(The Center Square) – Planning spending of $65.9 billion over two years, North Carolina senators late Monday released their fiscal plan that includes $1.3 billion tied to Hurricane Helene and modest teacher raises and bonuses pushing the average pay to $62,407.
Helene, arguably the state’s most catastrophic natural disaster, caused an estimated $60 billion in damage. Funds are still being sought and appropriated. The Senate proposes spending $700 million within the budget, plus $633 million in temporary and permanent repurposing within the Department of Transportation toward recovery.
The General Assembly has already appropriated more than $1.4 billion. The $700 million in the biennium package would allocate $10 million to GROW NC, known also as the Governor’s Recovery Office for Western North Carolina; $8 million to Appalachian State, UNC Asheville, Western Carolina and the North Carolina Arboretum; and $2.5 million to the state Community College System to help those institutions experiencing enrollment losses because of the storm.
All residents would get a cut in personal income tax rate, from 3.49% in 2027 to 2.99% in 2028.
Typically, the governor is first to offer a budget proposal, both chambers follow, and then the negotiations ensue. July 1 is the start of the fiscal year, though it was late September in 2024 when the midterm adjustment was finalized.
Democratic Gov. Josh Stein has proposed a two-year budget of $67.9 billion, also known as Senate Bill 440. The House of Representatives is yet to release its plan.
Two years ago, both chambers of the General Assembly were about $6 billion below former Gov. Roy Cooper.
Interestingly, the Senate budget plan provides for not only more funding toward Helene recovery but also to replenish what is known as the Rainy Day Fund that was tapped. Senators are looking to put $4.75 billion back in, an amount they say puts the balance where it was before the storm.
At the 2010 midterms, Republicans won both chambers and started enacting legislation to change the budget deficit that ranged between $800 million and $1.2 billion. In less than 15 years, the turnaround was roughly $6 billion to a surplus of $5 billion.
Teachers are slated for a 3.3% increase and $3,000 in bonus pay over the two years – 2.3% in the first year, 1% in the second. Senators said the additional compensation for teachers would be 8.9% over the two years.
Stein’s budget proposed 10.6% pay raises over the two years.
State employees, in the Senate proposal, would get a 1.25% raise in the first year and $3,000 in bonus pay over the two years. For correctional officers, another 5.25% raise is added.
There is a $3,000 bonus over the two years for local lawmen.
There is $250 million for verifiable agricultural disaster crop losses.
