GOV. EASLEY ANNOUNCES BUDGET THAT BUILDS ON EDUCATION PROGRESS

Raleigh - Gov. Mike Easley today released his recommended budget adjustments for the 2008-09 fiscal year that provides $12.5 billion for education, improves the state’s ability to compete for jobs in the global economy, increases funding for mental health services, expands oversight of prison parolees, and helps communities better plan to deal with droughts. 
 
The budget also better prepares the state to deal with the uncertain economy by expanding the Rainy Day Fund to $848 million. Unlike most states that are facing shortfalls, North Carolina will end the current fiscal year with a $152 million surplus. The budget also includes $396 million in general fund budget cuts, nearly 2 percent of the total operating budget.
 
”As I release the 2008-09 budget proposal, the last one of my administration, I remain just as restless about improving the lives of every North Carolinian,” Easley said. ”While we have made great progress in this state, I am still not satisfied. We must build on our strengths to face the challenges of the global economy and the best way we can do this is to expand education at all levels.”
 
During the past seven years, Easley has worked with the General Assembly to create a seamless education system that provides opportunities for citizens from pre-k through the community college and university systems that is building a skilled workforce for a more diversified state economy. The budget recommends an average 7 percent pay increase for public school teachers, fulfilling the commitment the governor and the legislature made to meet the national average for teacher pay. Currently, the difference between the US and NC average for a teacher with a bachelor’s degree and 15 years experience is 6.9 percent.
 
Enrollment increases for public schools, community colleges and universities are fully funded and additional money has been recommended to implement the recommendations in the university system’s Campus Safety Task Force Report, increase teacher training and recruit and retain the best teachers.
 
Easley said that to meet the state’s commitments, cutting the budget will not be enough. He is recommending a 20-cents-per-pack increase in the cigarette tax. The increase, which would total 55 cents per pack, would keep North Carolina’s cigarette tax among the lowest in the nation, about 40th. ”It takes real revenue to make real progress in education,” Easley said.
 
The budget recommends state employees receive the equivalent of a 4 percent pay increase through a 1.5 percent cost-of-living adjustment and a $1,000 one-time bonus. State employees will also receive 5 days of paid bonus leave. The budget also includes a cost of living adjustment for state and judicial system retirees.
 
More than $76 million has been designated to implement changes in the state mental health system and improve services. The additional costs will be offset by an increase in the taxes on beer, fortified wine and spirits.
 
More than $65 million is set aside for repairs to university and state buildings along with another $97 million for pay-as-you-go finance of new construction projects and borrowing for another 553 million in projects.
 
”This budget makes progress in education, human services, public safety and economic development,” Easley said. ”I look forward to working with the General Assembly to get this budget enacted before June 30.” 
 
NOTE: The budget is available online at: www.osbm.state.nc.us