RALEIGH (May 18, 2022) – As the NC General Assembly reconvenes today with a $6.2 billion state budget surplus, it’s time to make education a priority again in North Carolina.

Officials announced last week that the state will take in $4.24 billion more than projected in the budget year that ends June 30 – a 15% increase. And they revised revenue projections for the budget year that begins July 1 upward by $1.96 billion, or nearly 7%.¹ 

Meanwhile, North Carolina ranks 34th among the states in average teacher pay and 41st in K-12 per-pupil expenditures.² Community college faculty are paid even worse. Turnover among faculty and staff at UNC System campuses has spiked dramatically in the past year.³ 

And inflation continues with an 8.5% increase in prices in the past year, devouring the 2.5% raises state workers received last year.⁴ 

Unfortunately, not all surplus dollars are created the same. Funds that are considered recurring can be used for ongoing expenses such as salaries. But one-time or non-recurring revenue should be used only for one-time expenses such as bonuses or capital projects.

Nevertheless, Gov. Roy Cooper recommended some worthy uses for that $6.2 billion last week:

• An additional 2.5% raise for teachers and state employees on top of the $2.5% raise already budgeted for 2022-23.

• Retention bonuses for teachers and state employees of $2,000 for those who make less than $75,000 a year; $1,500 for those who make more than $75,000; and an additional $1,000 for teachers and school administrators.

• Restoration of additional pay for teachers who earn master’s degrees in their field.

• An additional 2.5% raise for health professionals.

• $526 million to fully fund the third year of a plan to resolve the long-running Leandro lawsuit over school funding, including:
  
  • $42 million to expand NC Pre-K;
    
  • $26 million to increase wages for child-care workers;
    
  • $33 million to expand the teacher pipeline, including $4.7 million to expand the NC Teaching Fellows debt-forgiveness program to any approved educator-preparation program.⁵ 

With legislators returning to Raleigh this week for their so-called “short” session to make budget adjustments, that’s a good start.

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¹ https://www.wral.com/officials-expect-4-2b-more-nc-revenue-this-year-2b-next/20273212/.
² https://www.nea.org/sites/default/files/2022-04/2022%20Rankings%20and%20Estimates%20Report.pdf; https://www.newsobserver.com/news/local/education/article260971512.html.
³ https://www.northcarolina.edu/apps/bog/doc.php?id=66644&code=bog, pp. 11-21; https://www.insidehighered.com/news/2022/04/26/unc-faculty-staff-turnover-spikes-spurs-search-answers.
⁴ https://www.bls.gov/opub/ted/2022/consumer-prices-up-8-5-percent-for-year-ended-march-2022.htm.
⁵ https://www.osbm.nc.gov/media/2569/open.