North Carolina lawmakers are navigating comprehensive state budget negotiations with leaders projecting a slight delay beyond the mid-June target while insisting steady progress is being made. Senate Leader Phil Berger and House Speaker Destin Hall have reached agreements on income tax reductions, employee raises and children's hospital funding. However, key details remain unresolved, including allocations for the state's rainy day fund, $90 million in opioid settlement funds, university research initiatives and Hurricane Helene recovery relief.
Additionally, the legislature has advanced a property tax reappraisal moratorium (SB889/SB474) to shield homeowners in eight counties from immediate tax assessment increases while lawmakers design a long-term relief solution. This measure successfully bypassed several Western counties to avoid disrupting their ongoing disaster recovery efforts. Also, the newly passed 2026 Farm Act (SB401) was heavily revised to eliminate previous controversial provisions that banned raw milk and restricted cancer patients from suing pesticide companies.
Finally, a healthcare competition bill (SB978) saw significant changes in committee following a controversial proposed merger between WakeMed and Atrium Health. Sponsor Sen. Jim Burgin removed the bill's central provision requiring increased merger oversight by Council of State members, as the deal is already facing federal and state attorney general reviews. The amended legislation now shifts its focus to capping hospital CEO compensation, providing whistleblower protections, banning noncompete clauses for medical professionals and modifying Certificate of Need reviews.
In other news, some officials were caught off guard by a newly drafted state legislative bill sponsored by Rep. Diane Wheatley that would unilaterally merge the city and county 911 centers (HB1220). The bill includes a section that allows county commissioners to unilaterally merge the separate Fayetteville and Cumberland County 911 emergency call centers into a single consolidated unit. Not all elected officials were upset by the move, according to an article in The Fayetteville Observer. Cumberland County Board of Commissioners Chairman Kirk deViere was hopeful that this might be the impetus to finally resolve the long-standing issue.
City of Fayetteville
In recent meetings, the Fayetteville City Council has advanced a $324 million budget without a tax increase and passed expanded regulations for data centers.
Council members voted 9-1 on a revised $324 million fiscal year 2027 budget that completely eliminated a $0.01 tax increase in a $322.8 million operating budget presented by City Manager Doug Hewett. The breakthrough came after Mayor Mitch Colvin presented an alternative counter proposal that utilized newly identified tax revenue to close the financial gap, bypassing both a proposed 3-cent property tax increase and a $10 annual solid waste fee adjustment.
Despite the council enacting a 120-day freeze on data center moratorium discussion in April, protestors maintained active pressure on officials to reconsider. The council voted 8-2 to schedule a public hearing on Aug. 10 for a data center zoning ordinance.
Cumberland County
The Cumberland County Board of Commissioners unanimously approved a six-month moratorium on development permits for data centers and cryptocurrency mining operations, exempting businesses that use information technology infrastructure as part of otherwise permitted operations, according to county officials. The pause, lasting through Dec. 15, 2026, was enacted to give county staff time to draft strict rules regarding the noise, power and water impacts of these facilities.
In other news, the Board agreed to pay architectural firm EwingCole $650,000 to settle a lawsuit related to the now-defunct downtown performing arts and events center. The county has pivoted away from new construction, recently selecting a contractor to run alternative renovations on the existing Crown Theatre and Crown Arena and local firm SfL+a Architects to provide primary facility design services.
The board also continues to discuss the proposed Fiscal Year 2027 budget and tax levies during upcoming budget work sessions through June 22.
At their June 11 work session, the board approved the capacity expansion of the Cumberland County Employee Childcare Center, which opened in August 2024, by opening up to 50 percent of its available spots to employees of neighboring governmental agencies, including the City of Fayetteville police and fire departments, City of Fayetteville employees and Cumberland County judicial offices. This phased enrollment plan ensures 50 percent of spaces remain strictly reserved for children of Cumberland County employees.
The board also approved an interlocal agreement establishing a joint financial framework between Cumberland County and the City of Fayetteville to fund year-round and cold-weather emergency shelter beds at the Salvation Army's Pathway of Hope facility.
About the Greater Fayetteville Chamber
Advocacy is a cornerstone of the Greater Fayetteville Chamber. Every week, the Chamber dedicates staff to attend City of Fayetteville and Cumberland County meetings as well as monitoring updates on the state and federal levels. We monitor legislation locally, statewide and federally to protect our community’s business interests. With 91% of U.S. adults recognizing a Chamber of Commerce's impact on growth, membership ensures a strong voice shaping policies, driving economic success and building a thriving business community—together. To learn more, visit www.faybiz.com or email jmclaughlin@faybiz.com.