GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	2 

HOUSE BILL 1514
Committee Substitute Favorable 7/2/92

Short Title:  State Employee Benefits.	(Public)
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Sponsors:
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Referred to:  
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June 2, 1992

A BILL TO BE ENTITLED
AN ACT TO CLARIFY THE PROVISIONS OF THE STATE BUDGET FOR THE 1991-93 FISCAL BIENNIUM BY ADJUSTING SALARIES AND BENEFITS OF STATE EMPLOYEES AND RETIREES UNDER VARIOUS RETIREMENT SYSTEMS.
The General Assembly of North Carolina enacts:
Section 1.  If House Bill 1340, 1991 Session is ratified, then the sections of that act with the following titles are repealed:
PROVIDE A RAISE TO ALL STATE EMPLOYEES
INTRODUCTION
APPROPRIATIONS (except for subsections (c), (d), and (e))
GOVERNOR'S SALARY INCREASE
COUNCIL OF STATE/SALARY INCREASE
NONELECTED DEPARTMENT HEAD/SALARY INCREASES
LEGISLATORS/SALARY AND EXPENSES INCREASE
GENERAL ASSEMBLY PRINCIPAL CLERKS/SALARY INCREASES
SERGEANT-AT-ARMS AND READING CLERKS/SALARY INCREASES
LEGISLATIVE EMPLOYEES/SALARY INCREASES
JUDICIAL BRANCH OFFICIALS/SALARY INCREASE
CLERKS OF COURT/SALARY INCREASE
ASSISTANT AND DEPUTY CLERKS OF COURT/SALARY INCREASE
MAGISTRATES/SALARY INCREASE
COMMUNITY COLLEGES PERSONNEL/SALARY INCREASES
HIGHER EDUCATION PERSONNEL/SALARY INCREASES
MOST STATE EMPLOYEES/SALARY INCREASES/1992-93
CERTAIN EXECUTIVE BRANCH OFFICIALS/SALARY INCREASES
PUBLIC SCHOOL PERSONNEL/SALARY INCREASES
ALL STATE-SUPPORTED PERSONNEL/SALARY INCREASES
INCREASE RETIREMENT ALLOWANCES

SALARY-RELATED CONTRIBUTIONS/EMPLOYERS
Sec. 1.1.  Section 188(c) of Chapter 689 of the 1991 Session Laws, as rewritten by Section 5 of Chapter 812, Session Laws of 1991, reads as rewritten:
"(c)	Effective July 1, 1992, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 1992-93 fiscal year are (i) ten and eighty-three hundredths percent (10.83%) - Teachers and State Employees; (ii) fifteen and eighty-three hundredths percent (15.83%) - State Law Enforcement Officers; (iii) eight and sixty-six hundredths percent (8.66%) - University Employees' Optional Retirement Program; (iv) twenty-six and three hundredths percent (26.03%) - Consolidated Judicial Retirement System; and (v) thirty-two and thirty hundredths percent (32.30%) - Legislative Retirement System.  Each of the foregoing contribution rates includes two percent (2%) for hospital and medical benefits.  The rate for State Law Enforcement Officers includes five percent (5%) for the Supplemental Retirement Income Plan.  The rates for Teachers and State Employees, State Law Enforcement Officers, and for the University Employees' Optional Retirement Program includes forty-two hundredths percent (0.42%) for the Disability Income Plan."

CURRENT OPERATIONS/GENERAL FUND
Sec. 1.2.  In order to reflect a reduction in the employer contribution rate in Section 1.1 of this act, appropriations from the General Fund of the State as outlined in H.B. 1340, 1991 Session, for the maintenance of the State departments, institutions, and agencies, are adjusted as enumerated for fiscal year ending June 30, 1993, according to the following schedule:

Current Operations-General Fund	 1992-93

General Assembly	$     (5,822) 

Judicial Department	(103,940) 

Department of the Governor
01.	Office of the Governor	(2,621) 
02.	Office of State Budget
and Management	(2,281) 
03.	Office of State Planning	(469)	

Lieutenant Governor's Office	(365) 

Department of Secretary of State	(2,714) 

Department of State Auditor	(5,609) 

Department of State Treasurer	(2,233) 

Department of Public Education
01.	Department of Public Instruction	(21,255) 
02.	Aid to Local School
Administrative Units	(2,394,104) 

Department of Justice	(30,461) 

Department of Administration
01.	Administration	(21,828) 
02.	State Controller	(3,248) 

Department of Agriculture	(28,762) 

Department of Labor	(7,848) 

Department of Insurance	(7,954) 

Department of Environment, Health, and
Natural Resources	(78,736) 

Office of Administrative Hearings	(1,311) 

Administrative Rules Review Commission	(154) 

Department of Human Resources
01.	Alcohol Drug Abuse Treatment Center - 
Black Mountain	(2,631) 
02.	Alcohol Drug Abuse Treatment Center - 
Butner	(2,347) 
03.	Alcohol Drug Abuse Treatment Center - 
Greenville	(2,169) 
04.	N.C. Special Care Center	(918)	
05.	Black Mountain Center	(2,643) 
06.	DHR - Secretary	(15,755) 
07.	Division of Aging	(258)	
08.	Schools for the Deaf and
Hard of Hearing	(13,058) 
09.	Social Services	(5,590) 
10.	Medical Assistance	(52,530) 
12.	Division of Services for the
Blind	(5,139) 
13.	Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services	(6,470) 
14.	Dorothea Dix Hospital	(30,354) 
15.	Broughton Hospital	(29,882) 
16.	Cherry Hospital	(26,291) 
17.	John Umstead Hospital	(26,639) 
18.	Western Carolina Center	(2,397) 
19.	O'Berry Center	(503)	
20.	Murdoch Center	(9,368) 
21.	Caswell Center	(6,505) 
22.	Division of Facility Services	(6,674) 
23.	Division of Vocational
Rehabilitation Services	(6,705) 
24.	Division of Youth Services	(21,201) 

Total Department of
Human Resources	(276,027) 

Department of Correction	(292,751) 

Department of Economic and Community
Development
01.	Economic and Community
Development	(11,363) 

Department of Revenue	(33,692) 

Department of Cultural Resources	(14,362) 

Department of Crime Control
and Public Safety	(13,727) 

University of North Carolina - Board
of Governors
01.	General Administration	(10,361) 
04.	University of North Carolina
at Chapel Hill
a.  Academic Affairs	(90,161) 
b.  Health Affairs	(40,027) 
c.  Area Health Education
    Centers	(18,468) 
05.	North Carolina State University
at Raleigh
a.  Academic Affairs	(93,750) 
b.  Agricultural Research
    Service	(27,639) 
c.  Agricultural Extension
    Service	(19,723) 
06.	University of North Carolina at
Greensboro	(34,465) 
07.	University of North Carolina at
Charlotte	(31,061) 
08.	University of North Carolina at
Asheville	(14,166) 
09.	University of North Carolina at
Wilmington	(26,804) 
10.	East Carolina University
a.  Academic Affairs	(40,505) 
b.  Division of Health Affairs	(5,822) 
11.	North Carolina Agricultural and
Technical State University	(25,730) 
12.	Western Carolina University	(22,249) 
13.	Appalachian State University	(30,381) 
14.	Pembroke State University	(9,821) 
15.	Winston-Salem State University	(11,775) 
16.	Elizabeth City State
University	(9,942) 
17.	Fayetteville State University	(13,346) 
18.	North Carolina Central
University	(21,332) 
19.	North Carolina School of the
Arts	(5,278) 
20.	North Carolina School of
Science and Mathematics	(4,085) 
21.	UNC Hospitals at Chapel Hill	(17,730) 

Total University of North
Carolina - Board of Governors	(624,621) 

Department of Community
Colleges	(303,010) 

State Board of Elections	(195) 

GRAND TOTAL CURRENT OPERATIONS –
GENERAL FUND	($4,291,463) 

AVAILABILITY
Sec. 1.3.  (a)	The sum of five million dollars ($5,000,000) of the estimated June 30, 1992, credit balance shall be used to support the three million seven hundred sixty-five thousand five hundred ninety-one dollars ($3,765,591) appropriated to the Department of Correction in House Bill 1340, 1991 Session, for supporting the underbudgeted line-item requirements for 1991-92, and to support one million two hundred fifty thousand dollars ($1,250,000) of the funds appropriated to the State Controller in House Bill 1340, 1991 Session, for the purpose of continuing the  accounting system changeover.  This action provides five million dollars ($5,000,000) in recurring availability to support the General Fund appropriations in this act.
(b)	In addition to the payments from the Department of Transportation's Equipment Fund to the Highway Fund in Section 66 of Chapter 689 of the 1991 Session Laws, as it may have been amended by House Bill 1340, 1991 Session, an additional one million one thousand dollars ($1,001,000) is transferred.

PROVIDE A RAISE TO ALL STATE EMPLOYEES

INTRODUCTION
Sec. 2.  Since the 1965-66 fiscal year, only two of the pay raises granted by the General Assembly to State employees have included a lump-sum amount for each State employee.  By consistently giving State employees percentage pay increases instead of lump-sum increases, the General Assembly has created an enormous discrepancy between the upper and lower end of the State employee salary schedule.  State employees at the lower end of the salary schedule are experiencing great financial difficulties because of the condition of the economy and the cost-of-living.  A lump-sum salary increase will, on a percentage basis, benefit most the employees at the lower end of the salary schedule and will slightly reduce the percentage gap between the upper and lower ends of the salary schedule.

APPROPRIATIONS
Sec. 3.  (a)	There is appropriated from the General Fund the sum of nine million two hundred ninety-four thousand four hundred eighty-four dollars ($9,294,484) to a Reserve for Salary Increases for the 1992-93 fiscal year to provide raises for State employees and school personnel other than teachers as provided in this act in an amount equivalent to three-tenths per cent (.3%) of payroll.
(b)	There is appropriated from the Highway Fund the sum of one million one thousand dollars ($1,001,000) to a Reserve for Salary Increases for the 1992-93 fiscal year to provide raises for State employees as provided in this act in an amount equivalent to three-tenths per cent (.3%) of payroll.

GOVERNOR'S SALARY INCREASE
Sec. 4.  (a)	G.S. 147-11(a) reads as rewritten:
"(a)	The salary of the Governor shall be one hundred twenty-three thousand nine hundred dollars ($123,900) annually, payable monthly."
(b)	Effective January 1, 1993, G.S. 147-11(a) as rewritten by subsection (a) of this section reads as rewritten:
"(a)	The salary of the Governor shall be ninety-two thousand sixteen dollars ($92,016) annually, payable monthly."

COUNCIL OF STATE/SALARY INCREASE
Sec. 5.  The annual salaries for members of the Council of State, payable monthly, for the 1992-93 fiscal year are:
Council of State	1992-93
Lieutenant Governor	$75,852
Attorney General	 75,852
Secretary of State	 75,852
State Treasurer	 75,852
State Auditor 	75,852
Superintendent of Public Instruction	 75,852
Agriculture Commissioner	 75,852
Insurance Commissioner	 75,852
Labor Commissioner	 75,852.

NONELECTED DEPARTMENT HEAD/SALARY INCREASES
Sec. 6.  In accordance with G.S. 143B-9, the maximum annual salaries, payable monthly, for the nonelected heads of the principal State departments for the 1992-93 fiscal year are:
Nonelected Department Heads	1992-93
Secretary of Administration	$75,852
Secretary of Correction	 75,852
Secretary of Crime Control and
Public Safety	 75,852
Secretary of Cultural Resources	 75,852
Secretary of Economic and
Community Development	 75,852
Secretary of Environment, Health,
and Natural Resources	 75,852
Secretary of Human Resources	 75,852
Secretary of Revenue	 75,852
Secretary of Transportation	 75,852.

LEGISLATORS/SALARY AND EXPENSES INCREASE
Sec. 7.  Effective upon convening of the 1993 Regular Session of the General Assembly, G.S. 120-3 reads as rewritten:
"§ 120-3.  Pay of members and officers of the General Assembly.
(a)	The Speaker of the House shall be paid an annual salary of thirty-five thousand seven hundred dollars ($35,700), payable monthly, and an expense allowance of one thousand three hundred twenty dollars ($1,320) per month.  The President Pro Tempore of the Senate shall be paid an annual salary of thirty-five thousand seven hundred dollars ($35,700), payable monthly, and an expense allowance of one thousand three hundred twenty dollars ($1,320) per month.  The Speaker Pro Tempore of the House shall be paid an annual salary of twenty thousand three hundred seventy-six dollars ($20,376), payable monthly, and an expense allowance of seven hundred eighty dollars ($780.00) per month; and the Deputy President Pro Tempore of the Senate shall be paid an annual salary of twenty thousand three hundred seventy-six dollars ($20,376), payable monthly, and an expense allowance of seven hundred eighty dollars ($780.00) per month.  The majority and minority leaders in the House and the majority and minority leaders in the Senate shall be paid an annual salary of fifteen thousand nine hundred ninety-six dollars ($15,996), payable monthly, and an expense allowance of six hundred twenty-two dollars ($622.00) per month.
(b)	Every other member of the General Assembly shall receive increases in annual salary only to the extent of and in the amounts equal to the average increases received by employees of the State, effective upon convening of the next Regular Session of the General Assembly after enactment of these increased amounts.  Accordingly, upon convening of the 1993 Regular Session of the General Assembly, every other member of the General Assembly shall be paid an annual salary of thirteen thousand one hundred four dollars ($13,104), payable monthly, and an expense allowance of five hundred twenty-two dollars ($522.00) per month.
(c)	The salary and expense allowances provided in this section are in addition to any per diem compensation and any subsistence and travel allowance authorized by any other law with respect to any regular or extra session of the General Assembly, and service on any State board, agency, commission, standing committee and study commission."

GENERAL ASSEMBLY PRINCIPAL CLERKS/SALARY INCREASES
Sec. 8.  G.S. 120-37(c) reads as rewritten:
"(c)	The principal clerks shall be full-time officers.  Each principal clerk shall be entitled to other benefits available to permanent legislative employees and shall be paid an annual salary of forty-six thousand seven hundred sixty-four dollars ($46,764), payable monthly.  The Legislative Services Commission shall review the salary of the principal clerks prior to submission of the proposed operating budget of the General Assembly to the Governor and Advisory Budget Commission and shall make appropriate recommendations for changes in those salaries.  Any changes enacted by the General Assembly shall be by amendment to this paragraph."

SERGEANT-AT-ARMS AND READING CLERKS/SALARY INCREASES
Sec. 9.  G.S. 120-37(b) reads as rewritten:
"(b)	The sergeant-at-arms and the reading clerk in each house shall be paid a salary of two hundred twenty-one dollars ($221.00) per week, plus subsistence at the same daily rate provided for members of the General Assembly, plus mileage at the rate provided for members of the General Assembly for one round trip only from their homes to Raleigh and return.  The sergeants-at-arms shall serve during sessions of the General Assembly and at such time prior to the convening of, and subsequent to adjournment or recess of, sessions as may be authorized by the Legislative Services Commission.  The reading clerks shall serve during sessions only."

LEGISLATIVE EMPLOYEES/SALARY INCREASES
Sec. 10.  The Legislative Administrative Officer may increase the salaries of nonelected employees of the General Assembly in effect for fiscal year 1991-92 by fifty dollars ($50.00) per month.  Nothing in this act limits any of the provisions of G.S. 120-32.

JUDICIAL BRANCH OFFICIALS/SALARY INCREASE
Sec. 11.  (a)	The annual salaries, payable monthly, for specified judicial branch officials for fiscal year 1992-93 are:
Judicial Branch Officials	1992-93

Chief Justice, Supreme Court	$92,016
Associate Justice, Supreme Court	 90,132
Chief Judge, Court of Appeals	 87,264
Judge, Court of Appeals	 85,368
Judge, Senior Regular Resident
Superior Court	 78,336
Judge, Superior Court	 75,852
Chief Judge, District Court	 66,996
Judge, District Court	 64,464
District Attorney	 70,632
Assistant District Attorney - an
average of  	 45,900
Administrative Officer of the Courts	 78,336
Assistant Administrative Officer
of the Courts	 63,960
Public Defender	 70,632
Assistant Public Defender - an
average of   	 45,900.
If an acting senior regular resident superior court judge is appointed under the provisions of G.S. 7A-41, he shall receive the salary for Judge, Senior Regular Resident, Superior Court, until his temporary appointment is vacated, and the judge he replaces shall receive the salary indicated for Judge, Superior Court.
The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district do not exceed forty-five thousand nine hundred dollars ($45,900), and the minimum salary of any assistant district attorney or assistant public defender is at least twenty-three thousand four hundred seventy-two dollars ($23,472) effective July 1, 1992.
(b)	The salaries in effect for fiscal year 1991-92 for permanent, full-time employees of the Judicial Department, except for those whose salaries are itemized in this act, shall be increased by fifty dollars ($50.00) per month commencing July 1, 1992.
(c)	The salaries in effect for fiscal year 1991-92 for all permanent, part-time employees of the Judicial Department shall be increased on and after July 1, 1992, by pro rata amounts of the fifty dollars ($50.00) per month.

CLERKS OF SUPERIOR COURT SALARY DETERMINATION/INCREASE
Sec. 12.  G.S. 7A-101 reads as rewritten:
"§ 7A-101. Compensation.
(a)	The clerk of superior court is a full-time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the population of the county as determined in subsection (a1) of this section, according to the following schedule:
Population	    Annual Salary
        	 Less than 100,000 $47,520
100,000 to 199,999			53,628
200,000 and above			61,104.

When a county changes from one population group to another, the salary of the clerk shall be changed, on July 1 of the fiscal year for which the change is reported, to the salary appropriate for the new population group, except that the salary of an incumbent clerk shall not be decreased by any change in population group during his continuance in office.
(a1)	For purposes of subsection (a) of this section, the population of a county for any fiscal year shall be the population for the beginning of that fiscal year as reported by the Office of State Planning to the Administrative Office of the Courts prior to the beginning of that fiscal year.
(b)	The clerk shall receive no fees or commission by virtue of his office. The salary set forth in this section is the clerk's sole official compensation, but if, on June 30, 1975, the salary of a particular clerk, by reason of previous but no longer authorized merit increments, is higher than that set forth in the table, that higher salary shall not be reduced during his continuance in office.
(c)	In lieu of merit and other increment raises paid to regular State employees, a clerk of superior court shall receive as longevity pay an amount equal to four and eight-tenths percent (4.8%) of the annual salary set forth in the Budget Appropriation Act payable monthly after five years of service, nine and six-tenths percent (9.6%) after 10 years of service, fourteen and four-tenths percent (14.4%) after 15 years of service, and nineteen and two-tenths percent (19.2%) after 20 years of service. Service shall mean service in the elective position of clerk of superior court, as an assistant clerk of court and as a supervisor of clerks of superior court with the Administrative Office of the Courts and shall not include service as a deputy or acting clerk. Service shall also mean service as a justice or judge of the General Court of Justice or as a district attorney."

ASSISTANT AND DEPUTY CLERKS OF COURT/SALARY INCREASE
Sec. 13.  G.S. 7A-102(c) reads as rewritten:
"(c)	Notwithstanding the provisions of subsection (a), the Administrative Officer of the Courts shall establish an incremental salary plan for assistant clerks and for deputy clerks based on a series of salary steps corresponding to the steps contained in the Salary Plan for State Employees adopted by the Office of State Personnel, subject to a minimum and a maximum annual salary as set forth below. On and after July 1, 1985, each assistant clerk and each deputy clerk shall be eligible for an annual step increase in his salary plan based on satisfactory job performance as determined by each clerk. Notwithstanding the foregoing, if an assistant or deputy clerk's years of service in the office of superior court clerk would warrant an annual salary greater than the salary first established under this section, that assistant or deputy clerk shall be eligible on and after July 1, 1984, for an annual step increase in his salary plan. Furthermore, on and after July 1, 1985, that assistant or deputy clerk shall be eligible for an increase of two steps in his salary plan, and shall remain eligible for a two-step increase each year as recommended by each clerk until that assistant or deputy clerk's annual salary corresponds to his number of years of service.  Any person covered by this subsection who would not receive a step increase in fiscal year 1992-93 because that person is at the top of the salary range as it existed for fiscal year 1990-91 shall receive a salary increase to the maximum annual salary provided for fiscal year 1992-93 by subsection (c1) of this section.
(c1)	A full-time assistant clerk or a full-time deputy clerk shall be paid an annual salary subject to the following minimum and maximum rates:
Assistant Clerks	Annual Salary
	Minimum  		$20,712
Maximum			35,340

Deputy Clerks	Annual Salary
Minimum			$16,236
Maximum			27,240."

MAGISTRATES/SALARY INCREASE
Sec. 14.  G.S. 7A-171.1(a)(1) reads as rewritten:
"(1)	A full-time magistrate, so designated by the Administrative Officer of the Courts, shall be paid the annual salary indicated in the table below according to the number of years he has served as a magistrate. The salary steps shall take effect on the anniversary of the date the magistrate was originally appointed:

Table of Salaries of Full-Time Magistrates

	Number of Prior Years of Service	Annual Salary
		93
	Less than 1			$17,136
	1 or more but less than 3			18,012
	3 or more but less than 5			19,776
	5 or more but less than 7			21,720
	7 or more but less than 9			23,892
	9 or more but less than 11			26,256
	11 or more			28,836.

	   A 'Full-time magistrate' is a magistrate who is assigned to work an average of not less than 40 hours a week during his term of office.
	   Notwithstanding any other provision of this subdivision, a full-time magistrate, who was serving as a magistrate on December 31, 1978, and who was receiving an annual salary in excess of that which would ordinarily be allowed under the provisions of this subdivision, shall not have the salary, which he was receiving reduced during any subsequent term as a full-time magistrate. That magistrate's salary shall be fixed at the salary level from the table above which is nearest and higher than the latest annual salary he was receiving on December 31, 1978, and, thereafter, shall advance in accordance with the schedule in the table above."

COMMUNITY COLLEGES PERSONNEL/SALARY INCREASES
Sec. 15.  The Director of the Budget may transfer from the Reserve for Salary Increases provided in Section 3 of this act and Section 3 of House Bill 1340, 1991 Session, for fiscal year 1992-93 funds necessary to provide a salary increase of fifty dollars ($50.00) per month, including funds for the employer's retirement and social security contributions, commencing July 1, 1992, for all permanent full-time community college institutional personnel supported by State funds.  All permanent part-time community college institutional personnel supported by State funds shall receive pro rata amounts of the fifty dollars ($50.00) per month.  These funds may not be used for any purpose other than for the salary increases and necessary employer contributions provided by this section.

HIGHER EDUCATION PERSONNEL/SALARY INCREASES
Sec. 16.  The Director of the Budget may transfer from the Reserve for Salary Increases provided in Section 3 of this act and Section 3 of House Bill 1340, 1991 Session, for fiscal year 1992-93 funds necessary to provide a salary increase of fifty dollars ($50.00) per month, including funds for the employer's retirement and social security contributions commencing July 1, 1992, for each full-time employee of The University of North Carolina, as well as each full-time employee of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act; provided that the Board of Governors of The University of North Carolina may allocate the funds it receives for the salary increment for its employees in positions exempt from the State Personnel Act according to rules adopted by the Board of Governors.  All part-time employees of The University of North Carolina, as well as all part-time employees of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act shall receive a pro rata amount of the fifty dollars ($50.00) per month; provided that the Board of Governors of The University of North Carolina may allocate the funds it receives for the salary increment for its employees in positions exempt from the State Personnel Act according to rules adopted by the Board of Governors.

MOST STATE EMPLOYEES/SALARY INCREASES/1992-93
Sec. 17.  (a)	The salaries in effect for fiscal year 1991-92 for all permanent full-time State employees whose salaries are set in accordance with the State Personnel Act and who are paid from the General Fund or the Highway Fund shall be increased, on and after July 1, 1992, unless otherwise provided by this act, by fifty dollars ($50.00) per month.
(b)	Except as otherwise provided in this act, the fiscal year 1991-92 salaries for permanent full-time State officials and persons in exempt positions that are recommended by the Governor or the Governor and the Advisory Budget Commission and set by the General Assembly shall be increased by fifty dollars ($50.00) per month, commencing July 1, 1992.
(c)	The salaries in effect for fiscal year 1991-92 for all permanent part-time State employees shall be increased on and after July 1, 1992, by pro rata amounts of the fifty dollars ($50.00) per month salary increase provided for permanent full-time employees covered under subsection (a) of this section.
(d)	The Director of the Budget may allocate out of special operating funds or from other sources of the employing agency, except tax revenues, sufficient funds to allow a salary increase, on and after July 1, 1992, in accordance with subsections (a), (b), or (c) of this section, including funds for the employer's retirement and social security contributions, for the permanent full-time and part-time employees of the agency, provided the employing agency elects to make available the necessary funds.
(e)  Within regular Executive Budget Act procedures as limited by this act, all State agencies and departments may increase on an equitable basis the rate of pay of temporary and permanent hourly State employees, subject to availability of funds in the particular agency or department, by pro rata amounts of the fifty dollars ($50.00) per month salary increase provided for permanent full-time employees covered by the provisions of subsection (a) of this section commencing July 1, 1992.
(f)  The provisions of this section do not apply to employees whose salaries are determined in accordance with G.S. 20-187.3(a), except for those employees who would not receive a salary increment for the 1992-93 fiscal year under G.S. 20-187.3(a) because they are at the top of their salary range.

CERTAIN EXECUTIVE BRANCH OFFICIALS/SALARY INCREASES
Sec. 18.  (a)	The annual salaries, payable monthly, for the 1992-93 fiscal year for the following executive branch officials are:
Executive Branch Officials	Annual Salary
1992-93
Chairman, Alcoholic Beverage Control
Commission	$73,008
State Controller	118,020
Commissioner of Motor Vehicles	 73,008
Commissioner of Banks	 73,008
Chairman, Employment Security
Commission	 73,008
State Personnel Director	 75,852
Chairman, Parole Commission	 66,672
Members of the Parole Commission	 61,560
Chairman, Industrial Commission	 65,604
Members of the Industrial Commission	 64,008
Executive Director, Agency for Public
Telecommunications	 61,560
General Manager, Ports Railway
Commission	 55,596
Director, Museum of Art	 74,808
Executive Director, Wildlife Resources
Commission	 63,024
Executive Director, North Carolina
Housing Finance Agency	 90,336
Executive Director, North Carolina
Agricultural Finance Authority	 71,064
Director, Office of Administrative 
Hearings	 64,464.
(b) Any person carrying on the functions of a position listed in subsection (a) of this section shall be paid only the salary set out in that subsection, and the mere classification of the position to be some other position does not allow the salary of that position to be set in some other manner.

PUBLIC SCHOOL PERSONNEL/SALARY INCREASES
Sec. 19.  (a)	Superintendents, Assistant Superintendents, Associate Superintendents, Supervisors, Directors, Coordinators, Evaluators, Program Administrators, Principals, and Assistant Principals.  The Director of the Budget may transfer from the Reserve for Salary Increases provided in Section 3 of this act and Section 3 of House Bill 1340, 1991 Session, for fiscal year 1992-93 funds necessary to provide a salary increase of fifty dollars ($50.00) per month, including funds for the employer's retirement and social security contributions, commencing July 1, 1992, for all superintendents, assistant superintendents, associate superintendents, supervisors, directors, coordinators, evaluators, program administrators, principals, and assistant principals whose salaries are supported from the State's General Fund.  These funds may not be used for any purpose other than for the salary increase and necessary employer contributions provided by this subsection.
(b)	Noncertified Employees.  The Director of the Budget may transfer from the Reserve for Salary Increases provided in Section 3 of this act and Section 3 of House Bill 1340, 1991 Session, for fiscal year 1992-93 funds necessary to provide a salary increase of fifty dollars ($50.00) per month, including funds for the employer's retirement and social security contributions, commencing July 1, 1992, for all noncertified public school employees, except school bus drivers, whose salaries are supported from the State's General Fund.  These funds may not be used for any purpose other than for the salary increases and necessary employer contributions provided by this subsection.
(c)	Bus Drivers.  The fiscal year 1991-92 pay rates adopted by local boards of education for school bus drivers shall be increased by at least two and thirty-hundredths percent (2.30%), on and after July 1, 1992, to the extent that such rates of pay are supported by the allocation of State funds from the State Board of Education.  Local boards of education shall increase the rates of pay for all school bus drivers who were employed during fiscal year 1991-92 and who continue their employment for fiscal year 1992-93 by at least two and thirty-hundredths percent (2.30%), on and after July 1, 1992.  The Director of the Budget may transfer from the salary increase reserve fund created in Section 3 of this act and Section 3 of House Bill 1340, 1991 Session, for fiscal year 1992-93 funds necessary to provide the salary increases for school bus drivers whose salaries are supported from the State's General Fund in accordance with the provisions of this subsection.

ALL STATE-SUPPORTED PERSONNEL/SALARY INCREASES
Sec. 20.  (a)	Salaries for positions that are funded partially from the General Fund or Highway Fund and partially from sources other than the General Fund or Highway Fund shall be increased from the General Fund or Highway Fund appropriation only to the extent of the proportionate part of the salaries paid from the General Fund or Highway Fund.
(b)	The granting of the salary increases under this act does not affect the status of eligibility for salary increments for which employees may be eligible unless otherwise required by this act.
(c)	The salary increases provided in this Part to be effective July 1, 1992, do not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, whose last workday is prior to July 1, 1992, or to employees involved in written disciplinary procedures.
Payroll checks issued to employees after July 1, 1992, which represent payment for services provided prior to July 1, 1992, shall not be eligible for salary increases provided for in this act.  This subsection shall apply to all employees, subject to or exempt from the State Personnel Act, paid from State funds, including public schools, community colleges, and The University of North Carolina.
(d)	Notwithstanding the provisions of Section 19.1 of Chapter 1137 of the 1979 Session Laws as amended by Chapter 1053 of the 1981 Session Laws, G.S. 115C-12(9)a., 115C-12(16), 126-7, or any other provision of law other than G.S. 20-187.3(a) and G.S. 7A-102(c), no employee or officer of the public school system shall receive an automatic increment, and no State employee or officer shall receive a merit increment, during the 1992-93 fiscal year, except as otherwise permitted by this act.
(e)  The Director of the Budget shall transfer from the Reserve for Salary Increases provided in Section 3 of this act and Section 3 of House Bill 1340, 1991 Session, for fiscal year 1992-93 all funds necessary for the salary increases provided by this act, including funds for the employer's retirement and social security contributions.
(f)  Nothing in this act authorizes the transfer of funds from the General Fund to the Highway Fund for salary increases.

INCREASE RETIREMENT ALLOWANCES
Sec. 21.  (a)	G.S. 128-27 is amended by adding a new subsection to read:
"( kk)	From and after July 1, 1992, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1991, shall be increased by one and eight-tenths percent (1.8%) of the allowance payable on July 1, 1991, in accordance with G.S. 128-27(k).  Furthermore, from and after July 1, 1992, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1991, but before June 30, 1992, shall be increased by a prorated amount of one and eight-tenths percent (1.8%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1991, and June 30, 1992."
(b)	G.S. 135-5 is amended by adding a new subsection to read:
"( uu)	From and after July 1, 1992, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1991, shall be increased by one and eight-tenths percent (1.8%) of the allowance payable on July 1, 1991, in accordance with G.S. 135-5(o).  Furthermore, from and after July 1, 1992, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1991, but before June 30, 1992, shall be increased by a prorated amount of one and eight-tenths percent (1.8%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1991, and June 30, 1992."
(c)	G.S. 135-65 is amended by adding a new subsection to read:
"( m)	From and after July 1, 1992, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1991, shall be increased by one and eight-tenths percent (1.8%) of the allowance payable on July 1, 1991.  Furthermore, from and after July 1, 1992, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1991, but before June 30, 1992, shall be increased by a prorated amount of one and eight-tenths percent (1.8%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1991, and June 30, 1992."
(d)	G.S. 120-4.22A is amended by adding a new subsection to read:
	"( g)  In accordance with subsection (a) of this section, from and after July 1, 1992, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before January 1, 1992, shall be increased by one and eight-tenths percent (1.8%) of the allowance payable on July 1, 1992.  Furthermore, from and after July 1, 1992, the retirement allowance to or on account of beneficiaries whose retirement commenced after January 1, 1992, but before June 30, 1992, shall be increased by a prorated amount of one and eight-tenths percent (1.8%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between January 1, 1992, and June 30, 1992."
Sec. 22.  This act becomes effective July 1, 1992.