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Gov. Roy Cooper is faced with the decision on whether to sign, veto or allow the spending plan passed last week by North Carolina's Republican-controlled legislature. 

Context: Cooper, who has just two years left in his term, has yet to achieve one of his top priorities — Medicaid expansion. He's come close twice in the past year, including in the latest round of budget negotiations. The policy ultimately wasn't included in the budget lawmakers sent to his desk last week. 

Both chambers introduced Medicaid expansion proposals in recent weeks, but could not compromise on which to advance.

Why it matters: The $27.9 billion budget includes dozens of provisions with bipartisan support, including millions in funding for economic development projects that would bring thousands of jobs to North Carolina. 

That presents Cooper with a dilemma over whether he should sign the budget, let it become law without his signature to move those major projects forward, or veto it because it doesn't include expansion.

Vetoing it would hold up billions of dollars meant to bolster state agencies and projects across the state (unless the legislature overrides his veto). 

"It looked like a whole lot of folks at the General Assembly are on board with it, and hopefully that resonates with him," Senate leader Phil Berger told The News & Observer. 

Worth noting: The budget, which passed 38-9 in the Senate and 85-27 in the House, also includes an average 4.2% raises for teachers alongside conservative priorities like funding for "opportunity scholarships" for low-income public school students to pay for private school tuition.

Democrats argued it should've included more money for teachers and other state employees. 

What's next: Three significant economic development projects would receive incentives under the proposed budget:

EV maker VinFast's 7,500-job expansion in Chatham County.

Toyota's 5,000-job battery plant in Randolph County. 

A potential for Durham-based chip maker Wolfspeed, to add 1,800 jobs also in Chatham County

Those projects are among some of the largest in the state, and in the case of Vinfast, could begin next year. 

NC Gov. Roy Cooper's state budget dilemma

NC's latest budget proposal does not include Medicaid expansion, presenting a dilemma for Gov. Cooper.

Photo illustration of North Carolina Governor Roy Cooper with lines radiating from him.

Photo illustration: Allie Carl/Axios. Photo: Charlotte Observer/Getty Images

Medicaid

Gov. Roy Cooper is faced with the decision on whether to sign, veto or allow the spending plan passed last week by North Carolina&#x27;s Republican-controlled legislature. Context: Cooper, who has just two years left in his term, has yet to achieve one of his top priorities — Medicaid expansion. <a class="gtmContentClick" data-vars-link-text="He&#x27;s come close" data-vars-click-url="https://www.axios.com/local/raleigh/2022/05/23/north-carolina-senate-republicans-medicaid-expansion" data-vars-content-id="15193b6a-68d9-4f34-9fda-17130a3c08a2" data-vars-headline="NC Gov. Roy Cooper&#x27;s state budget dilemma" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/raleigh/2022/05/23/north-carolina-senate-republicans-medicaid-expansion" target="_self">He&#x27;s come close</a> twice in the past year, including in the latest round of budget negotiations. The policy ultimately wasn&#x27;t included in the budget lawmakers sent to his desk last week.

News

Politics

Teachers could see an average of a 4.2% pay increase in the next year under a new statewide budget plan unveiled by Republican leaders Tuesday. 

Why it matters: The possibility of that raise comes as teachers face mounting demands. In recent years, they've navigated the pandemic, threats of school shootings and political interference in lesson plans, driving thousands of educators to quit their jobs. 

What's happening: Some 7% of teachers here said they had immediate plans to quit, according to a recently released survey conducted by the state's Department of Public Instruction in March — a 3% increase from 2020.

Yes, but: If lawmakers do not pass the legislation as written, or if Gov. Roy Cooper does not sign it into law, teachers will receive an average of a 1.3% pay raise in fiscal year 2022-2023. That number was set in a spending plan lawmakers passed last year, which granted teachers an average of a 2.5% pay raise over two years. 

The chambers are expected to pass the legislation in the coming days, but it remains unclear whether Cooper will sign the legislation, veto it or let it become law. 

Details: The full budget proposal, which adjusts the spending package lawmakers passed last year, was released Tuesday. The spending plan now totals $27.9 billion, legislators said. Among many other things, it includes:

$15 million to the ACC if the league keeps its headquarters in North Carolina. It will most likely be in Charlotte, WRAL reported.

An additional $56 million for "opportunity scholarships" for low-income public school students to pay for private school tuition.

A transfer of $1 billion into a newly created "State Inflationary Reserve" in anticipation of a recession, Berger’s office said.

What it doesn't include: Medicaid expansion. But that's a whole other story.

NC teachers could see a bigger pay bump this year

NC Republicans unveiled a budget plan Tuesday with pay raises for teachers.

Illustration of a red apple with a hundred dollar bill for a leaf. 

Teachers

Teachers could see an average of a 4.2% pay increase in the next year under a new statewide budget plan unveiled by Republican leaders Tuesday. Why it matters: The possibility of that raise comes as <a class="gtmContentClick" data-vars-link-text="teachers face mounting demands" data-vars-click-url="https://www.axios.com/local/raleigh/2022/06/10/nc-teachers-overwhelmed-pay" data-vars-content-id="7a83c92e-ee0e-4f56-bc2a-e32331183c8e" data-vars-headline="NC teachers could see a bigger pay bump this year" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/raleigh/2022/06/10/nc-teachers-overwhelmed-pay" target="_self">teachers face mounting demands</a>. In recent years, they&#x27;ve navigated the pandemic, threats of school shootings and political interference in lesson plans, driving thousands of educators to quit their jobs.

This weekend is set to be the second busiest for travel since 2000 with a record number of Americans planning to hit the road, Axios' Kelly Tyko reports.

Raleigh-Durham International Airport may have its busiest weekend since before the pandemic, The News & Observer reports, with most passengers passing through Friday and Monday. 

Why it matters: Pack your patience and build in extra time.

"There is a lot of pent-up COVID-19 demand to travel, so many people are still going to do it on the Fourth of July and this summer despite inflation and gas prices," Eric Jones, co-founder of The Vacationer, told Axios.

What's happening: The extra congestion is driven by a handful of factors, beyond people having the post-COVID travel bug: 

Airline staffing shortages, which could extend well into 2023, Axios' Joann Muller wrote.

Those staffing shortages are part of the reason behind recent flight delays and cancellations, AAA said. 

The intrigue: The airline industry and federal government, which is responsible for air traffic control through the Federal Aviation Administration, are finger-pointing.

Delta Air Lines CEO Ed Bastian sees a "stressed" air traffic control system as the leading cause of flight disruptions in the U.S., he told staff in a webinar June 29 viewed by Airline Weekly.

Transportation Secretary Pete Buttigieg, who oversees the FAA, blamed airlines' downsizing, despite $54 billion in federal aid, during the pandemic. "The majority of cancellations, and the majority of delays, have nothing to do with air traffic control staffing," he told NBC Nightly News on June 28.

Worth noting: Delta, a top airline at RDU, already knows it will face "operational challenges" over the holiday weekend, and is offering travelers waivers to rebook at no charge.

Prepare for an extra busy holiday travel weekend at RDU

Expect long lines and cancellations for Fourth of July Travel this weekend.

Airports

This weekend is set to be the second busiest for travel since 2000 with a<a class="gtmContentClick" data-vars-link-text=" record number of Americans planning to hit the road" data-vars-click-url="https://www.axios.com/2022/06/21/july-4-weekend-travel-gas-prices" data-vars-content-id="8e82eb87-42b5-4142-a907-0e6a5883a13e" data-vars-headline="Prepare for an extra busy holiday travel weekend at RDU" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2022/06/21/july-4-weekend-travel-gas-prices" target="_self"> record number of Americans planning to hit the road</a>, Axios&#x27; Kelly Tyko reports.Raleigh-Durham International Airport may have its busiest weekend since before the pandemic, <a class="gtmContentClick" data-vars-link-text="The News &amp; Observer reports" data-vars-click-url="https://www.newsobserver.com/news/local/article252416093.html" data-vars-content-id="8e82eb87-42b5-4142-a907-0e6a5883a13e" data-vars-headline="Prepare for an extra busy holiday travel weekend at RDU" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.newsobserver.com/news/local/article252416093.html" target="_blank">The News &amp; Observer reports</a>, with most passengers passing through Friday and Monday. Why it matters: Pack your patience and build in extra time.<ul><li>&quot;There is a lot of pent-up COVID-19 demand to travel, so many people are still going to do it on the Fourth of July and this summer despite inflation and gas prices,&quot; Eric Jones, co-founder of The Vacationer, told Axios.</li></ul>What&#x27;s happening: The extra congestion is driven by a handful of factors, beyond people having the post-COVID travel bug: <ul><li><a class="gtmContentClick" data-vars-link-text="Airline staffing shortages" data-vars-click-url="https://www.axios.com/2022/06/19/airlines-flights-staff-shortages-delays-summer-vacation" data-vars-content-id="8e82eb87-42b5-4142-a907-0e6a5883a13e" data-vars-headline="Prepare for an extra busy holiday travel weekend at RDU" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2022/06/19/airlines-flights-staff-shortages-delays-summer-vacation" target="_self">Airline staffing shortages</a>, which could extend well into 2023, Axios&#x27; Joann Muller wrote.</li><li>Those staffing shortages are part of the reason behind <a class="gtmContentClick" data-vars-link-text="recent flight delays and cancellations" data-vars-click-url="https://www.axios.com/2022/06/24/airlines-flight-cancellations-summer-travel" data-vars-content-id="8e82eb87-42b5-4142-a907-0e6a5883a13e" data-vars-headline="Prepare for an extra busy holiday travel weekend at RDU" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2022/06/24/airlines-flight-cancellations-summer-travel" target="_self">recent flight delays and cancellations</a>, AAA said. </li></ul>The intrigue: The airline industry and federal government, which is responsible for air traffic control through the Federal Aviation Administration, are finger-pointing.<ul><li>Delta Air Lines CEO Ed Bastian sees a &quot;stressed&quot; air traffic control system as the leading cause of flight disruptions in the U.S., he told staff in a webinar June 29 <a class="gtmContentClick" data-vars-link-text="viewed by Airline Weekly" data-vars-click-url="https://airlineweekly.com/2022/06/delta-ceo-blames-faa-for-airline-disruptions-ahead-of-busy-july-4th-weekend/" data-vars-content-id="8e82eb87-42b5-4142-a907-0e6a5883a13e" data-vars-headline="Prepare for an extra busy holiday travel weekend at RDU" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://airlineweekly.com/2022/06/delta-ceo-blames-faa-for-airline-disruptions-ahead-of-busy-july-4th-weekend/" target="_blank">viewed by Airline Weekly</a>.</li><li>Transportation Secretary Pete Buttigieg, who oversees the FAA, blamed airlines&#x27; downsizing, despite $54 billion in federal aid, during the pandemic. &quot;The majority of cancellations, and the majority of delays, have nothing to do with air traffic control staffing,&quot; he <a class="gtmContentClick" data-vars-link-text="told NBC Nightly News" data-vars-click-url="https://www.nbcnews.com/nightly-news/video/secretary-pete-buttigieg-addresses-chaos-in-travel-industry-143032901654" data-vars-content-id="8e82eb87-42b5-4142-a907-0e6a5883a13e" data-vars-headline="Prepare for an extra busy holiday travel weekend at RDU" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.nbcnews.com/nightly-news/video/secretary-pete-buttigieg-addresses-chaos-in-travel-industry-143032901654" target="_blank">told NBC Nightly News</a> on June 28.</li></ul>Worth noting: Delta, a top airline at RDU, already knows it will face &quot;operational challenges&quot; over the holiday weekend, and is <a class="gtmContentClick" data-vars-link-text="offering travelers waivers" data-vars-click-url="https://link.axios.com/click/28238749.14615/aHR0cHM6Ly93d3cuYXhpb3MuY29tLzIwMjIvMDYvMzAvZGVsdGEtcGlsb3RzLWxhdW5jaC1uYXRpb253aWRlLXByb3Rlc3QtdW5pb24tY29udHJhY3Q_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPW5ld3NsZXR0ZXJfYXhpb3Nsb2NhbF9yYWxlaWdoJnN0cmVhbT10b3A/5d8bef5ddabb3400443df688B21222989/email" data-vars-content-id="8e82eb87-42b5-4142-a907-0e6a5883a13e" data-vars-headline="Prepare for an extra busy holiday travel weekend at RDU" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/28238749.14615/aHR0cHM6Ly93d3cuYXhpb3MuY29tLzIwMjIvMDYvMzAvZGVsdGEtcGlsb3RzLWxhdW5jaC1uYXRpb253aWRlLXByb3Rlc3QtdW5pb24tY29udHJhY3Q_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPW5ld3NsZXR0ZXJfYXhpb3Nsb2NhbF9yYWxlaWdoJnN0cmVhbT10b3A/5d8bef5ddabb3400443df688B21222989/email" target="_blank">offering travelers waivers</a> to rebook at no charge.

Hemp and CBD are still legal in North Carolina.

After a tense standoff between North Carolina's Republican House and Senate chambers, lawmakers reached a last-minute agreement on legislation to remove hemp from the state's list of illegal drugs.

The bill will now go to the governor's desk, where he is expected to sign it into law — just in time to avoid a Friday deadline that would have outlawed the product and put 1,500 of the farms in limbo.

Why it matters: The situation shows how, even when legislation has bipartisan support, minor disagreements can derail policy changes that legislators agree would benefit the state.

Before a compromise was reached, Democratic Rep. Kelly Alexander told fellow legislators Tuesday: "Without any debate, we just destroyed the hemp industry."

Between the lines: Two Republican lawmakers, Rep. Jimmy Dixon and Sen. Brent Jackson, each sponsored their own versions of the bill. 

The pair disagree over whether to include permanent hemp legalization with legislation addressing various state agriculture needs or pass it on its own.

"It's unfortunate that for so long these farmers and small business owners have been left in the lurch," Jackson said in a statement yesterday.

Close call for hemp: NC lawmakers vote to legalize at the last minute

After a tense standoff, lawmakers sent a bill legalizing hemp to the governor's desk.

Illustration of a hemp leaf hanging off a rope in a tug of war.

Hemp and CBD are still legal in North Carolina.After a tense standoff between North Carolina&#x27;s Republican House and Senate chambers, lawmakers reached a last-minute agreement on legislation to remove hemp from the state&#x27;s list of illegal drugs.<ul><li>The bill will now go to the governor&#x27;s desk, where he is expected to sign it into law — just in time to avoid a Friday deadline that would have outlawed the product and put 1,500 of the farms in limbo.</li></ul>Why it matters: The situation shows how, even when legislation has bipartisan support, minor disagreements can derail policy changes that legislators agree would benefit the state.<ul><li>Before a compromise was reached, Democratic Rep. Kelly Alexander told fellow legislators Tuesday: &quot;Without any debate, we just destroyed the hemp industry.&quot;</li></ul>Between the lines: Two Republican lawmakers, Rep. Jimmy Dixon and Sen. Brent Jackson, each sponsored their own versions of the bill. <ul><li>The pair disagree over whether to include permanent hemp legalization <a class="gtmContentClick" data-vars-link-text="with legislation addressing various state agriculture needs" data-vars-click-url="https://link.axios.com/click/28224439.17549/aHR0cHM6Ly93d3cubmNsZWcuZ292L0JpbGxMb29rVXAvMjAyMS9zNDU1P3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1uZXdzbGV0dGVyX2F4aW9zbG9jYWxfcmFsZWlnaCZzdHJlYW09dG9w/5d8bef5ddabb3400443df688Bfadf70ac" data-vars-content-id="c4588db8-19f9-4c29-b001-d6880df88a50" data-vars-headline="Close call for hemp: NC lawmakers vote to legalize at the last minute" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/28224439.17549/aHR0cHM6Ly93d3cubmNsZWcuZ292L0JpbGxMb29rVXAvMjAyMS9zNDU1P3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1uZXdzbGV0dGVyX2F4aW9zbG9jYWxfcmFsZWlnaCZzdHJlYW09dG9w/5d8bef5ddabb3400443df688Bfadf70ac" target="_blank">with legislation addressing various state agriculture needs</a> or pass it on its own.</li><li>&quot;It&#x27;s unfortunate that for so long these farmers and small business owners have been left in the lurch,&quot; Jackson said in a statement yesterday.</li></ul>

Wolfspeed, the Durham-based semiconductor maker formerly known as Cree, could be on the verge of a major expansion in Chatham County, if a state budget proposed Tuesday evening is approved, two sources told Axios. 

Driving the news: The budget plan includes $112.5 million for the state's Commerce Department as a potential incentive for a chip manufacturing project in Chatham County. 

To qualify for the incentive, the chip manufacturer must invest at least $4.8 billion in the county and create at least 1,800 jobs. 

Why it matters: The project would be the latest large manufacturing project to select Chatham County, located west of Raleigh. 

Along with the electric-vehicle manufacturer VinFast, which recently selected Chatham for its first U.S. manufacturing facility, Wolfspeed would bring thousands of advanced manufacturing jobs to the county, and continue the Triangle's growth to the south. 

Toyota is also building a battery plant in adjacent Randolph County, which is expected to employ another 1,700 workers.

State of play: Wolfspeed has bet big on providing silicon carbide chips to automakers and other industries. In October, the company struck a deal with GM to supply silicon carbide power devices for its EV programs, for example.

In April, Wolfspeed opened a manufacturing facility in New York to increase its overall capacity to produce silicon carbide chips.

Yes, but: In a statement last night, Wolfspeed said it "does not comment on external speculation or rumors about our business operations or plans."

What's next: Both chambers are expected to pass the proposed budget. It would then be sent to Gov. Roy Cooper, who will either sign or veto it. 

Scoop: Chip maker Wolfspeed could add 1,800 jobs in Chatham County

Wolfspeed, formerly known as Cree, is a Durham-based semiconductor maker.

The Wolfspeed logo on a phone in front of a Wolfspeed logo on a wall. 

Photo Illustration: Rafael Henrique/SOPA Images/LightRocket via Getty Images.

Semiconductors

<a class="gtmContentClick" data-vars-link-text="Wolfspeed" data-vars-click-url="https://www.wolfspeed.com/" data-vars-content-id="cd5d7895-a6b9-441e-94dc-feb8c70416c6" data-vars-headline="Scoop: Chip maker Wolfspeed could add 1,800 jobs in Chatham County" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.wolfspeed.com/" target="_blank">Wolfspeed</a>, the Durham-based semiconductor maker formerly known as Cree, could be on the verge of a major expansion in Chatham County, if a state budget proposed Tuesday evening is approved, two sources told Axios. Driving the news: The budget plan includes $112.5 million for the state&#x27;s Commerce Department as a potential incentive for a chip manufacturing project in Chatham County.

Lucille Sherman

Featured stories

NC Gov. Roy Cooper's state budget dilemma

Prepare for an extra busy holiday travel weekend at RDU

Close call for hemp: NC lawmakers vote to legalize at the last minute

NC teachers could see a bigger pay bump this year

Scoop: Chip maker Wolfspeed could add 1,800 jobs in Chatham County