2026 State Budget Overview
The 2026 state budget includes a broad mix of statewide spending decisions, targeted appropriations, and policy provisions affecting local governments across North Carolina.
The 2026 state budget includes a broad mix of statewide spending decisions, targeted appropriations, and policy provisions affecting local governments across North Carolina.
Proposed state legislation highlights the importance of maintaining local flexibility as North Carolina communities face varying needs in housing, development, and infrastructure.
May 20 — Transportation continues to be one of the most important issues facing North Carolina’s growing regions. For Centralina communities, the question is not simply whether the state invests in transportation, but whether the funding structure and project selection process can keep pace with growth, support regional mobility and help local governments plan for the future.
Transportation is a key area of focus for Centralina, particularly as the region continues to experience growth that places new demands on roads, transit, freight movement and local infrastructure. Centralina’s advocacy work will continue to monitor proposals that affect transportation funding, regional collaboration and the tools available to local governments.
That regional lens is especially important as lawmakers take a broader look at North Carolina’s transportation future. The newly formed House Select Committee on North Carolina’s Transportation Future has begun examining how the state funds, prioritizes and delivers transportation projects. Recent reporting has also highlighted growing interest in revisiting the state’s transportation funding model, including the Strategic Transportation Investments (STI) process, as lawmakers consider whether the current system is still meeting the needs of a fast-growing state.
A major challenge is the long-term sustainability of transportation revenue. North Carolina, like other states, has historically relied heavily on motor fuel taxes to fund roads and transportation projects. But that model is under pressure as vehicles become more fuel efficient and more drivers transition to electric or hybrid vehicles. As gas tax revenue becomes less reliable over time, state leaders will need to consider how to fund transportation needs in a way that is sustainable, fair and responsive to growth.
Several transportation-related bills filed this session point to the range of issues lawmakers are now considering, from project delivery and financing tools to long-term infrastructure planning.
House Bill 1109, NCDOT STI Study Recommendation, would direct NCDOT to study the STI process, including project delivery performance, factors that delay projects and potential legislative changes to improve delivery. Importantly, this bill comes directly from the work of the newly formed House Select Committee on North Carolina’s Transportation Future, signaling that lawmakers are taking a serious look at whether the current project prioritization system is meeting the needs of a growing state. For Centralina, this is worth watching because changes to STI could affect how projects are scored, prioritized and ultimately funded across the region.
Senate Bill 1010, FUTURE NC Infrastructure Act, would create a North Carolina Infrastructure Investment Commission charged with developing a long-term statewide infrastructure investment plan. The plan would look beyond transportation alone and consider needs across transportation, water, wastewater, stormwater, resiliency and other critical systems over a 20-year horizon. This aligns closely with the regional reality that transportation, housing, water capacity, workforce access and economic development are all connected.
Senate Bill 862, STIP Grant Anticipation Notes, would allow local governments to use grant anticipation notes to accelerate certain STIP projects already identified for state or federal funding. In practical terms, this could give local governments another financing tool to move eligible transportation projects forward more quickly, subject to safeguards including Local Government Commission approval and an agreement with NCDOT.
Together, these proposals underscore the importance of a strong regional voice in transportation policy. As North Carolina evaluates how to plan for growth, modernize its funding structure and deliver projects more effectively, Centralina will continue to advocate for solutions that recognize the needs of fast-growing communities and support a more connected, competitive and resilient region.
Presentations addressed federal cost shifts affecting local governments, potential structural approaches to property tax reform, and nonprofit hospital property tax exemptions. The committee’s work remains exploratory, and no legislation was introduced.
Presentations addressed federal cost shifts affecting local governments, potential structural approaches to property tax reform, and nonprofit hospital property tax exemptions. The committee’s work remains exploratory, and no legislation was introduced.
Presentations addressed federal cost shifts affecting local governments, potential structural approaches to property tax reform, and nonprofit hospital property tax exemptions. The committee’s work remains exploratory, and no legislation was introduced.
Many seniors face barriers to accessing nutritious food, which can impact physical strength, cognitive health and overall well‑being. By ensuring dependable access to healthy foods and providing opportunities for shared meals and community connection, Centralina is helping older adults thrive.
Presentations addressed federal cost shifts affecting local governments, potential structural approaches to property tax reform, and nonprofit hospital property tax exemptions. The committee’s work remains exploratory, and no legislation was introduced.
The North Carolina House Select Committee on Property Tax Reduction and Reform convened its first meeting on December 17, 2025, marking the start of a legislative study that could have significant implications for homeowners, counties, municipalities, and regional organizations across the state.
Federal funds are commonly passed through state agencies in North Carolina before being awarded to local governments, which can make the original funding source less obvious. Before proceeding with a procurement, local governments should verify whether an award originates from a federal source. This determination affects compliance obligations, including procurement standards, reporting, and audit requirements.
When a construction or repair contract over $300,000 involves a building, the procurement and contract are subject to additional requirements under N.C.G.S. 143-128. Therefore, this question must be answered to determine whether the additional statutory requirements apply to this procurement scenario.
The micro-purchase threshold is a federal procurement threshold under which competitive procurement is not required. The default micro-purchase threshold is $15,000, but local governments may increase the micro-purchase threshold up to $50,000. An explanation of increasing the micro-purchase threshold and a template for the required annual self-certification is available here.