House and Senate budget leaders made little progress over teacher pay and North Carolina lottery advertising during a public negotiations session.
The Senate offered Tuesday to remove a provision in its state government spending plan requiring teachers to give up their tenure to receive proposed average pay raises of more than 11 percent.
House Republicans have offered average raises of 5 percent. A House budget-writer says the Senate plan still eliminates funding for thousands of teacher assistants to help pay for higher raises.
The two chambers also failed to reach an agreement on lottery ads. The House plan doubles the cap on advertising expenses but still keeps restrictions on ad content. It would only generate $30 million in extra revenue.
The two sides were expected to meet again Wednesday.