GENERAL ASSEMBLY OF NORTH CAROLINA

SECOND EXTRA SESSION 1996

H	1 

HOUSE BILL 53

Short Title:  Budget/Salary and Education Funds.	(Public)

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Sponsors: Representatives Holmes, Creech, Esposito; Allred, Justus, Morgan, Rayfield, Sharpe, and Watson.

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Referred to:  Rules.

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July 10, 1996

A BILL TO BE ENTITLED
AN ACT TO AMEND THE BUDGET AND TO APPROPRIATE FUNDS FOR PUBLIC EDUCATION AND FOR SALARY INCREASES FOR TEACHERS AND STATE EMPLOYEES.
The General Assembly of North Carolina enacts:

PART 1. INTRODUCTION AND TITLE OF ACT

INTRODUCTION
Section 1.  The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget.  Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the Executive Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.

TITLE OF ACT
Sec. 1.1.  This act shall be known as the Current Operations Appropriations Act of 1996.

PART 2.  GENERAL FUND APPROPRIATIONS

CURRENT OPERATIONS/GENERAL FUND
Sec. 2.1.  Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated are made for the biennium ending June 30, 1997, according to the schedule that follows.  Amounts set out in brackets are reductions from General Fund appropriations for the 1996-97 fiscal year.

Current Operations - General Fund	1996-97
Department of Public Education
01.	Additional Funds for Average Daily
Membership	$54,051,018
02.	Adjust Average Salary for Certified
Personnel	(21,312,465)
03.	Reduce Class size in Grade 2	18,442,095
Funds to reduce class size in grade 2
from the current allocation ratio of
1:26 to 1:23.
04.	School Technology Funds
Additional funds for school 
technology to be distributed on average 
daily membership of school districts.
Recurring	10,000,000
Nonrecurring	10,000,000
TOTAL Department of Public Education	$71,180,648

Reserve for Compensation Increase
Recurring	$238,000,000
Nonrecurring	3,000,000

GRAND TOTAL CURRENT OPERATIONS-GENERAL FUND	$312,180,648

PART 3.  HIGHWAY FUND APPROPRIATIONS

Sec. 3.1. Appropriations from the Highway Fund of the State for the  purposes enumerated, are made for the biennium ending June 30, 1997, according to the following schedule.

Current Operations/Highway Fund
Reserve for Salary Increase	$14,800,000

GRAND TOTAL CURRENT OPERATIONS/HIGHWAY FUND	$14,800,000

PART 4.  SALARY INCREASES

Requested by: Representatives Holmes, Creech, Esposito
JUDICIAL BRANCH OFFICIALS
Sec. 4.1. Section 7.4 of Chapter 507 of the 1995 Session Laws reads as rewritten:
"Sec. 7.4.  (a)	The annual salaries, payable monthly, for specified judicial branch officials for the 1996-97 fiscal year are:

Judicial Branch Officials	Annual Salary

Chief Justice, Supreme Court	$98,576 
Associate Justice, Supreme Court	96,000 
Chief Judge, Court of Appeals	93,600 
Judge, Court of Appeals	92,000 
Judge, Senior Regular Resident Superior Court	89,500 
Judge, Superior Court	87,000 
Chief Judge, District Court	79,000 
Judge, District Court	76,500 
District Attorney	80,600 
Administrative Officer of the Courts	89,500 
Assistant Administrative Officer of the Courts	75,160 
Public Defender	80,600 

(b)	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 fifty-one thousand five hundred sixty-three dollars ($51,563), and the minimum salary of any assistant district attorney or assistant public defender is at least twenty-six thousand three hundred twenty-four dollars ($26,324) effective July 1, 1996.
(c)	The salaries in effect for the 1995-96 fiscal year for permanent, full-time employees of the Judicial Department, except for those whose salaries are itemized in this Part, shall be increased by four percent (4%), commencing July 1, 1996.
(d)	The salaries in effect for the 1995-96 fiscal year for all permanent, part-time employees of the Judicial Department shall be increased on and after July 1, 1996, by pro rata amounts of the four percent (4%)."

Requested by: Representatives Holmes, Creech, Esposito
ASSISTANT AND DEPUTY CLERKS OF SUPERIOR COURT
Sec. 4.2.  G.S. 7A-102(c1) reads as rewritten:
"(c1)	A full-time assistant clerk or a full-time deputy clerk, and up to one full-time deputy clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the following minimum and maximum rates:

Assistant Clerks and Head Bookkeeper	Annual Salary

Minimum 		$22,411
Maximum		 39,680

Deputy Clerks	Annual Salary
Minimum		$17,918
Maximum		30,565."

Requested by: Representatives Holmes, Creech, Esposito
MAGISTRATES' PAY PLAN
Sec. 4.3.  (a)	G.S. 7A-171.1(a)(1) reads as rewritten:
"(1)	A full-time magistrate shall be paid the annual salary indicated in the table set out in this subdivision. A full-time magistrate is a magistrate who is assigned to work an average of not less than 40 hours a week during the term of office. The Administrative Officer of the Courts shall designate whether a magistrate is full-time. Initial appointment shall be at the entry rate.  A magistrate's salary shall increase to the next step every two years on the anniversary of the date the magistrate was originally appointed for increases to Steps 1 through 3, and every four years on the anniversary of the date the magistrate was originally appointed for increases to Steps 4 through 6.

            Table of Salaries of Full-Time Magistrates

Step Level	Annual Salary
Entry Rate		$24,354
Step 1		26,798
Step 2		29,458
Step 3		32,361
Step 4 		35,540
Step 5		39,034
Step 6 		42,877."
(b)	G.S. 7A-171.1(a1)(1) reads as rewritten:
"(1)	The salaries of magistrates who on June 30, 1994, were paid at a salary level of less than five  years of service under the table in effect that date shall be as follows:
	1 or more but less than 3 years of service	  	20,182
3 or more but less than 5 years of service	$22,167."
		Upon completion of five years of service, those magistrates shall receive the salary set as the Entry Rate in the table in subsection (a)."

Requested by: Representatives Holmes, Creech, Esposito
GENERAL ASSEMBLY PRINCIPAL CLERKS
Sec. 4.4. 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 fifty-seven thousand two hundred eighty-three dollars ($57,283) 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."

Requested by: Representatives Holmes, Creech, Esposito
SERGEANT-AT-ARMS AND READING CLERKS
Sec. 4.5.  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 forty-six dollars ($246.00) 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."

Requested by: Representatives Holmes, Creech, Esposito
LEGISLATIVE EMPLOYEES
Sec. 4.6.  Section 7.11 of Chapter 507 of the 1995 Session Laws reads as rewritten:
"Sec. 7.11.  The Legislative Administrative Officer shall increase the salaries of nonelected employees of the General Assembly in effect for fiscal year 1995-96 by four percent (4%).  Nothing in this act limits any of the provisions of G.S. 120-32."

Requested by: Representatives Holmes, Creech, Esposito
COMMUNITY COLLEGES PERSONNEL
Sec. 4.7. Section 7.12 of Chapter 507 of the 1995 Session Laws reads as rewritten:
"Sec. 7.12.  The Director of the Budget shall transfer from the Reserve for Salary Increases created in this act for fiscal year 1995-96 funds to the Department of Community Colleges necessary to provide an average annual salary increase of four percent (4%), including funds for the employer's retirement and social security contributions, commencing July 1, 1996, for all permanent full-time community college institutional personnel supported by State funds.  The State Board of Community Colleges shall establish guidelines for providing their salary increases to community college institutional personnel to include consideration of increases based on performance. Salary funds shall be used to provide an average annual salary increase of four percent (4%) to all full-time employees and part-time employees on a pro rata basis."

Requested by: Representatives Holmes, Creech, Esposito
UNIVERSITY OF NORTH CAROLINA SYSTEM – EPA SALARY INCREASES
Sec. 4.8. Section 7.13 of Chapter 507 of the 1995 Session Laws reads as rewritten:
"Sec. 7.13.  The Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Salary Increases created in this act for fiscal year 1996-97 to provide an annual average salary increase of four percent (4%), including funds for the employer's retirement and social security contributions, commencing July 1, 1996, for all employees of The University of North Carolina, as well as employees other than teachers of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act (EPA).  These funds shall be allocated to individuals according to the rules adopted by the Board of Governors, or the Board of Trustees of the North Carolina School of Science and Mathematics, as appropriate, and may not be used for any purpose other than for salary increases and necessary employer contributions provided by this section.  The Board of Governors shall include consideration of increases based on performance in its adoption of rules for the allocation of funds for salary increases."

Requested by: Representatives Holmes, Creech, Esposito
MOST STATE EMPLOYEES
Sec. 4.9. Section 7.14 of Chapter 507 of the 1995 Session Laws reads as rewritten:
"Sec. 7.14.  (a)	The salaries in effect June 30, 1996, of 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 or after July 1, 1996, unless otherwise provided by this act, pursuant to the Comprehensive Compensation System set forth in G.S. 126-7, as follows:
(1)	Career growth recognition awards in the amount of two percent (2%); and
(2)	A cost-of-living adjustment in the amount of two percent (2%).
(b)	Except as otherwise provided in this act, salaries in effect June 30, 1996, 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 four percent (4%), commencing July 1, 1996.
(c)	The salaries in effect June 30, 1996, for all permanent part-time State employees shall be increased on and after July 1, 1996, by pro rata amounts of the salary increases 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, 1996, in accordance with subsections (a), (b), or (c) of this section, including funds for the employer's retirement and social security contributions, of the permanent full-time and part-time employees of the agency.
(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 salary increase provided for permanent full-time employees covered by the provisions of subsection (a) of this section, commencing July 1, 1996.
(f)	Except as provided by subsection (a) of this section, no person may receive a salary increase under G.S. 126-7 during the 1996-97 fiscal year, and no State employee or officer shall receive a merit increment during the 1996-97 fiscal year except as otherwise provided by this act."

Requested by: Representatives Holmes, Creech, Esposito
ALL STATE-SUPPORTED PERSONNEL
Sec. 4.10.  (a)	Salaries and related benefits 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 are to be effective July 1, 1996, 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, 1996, or to employees involved in final written disciplinary procedures.  The employee shall receive the increase on a current basis when the final written disciplinary procedure is resolved.
Payroll checks issued to employees after July 1, 1996, which represent payment of services provided prior to July 1, 1996, 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)	The Director of the Budget shall transfer from the Reserve for Salary Increases in this act for fiscal year 1996-97 all funds necessary for the salary increases provided by this act, including funds for the employer's retirement and social security contributions.
(e)  Nothing in this act authorizes the transfer of funds between the General Fund and the Highway Fund for salary increases.

Requested by: Representatives Holmes, Creech, Esposito
TEACHER SALARY SCHEDULES
Sec. 4.11.  (a)	The Director of the Budget may transfer from the Reserve for Salary Increases for the 1996-97 fiscal year funds necessary to implement the teacher salary schedule set out in subsection (b) of this section, including funds for the employer's retirement and social security contributions and funds for annual longevity payments at one percent (1%) of base salary for 10 to 14 years of State service, one and one-half percent (1.5%) of base salary for 15 to 19 years of State service, two percent (2%) of base salary for 20 to 24 years of State service, and two and one-half percent (2.5%) of base salary for 25 or more years of State service, commencing July 1, 1996, for all teachers whose salaries are supported from the State's General Fund.  These funds shall be allocated to individuals according to rules adopted by the State Board of Education and the Superintendent of Public Instruction.  The longevity payment shall be paid in a lump sum once a year.
(b)(1)	Beginning July 1, 1996, the following monthly salary schedule shall apply to certified personnel of the public schools who are classified as "A"teachers.  The schedule contains 30 steps with each step corresponding to one year of teaching experience.
	Years of	1996-97
	Experience	 Salary
00	$2,103
01	2,145
02	2,187
03	2,274
04	2,320
05	2,367
06	2,415
07	2,463
08	2,512
09	2,562
10	2,613
11	2,665
12	2,718
13	2,772
14	2,827
15	2,883
16	2,940
17	2,999
18	3,059
19	3,121
20	3,183
21	3,247
22	3,312
23	3,378
24	3,446
25	3,515
26	3,585
27	3,657
28	3,730
29	3,805
30+	3,805
(2)	Beginning July 1, 1996, the following monthly salary schedule shall apply to certified personnel of the public schools who are classified as "G"teachers.  The schedule contains 30 steps with each step corresponding to one year of teaching experience.
	Years of	1996-97
	Experience	 Salary
00	$2,234
01	2,279
02	2,324
03	2,417
04	2,466
05	2,515
06	2,565
07	2,616
08	2,668
09	2,721
10	2,775
11	2,830
12	2,887
13	2,945
14	3,004
15	3,064
16	3,125
17	3,188
18	3,252
19	3,317
20	3,383
21	3,451
22	3,520
23	3,590
24	3,662
25	3,735
26	3,810
27	3,886
28	3,964
29	4,043
30+	4,043
(3)	Certified public school teachers with certification based on academic preparation at the six-year degree level shall receive a salary supplement of one hundred twenty-six dollars ($126.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "G"teachers.  Certified public school teachers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty-three dollars ($253.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "G"teachers.  
(c)	The first step of the salary schedule for school psychologists shall be equivalent to Step 5, corresponding to five years of experience, on the salary schedule established in this section for certified personnel of the public schools who are classified as "G"teachers.  Certified psychologists shall be placed on the salary schedule at an appropriate step based on their years of experience.  Certified psychologists shall receive longevity payments based on years of State service in the same manner as teachers.
Certified psychologists with certification based on academic preparation at the six-year degree level shall receive a salary supplement of one hundred twenty-six dollars ($126.00) per month in addition to the compensation provided for certified psychologists.  Certified psychologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty-three dollars ($253.00) per month in addition to the compensation provided for certified psychologists.
(d) Certified personnel of the public schools who are: (i) classified as "A"teachers; (ii) at the maximum of their pay range on June 30, 1996; and (iii) employed as teachers for the first three pay periods of the 1996-97 school year shall receive a one-time bonus of seven hundred fifty-three dollars ($753.00), payable at the third payroll period of the 1996-97 school year.  Certified personnel of the public schools who are: (i) classified as "G"teachers; (ii) at the maximum of their pay range on June 30, 1996; and (iii) employed as teachers for the first three pay periods of the 1996-97 school year, shall receive a one-time bonus of eight hundred one dollars ($801.00), payable at the third payroll period of the 1996-97 school year.  Certified personnel of the public schools who are: (i) certified based on academic preparation at the six-year degree level; (ii) at the maximum of their pay range on June 30, 1996; and (iii) employed as teachers for the first three pay periods of the 1996-97 school year shall receive a one-time bonus of eight hundred twenty-six dollars ($826.00), payable at the third payroll period of the 1996-97 school year.  Certified personnel of the public schools who are: (i) certified based on academic preparation at the doctoral degree level; (ii) at the maximum of their pay range on June 30, 1996; and (iii) employed as teachers for the first three pay periods of the 1996-97 school year shall receive a one-time bonus of eight hundred fifty-one dollars ($851.00), payable at the third payroll period of the 1996-97 school year.
(e) Certified personnel of the public schools who are: (i) classified as psychologists with advanced degrees; (ii) at the maximum of their pay range on June 30, 1996; and (iii) employed as school psychologists for the first three pay periods of the 1996-97 school year, shall receive a one-time bonus of nine hundred ten dollars ($910.00), payable at the third payroll period of the 1996-97 school year.  Certified personnel of the public schools who are: (i) classified as psychologists with doctoral degrees; (ii) at the maximum of their pay range on June 30, 1996; and (iii) employed as school psychologists for the first three pay periods of the 1996-97 school year, shall receive a one-time bonus of nine hundred thirty-seven dollars ($937.00), payable at the third payroll period of the 1996-97 school year.

Requested by: Representatives Holmes, Creech, Esposito
SCHOOL-BASED ADMINISTRATOR SALARIES
Sec. 4.12.  (a)	Funds appropriated to the Reserve for Salary Increases shall be used for the implementation of the salary schedule for school-based administrators as provided in this section.  These funds shall be used for State-paid employees only.
(b)	The salary schedule for school-based administrators shall apply only to principals and assistant principals.  The salary schedule for the 1996-97 fiscal year is as follows:

	Asst.
Step 	Prin.	Prin.I	Prin.II	Prin.III	Prin.IV	Prin.V	Prin.VI	Prin. VII

0	  –  	  –  	  –  	  –  	  –  	  –  	  –  	–
1	  –  	  –  	  –  	  –  	  –  	  –  	  –  	–
2	  –  	  –  	  –  	  –  	  –  	  –  	  –  	–
3	  –  	  –  	  –  	  –  	  –  	  –  	  –  	–
4	$2,540	  –  	  –  	  –  	  –  	  –  	  –  	–
5	2,591	  –  	  –  	  –  	  –  	  –  	  –  	–
6	2,643	  –  	  –  	  –  	  –  	  –  	  –  	–
7	2,696	  –  	  –  	  –  	  –  	  –  	  –  	–
8	2,750	$2,750	  –  	  –  	  –  	  –  	  –  	–
9	2,805	2,805	  –  	  –  	  –  	  –  	  –  	–
10	2,861	2,861	$2,918	  –  	  –  	  –  	  –  	–
11	2,918	2,918	2,976	  –  	  –  	  –  	  –  	–
12	2,976	2,976	3,036	$3,097	  –  	  –  	  –  	–
13	3,036	3,036	3,097	3,159	$3,222	  –  	  –  	–
14	3,097	3,097	3,159	3,222	 3,286	$3,352	  –  	–
15	3,159	3,159	3,222	3,286	 3,352	 3,419	  –  	–
16	3,222	3,222	3,286	3,352	 3,419	 3,487	$3,557 	–
17	3,286	3,286	3,352	3,419	 3,487	 3,557	3,628 	$3,701
18	3,352	3,352	3,419	3,487	 3,557	 3,628	3,701 	3,775
19	3,419	3,419	3,487	3,557	 3,628	 3,701	3,775 	3,851
20	3,487	3,487	3,557	3,628	 3,701	 3,775	3,851 	3,928
21	3,557	3,557	3,628	3,701	 3,775	 3,851	3,928 	4,007
22	3,628	3,628	3,701	3,775	 3,851	 3,928	4,007 	4,087
23	3,701	3,701	3,775	3,851	 3,928	 4,007	4,087 	4,169
24	3,775	3,775	3,851	3,928	 4,007	 4,087	4,169 	4,252
25	3,851	3,851	3,928	4,007	 4,087	 4,169	4,252 	4,337
26	3,928	3,928	4,007	4,087	 4,169	 4,252	4,337 	4,424
27	4,007	4,007	4,087	4,169	 4,252	 4,337	4,424 	4,512
28	4,087	4,087	4,169	4,252	 4,337	 4,424	4,512 	4,602
29	4,169	4,169	4,252	4,337	 4,424	 4,512	4,602 	4,694
30	4,252	4,252	4,337	4,424	 4,512	 4,602	4,694 	4,788
31	4,337	4,337	4,424	4,512	 4,602	 4,694	4,788 	4,884
32 	  –  	4,424	4,512	4,602	 4,694	 4,788	4,884 	4,982
33 	  –  	  – 	4,602	4,694	 4,788	 4,884	4,982 	5,082
34 	  –  	  – 	4,694	4,788	 4,884	 4,982	5,082 	5,184
35 	  –  	  – 	  – 	4,884	 4,982	 5,082	5,184 	5,288
36 	  –  	  – 	  – 	4,982	 5,082	 5,184	5,288 	5,394
37 	  –  	  – 	  – 	  – 	 5,184	 5,288	5,394 	5,502
38 	  –  	  – 	  – 	  – 	   – 	 5,394	5,502 	5,612
39 	  –  	  – 	  – 	  – 	  – 	   – 	5,612 	5,724
40 	  –  	  – 	  – 	  – 	  – 	   – 	5,724 	5,838
41	 –  	  – 	  – 	  – 	 – 	  – 	 – 	 5,955.
(c)	The appropriate classification for placement of principals and assistant principals on the salary schedule shall be determined in accordance with the following schedule:
Number of Teachers
Classification	Supervised
Assistant Principal
Principal I	Less than 11 Teachers
Principal II	11-21 Teachers
Principal III	22-32 Teachers
Principal IV	33-43 Teachers
Principal V	44-54 Teachers
Principal VI	55-65 Teachers
Principal VII	More than 65 Teachers

The number of teachers supervised includes teachers and assistant principals paid from State funds only; it does not include teachers or assistant principals paid from non-State funds or the principal or teacher assistants.
(d)	A principal shall be placed on the step on the salary schedule that reflects total number of years of experience as a certificated employee of the public schools and an additional step for every three years of experience as a principal.
(e)  Principals and assistant principals with certification based on academic preparation at the six-year degree level shall be paid a salary supplement of one hundred twenty-six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty-three dollars ($253.00) per month.
(f)  There shall be no State requirement that superintendents in each local school unit shall receive in State-paid salary at least one percent (1%) more than the highest paid principal receives in State salary in that school unit:  Provided, however, the additional State-paid salary a superintendent who was employed by a local school administrative unit for the 1992-93 fiscal year received because of that requirement shall not be reduced because of this subsection for subsequent fiscal years that the superintendent is employed by that local school administrative unit so long as the superintendent is entitled to at least that amount of additional State-paid salary under the rules in effect for the 1992-93 fiscal year.
(g)  Longevity pay for principals and assistant principals shall be as provided for State employees.
(h)	(1)	If a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State-allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
(2)	If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State-allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
	 	This subdivision applies to all transfers on or after the ratification date of this act, except transfers in school systems that have been created, or will be created, by merging two or more school systems.  Transfers in these merged systems are exempt from the provisions of this subdivision for one calendar year following the date of the merger.
(i)  Except as provided in subsection (h) of this section, the salary of a principal or assistant principal shall not be less for the 1996-97 fiscal year than it was for the 1993-94 fiscal year solely as a result of placement on the salary schedule established in this section.

Requested by: Representatives Holmes, Creech, Esposito
SCHOOL CENTRAL OFFICE SALARIES
Sec. 4.13.  (a) The following monthly salary ranges apply to public school superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 1996-97 fiscal year:
(1)	School Administrator I:	$2,804 - $4,511
(2)	School Administrator II:	$2,976 - $4,788
(3)	School Administrator III:	$3,158 - $5,081
(4)	School Administrator IV:	$3,286 - $5,287
(5)	School Administrator V:	$3,418 - $5,501
(6)	School Administrator VI:	$3,627 - $5,838
(7)	School Administrator VII:	$3,774 - $6,074
The local board of education shall determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer, within the salary ranges and within funds appropriated by the General Assembly for central office administrators and superintendents.  The category in which an employee is placed shall be included in the contract of any employee hired on or after July 1, 1996.
(b) The following monthly salary ranges apply to public school superintendents for the 1996-97 fiscal year:
(1)	Superintendent I (Up to 2,500 ADM):	$4,006 - $6,446
(2)	Superintendent II (2,501 - 5,000 ADM):	$4,251 - $6,840
(3)	Superintendent III (5,001 - 10,000 ADM):	$4,511 - $7,259
(4)	Superintendent IV (10,001 - 25,000 ADM):	$4,788 - $7,704
(5)	Superintendent V (Over 25,000 ADM):	$5,081 - $8,175
The local board of education shall determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents.
Notwithstanding the provisions of this subsection, a local board of education may pay an amount in excess of the applicable range to a superintendent who is entitled to receive the higher amount under Section 28.11(f) of this act.
(c) Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees.
(d) Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the six-year degree level shall receive a salary supplement of one hundred twenty-six dollars ($126.00) per month in addition to the compensation provided for pursuant to this section.  Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty-three dollars ($253.00) per month in addition to the compensation provided for under this section.
(e)  The State Board shall not permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.
(f) The Director of the Budget shall transfer from the Reserve for Salary Increases for fiscal year 1996-97 funds necessary to provide an average annual salary increase of four percent (4%), including funds for the employer's retirement and social security contributions, commencing July 1, 1996, for all permanent full-time personnel paid from the Central Office Allotment. The State Board of Education shall allocate these funds to local school administrative units.   The local boards of education shall establish guidelines for providing their salary increases to these personnel.

Requested by: Representatives Holmes, Creech, Esposito
NONCERTIFIED PUBLIC SCHOOL EMPLOYEES' SALARY INCREASE
Sec. 4.14.  (a)	The Director of the Budget may transfer from the Reserve for Salary Increases created in this act for fiscal year 1996-97 funds necessary to provide a salary increase of four percent (4%), including funds for the employer's retirement and social security contributions, commencing July 1, 1996, for all noncertified public school employees, except school bus drivers, whose salaries are supported from the State's General Fund.  These funds shall not be used for any purpose other than for the salary increases and necessary employer contributions provided by this subsection.
(b)	The fiscal year 1995-96 pay rates adopted by local boards of education for school bus drivers shall be increased by at least four percent (4%) on and after July 1, 1996, 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 1995-96 and who continue their employment for fiscal year 1996-97 by at least four percent (4%) on and after July 1, 1996.  The Director of the Budget may transfer from the salary increase reserve fund created in this act for fiscal year 1996-97 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.

Requested by: Representatives Holmes, Creech, Esposito
STUDY COMMISSION ON THE COMPREHENSIVE COMPENSATION SYSTEM
Sec. 4.15.  (a)	The Study Commission on the Comprehensive Compensation System is created.  The Commission shall consist of nine members: three Representatives appointed by the Speaker of the House of Representatives, three Senators appointed by the President Pro Tempore of the Senate, and three members appointed by the Governor. The Speaker of the House of Representatives shall designate one Representative as cochair and the President Pro Tempore of the Senate shall designate one Senator as cochair.  Vacancies in the membership of the Commission shall be filled by the same appointing officer who made the initial appointment.
(b)	The Commission shall:
(1)	Evaluate the Comprehensive Compensation System established in Article 2 of Chapter 126 of the General Statutes; and
(2)	Determine a methodology for funding the pay plan for State employees at varying levels of appropriations to fund State pay increases.
The Commission shall submit a final report of its findings and recommendations to the General Assembly on or before the first day of the 1997 Session by filing the report with the Speaker of the House of Representatives and the President Pro Tempore of the Senate.  Upon filing its final report, the Commission shall terminate.
	(c)	The Commission, while in the discharge of official duties, may exercise all the powers provided for under the provisions of G.S. 120-19, and G.S. 120-19.1 through G.S. 120-19.4.  The Commission may meet at any time upon the joint call of the cochairs.  The Commission may meet in the Legislative Building or the Legislative Office Building.
(d) Members of the Commission who are legislators shall receive subsistence and travel expenses at the rates set forth in G.S. 120-3.1.  Other members of the Commission shall receive reimbursement for travel expenses at the rates allowed by G.S. 138-6.
(e) The Commission may contract for professional, clerical, or consultant services as provided by G.S. 120-32.02.  The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist in the work of the Commission. The House of Representatives' and the Senate's Supervisors of Clerks shall assign clerical staff to the commission upon the direction of the Legislative Services Commission.  The expenses relating to clerical employees shall be borne by the Commission.
(f)  All State departments and agencies shall furnish the Commission with any information in their possession or available to them.

Requested by: Representatives Holmes, Creech, Esposito
POSTRETIREMENT BENEFIT INCREASES
Sec. 4.16.   (a)	G.S. 135-5 is amended by adding a new subsection to read:
"( bbb)	From and after July 1, 1996, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1995, shall be increased by four percent (4%) of the allowance payable on July 1, 1995, in accordance with G.S. 135-5(o). Furthermore, from and after July 1, 1996, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1995, but before June 30, 1996, shall be increased by a prorated amount of four percent (4%) 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, 1995, and June 30, 1996."
(b)	G.S. 135-65 is amended by adding a new subsection to read:
"( q)	From and after July 1, 1996, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1995, shall be increased by four percent (4%) of the allowance payable on July 1, 1995.  Furthermore, from and after July 1, 1996, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1995, but before June 30, 1996, shall be increased by a prorated amount of four percent (4%) 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, 1995, and June 30, 1996."
(c)	G.S. 120-4.22A is amended by adding a new subsection to read:
"( k)	In accordance with subsection (a) of this section, from and after July 1, 1996, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before January 1, 1996, shall be increased by four percent (4%)  of the allowance payable on January 1, 1996.  Furthermore, from and after July 1, 1996, the retirement allowance to or on account of beneficiaries whose retirement commenced after January 1, 1996, but before June 30, 1996, shall be increased by a prorated amount of four percent (4%) 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, 1996, and June 30, 1996."
(d)	G.S. 128-27 is amended by adding a new subsection to read:
"( rr)	From and after July 1, 1996, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1995, shall be increased by four percent (4%) of the allowance payable on July 1, 1995, in accordance with G.S. 128-27(k). Furthermore, from and after July 1, 1996, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1995, but before June 30, 1996, shall be increased by a prorated amount of four percent (4%) 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, 1995, and June 30, 1996."

Requested by: Representatives Holmes, Creech, Esposito
SALARY-RELATED CONTRIBUTIONS/EMPLOYERS
Sec. 4.17. Section 7.1(b) of Chapter 324 of the 1995 Session Laws, as amended by Section 7.22A of Chapter 507 of the 1995 Session Laws, reads as rewritten:
"(b)	Effective July 1, 1996, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 1995-96 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) nine and eighteen hundredths percent (9.18%) - University Employees' Optional Retirement Program; (iv) twenty-two and sixty-five hundredths percent (22.65%) - Consolidated Judicial Retirement System; and (v) twenty-four and forty-three hundredths percent (24.43%) - 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 fifty-two hundredths percent (0.52%) for the Disability Income Plan."

Requested by: Representatives Holmes, Creech, Esposito, Dockham
STATE EMPLOYEE HEALTH BENEFIT PLAN/PREEXISTING HEALTH CONDITIONS
Sec. 4.18.  (a)	G.S. 135-40.1(15) reads as rewritten:
"(15)	Preexisting Condition. – A condition, disease, illness or injury diagnosed and treated within six months prior to the effective date of coverage."
(b)	G.S. 135-40.3(b) is amended by adding a new subdivision to read:
"(5)	To administer the 12-month waiting period for preexisting conditions under this Article, the Plan must give credit against the 12-month period for the time that a person was covered under a previous plan if the previous plan's coverage was continuous to a date not more than 60 days before the effective date of coverage.  As used in this subdivision, a 'previous plan' means any policy, certificate, contract, or any other arrangement provided by any accident and health insurer, any hospital or medical service corporation, any health maintenance organization, any preferred provider organization, any multiple employer welfare arrangement, any self-insured health benefit arrangement, any governmental health benefit or health care plan or program, or any other health benefit arrangement."
(c)	This section is effective July 1, 1995.

PART 5.  MISCELLANEOUS PROVISIONS

EXECUTIVE BUDGET ACT APPLIES
Sec. 5.1.  The provisions of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

MOST TEXT APPLIES ONLY TO 1996-97
Sec. 5.2.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1996-97 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 1996-97 fiscal year.

1995-96 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 5.3.  (a)	Except where expressly repealed or amended by this act, the provisions of Chapters 324 and 507 of the 1995 Session Laws remain in effect.
(b)	Notwithstanding any modifications by this act in the amounts appropriated, except where expressly repealed or amended, the limitations and directions for the 1995-96 fiscal year in Chapters 324 and 507 of the 1995 Session Laws that applied to appropriations to particular agencies or for particular purposes apply to the newly enacted appropriations and budget reductions of this act for those same particular purposes.

EFFECT OF HEADINGS
Sec. 5.4.  The headings to the parts and sections of this act are a convenience to the reader and are for reference only.  The headings do not expand, limit, or define the text of this act.

SEVERABILITY CLAUSE
Sec. 5.5.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.

EFFECTIVE DATE
Sec. 5.6.  Except as otherwise provided, this act becomes effective July 1, 1996.