By Dawn Baumgartner Vaughan and Avi Bajpai for the Raleigh News & Observer

North Carolina Gov. Josh Stein told the General Assembly during his first State of the State address on Wednesday evening that he’s ready to sign the next Helene recovery bill.

He also told lawmakers he wants to cut taxes on middle class families but freeze other planned tax cuts, and that he will launch his own administration’s take on being efficient with taxpayer money. 

The Democratic governor made his remarks to a joint session of the House and Senate, which are controlled by Republicans. 

Stein said his budget office will set up an “Impact Center” to “ensure our government is run effectively and efficiently, because people should know that their tax dollars are being well-spent,” Stein said. “But let’s get this right. Let’s use a scalpel, not a chainsaw.”

While not mentioning President Donald Trump’s billionaire adviser, Elon Musk, directly, he was referring to Musk and Trump’s new Department of Government Efficiency, which so far has worked to lay off thousands of employees across the federal government, including veterans.

Trump’s Cabinet members have pushed back on the cuts made by Musk’s staff, who have no record of public service.

Stein also wants more bipartisanship at the state level, compared to what’s going on right now in the federal government.

“If those of us who believe in the possibility of bipartisanship look to Washington, D.C., we will surely become discouraged. But we do not need to be pulled into those political games,” Stein said.

Helene recovery

On Helene, Stein praised responders and touted the work of the N.C. Department of Transportation, led by one of his Cabinet secretaries, in working to reopen Western North Carolina roads washed out and damaged by the storm, including Interstate 40.

“So many people and organizations, public and private, have worked so hard,” Stein said.

He talked about what else is still needed in Helene recovery — including more roads and bridges repaired, clean drinking water, small business grants, and houses rebuilt. While he is seeking billions of dollars more from the Trump administration, he urged lawmakers to pass their latest $500 million recovery bill. 

“I am ready to sign it!” Stein said. 

Lawmakers have not yet agreed on the details of the relief bill.

Stein wants police officer bonuses, higher teacher starting pay

Stein is proposing raises for state law enforcement officers and correctional officers, as well as signing bonuses for new recruits.

He also wants North Carolina’s starting teacher salaries to be the highest in the Southeast, which garnered applause from Senate President Pro Tempore Phil Berger and House Speaker Destin Hall, who were seated behind him.

They did not applaud, however, nor did other Republicans, when Stein criticized taxpayer money being spent on private schools.

Stein also proposed a $4 billion bond for public schools, which would have to be a ballot measure.

Republicans and Democrats are moving two bills through committees that would ban or regulate cellphone use in schools. Count Stein as a supporter.

“Classrooms should be cellphone-free zones,” Stein said to applause.

Another area of agreement is Stein’s proposal for a fentanyl control unit. Berger and Hall both gave Stein a standing ovation for it.

Berger and Hall also applauded when Stein wrapped up his speech asking for more bipartisanship, saying “we can create something better, something forward-looking right here in North Carolina. And we can do it together.”

After the address, as Hall prepared to give a response speech in another room, lawmakers and other guests chatted with each other in the rotunda between the chambers.

Sen. Bobby Hanig, a Currituck County Republican, told The News & Observer that he agrees “we’re all on the same page on what has to be done.”

“It’s just a question of how we’re going to do it. I’m looking forward to seeing what his ideas are, to accomplishing these things. You know, let’s get down to some details. That’d be great. Let’s get it on,” Hanig said.

Democratic Sen. Paul Lowe, of Forsyth County, liked Stein’s ideas about skilled labor jobs through community colleges, and more apprenticeships.

“This governor wants to do everything possible to try to get folks working together,” Lowe told The N&O. He hopes Republicans are receptive. 

“We want to try to find ways that folks can work together,” he said.

Stein’s address started just after 7 p.m. and ended just after 7:45 p.m. His speech was to be followed about 10 minutes later by the Republican response, given live by Hall.

PBS North Carolina livestreamed both Stein’s speech and Hall’s response. You can watch the livestream online at PBSNC.org or through your PBS NC television channel or app.

Stein, who served two terms as attorney general before defeating Republican Lt. Gov. Mark Robinson in the 2024 election, spoke before the 170 state lawmakers, the Council of State and N.C. Supreme Court.

Democratic Lt. Gov. Rachel Hunt presided over the joint session.

Most House Democratic women representatives who attended wore all-white suits and dresses.

Stein’s speech comes as the legislature is about two months into its legislative long session, and already moving bills on immigration, Helene recovery, and banning diversity, equity and inclusion. Lawmakers are also scrutinizing state agencies for efficiency. 

The biggest work of the session will be the state budget, a two-year spending plan that could be passed this summer, if both chambers and the governor come to an agreement. If Stein vetoes the budget bill, which frequently contains policy, too, Republicans are just one vote short of being able to overturn a veto on their own.

Who was there?

Stein’s guests for the speech included:

▪ His family.

▪ Matt and Michelle Banz, of Rutherford County, the owners of Chimney Rock Gemstone Mine, which has received a small business initiative grant.

▪ Haylee and Emily Orellana, of Surry County, who were in a nursing apprenticeship program. 

▪ Ali Setser, principal of Eastern Elementary School in Pitt County.

▪ 2023 Teacher of the Year Kimberly Jones, a 10th grade English teacher at Chapel Hill High School, in Orange County.

▪ Forsyth County Sheriff Bobby Kimbrough as well as several other law enforcement officers.

▪ Debbie Dalton of Mecklenburg County, whose son Hunter died in 2016 of a fentanyl overdose.

Republican response by House Speaker Destin Hall

Delivering the Republican Party’s response to Stein’s speech on Wednesday night, Hall recognized the potential for working together with the new governor on Helene recovery, which he said was the General Assembly’s “top priority.”

Hall said he looked forward to working with Stein, who he said “shares my desire to get people back in their homes as quickly as possible.”

“He and I both recognize the long road ahead, and the need for us all to rise to the moment, setting aside petty partisanship for the sake of our neighbors,” Hall said.

But Hall also made sure to stress Republicans would move forward with their Trump-aligned agenda on issues like immigration enforcement, school choice, energy production and lower taxes.

Hall began his remarks seeking to contrast Republican lawmakers and how they received Stein on Wednesday with Democrats on Capitol Hill, who he criticized for “screaming and shouting” at Trump during his address to a joint session of Congress last week.

“While we may have strong disagreements with Gov. Stein on important issues, Republicans understand that real leaders don’t need to shout down the opposition,” Hall said.

Hall touted the Republican-led legislature’s fiscal policies and said they had helped North Carolina continue to be an “economic powerhouse” and one of the best states in the country for business.

He also vowed that Trump’s immigration policies would have the “full support” of Republicans in the General Assembly.

Last year, Hall helped ensure Republicans would pass legislation he had led the charge on for years that required sheriffs to cooperate with U.S. Immigration and Customs Enforcement on temporary detention requests.

Hall filed another bill last week to further require sheriffs to notify ICE before releasing anyone subject to one of those detainer requests. 

Republicans in the Senate, meanwhile, have already passed another immigration enforcement bill that would require certain state agencies to enter cooperation agreements with ICE. 

While Stein refrained from talking about ICE cooperation or Trump’s promise to conduct “the largest domestic deportation operation” in the country, Hall said it was a “common sense policy” to help federal authorities deport people who entered the U.S. illegally and have committed crimes.

Hall said another “common sense issue” Republicans have acted on is prohibiting transgender athletes from playing in women’s sports. 

On education, Hall said that the GOP’s efforts to fund private school vouchers “doesn’t mean turning our backs on our dedicated public school teachers.” He said that Republicans will “continue to invest even more in meaningful teacher raises.”

Hall also said Republicans will invest more in the state’s universities and community colleges, which he praised as “the best in the world.”

“While low taxes are important, North Carolina’s best asset is the people of our state,” Hall said. “Investing in education draws businesses to our state because of our quality and educated workforce.”

The preceding article originally appeared on March 12, 2025 at The Raleigh News & Observer’s website and is made available here for educational purposes only. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 106A-117 of the U.S. Copyright Law. Any views or opinions expressed here are those of the authors and do not necessarily reflect the official policy or position of the Carolina Leadership Coalition.