Teachers and Principals can expect can expect significant salary increases, if legislators side with Governor Easley’s $21.5 billion budget, which he unveiled Monday morning.
The Governor appropriated $302.7 million as a step increase plus a $2,000 flat increase for public school teachers and administrators, equaling an average of 7 percent increase for teachers and a 6 percent increase for administrators.
To increase teachers’ salary to the national average, the Governor proposes to increase the cigarette tax from 35 cents a pack to 55 cents a pack. The projected revenue of $116 million would subsidize the salary increases.
“Whenever there is an economic slow down, we cannot make that an educational slow down,” said the Governor.
With a $150 million revenue surplus, North Carolina is one of the few states that appear to be resilient to the nation’s economic turn down. The Governor and his team still remain fiscally responsible when developing the FY 08-09 budget.
“This is the first year, since my first budget, that I’ve lowered economic projections,” said Easley. The Governor lowered his projections to 3.5 percent, a 1.2 percent decrease from last year’s. The 1.2 percent equates a $250 million decrease. In addition the Governor made $400 million in cuts throughout the budget.
Governor Easley’s budget provides an additional $492 million for public schools, a 6.4 percent increase over the FY 07-08 budget.
Additional highlights in the educational budget include an incensement of 6,345 slots in More at Four classrooms and an expansion of the Governor’s Learn and Earn High School program, which would provide 16 planning grants for sites that will become operational for the 2009-10 academic year.
Appropriations for transportation fuel were adjusted for the FY 08-09 to be funded at the current average per gallon, which is $2.86. The Governor’s budgeting office assures public schools that full funding is available for fuel for the remainder for the FY 07-08. With incensement in fuel prices every day, the N.C. Association of School Administrators will be lobbying for an increase in appropriated fuel funds.
Other budgetary concerns include a decreased in funding for instructional supplies, textbooks and exceptional children head-count. Joint Legislative Education Oversight committee and the School Funding committee both have recommendations that are in opposition to these cuts.
Contrary to teacher and principal salary increases, the Governor appropriated $109.5 million for a 1.5 percent salary increase for all state employees and additional $182 million in nonrecurring funds for a one-time, lump-sum bonus of $1,000 and 5 days leave for employees in state-funded positions not subject to the teacher salary schedule.
Finally Governor Easley proposes a 1.2 percent cost-of-living adjustment for retirees.
The General Assembly was briefed on the Governor’s budget on Tuesday. The House will be the fist chamber to draft and propose their budget. Leaders from both chambers assure that this will be a “short” short session.
