by CLC Staff

The state budget for fiscal year 2023-24 became law on October 3, 2023 and allocates a total of $29.8 billion across more than 40 state departments and agencies. These organizations are divided into the following major appropriation categories: Education, Health and Human Services, Justice and Public Safety, Agriculture, Natural and Economic Resources, General Government, and Information Technology.

“This budget responds to the stress on our citizens by investing in our state,” remarked Representative Donny Lambeth, Senior Appropriations Chairman, on the House floor during debate on the budget. “Focusing on health care with those who need better access to medical care, focusing on education while expanding academic programs to train more students in hard-to-fill jobs like nursing, teaching, truck drivers, welding, just to name a few, investing in our farmers and agricultural industries that feed us and thousands of other good investments within this budget plan.”

The following are some highlights of where your tax dollars are being spent. Additionally, the budget grows the state’s “Rainy Day Fund” to nearly $5 billion for potential economic downturns and natural disasters.

Salaries and Benefits

• 7.4% raise for teachers
• Increases starting teacher salary by 11% to $41,000
• Increases average teacher pay to $60,671 (the median per capita income in North Carolina is $37,641)
• $400 million for teacher salary supplement assistance in rural, underserved areas
• 7% raise for principals and non-certified school staff
• 9% raise for school bus drivers
• 7% raise for state employees
• 7% raise for UNC system and community college employees
• 11% raise (16.5% with step increases) for State Highway Patrol
• 4% cost-of-living bonus for retired state employees
• $39.6 million for salary increases for hard-to-fill state employee positions

Tax Relief

• Cuts taxes by $1.2 billion for families and businesses over the next two years
• Accelerates reduction in personal income tax rate to 3.99% in 2026
• Authorizes additional income rate reductions to 2.49% (if revenue-targets are met)
• Caps franchise tax paid on the first $1 million
• Eliminates state privilege license tax on professionals

K-12 Education

• Makes all students eligible for private K-12 school tuition assistance
• $709 million for school construction
• $10 million for school health positions, such as counselors and nurses
• $70 million for school safety grants
• $22 million in salary supplements for teachers in advanced roles
• $4 million to expand Advanced Teaching Roles program
• $9 million to cover school lunches for low-income students
• Creates program to incentivize schools to participate in federal free meal program
• Prohibits school districts from penalizing students with school meal debt
• $21.6 million for classroom materials, supplies and equipment
• Requires seventh graders to complete career development plan
• Requires schools to have program for students to graduate high school early
• Expands scholarship opportunities for students who graduate early
• Restricts State Board of Education from withholding funding for charter schools

Community College System

• $400 million to complete the four-year community college capital commitment
• $14.2 million to improve broadband access at all 47 rural colleges
• $8 million to develop career pathways for community college students with intellectual disabilities
• $55 million to support courses that lead to a degree in nursing or health-related fields
• $2.4 million to provide childcare services to parents while they attend college courses
• $25 million to increase financial aid to community college students
• Improves local governance of community colleges

UNC System

• $530 million for UNC system repairs and renovations
• $80 million to expand health-related courses at UNC system schools
• $15 million to build research partnerships with next-generation energy businesses
• $47 million to support engineering programs at UNC system schools
• $47.2 million to support health and medical programs at UNC system schools
• Funds new School of Civic Life and Leadership at UNC-Chapel Hill, emphasizing U.S. history, civics, and free speech
• Expands N.C. Teaching Fellows Program 

Health

• $400 million to expand behavioral mental health programs
• $319 million for the construction of a new UNC Children’s Behavioral Health Hospital
• $70 million for rural health initiatives
• $50 million in incentives for doctors and nurses to serve in rural and underserved areas
• $20 million for grants to support rural telemedicine
• $80 million to support families caring for children with behavioral or special needs
• $12.5 million to the Carolina Pregnancy Care Fellowship to support grants to pregnancy centers
• Funds childcare stabilization grants
• Increases compensation for direct care workers who assist individuals with disabilities
• Increases reimbursement rates paid to Medicaid behavioral health providers
• $40 million for recruitment and retention bonuses to stabilize staffing at healthcare facilities
• $80 million for new mobile crisis teams and facilities
• $19.2 million to combat the opioid crisis
• $22.6 million to mitigate youth electronic cigarette and tobacco use

Agriculture and Natural Resources

• $25 million for farmland preservation 
• $12 million for foodbanks across the state 
• $20 million for maintenance and restoration of streams 
• $250,000 for first annual NC Farmers Appreciation Day 
• $375 million for disaster resiliency and flood mitigation 
• $56 million for parks, trails and land conservation grants

Economic Development and Infrastructure

• $2 billion for more than 200 local water and sewer infrastructure projects
• $1.25 billion for Regional Economic Development Reserve
• $500 million to NCInnovation for research and development projects at N.C. universities
• $25 million to Golden LEAF Foundation for rural economic development
• $107.8 million for Megasites Readiness Program
• $10 million for Selectsites Readiness Program
• $9.2 million for data modernization and IT projects
• $2.6 million to facilitate economic development throughout the state
• $7.6 million for broadband internet administration
• $397 million for workforce development programs

Public Safety

• $3 million for the N.C. State Highway Patrol
• $2 million to replace and update State Crime Lab equipment
• Expands Criminal Justice Fellows program
• Insulates SBI from political interference by making it an independent department
• Funds new SBI positions to investigate organized retail theft, officer involved shootings and internet  crimes against children
• Funds 16 new judges and establishes eight public defender districts with 134 positions
• Funds 15 new Medicaid investigation positions to combat fraud
• $1.9 million for grants to local emergency management offices
• $29 million to provide services and housing for homeless veterans and victims of domestic violence, sexual assault, and human trafficking 
• $15 million to support volunteer fire and rescue/emergency medical services departments
• Extends program providing payments to firefighters with cancer diagnosis

Military and Veterans

• $1.5 million for Veterans Justice Initiative to help prevent mental health emergencies
• $11.4 million for N.C. National Guard to enhance cybersecurity and protect critical infrastructure
• $3 million for grants to County Veterans Offices
• $13.5 million for scholarships for children of wartime veterans
• $1 million to maintain military presence and defense industry across the state
• $6 million to Purple Heart Homes to assist disabled and aging veterans with housing
• $750,000 to Military Missions in Action to support disabled veterans with housing modifications

Transportation

• $1.1 billion for construction projects 
• $700 million for highway maintenance programs
• $300 million to 38 airports for improvement
• $34 million for improving DMV programs 
• Doubles the period drivers licenses are valid from eight to sixteen years
• Requires independent study on modernizing and privatizing DMV

Other Key Provisions

• Prohibits COVID-19 vaccine mandates for state agencies, local governments and public schools and universities
• $2.7 million to fully implement voter ID
• Prohibits State Board of Elections from joining the consortium of election officials, e.g. ERIC
• Prevent local governments from restricting the use or applying fees for plastic bags
• Stops Green New Deal and cap-and-trade energy mandates