The State budget for 2018/19 was released on Monday night. House and Senate spending committees took up the measure this morning and it is expected that votes in the House and Senate will occur on Wednesday and Thursday. Remember that since the budget has been put into a conference report (SB99) it cannot be amended. House and Senate members will have to take an up or down vote on the full package as written. It is probable that a budget technical corrections bill will move through the General Assembly later this session. While it is unclear whether Governor Cooper will sign the budget if it passes, Republicans likely have enough numbers in the General Assembly to override a possible veto.
NCSBA is in the process of analyzing the budget. We will have full details about what is in the budget in our Friday update. For now, here are some brief highlights:
Teacher Salaries
The budget sets a base annual salary of $50,000 for teachers in years 15-24. Then increases the salary to $52,000 from year 25 and on. On average teacher salaries would go up 6.5% under the proposal. The proposal pretty much keeps in place what is already set to go into effect for teacher salaries for 2018/19. The main difference is that the annual salary for teachers at year 25 and up is increased over what the biennium budget had planned.
Principal Salaries
Principals would see their salaries go up 6.9% on average over 2017/18 levels. No change is made to the new principal salary structure but the base salaries on each of the rungs is increased. Below is a comparison of the salary levels from last year and the levels proposed for 2018/19.
2017/18:
Avg. Daily Membership Base Met Growth Exceeded Growth
0-400 $61,751 $67,926 $74,101
401-700 $64,839 $71,322 $77,806
701-1,000 $67,926 $74,719 $81,511
1,001-1,300 $71,014 $78,115 $85,216
1,301+ $74,101 $81,511 $88,921
2018-19:
Avg. Daily Membership Base Met Growth Exceeded Growth
0-400 $66,000 $72,611 $79,212
401-700 $69,311 $76,242 $83,173
701-1,000 $72,611 $79,872 $87,133
1,001-1,300 $75,912 $83,503 $91,094
1,301+ $79,212 $87,133 $95,054
The budget also makes fixes to the principal salary and bonus structure that NCSBA identified. NCSBA worked with Senator Jerry Tillman and others on this issue since November. Working with the State Board of Education representative, most of the changes that NCSBA has talked about are included in the budget. These changes do the following:
- Include the hold harmless to 2016-17 pay.
- Simplifies how principals receive increases and decreases in pay so that there is less volatility, no pay backs, and less of an administrative burden. Principals will receive the increase in the schedule on July 1 based on the 2017-18 ADM and 2014-15, 2015-16, and 2016-17 performance scores. January 1 adjustments will be made based on the 2018-19 ADM and 2015-16, 2016-17 and 2017-18 performance scores. Without this provision adjustments would have to be made twice after scores come out in September and then with ADM in November. Additionally, this eliminates the need for LEAs to recoup pay if overpayments were made.
- Includes a change to the definition of “demotion” so that principals who move from a higher to a lower salary level are not considered “demoted.”’
- Changes the bonus program so that going forward there will only be one bonus. The bonus going forward will be the one for the top 50th percentile. Increases are made at each of the rungs except for the bottom rung. Additionally, a principal can earn double the amount if they are in a D or F school. This eliminates the bonus program that was only for principals that had not met/met in year 1 and then exceeded in year 2.
What is not included in the budget but was included in Senator Tillman’s bill is the three-year hold harmless for principals who are paid on the exceed rung of the salary schedule who move to a low performing school. Thank you for your help locally on communicating with lawmakers and pointing out these concerns.
Other Salaries and Benefits
Money would also be appropriated for a 2% salary increase for noncertified personnel and salary increases for school bus drivers.
Other Provisions
– The budget contains most of the language from HB600, the school leasing bill. This bill would authorize local school boards to enter into arrangements where a third party can build schools and then lease them back to that school board.
– Maintains the $4 million in additional cuts to DPI that were in the biennium budget bill last year.
– Increases the Needs-Based grants for school construction from $75 million to over $117 million.
– Eliminates $18 million in appropriations that were scheduled to go to school technology from the fines and forfeitures fund.
– Allows cities to appropriate money to public schools.
– Directs $25,000 to a charter school for school construction. This is significant because it would set a precedent for charters accessing school capital.
– There is also $28 million in new money for school safety provisions as we noted in our Friday update last week.
Click here to see the budget bill.