The Republicans of the N.C. General Assembly have once again delivered a budget that cuts taxes for all, leaving even more of North Carolinians hard-earned money in their own pockets; puts more toward teacher pay and education; invests more capital for our state's critical infrastructure needs; and, saves a record amount for a rainy-day.
This is responsible budgeting in action.
After years of blocking tax cuts and teacher raises, Governor Roy Cooper should waste no time and immediately follow through on signing this bipartisan budget for the people of North Carolina.
Most importantly, this budget respects the hardworking men and women of this state by cutting taxes for EVERYONE, leaving more of their hard-earned money in their own pockets. Through this budget:
- The zero-tax bracket is raised to $25,500, cutting tax bills for all North Carolina families regardless of income
- Child tax deductions are increased by $500
- Personal income tax rates are cut from 5.25% to 3.99% by 2027, starting with 4.99% in 2022
- State income tax on all military pensions is eliminated, because our veterans have sacrificed enough already
This budget includes a 5% pay raise for most state employees and an average 5% pay raise for teachers over the biennium, in addition to a $2,800 bonus to most NC teachers using federal funds; it commits $100 million in recurring funds for a new state-funded teacher salary supplement focused on low-wealth counties to help them compete with big, wealthy counties when recruiting teachers; and, it directs federal funds to provide up to $1500 bonuses for all state employees. After years of Governor Cooper and the Democrats blocking pay raises for teachers, this is critical to making up lost ground.
The budget proposal invests in education to the tune of an extra $2.5 billion in recurring funds over the biennium, and, over the course of the next 7 years, a projected $2.6 billion will be spent on school capital projects. It also helps make education more affordable by adding Fayetteville State University to the N.C. Promise program, which guarantees a maximum $500 in-state tuition per semester at participating schools.
With over $1 billion for broadband expansion and billions more for critical capital and infrastructure projects, this budget makes the necessary investments to keep NC competitive and our people connected. While the nation struggles with supply-chain bottlenecks and unfortunate, but predictable consequences of central planning, this budget provides $283 million to support deepening and expanding the Wilmington Port Harbor, and invests over $16 billion over the next 10 years to meet our State's growing infrastructure needs.
All of this is accomplished while increasing the amount of savings held in the Rainy Day Fund to $4.25 billion by the end of the biennium, and establishing critical safeguards to protect the citizens' rights from government overreach. As North Carolina citizens face rapidly rising prices and an uncertain economy, now is not the time for political posturing. We look forward to Governor Cooper's signature providing the certainty North Carolinians deserve.
North Carolina Republican Party
1506 Hillsborough Street
Raleigh, NC 27605