On Thursday, the North Carolina House of Representatives approved its version of the state budget by a vote of 78-38. Many CLT Alliance priorities are included in the budget approved by the House. The North Carolina Senate will now craft its budget in the coming weeks.
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 to bolster our K-12 and higher education institutions.
The budget includes funding to prepare megasites – 1,000 acres or more – as well as smaller parcels of land for development. Included is $150 million is for megasite readiness and $50 million is included for sites less than 1,000 acres.
On transportation projects, over $400 million is allocated for the STIP program, and $100 million in 2023-2024 and $200 million in 2024-2025 is allocated for capital improvements at general aviation airports.
Also in the aviation space, the budget would extend by four years the sales tax exemption for aviation fuel for use in a commercial aircraft. This policy is critical to the competitiveness of the state’s commercial service airports, including Charlotte Douglas International Airport and Concord-Padgett Regional Airport
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% and increase the child deduction by 20% per child beginning in 2024.
Additionally, the franchise tax rate would be reduced from $1.50 per $1,000 to $1.00 per $1,000 over a five-year period beginning in tax year 2025
UNC Charlotte will see continued investment in key programs and operations. UNC System employees will receive salary increases of 7.5%. The university will receive $5 million in 2024 and 2025 for Engineering NC’s Future, a total of $2 million for Esports, and $3.6 million in capital improvements at the Smith building.
Over the next two years, state employees are slated to receive a 7.5% raise, with teachers receiving an increase of over 10% in pay.
The Senate will refine its budget proposals in the coming weeks.
