North Carolina lawmakers have reached an agreement on a state budget, ending a yearlong stalemate over a spending plan that should have taken effect July 1, 2025.

Legislative leaders finalized the agreement Sunday after months of negotiations over taxes, state employee raises and spending priorities.

NFIB State Director Gregg Thompson is reviewing the document to see how it will affect small businesses.

The budget includes raises for all state employees, with larger increases for teachers, law enforcement officers and prison employees. The agreement also keeps scheduled personal income tax cuts in place while increasing the tax rate on sports betting operators.

Because there was no budget in place, state agencies have been operating under funding levels approved in 2023, delaying pay raises and other projects that require new appropriations.

Lawmakers are expected to vote on the budget this week after the final bill is completed. If it passes both chambers, it will go to Gov. Josh Stein, who will have 10 days to sign it, veto it or allow it to become law without his signature.