Overview
- Gov. Josh Stein signed the two‑year, roughly $34 billion budget on Tuesday, ending more than a year of negotiations and putting the spending plan into law.
- The law immediately funds pay increases and bonuses for state workers with at least a 3% raise across the board, teachers averaging about 8%, and some law enforcement and prison staff receiving raises up to roughly 17%.
- The package directs more than $1 billion to Medicaid needs and allocates about $700 million for Hurricane Helene recovery while boosting the state savings reserve by hundreds of millions.
- Revenue changes include scheduled multi‑year personal income tax rate reductions, an increase in the licensed online sportsbook tax from 18% to 23%, and a new 6% tax on net trading fees for federally regulated prediction markets.
- The budget folds dozens of stalled policy measures into law, cuts the equivalent of roughly 755 full‑time positions largely by eliminating vacancies, and shifts many board appointment powers away from the governor, a change analysts say will reduce executive appointment control.