Republicans release long-awaited $30 billion NC budget with raises and tax cuts
After months of negotiations, GOP legislative leaders released the $30 billion state budget Wednesday they plan to vote on over the next two days.
The long-awaited, 625-page spending plan was uploaded to the General Assembly’s website just after 4 p.m. on Wednesday. Lawmakers were expected to hold the first of several votes on the budget as soon as Thursday morning, with votes continuing Friday shortly after midnight and wrapping up on Friday morning.
A draft of the budget obtained by The News & Observer on Monday night outlined many key provisions that were expected to stay the same in the final conference report agreed to and signed by lawmakers in both chambers.
Those include average raises of 7% for most teachers and state employees over two years, the personal income tax rate being cut to 3.99% by 2025, a major expansion of private school vouchers, and $500 million in funding for a nonprofit that seeks to help UNC System researchers create new businesses.
Medicaid expansion, no casinos
The budget, once it is sent to Democratic Gov. Roy Cooper’s desk and signed or allowed by him to become law, or vetoed and then overridden by the Republican supermajority, is also expected to trigger Medicaid expansion, as lawmakers had originally laid out earlier this year.
The future of Medicaid expansion seemed to be in doubt just days ago, when the House proposed making it contingent on passage of a separate, controversial proposal to authorize casinos and video lottery terminals, in order to resolve a budget standoff between the House and Senate.
House lawmakers appeared set to vote on that combined gaming and Medicaid bill on Tuesday, but by the end of the day, House Speaker Tim Moore and Senate leader Phil Berger announced they had agreed to drop the casino bill and proceed with voting on a budget that would trigger Medicaid expansion.
Raises for teachers, state workers
The budget plan would provide:
- State employee raises of 7% over two years, with 4% in the first year and 3% in the second year. This also applies to noncertified school staff, as well as to staff and faculty in the University of North Carolina System and community colleges, but it exempts certain state employees such as State Highway Patrol officers, who would mostly get an 11.1% raise.
- A one time, 4% cost-of-living adjustment for retired state employees.
- An average 7% raise for teachers over the next two years, according to Moore. Under the updated teacher salary schedule, raises would range from 3.6% to 10.8% based on experience. Teachers would also get a “small county and low-wealth” signing bonus, with the state matching up to $1,000 in local funds.
- A total raise of 9% for school bus drivers over two years.
School vouchers and other education changes
The budget triples annual state funding for the Opportunity Scholarship program to reach more than $500 million a year by 2032. Also, beginning in the 2024-25 school year, there will no longer be an income eligibility limit that bars wealthy families from applying for a private school voucher.
Other education provisions in the budget include:
- Extends to Jan. 1 the deadline for public schools to implement the Parents’ Bill of Rights. The new law’s many requirements include notifying parents if their child wants to use a different name or pronoun, and new restrictions on LGBTQ+ discussion in elementary school classes.
- Expands eligibility for the NC Teaching Fellows program so that aspiring elementary school teachers can get scholarships and forgivable loans. Also adds two more teacher preparation institutions to the program.
- Limits the ability of the State Board of Education to withhold funding from charter schools.
One thing the budget does not do is fund most of the Leandro plan that was developed to try to provide every student with highly qualified teachers and principals. It’s been on hold since the new GOP majority on the N.C. Supreme Court blocked the previous Democratic majority’s order to transfer funding for the plan.
This story was originally published September 20, 2023 at 4:14 PM with the headline "Republicans release long-awaited $30 billion NC budget with raises and tax cuts."
