North Carolina State Treasurer Brad Briner is among those not happy with Gov. Josh Stein’s $33.6 billion budget proposal for Fiscal Years’ 2025-2027.

“We are disappointed the Governor is proposing for only the second time in 83 years to not fully fund our state’s retirement system,” Briner said in a press release Wednesday. “This proposal sent to lawmakers today would create a $206 million shortfall in the funds for our retirees over the next two years.”

Stein’s plan does include $700.3 million would fund increases to state employees and retirees pay, and $153.5 million would be allocated to the State Health Plan, which Briner also oversees.

Briner said on a reporter’s call in January that the state’s pension plan is underfunded by $16 billion relative to what it needs, which is about $36 billion.

He said on the call that he wants to improve the pension plan over time, including cost-of-living adjustments (COLAs) for retirees.

State Employees Association of North Carolina (SEANC) Executive Director Ardis Watkins disputed Stein’s recommendation of a 2% COLA for retirees in a post on X. She said what it really is a ‘cost of living bonus.’

“And as y’all know better than anyone, a bonus is not a COLA,” she said. “It’s not recurring. You get it the one time. It doesn’t change the check that you will get every month moving forward. You deserve a true COLA.”

Watkins said that SEANC is working on ensuring state retirees get COLAs by working in the legislature and asking Briner to reform the way investment contracts are done and bring transparency to the system.

At this month’s Council of State meeting, Briner said he would like to change the current sole fiduciary position, which gives the treasurer total control over how to make investments within statutory limitations, to taking some of the power away and paneling a board of experts, which he said would improve the investments for state employees and the state’s finances.

“The state needs to keep the implicit promise it made to make sure you got decent cost of living adjustments so you wouldn’t go further and further behind the cost of living,” she said in the post. “So, you are not recommended to get a cost of living in the governor’s recommended budget. You’re recommended to get a bonus, again a 2% bonus, and for most of you, 2% of the check you’re getting is not meaningful.”

Briner added in Wednesday’s press release that he is confident legislative leaders will take the needs of the state’s retirees more seriously than Stein.