RALEIGH, N.C. β The North Carolina Senate gave initial approval Tuesday to a $22.34 billion final state budget that invests in public education, cuts taxes on the middle class, and raises average teacher pay above $50,000 for the first time in state history.
The final budget responsibly controls the growth of government spending with a 2.8 percent overall increase and, among other highlights:
Β· Increases education funding by $512 million over the enacted 2016-17 budget.
Β· Delivers major tax relief to the middle class and small businesses by making the first $17,500 a family earns exempt from income tax over the next two years. This means a family making the N.C. median household income of $44,000 annually will see an additional tax cut of $110 next year alone.
Β· Continues the commitment made by Republican state leaders to dramatically raise teacher pay by including a plan to boost average teacher salaries to $50,186 next school year and to nearly $55,000 within three years.
Β· Provides more than $550 million in salary and benefit changes for state workers β including a 1.5 percent permanent pay increase and 0.5 percent one-time bonus for state employees, over $80 million for merit-based bonuses, and a 1.6 percent cost of living bonus for state retirees.
Β· Includes measures to help make college far more affordable and accessible to students across the state and to help strengthen and stabilize public universities with lower enrollment.
Β· Increases funding for the Strategic Transportation Investment (STI) law by over $32 million, which will allow new highway projects to be added over a ten-year period.
βThis is a fiscally responsible budget that benefits all North Carolinians β allowing a typical family to keep an additional $110 by making the first $17,500 of their income tax-free, raising average teacher pay to over $50,000, and making generous investments in public education, transportation and other core priorities,β said Senate Leader Phil Berger.
