial stability of the State Health Plan. While Board members acknowledged that these decisions were difficult, the vote will have a direct and lasting impact on thousands of retirees who depend on the plan for their healthcare coverage.

The rising cost of healthcare is a challenge affecting families across the country, and even State Treasurer Brad Briner acknowledged that “no one wants any increase in out-of-pocket costs” and that the decision was not a pleasant one.

RGEA appreciates the open door policy and willingness to engage stakeholders that this administration has demonstrated. However, communication alone does not lessen the financial burden that many retirees will now be forced to shoulder. We felt it was important to go on record because the people affected by this decision deserve to have their voices heard.

“We are deeply concerned that substantial cost increases for Medicare Advantage participants would place a disproportionate burden on a population that has very limited ability to absorb these additional costs.”

Unlike active employees, retirees generally do not have the opportunity to offset rising expenses through promotions, salary increases, or additional years of employment. As RGEA shared with the Board, “They live on fixed incomes that most everybody in this room knows have experienced little to no permanent growth for more than a decade,” said Jackson Cozort.

For many retirees, this is not simply another increase in a household bill. It comes after years of inflation, years without a recurring Cost of Living Adjustment, and years of being asked to do more with less. Asking retired teachers, correctional officers, law enforcement officers, and countless other public servants to absorb another significant increase in healthcare costs without meaningful pension growth is deeply troubling.

RGEA will continue working with the Treasurer’s Office, lawmakers, and the State Health Plan to seek solutions, but we cannot remain silent when additional costs are placed on retirees who have already spent years carrying the burden of inflation. The men and women who dedicated their lives to serving North Carolina deserve better.

For more information here are links to various articles throughout the state:

The News & Observer: NC State Health Plan board approves higher costs for some retirees in 2027

WRAL News: State Health Plan hikes prices for older state workers, retirees

NC Newsline: Some retired NC state workers will pay more for health insurance. Working enrollees could save.