John Szoka
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House Budget Proposal Highlights

Posted on May 31, 2017 by admin in General Assembly

Click here for the House Appropriations Committee's full Budget Highlights reportThe House Budget for FY 2017-18 includes net appropriations of $22.9 billion, which is $559 million or 2.5% above the amount enacted for FY 2016-17.

The following top line highlights are taken from the House Appropriations Committee’s full “Budget Highlights” report. To view specifics of the House Education Budget, the House Health and Human Services Budget, and other items, click here.


Savings Reserve

  • Transfers an additional $263 million to the Savings Reserve to bring the total held in the “rainy day fund” to $1.82 billion, the largest balance in the Savings Reserve since its inception.
  • Diverts $130 million in anticipated General Fund revenue growth in FY 2018-19 to the Savings Reserve pursuant to S.L. 2017-15.

Salaries

  • Provides over $180.9 million in FY 2017-18 and $456.5 million in FY 2018-19 to:
    • Increase salaries for Teachers and Instructional support paid in accordance with the Statewide teacher salary schedule;
    • Creates a new Principal Salary schedule based on a school’s average daily membership, percentage of school population receiving free and reduced lunch, and principal’s years of experience;
    • Increase Assistant Principal salaries by tying their pay to the teacher schedule plus 22%;
  • Appropriates approximately $181 million in FY 2017-18 and $362 million in FY 2018-19 to provide most State employees and State-funded local employees a salary increase of $1,000 in FY 2017-18 and an additional $1,000 in FY 2018-19;
  • Provides the Community College system with an additional $10 million to increase salaries of Community College personnel,
  • Provides $18.4 million in each year of the biennium to complete the third and final phase of the custody-level based pay adjustment for Correctional Officers, Custody Supervisors, and Prison Facility Administrators,
  • Allows step movement for teachers, assistant principals, Highway Patrol, Assistant/Deputy Clerks, and Magistrates,
  • Provides 5 Bonus Leave days for State and locally supported employees,
  • Provides $3.9 million in FY 2017-18 and $7.8 million in FY 2018-19 to bring all positions to their salary range minimum under the new Classification and Compensation System, and
  • Provides $5 million to the Salary Adjustment Fund to increase compensation for positions that are difficult to recruit or retain.

Benefits

  • Maintains Retiree Medical benefits,
  • Funds all State retirement systems at actuarially determined levels in both years of the biennium and makes no cuts to retirement benefits,
  • Increases employer premiums for State Health Plan coverage by 4% in both 2018 and 2019 plan years, and
  • Provides $51 million for a 1.6% one-time supplement to State Retirees (same as in 2016)

Capital & Infrastructure

  • Provides funds for House Bill 280, “Raise the Age.”
  • Provides $365 million for Repairs and Renovations
  • Fully funds the Water Resources request from the Department of Environmental Quality and draws down $14 million in federal funds
  • Diverts $77.1 million and $79. 1 million over the biennium from short-term lease or rental of motor vehicles from the General Fund to the Highway Fund to support NC Airports infrastructure
  • Provides $5 million to Fort Fisher to construct a new museum and visitor center
  • Provides Western Carolina University $9.4 million to begin the replacement of the campus’s energy production facility and $2.3 million for East Carolina University to develop plans for a new medical education building at the Brody School of Medicine.

Other Items

  • Provides an additional $35m for economic development including programs such as Main Street Solutions, the Small Business Fund and the Film and Entertainment Grant (which will receive an additional $15 million in FY 2017-18 (and an additional $30 million in FY 2018-19).
  • Provides an additional $150 million for Disaster Recovery. This funding would supplement the $200.9 million in funds provided by S.L. 2016-124 (Disaster Recovery Act) bringing the total State funding for Disaster Recovery to $350.9 million.
  • Provides $6.6 million for pending legislation such as HB 270, The Haley Hayes Newborn Screening Bill; HB 910, Human Trafficking; and others.

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