September 2021 • Vol. 39, Issue 6
THE
REPORTER
State Employees Association of North Carolina
House budget contains pay raises, bonus for retirees The N.C. House of Representatives passed its budget proposal on Aug. 12 that improved on the Senate’s plan, but still fell short of addressing all the needs of state employees and retirees. The House budget includes raises and bonuses for state employees (see below) as well as a 2% bonus for retirees in both years. It also fully funds the retirement system and the State Health Plan. SEANC was successful in lobbying House budget writers to amend the budget to fund a 3% raise for EHRA non-faculty employees making less than $95,000 per year. These employees were left out of the original proposal
completely. We will be working with members of the conference committee to ensure these employees receive at least the 5% raise over two years as other state employees. The budget dance is not over. Conferees from the Senate and House will now meet to hash out the differences between their two proposals. That compromise budget will then be sent to the governor for his signature, a process that is expected to last into September. A major issue of disagreement between the House and Senate budgets is the reorganization of the Department of Corrections into its own cabinet-level
agency. This is a critical change needed to ensure the safety of correctional employees. The Senate budget rightly included the provision to separate corrections from the Department of Public Safety, but the House did not. SEANC has had conversations with both sides about the importance of this change. SEANC's lobbyists worked with Democrats to offer an amendment to turn the one-time 2% bonus in the House budget into a true recurring 2% COLA, but the amendment was ruled out of order. We will continue to press for a true COLA throughout this process.
N.C. House Proposal • All state employees and local education employees get $500. • All state employees and local employees who worked continuously from March 2020 to Oct. 2021 earning less than $75,000 annually or worked as school principal or in law enforcement, adult corrections and juvenile justice, or 24-hour DHHS facility receive an additional $1,000. • All state employees and local employees who worked continuously from March 2020 to Oct. 2021 earning less than $40,000 annually or worked as school principal or in law enforcement, adult corrections and juvenile justice, or 24-hour DHHS facility receive an additional $500. • Implementation of a correctional pay plan based on experience (an average of 7% increase).
• Community college non-faculty employees 4% (2% each year) and a lift to $13 minimum wage, to be increased to $15 minimum wage in year two. Faculty receives a 3.5% each year. • $13/hour minimum wage for non-certified public school and state-funded community college employees; $15/hour in year two. • Retirees receive 2% bonus each year of the biennium (4% over two years). • 5% pay raises over two years for most state employees and UNC, Community College SHRA and EHRA faculty. 3% pay raise for EHRA non-faculty making less than $95,000.
N.C. Senate Proposal • 3% pay raises over two years for most state employees, teachers, UNC, and Community College staff. • 7% average pay increase for corrections officers and a new salary schedule. • Employees earning less than $75,000 annually and all law enforcement, correctional officers and staff, and employees at 24-hour facilities receive a $1,500 bonus.
• Employees earning more than $75,000 annually receive a $1,000 bonus. • $13/hour minimum wage for non-certified public school and Comm. College employees. • No cost-of-living adjustment (COLA) or bonus for retirees. • Separates Adult Corrections from the Department of Public Safety and into its own cabinet-level agency.
Gov. Cooper’s Proposal • Most state employees receive 5% pay raise over two years and a $1,000 bonus in each of the next two years; UNC, Community College, and non-certified school personnel receive a 7.5% pay raise and $4,000 bonus over two years. • Minimum $15 wage for non-certified school personnel. • Retirees receive a 2% COLA and a 2% bonus in each of the next two years.