Chris Seward - cseward@newsobserver.com

N.C. Senate Pro-Tem Phil Berger, left, and N.C. House Speaker Thom Tillis announce a joint budget during a press conference held Wednesday, June 20, 2012 at the Legislative Building in Raleigh.

House and Senate leaders presented a $20.2 billion budget Wednesday that the chambers will vote on this week.

The budget includes 1.2 percent raises for state employees and teachers, and a 1 percent cost of living increase for state retirees.

A $10 million plan to compensate state eugenics victims did not make it in to the budget. Senate leader Phil Berger said there was not support in his chamber for payments. The compensation effort is likely dead this year.

House Speaker Thom Tillis said he considered the inability to get eugenics funding a personal failure.

Its something Ill continue to work on, he said.

The budget includes portions of the education plan Berger pushed, but does not end teacher tenure.

The budget includes more money in anticipation of higher Medicaid costs. Rep. Nelson Dollar said legislators asked for a recalculation of costs for inflation and additional use of the government insurance program for the poor and disabled after state health officials told them last week that a $205 million budget shortfall this year had grown by another $75 million.

Legislators want better management of Medicaid and its budget, one of the most unpredictable elements of the state spending plan. Every time we hear a number from the department, it seems to be changing, said Dollar, a Cary Republican.

Read this article:

State legislators offer $20.2B budget without eugenics provision