On Friday, Sept. 22, the North Carolina Senate finished voting on the state budget for the 2023-2025 biennium after the House held final votes earlier in the morning. Gov. Roy Cooper has indicated that House Bill 259, 2023 Appropriations Act will become law without his signature.
House Bill 259 includes many priorities from the Charlotte Regional Business Alliance Advocacy Committee’s Legislative Agenda, and we are thankful to the North Carolina General Assembly for the state’s investments in the Charlotte Region.
Key investments will be made to foster economic development and infrastructure expansions, increase the state’s position as a national and global leader on tax policy, and bolster our K-12 and higher education institutions.
In support of one of the region’s key economic drivers, the budget would extend the sales tax exemption for aviation fuel for use in a commercial aircraft through Jan. 1, 2029. This policy is critical to the competitiveness of the state’s commercial service airports, including Charlotte Douglas International Airport and Concord-Padgett Regional Airport.
UNC Charlotte will see continued investment in key programs and operations. The university will receive $5 million in 2024 and 2025 for Engineering NC’s Future, a total of $1.75 million for E-sports programming and facilities, and $3.6 million in capital improvements at Smith Building, which houses the Engineering Technology and Construction Management Department. UNC System employees will receive salary increases of 7%.
Over the next two years, state employees are slated to receive pay raises. All teachers will receive more pay, with starting teachers seeing the largest increase. Starting teachers will receive an increase of approximately 10% in pay over the two-year period. More experienced teachers will see more modest increases.
Growth and development at UNC Charlotte along with quality teachers in classrooms are both critical to educating the state’s future workforce.
The budget includes changes to tax policy and revenue generation as well. The budget would reduce the individual income tax rate in 2024 from 4.6% to 4.5%, reducing it to 3.99% after 2025. Further reductions may be made based on increased state revenue collections.
The franchise tax rate is modified so that C corporations and holding companies will be assessed $500 for the first $1 million of their tax base, and then $1.50 per $1,000 of its tax base in excess of $1 million. This change results in savings for corporations and further simplifies how corporations are assessed this tax.
Several quality-of-life investments are being made in the budget and championed by the CLT Alliance. A $5 million grant will be appropriated for completion of construction at the Carolina Theater in Uptown Charlotte. A $20 million grant will be appropriated for economic development associated with a tennis complex in the River District.
A key component of workforce development is access to affordable, quality child care. House Bill 259 provides an additional $1.2 million on a recurring basis for the Child Care Grant Program, which supports child care services for students in the community college system. Additionally, compensation grants are extended through June 2024, using ARPA funds to assist child care centers in providing for families.
Important changes are included to enhance the educational workforce in the budget.
Teacher license reciprocity is included in the budget. Teachers licensed in another state with substantially similar licensure requirements and at least three years of teaching experience who are in good standing, shall be issued a continuing professional license by the State Board of Education.
Policy changes are included to make it easier for schools to hire nurses to provide care for students. Certified school nurses will receive a salary supplement as well.
Investments are being made to promote economic development throughout the state as well.
The budget includes funding to prepare megasites – 1,000 acres or more. More than $107 million is appropriated in the next two fiscal years to ensure the state’s competitiveness for significant economic development projects.
An appropriation in the form of a $200,000 grant will be provided to the Charlotte Regional Business Alliance. The grant will allow the CLT Alliance, in partnership with the Real Estate Building Industry Coalition (REBIC) to undertake a real estate and building industry study.
