RALEIGH, N.C. (WNCN) — Republicans in the North Carolina Senate released their 2025-2027 budget late Monday afternoon, which outlines the current leadership's top spending priorities. In total, the budget calls for spending $32.6 billion in the first year and $33.3 billion in the second year fo r a total of $65.9 billion. The senators unveiling the budget said they want to focus on more aid for western North Carolina and pay increases for state employees. There's also lots of talk in the budget about how to handle taxes moving forward. The budget suggests cutting the state personal income tax rate 3.49% in 2027 and and 2.99% in 2028. Other highlights of the budget, according to GOP senators, include: $700 million for Helene recovery efforts An average pay increase for teachers of 2.3% in fiscal year 2025-26 and an average of 3.3% over the two years, as well as a $3,000 bonus over the same time period A 1.25% pay increase for most state employees in the first year of the budget, plus a $3,000 bonus over the two years A $3,000 bonus for local law enforcement officers over the biennium Cutting the state personal income tax rate rate to 3.49% in 2027 and 2.99% in 2028 Increasing support for NC Children's, a standalone hospital that will be built and run as a joint partnership between the UNC and Duke healthcare systems It’s worth noting there’s some talk of the state being in a budget deficit in two years, but in a statement made Monday, Senator Phil Berger was adamant that Senate Republicans do not believe that and are not worried the tax cuts could impact that. "Our state has faced significant challenges over the last year, in part because of the devastating impact of Hurricane Helene; this budget reaffirms our commitment to western North Carolina and continued economic growth," said Senate Leader Phil Berger (R-Rockingham). "We took a critical look at all state spending to find opportunities to cut obsolete or outdated programs to better reflect today's needs and continue to provide tax relief for North Carolina's people and small businesses." The budget will be in committee this week before it heads to the Senate floor. From there, it heads to the House where representatives from every corner of the state will debate what they want to spend the most money on. ...read more read less