North Carolina's budget deadlock

• That includes raises for teachers and state workers and potential funding for the North Carolina Children's Hospital.

State of play: State lawmakers were able to pass a mini-budget this summer that funded some critical programs, including Medicaid, construction projects and funding for new DMV offices.

Between the lines: But the larger budget holdup centers on clashes between the two Republican-led chambers, whose proposals differ over raise amounts for teachers and state employees and how fast to cut income taxes.

• Senate leader Phil Berger has long fought for state income tax cuts, and the senate's original proposal pushes for a drop as low as 1.99% in the coming yeras.
• Right now it sits at 4.25%, but the drops depend on the state hitting certain revenue levels.
• The House, under Speaker Destin Hall, wants larger raises for teachers and state workers and for state revenue thresholds to increase, which would likely delay those tax cuts, NC Newsline reported.

That disagreement could stall the budget for the foreseeable future.

• The Senate has pulled back on one of its demands to eliminate some state income thresholds that block immediate tax cuts.

What they're saying: Instead, the Senate wants to keep state revenue thresholds at levels set in 2023.

• "The Senate has provided the House with multiple budget proposals, including keeping the current tax package — as approved by both the House and Senate in 2023 — in order to move budget discussions forward," Berger spokesperson Lauren Horsch said in a statement. "Senate budget writers remain open to negotiating a comprehensive budget bill."

House leaders, however, have stood firm on their proposal so far.

• "We have been ready since May to work together to pass a budget that recognizes fiscal reality while giving teachers and state employees a real raise," said Demi Dowdy, a spokesperson for Hall. "We will continue to advocate for those goals for as long as it takes."

The other side: Democrats don't have much say in how the state's budget is currently being written.

• Gov. Josh Stein, a Democrat, could veto the bill, but the House would need to find only one Democrat to override a veto, something it has done this year several times.

Through a spokesperson, Stein pushed the General Assembly to pass a budget that gives raises to teachers and state employees and provides additional funding for Medicaid.

• "We have so much going for us here in North Carolina, but we cannot just do the bare minimum and expect to continue to thrive."