North Carolina Gov. Roy Cooper signed off on the state lawmakers’ proposed budget this week, approving a $27.9 billion spending plan for the new year that began July 1.
Cooper said in a news release that the budget makes “critical investments in education, economic development, transportation and the state workforce.”
Key budget provisions in the $27.9 billion spending plan include:
- Transportation funding: A portion of sales tax revenue will be allocated to the Highway Fund and Highway Trust Fund. Two percent of revenue in 2022-2023, increasing to 6% by 2024-2025 and thereafter, will be sent to the funds. From an advocacy perspective, this issue was led by the NC Chamber with support from the CLT Alliance and other groups.
- Compensation for state employees: The budget includes an additional 1% pay increase for most state employees, which is in addition to a 2.5% pay increase enacted in last year’s state budget. The result is a 3.5% pay increase as of July 1, 2022.
- Compensation for teachers: The budget includes a roughly 1% pay increase for teachers. Combined with increases from the 2021 budget, the total average increase for teachers, including step increases, is about 4.2%.
- K-12 Education funding: Public schools will see $32 million in nonrecurring money for increased fuel costs for school buses; $32 million in nonrecurring money for school safety grants; $26 million in nonrecurring money for at-risk allotment to reflect higher actual salaries for school resource officers, and $15 million in recurring funds to provide for more school resource officers; and $14 million in recurring funds for regional literacy and early learning specialists.
- Health and Human Services: The department will receive $230 million nonrecurring for transformation projects and programs related to Medicaid; $95 million nonrecurring to provide for continuation of enhanced Medicaid rates for skilled nursing and personal care; and $4.4 million nonrecurring for increased payments to federally qualified health centers.
- Commerce: The budget allocates $20 million for travel and tourism marketing; $20 million for business marketing; and $1 million for megasite readiness.
- Environment: In the budget, $611 million is dedicated to drinking water and wastewater grants. The budget also includes several appropriations from the Infrastructure Investment and Jobs Act (all one-time allocations), including: $90 million for weatherization grants; $87 million for projects addressing lead service lines in water systems; $55 million for the Drinking Water State Revolving Fund; $32.3 million for the Clean Water State Revolving Fund; and $23 million for grants for projects addressing emerging compounds, such as PFAS.
House Speaker Tim Moore and Senate Leader Phil Berger issued a joint statement shortly after the governor signed the state budget into law.
“The General Assembly passed the 2022 budget with strong bipartisan support, and we are pleased Governor Cooper signed this responsible spending plan into law,” Moore and Berger said. “Moving forward, we are committed to working together to improve healthcare access and expand Medicaid, while providing the necessary safeguards to preserve the state’s fiscal strength. Active negotiations are occurring now toward that end.”
The Charlotte Regional Business Alliance®, along with many chambers of commerce and associations representing businesses across the state, issued a statement last month in support of Medicaid expansion. Click here to read the full statement.
