The North Carolina state Senate yesterday released their budget plan for the 2016-17 fiscal year that starts July 1. Total spending in the plan matches the $22.2 billion included in the House proposal, suggesting that we can expect a far more rapid negotiating process compared to last year.
Highlights of the Senate plan include:
- A tax cut; standard income tax deductions would increase over the next two years – arriving at the same amounts as the House budget but two years faster
- An addition of $583 million to the state’s Rainy Day Fund, which would bring the fund to nearly $1.8 billion in order to help the state weather the next economic downturn
- Teacher pay raises to bring average teacher pay in NC to almost $55,000 in two years. Raises are more heavily targeted toward teachers with fewer years’ experience
- $10 million for a pilot program to provide performance based bonuses of up to $6,800 for 3rd grade reading teachers
- Funding for nearly 1,000 additional first and second grade teachers, to help lower class size in the early grades
- An opportunity scholarship reserve fund of $34.8 million to expand the state’s need-based K-12 scholarship program
- Repeals the $500,000 cap on state funding for light rail projects. However, the Senate plan instead includes a provision limiting state support for light rail (or other commuter rail or intercity rail) projects to 10% of the projected cost of the project
To read the budget legislation, click here; to read the ‘money report,’ click here.
Warning to readers…why get a summary from Civitas? Look up the fact for yourself.
The highlight for me as a retired state employee is that they will take away the measly 1.6% cost of living increase forever more and there will be more cuts to my health insurance benefit.
That’s what happens when you run out of other people’s money.