The North Carolina State Budget

North Carolina has a budget! Governor Cooper signed it into law on Thursday, November 18th. This is a bi-partisan, compromise budget that invests over 52.9 billion dollars over the next two years. I am proud of the work I was able to do by being at the table for the final budget discussion.

The budget provides funding for high-speed internet, our universities and community colleges, clean air and drinking water, pay increases for teachers, non-certified workers and state employees, provides bonuses for retirees, and invests in our veterans. The budget also leverages the federal dollar through the American Rescue Plan to ensure we recover stronger and are poised for transformational growth as a state and community.

A few highlights:

Increases teacher pay by 5% over the next two years and provides $2,800 in bonus and an additional 1.7% average increase as part of a low wealth teacher supplement.
Increases pay for non-certified school personnel to $15 per hour.
5% bonus over 2 years for our state retirees
Increases pay by 5% for state employers, university and community college faculty.
Eliminates state income tax on military retirement/pension
Invests over $1 billion for broadband and closing the digital divide
Invests over $6 billion in Infrastructure, including over $800 million in school construction.
Reduces the personal income tax rate from to 3.99% by 2027
Increases standard tax deduction to $25,500 and child tax deduction by $500 per child.
Increases funding to protect our air and water including specific investment to address PFAS and emerging compounds

While we did not see Medicaid expansion in this budget we have laid the groundwork for expansion in 2022.

Locally, this budget represents a historic investment in Cumberland County.

$198+ million for higher education
$64+ million for local government
$27+ million for veterans and the military
$19+ million for our environment and natural resources
$11+ million in the health care area,
$4 million for economic investment in our businesses and people.
$87+ million of capital investment in local projects.

You can view a full detailed list here – Community Investment List

This investment in our community combined with other federal dollars in our community provide us with a transformational opportunity that we can not miss. We need steady leadership across all segments of our community to ensure we stay focused on capitalizing on this historic investment.

State Income Tax Exemption for Retired Military Pay

With the signing of the budget into law, North Carolina provides a full tax exemption for military retirement pensions. If you retired from the military or are previously not covered under the Bailey Act your state income from your military retirement is tax-exempt starting this year.

Senator deViere fought to ensure this benefit for our military and veterans was included in the final legislation that enacted the budget. “It is time we did more than monuments and museums for our military and veterans, and this tax benefit is a bold statement by our state to say we value your service and want you to stay in North Carolina,” said Senator Kirk deViere.

Senator deViere is a veteran himself and is committed to ensuring that the voices of our veterans, military, and military family’s voices are heard in state government. This action by the state not only provides a long-overdue benefit to our veterans but also is an economic development driver for our workforce and entrepreneurship.

Here are the criteria for tax exemption:

Military retirement pay received by a retired member of the Armed Forces of the United States who served at least 20 years in the military or was medically retired from the military.
Payments from the Survivor Benefit Plan to a beneficiary of a retired member of the Armed Forces of the United States who served at least 20 years in the military or was medically retired from the military.
Severance pay received for separation from the military would not be exempt.