RALEIGH (Sept. 16, 2015) – Even with conservative revenue targets, Republican legislative leaders say their budget compromise for 2015-17 boosts education spending by more than half a billion dollars.

The $21.7 billion budget would increase total education spending by $531 million, with a $410 million increase for public schools, an additional $21 million for community colleges and a $100 million increase for universities. Starting pay for public school teachers would rise to $35,000, and $10 million is allotted to increase pay for community college faculty.

Most of the $100 million university increase is accounted for by $49 million to accommodate 3,345 additional students, $27 million for staff and faculty bonuses, $9 million for veterans’ tuition, $8 million to stabilize the Brody School of Medicine at East Carolina University, and $3 million for Elizabeth City State University. And even in the face of a $400 million state surplus, chancellors will be asked to find $18 million in additional budget cuts.

The investments are decidedly more modest than they would have been without tax cuts that budget negotiators agreed to adopt.

The cuts would reduce income tax revenue by $117 million this year and $437 million next year. They would reduce corporate income taxes by $8 million this year and $23 million next.

Meanwhile, university faculty have seen one insignificant raise in seven years.

The state House’s version of the budget attempted to address that by making no reductions in income-tax rates and awarding all state employees a 2% raise.

But instead of a raise, the final budget gives state employees a $750 bonus. A $750 bonus for the people who teach our children – from kindergarten through graduate school – amounts to a cup of coffee a day and doesn’t add to the base salary for an educator’s future compensation.

Sen. Josh Stein, D-Wake, said the dollars devoted to tax cuts – which amount to almost $4 billion over five years – should have gone to schools, universities and better pay for teachers.

“No wonder we are losing star faculty to other states,” Stein said. “We had a budget surplus this year. When are we going to make up for some of the ground we lost in the recession? Why aren’t we doing it now?”

The zeal for cutting taxes is preventing the dramatic investments public education needs in North Carolina. The weakness in faculty compensation is affecting our ability to attract world-class talent and placing our higher education system at risk.

Leaders from the state House did make sure the tax reductions depend on approval of a bond package that would benefit public colleges and universities.

The House already passed a proposal to put $2.9 billion in bonds – including $300 million for community colleges and $900 million for university projects – on the ballot next year. House negotiators insisted on a provision in the budget that says the tax cuts will not take effect unless the Senate passes the bond bill and a bill that addresses economic incentives this year.

Senate President Pro Tem Phil Berger said the Senate will do just that.

“We’re going to pass a substantial bond package that will address some of the infrastructure problems that have been nagging and will continue to nag at this state for some time,” Berger said.

Stay tuned.

MORE BUDGET DETAILS:

Conference Committee Report on 2015-17 Budget – Community Colleges begin on Page F6, Universities on Page F9: http://www.ncleg.net/sessions/2015/budget/2015/Conference_Committee_Report_2015-09-14.pdf

Budget Bill: http://www.ncleg.net/Sessions/2015/budget/2015/H97-PCCS30420-LRxfr-6.pdf