Senate Passes Bipartisan Final Budget Compromise Including Middle Class Tax Cut, Teacher Raises, Hurricane Matthew Relief | Eastern North Carolina Now

    Press Release:

    Raleigh, N.C.     State Senator Bill Cook (R-District 1) voted today in support of the final budget compromise with the House of Representatives. The $23 billion balanced budget cuts taxes, controls the growth of government spending, bolsters the state's savings, and increases education funding by $700 million - providing teachers an average 3.3 percent raise this year and 9.6 percent raise over two years. The budget also directs more than $180 million in the first year alone toward compensation increases to state employees, providing them a $1,000 across-the-board raise - while also providing a permanent cost-of-living adjustment to state retirees.

    As a result of responsible budgeting decisions, millions of middle-class families and job-creating small businesses will keep more of their earnings under this plan. The 2017 state budget delivers $530 million in tax relief, with 99 percent of taxpayers either paying less or paying no state personal income taxes at all. The final budget compromise passed both Chambers with a bipartisan supermajority vote of 39-11 in the Senate and 77-40 in the House. Next, the budget will be sent to the Governor.

    "Make no mistake - this is a solid budget built on a strong foundation. Our common sense conservative reforms of cutting taxes and reducing excessive regulations led us to a positive budget outlook. This budget includes historic investments in several core areas that will benefit all North Carolinians by strengthening education, cutting taxes, enhancing public safety, saving for the next recession, improving the health of our citizens and building new roads that connect our communities," Cook said. "Our aim is to meet the simple, but crucial demand of our citizens-a state government that puts the needs of its own people first."

    Highlights on coastal/district include:

    Revitalization and Economic Development Grants

• Appropriates $2.9 million to the Perquimans Marine Industrial Park, which is situated in Northeastern North Carolina along the Perquimans River. This 71-acre state owned park is part of the 400-acre Perquimans Commerce Center south of the historic Town of Hertford.
• Appropriates $100,000 to the Washington Harbor District Alliance of Beaufort County for historic rehabilitation projects.
• Appropriates $200,000 to the Town of Bath of Beaufort County for a downtown revitalization project.
• Appropriates $50,000 to the City of Washington for a downtown revitalization project.
• Appropriates $75,000 to the Edenton Farmers Market in Chowan County.

    Tourism Advertising

• Designates an additional $2.5 million over the biennium to the Economic Development Partnership of North Carolina (EDPNC) for tourism advertising and marketing. These funds are restricted to a research-based comprehensive marketing program directed toward consumers in key markets most likely to travel to North Carolina and shall not be used for ancillary activities, such as statewide branding and business development marketing.

    Hurricane Matthew Recovery Funding

• Provides an additional $100 million in disaster relief assistance to victims of Hurricane Matthew. Previously, the N.C. General Assembly enacted a $200 million disaster relief package into law during the December 2016 special session.

    Oyster Sanctuaries

• Appropriates an additional $1.5 million for oyster sanctuaries. The revised net appropriation for oyster sanctuaries is $2.25 million over the biennium.

    Shellfish Rehabilitation

• Strengthens funding for cultch planting by allocating an additional $312,000 over the biennium. The revised net appropriation for cultch planting is $1.1 million in each year of the biennium.

    Oyster Study and Shellfish Mariculture Plan

• Provides $150,000 on a nonrecurring basis for the North Carolina Policy Collaboratory to study and advance efforts to ecologically restore and achieve economic stability of the shellfish industry and to develop a Shellfish Mariculture Plan.

    FerryMon Program

• Provides funding to the Institute of Marine Sciences at the University of North Carolina at Chapel Hill for the continuation of the North Carolina ferry-based water quality monitoring program. The revised net appropriation for this program is $150,000 in FY 2017-18 only.

    Artificial Reefs Program Funding

• To enhance fishing opportunities, the Marine Resources Fund may be used to construct artificial reefs in the estuarine and ocean waters of the state and federal waters up to 20 nautical miles from land.

    Crab Pot Cleanup

• Continues the Crab Pot Cleanup Program piloted in FY 2016-17. The North Carolina Coastal Federation shall use the funds of $100,000 to contract with commercial fishermen to aid in derelict crab pot cleanup efforts. The Coastal Federation is also encouraged to find ways to reuse recovered crab pots.

    Clean Water Management Trust Fund

• Provides an additional approximately $5 million over the biennium to the $17.2 million recurring budget of the Clean Water Management Trust Fund.
• Allocates $1 million through the Water Resources Development Projects for storm debris removal in Eastern North Carolina.

    Deep/Shallow Draft Dredging

• Continues to appropriate approximately $23.2 million to the state's Shallow Draft Dredging Fund.
• Directs the Department of Environmental Quality to explore the feasibility and cost-effectiveness of the acquisition by the State of North Carolina of one or more dredges.
• Instructs the N.C. Department of Transportation to study the use of its new dredge vessel, the Dredge Manteo, and a plan to allow use of the dredge vessel by other state departments and agencies.
• Tasks the N.C. Dept. of Transportation and the N.C. Dept. of Environmental Quality to jointly perform a cost-benefit analysis of the state providing dredging services versus the state utilizing private contractors to provide dredging services.
• Authorizes the North Carolina State Ports Authority to utilize up to $15 million of their funds for dredging needs. Phosphate and sulfur products from PotashCorp located in Beaufort County represent 68 percent of total tonnage handled by the Port of Morehead City.

    Satellite Aquarium Facility

• Directs the Division to begin planning the development of a satellite aquarium facility at Blake Farm development in Scotts Hill. The satellite facility's exhibit shall be focused on the North Carolina shellfish and aquaculture industry. The revised net appropriation for the planning of this facility is $253,794 in FY 2017-18.

    Graveyard of the Atlantic Museum

• Increases funds for the existing building and environmental services at the Graveyard of the Atlantic Museum located on Hatters Island.

    Teacher Assistant Tuition Reimbursement Program

• Expands the teacher assistant tuition reimbursement program to the following counties: Beaufort, Tyrrell and Washington. Last year, the General Assembly established a teacher assistant tuition reimbursement pilot program in five counties, which provides tuition reimbursement for TAs to pursue a college degree leading to teacher licensure.

    School Construction in Rural Counties

• Allocates $100 million for grants to economically struggling, rural counties to assist with critical public school building needs.

    Geographically Isolated Schools - Ocracoke Island

• Increases funding for geographically isolated schools. Thus, Ocracoke School in Hyde County will receive several additional classroom teaching positions under this proposal.

    Elizabeth City State University Stabilization Funds

• Appropriates an additional $4.8 million to Elizabeth City State University to stabilize enrollment. Funds will be used to hire temporary faculty to anchor core programs, provide start-up funds for an aviation science program, and support student success initiatives. The revised net appropriation for Elizabeth City State University is $32 million in FY 2017-18. Included in a separate provision, provides operating funds for the G.R. Little Library at Elizabeth City State University.

    ECU Brody School of Medicine Stabilization Funds

• Provides an additional $4 million of recurring funds to stabilize the Brody School of Medicine at East Carolina University. The revised net appropriation for East Carolina University Health Affairs for all items is $74.4 million in FY 2017-18 and $75 million in FY 2018-19.

    Clarification to the Ferry Vessel Priority Boarding Pass

• Authorizes commercial use of the priority pass to be transferable from one vehicle to another.

    Ferry - Field Operations Staff

• Converts 46 temporary ferry field positions to permanent positions and eliminates 12 temporary ferry field positions, beginning in FY 2017-18. The total cost of the 46 receipt-supported positions is $2,249,170. The revised net appropriation for Ferry Operations is $46,681,106

    Rural Touring Arts Grant Program

• Creates the Rural Touring Arts Grant Program. This Program will provide grants to arts organizations that are designated as State Arts Resources so that these organizations can increase their reach in Tier 1 and Tier 2 counties. The revised net appropriation for the Rural Touring Arts Grant Program is $75,000 in FY 2017-18 and $100,000 in FY 2018-19 on a recurring basis. Additionally, the budget increases support for the Grassroots Arts Grant Program by $500,000. The revised net appropriation for the Grassroots Art Grant Program is $2.8 million in each year of the biennium.

    Military and Veterans Healing Arts Grant Program

• Establishes the Military and Veterans Healing Arts Grant Program. This Program aims to increase access to the arts for North Carolina's service members, veterans, and military families through grants to local arts councils and arts organizations that will partner with military bases, VA hospitals, and veterans service providers. The revised net appropriation for Military and Veterans Healing Arts Grant Program is $75,000 in FY 2017-18 and $100,000 in FY 2018-19 on a recurring basis.

    Museum of the Albemarle

• Allocates an additional $35,000 for special exhibits at the Museum of the Albemarle in Pasquotank County.

    Roanoke Island Historical Sites

• Requires the N.C. Department of Natural and Cultural Resources to negotiate a Memorandum of Agreement (MOA) with the Roanoke Island Historical Association (Lost Colony) to collaborate and strive for an acceptable correlation agreement between the Roanoke Island Festival Park and the Roanoke Island Historical Association.

    Capital Improvement

• Authorizes $300,000 for capital improvements at the Outer Banks Education Center located in Corolla of Currituck County.
• Authorizes $900,000 for capital improvements at the Wildlife Resources Commission boating accesses.
• Provides $80,000 to the Hertford County Recreation Commission for recreational, economic, and environmental improvements.
• Provides $80,000 to Bertie County for renovation of the Blue Jay Recreation Park.

    Mattamuskeet Lodge

• Directs the N.C. Wildlife Resources Commission to use up to repair the roof and stabilize the tower at the Mattamuskeet Lodge in Hyde County.

    Dare County Bombing Range

• Allocates approximately $1.4 million to the Dare County Bombing Range or "Navy Dare" via the North Carolina Forest Service.

    Lift Fan Facility Project

• Provides funding for a grant-in-aid to assist with costs related to the Lift Fan Facility at Cherry Point Marine Corps Air Station. The revised net appropriation for the Lift Fan Facility Project is $3.0 million in FY 2017-18 only.

    Rural Health Centers

• Allocates $17 million for the purpose of expanding inpatient in rural areas near counties with limited inpatient capacity relative to their needs through constructing new beds or renovating existing beds to form new inpatient psychiatric units.
• Increases funding for grants to community health centers, rural health centers, federally qualified health centers, free clinics, and other health services providers in rural and medically underserved communities. The revised net appropriation for community health grants is $15.0 million in each year of the biennium.

    N.C. Temporary Assistance for Needy Families

• Approves the plan titled "North Carolina Temporary Assistance for Needy Families State Plan (NCTANF) FY 2016-2019," prepared by the Department of Health and Human Services and presented to the General Assembly. The counties approved for the NCTANF state plan FY 2016-2019, are Beaufort, Caldwell, Catawba, Lenoir, Lincoln, Macon, and Wilson. TANF was created to help families in need. The TANF bureau works with families to help them become self-sufficient.

    North Carolina's Eastern Alliance Corporation

• Appropriate $100,000 to the North Carolina's Eastern Alliance Corporation to support regional analysis and development of the life science development and manufacturing center.

    NCSU Innovation in Manufacturing Biopharmaceuticals

• Provides funds for North Carolina State University's (NCSU) participation in a collaborative effort to accelerate the development of innovative manufacturing processes for biopharmaceutical products. Funds will support the Biomanufacturing Training and Education Center at NCSU and serve as matching funds for a federal grant from the National Institute of Standards and Technology. The revised net appropriation for this initiative is $2 million in FY 2017-18 only.

    In Agriculture and the Environment:

• Allocates over $750,000 to expand international marketing of North Carolina agricultural products. The revised net appropriation to the Markets Division from all changes is $10.0 million in FY 2017-18.
• Provides additional funding to the Tobacco Trust Fund (TTF), which provides grants to tobacco-related farms and businesses. The revised net appropriation to the TTF based on this adjustment is $2.9 million in FY 2017-18.
• Provides $2.0 million of additional nonrecurring funding to the Agricultural Development and Farmland Preservation Trust Fund (ADFPTF). The revised net appropriation to ADFPTF is $4.6 million.
• Provides funding for engineers to improve dam safety and review emergency action plans to help prevent catastrophic flooding.
• Sets aside $2.3 million to purchase a new firefighting aircraft in the wake of devastating wildfires in Western North Carolina.
• Provides $250,000 to the Department of Agriculture to continue fighting against federal overreach in the form of the new Waters of the United States definition after the Cooper Administration withdrew from the federal lawsuit challenging this unprecedented land grab.
• Provides $100,000 to the North Carolina National Guard for the Joint Use Training Center in DuPont Forest. The site is a collaboration with the Department of Agriculture and Consumer Services.
• Appropriate $5.8 million for the Food Processing Innovation Center to be housed at the N.C. Research Campus. This will improve our state's competitiveness in recruiting agricultural manufacturing companies.
• Provides additional funds to the Economic Development Partnership of North Carolina for marketing and advertising of the state to promote economic development, business development, and job recruitment. The revised net appropriation to EDPNC from all changes is $21.7 million in FY 2017-18.
• Allocates $2.0 million of nonrecurring funding for the new NC Ready Sites program, which supports the development of infrastructure for large publicly-controlled manufacturing sites.
• Provides 500,000 of nonrecurring funds to offer matching grants to local governments to assist planning agencies and small businesses with efforts to revitalize downtown areas.
• Allocates $2.5 million to the Carolina Small Business Development Fund to provide small business loans and financial training to start-ups and existing businesses and lending services to community-based organizations.

    In Salaries and Benefits:

• Keeps the plan to dramatically increase average teacher pay from last year's budget, investing more than $100 million in the first year alone. This is in addition to the substantial teacher pay raises legislators passed in 2014, 2015 and 2016.
• Incorporates a new plan to let highly-qualified new teachers begin at a higher pay grade on the salary schedule, providing financial incentive to those who accept positions in low-performing schools, are licensed in special education or STEM classes or meet other criteria.
• Includes roughly $25 million to expand a performance-based bonus program to top-performing 4th and 5th grade reading teachers and 4th-8th grade math teachers, based on EVAAS growth scores.
• Allocates $10 million over two years for a bonus program for veteran teachers with more than 25 years of experience.
• Provides more than $35 million to substantially increase principal and assistant principal pay, including funds for performance bonuses for principals.
• Includes $10 million in additional compensation for community college employees.
• Provides a $1,000 salary increase to state employees.
• Offers experienced-based step increases to teachers, State Highway Patrol troopers, clerks and magistrates.
• Provides $10 million in the biennium toward hard-to-hire positions across state government, such as health care technicians and nurses.
• Designates roughly $4 million to allow Gov. Cooper to increase the base salary ranges for many state workers.

    In Education:

• Increases funding for public education by nearly $700 million over two years.
• Fully funds K-12, community college and public university enrollment growth.
• Allocates more than $100 million from lottery funds over the biennium for grants to economically struggling, rural counties to assist with critical public school building needs.
• Invests an additional $11 million in textbooks and digital resources and increases funding for children with disabilities.
• Codifies the legislature's intent to use data it is currently gathering from local school systems in accordance with state law to fund a new salary allotment for kindergarten through fifth grade program enhancement (music, arts, physical education) teachers beginning in the 2018-2019 school year.
• Supports the new N.C. Teaching Fellows Program through the N.C. Education Endowment Fund.
• Restores funding to Eastern North Carolina STEM and extends the "TA to Teacher" pilot program in the 14 local school districts originally designated for expansion.
• Protects the Read to Achieve, Teach for America, and Communities in Schools programs from being cut by the Department of Public Instruction to fund bureaucracy.
• Provides additional assistance to community colleges for workforce training programs.
• Honors the commitment to fully fund the N.C. Promise Program, which guarantees in-state undergraduate students at three schools across the state pay just $500 per semester for tuition.
• Includes over $18 million in new funding for medical education, including funding increases to the UNC School of Medicine and to the school's Asheville campus.
• Offers $2.5 million each year of the biennium to support doctoral programs at North Carolina A&T University.
• Directs $1.5 million to the Cheatham-White Scholarship Program, which will provide state matching funds for up to 20 scholarships at both North Carolina Central University and North Carolina A&T University, beginning in the 2018 fall semester.

    In Transportation:

• Increases funding for the Strategic Transportation Investments Program (STIP) by $320 million over two years, which will allow 100 new highway projects to be added over a ten-year period.
• Includes $241 million to improve structurally deficient bridges across the state, adds $143 million to improve the condition and safety of existing roads, increases contract resurfacing by $20 million and increases funding for pavement preservation by $30 million, extending the life of thousands of miles of roads.
• Invests $100 million to fund immediate need construction projects across the state that improve mobility and safety, reduce congestion and spur economic development.
• Includes $208 million over two years for a Roadside Environmental Fund dedicated to ensuring the safety and beautification of the state's highways.
• Modernizes the state's transportation network by providing additional funding to airports across the state for infrastructure improvements, and to the State Ports Authority for infrastructure and dredging needs.

    In Health and Human Services:

• Provides more than $27 million over two years to add 3,525 new pre-K slots - eliminating 75 percent of the waitlist for at-risk children.
• Upgrades the Controlled Substance Reporting System that will use advanced analytics to detect and fight prescription drug abuse.
• Allocates $15 million over two years to community health centers, rural health centers, free clinics and other health services providers in rural and underserved areas that assist the uninsured.
• Invests $18 million to improve North Carolina's child welfare program, including new training and prevention programs, and nearly $4 million to improve accountability and oversight of the system.
• Earmarks close to $3 million to provide support for additional foster children in the system.
• Continues preparing for the transition to Medicaid reform by allocating $75 million to grow the Medicaid Transformation Reserve.
• Includes more than $12 million for 400 new innovation waiver slots for people with intellectual and other related developmental disabilities that are at risk for institutional care.
• Designates $10 million for opioid and substance abuse treatment statewide.
• Allocates $19 million from the sale of the Dorothea Dix property to fund behavioral health beds.

• Contact: Jordan Hennessy
•     jordan.hennessy@ncleg.net