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Education-budgetLate last night, lawmakers released a final budget deal brokered between the House and Senate that provides pay raises for teachers and a number of other education funding adjustments.

There’s a lot to process in the mammoth document, so let’s just get started with the basics on education, and I promise you — there will be more to come.

Teacher Pay

Lawmakers say they’ve provided an average 7 percent pay increase for teachers in this budget, but there’s widespread dispute over that figure since longevity pay has been wrapped up into the pay raises.

To see a side-by-side comparison of the old and new teacher pay schedules, click here.

Senator Phil Berger called the teacher pay raise the largest in North Carolina’s history, although the folks at ProgressNC fact-checked that claim and found it to be false.

Teacher Assistants

Lawmakers say TAs are “preserved” this year in the budget, but there are a few catches.

Lottery revenues will pay for a share of the funding for teacher assistants, and a portion of TAs will also be funded with non-recurring funds – meaning there will be another fight to keep them next year.

Also mentioned at Tuesday’s press conference– $65 million that was supposed to pay for TAs was moved back into funding for teacher positions. But local superintendents have the “flexibility” to move that money back over and save more TAs.

*However, that figure is not apparent in the budget’s money report. What we do know, however, is that in the certified 2014-15 budget, TAs were slated to cost $477,433,254 — but this latest budget spends $368.3 million.

Finally, while most state employees will get a $1,000 raise, TAs only get a $500 raise, along with public school custodial workers, cafeteria workers and other non-certified and central office personnel.

Higher Education

While lawmakers said on Tuesday they were able to preserve current funding levels for the university system, what actually is in place is a now slightly increased $76 million dollar cut that was in the original two-year budget passed in July 2013, but not in the most recent budget proposals.

This cut comes on top of years of cuts to the university system that have resulted in thousands of lost jobs and eliminated courses.

In 2011, the state’s universities had to cut $80 million, or 3.4 percent of its overall budget. Five hundred classes were eliminated, 3,000 jobs were cut and another 1,500 vacant jobs were eliminated. In the four years prior to 2011, state funding to the university system was slashed by $1.2 billion. Read More

NC Budget and Tax Center

The 2013 tax plan continues to rear its ugly head. The final budget deal released late last night is yet another reminder that the state cannot afford cost of the tax plan that primarily benefits the wealthy and profitable corporations.  If the state could afford those deep revenue cuts, budget writers would not be relying on more federal dollars and lottery revenues to make their budget balanced nor including another round of harmful budget cuts and policy changes to early childhood education, public schools, higher education, and social programs. But, those are the conditions North Carolinians will be facing over the next year as we enter year six of the official economic recovery.

While the budget delivered on its promise to provide an average 7 percent teacher pay raise, that boost in much-needed pay came at the expense of dollars needed to pay for other state priorities—even within the public education budget for programs that serve at-risk students, for example. And unfortunately, it’s just a snapshot of what we should expect to see in future years. Meanwhile, other states are moving full steam ahead and replacing the most damaging cuts made during the aftermath of the recession.

The cost of North Carolina’s personal income tax cuts will be much higher than previously expected, at least $200 million more each year. Read More

NC Budget and Tax Center

Budget writers announced over the weekend that the Senate and House leadership agreed to a basic framework for a final budget deal. That framework includes a pay raise for teachers averaging roughly 7 percent and further cuts to the Medicaid program that provides health insurance and long-term care to children and adults who are poor, disabled, and elderly. There is no question that other vital programs and services will be cut due to a lack of adequate funding, resulting from lawmakers’ choice to make room for unaffordable tax cuts for the wealthy and profitable businesses in 2013.

While the full details of the final budget deal will not be released until this afternoon at 1:30pm, below are five things we expect to be true in the final budget deal: Read More

NC Budget and Tax Center

North Carolinians are being dealt a bad hand. The deep revenue losses resulting from the 2013 tax plan is creating a reality in which there are too few dollars available to meet the needs of children, families, and communities. Budget writers are facing a self-imposed budget crisis and finding it difficult to agree on just how large the cut to public schools and public health should be to meet its priorities and balance the budget. To be clear, budget writers agree that those core budget areas should be cut compared to the enacted 2015 fiscal year budget but have yet to agree on the size of the cut.

That’s the main reason why North Carolina is more than two weeks into the new fiscal year without a revised state budget.

For weeks budget negotiators in the House and Senate have been shuffling the deck, making proposed cuts in core areas of the budget and moving that money around in order to finance much-needed pay raises. This budget shuffle is further proof the state is facing a revenue problem. Read More

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If you’re trying to get up to speed on this week’s colorful and cantankerous state budget negotiations, here are three quick takeaways:

Budget conferees are expected to meet again today, though an exact time has not been announced. The NC House goes into session at 11:00 a.m., the Senate at 2:00 p.m.