A BILL TO BE ENTITLED
AN ACT to award a four percent salary increase to state employees and public school personnel and a two and one‑half percent cost of living adjustment for state retirees AND APPROPRIATe FUNDS FOR THose PURPOSEs.
The General Assembly of North Carolina enacts:

part i. state employee increases

GOVERNOR AND COUNCIL OF STATE
SECTION 1.1.(a)  Section 30.1 of S.L. 2015‑241 reads as rewritten:
"SECTION 30.1.(a)  The salary of the Governor as provided by G.S. 147‑11(a) shall remain unchanged for the 2015‑2016 fiscal year.
"SECTION 30.1.(a1)  Effective July 1, 2016, G.S. 147‑11(a) reads as rewritten:
"(a)	The salary of the Governor shall be one hundred forty‑seven thousand nine hundred fifty‑six dollars ($147,956) annually, payable monthly."
"SECTION 30.1.(b)  The annual salaries for members of the Council of State, payable monthly, shall remain unchanged for the 2015‑2016 fiscal year, as follows:
Council of State	Annual Salary
Lieutenant Governor	$125,676
Attorney General	125,676
Secretary of State	125,676
State Treasurer	125,676
State Auditor	125,676
Superintendent of Public Instruction	125,676
Agriculture Commissioner	125,676
Insurance Commissioner	125,676
Labor Commissioner	125,676
"SECTION 30.1.(b1)  Effective July 1, 2016, the annual salaries for members of the Council of State, payable monthly, are increased by four percent (4%), as follows:
Council of State	Annual Salary
Lieutenant Governor	$130,703
Attorney General	130,703
Secretary of State	130,703
State Treasurer	130,703
State Auditor	130,703
Superintendent of Public Instruction	130,703
Agriculture Commissioner	130,703
Insurance Commissioner	130,703
Labor Commissioner	130,703
…."

CERTAIN EXECUTIVE BRANCH OFFICIALS
SECTION 1.2.  Section 30.2 of S.L. 2015‑241 reads as rewritten:
"SECTION 30.2.(a)  The annual salaries, payable monthly, for the following executive branch officials shall remain unchanged for the 2015‑2016 fiscal year, as follows:
Executive Branch Officials	Annual Salary
Chairman, Alcoholic Beverage Control Commission	$111,868
State Controller	156,159
Commissioner of Banks	125,676
Chair, Board of Review, Division of Employment Security	123,255
Members, Board of Review, Division of Employment Security	121,737
Chairman, Parole Commission	123,255
Members of the Parole Commission	113,887
Chairman, Utilities Commission	139,849
Members of the Utilities Commission	125,676
Executive Director, North Carolina
Agricultural Finance Authority	108,915
"SECTION 30.2.(a1)  The annual salaries, payable monthly, for the following executive branch officials for the 2015‑2017 fiscal biennium are increased by four percent (4%), as follows:
Executive Branch Officials	Annual Salary
Chairman, Alcoholic Beverage Control Commission	$116,343
State Controller	162,405
Commissioner of Banks	130,703
Chair, Board of Review, Division of Employment Security	128,185
Members, Board of Review, Division of Employment Security	126,606
Chairman, Parole Commission	128,185
Members of the Parole Commission	118,442
Chairman, Utilities Commission	145,443
Members of the Utilities Commission	130,703
Executive Director, North Carolina
Agricultural Finance Authority	113,272"

JUDICIAL BRANCH SALARIES
SECTION 1.3.  Section 30.3 of S.L. 2015‑241 reads as rewritten:
"SECTION 30.3.(a)  Effective July 1, 2015, the annual salaries, payable monthly, for specified judicial branch officials for the 2015‑2016 fiscal year, are as follows:
Judicial Branch Officials	Annual Salary
Chief Justice, Supreme Court	$143,623
Associate Justice, Supreme Court	139,896
Chief Judge, Court of Appeals	137,682
Judge, Court of Appeals	134,109
Judge, Senior Regular Resident Superior Court	130,492
Judge, Superior Court	126,875
Chief Judge, District Court	115,301
Judge, District Court	111,684
District Attorney	121,737
Assistant Administrative Officer of the Courts	118,152
Public Defender	121,737
Director of Indigent Defense Services	125,498
"SECTION 30.3.(a1)  Effective July 1, 2016, the annual salaries, payable monthly, for specified judicial branch officials for the 2016‑2017 fiscal year, are as follows:
Judicial Branch Officials	Annual Salary
Chief Justice, Supreme Court	$149,368
Associate Justice, Supreme Court	145,492
Chief Judge, Court of Appeals	143,189
Judge, Court of Appeals	139,473
Judge, Senior Regular Resident Superior Court	135,712
Judge, Superior Court	131,950
Chief Judge, District Court	119,913
Judge, District Court	116,151
District Attorney	126,606
Public Defender	126,606
Director of Indigent Defense Services	130,518
"SECTION 30.3.(b)  The annual salaries of permanent full‑time employees of the Judicial Department whose salaries are not itemized in this act shall not be legislatively increased for the 2015‑2016 fiscal year, but may be increased as otherwise allowed by law.
"SECTION 30.3.(c)  The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts or the Commission on Indigent Defense Services, respectively, 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 seventy‑two thousand seven hundred ninety‑seven dollars ($72,797) and the minimum salary of any assistant district attorney or assistant public defender is at least thirty‑eight thousand six hundred twenty‑eight dollars ($38,628), effective July 1, 2015.
"SECTION 30.3.(c1)  The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts or the Commission on Indigent Defense Services, respectively, 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 seventy‑five thousand seven hundred nine dollars ($75,709) and the minimum salary of any assistant district attorney or assistant public defender is at least forty thousand one hundred seventy‑three dollars ($40,173) effective July 1, 2016.
…."

CLERK OF SUPERIOR COURT
SECTION 1.3A.  Effective July 1, 2016, G.S. 7A‑101(a) reads as rewritten:
"(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	$87,766
100,000 to 149,999	98,361
150,000 to 249,999	108,957
250,000 and above	119,556
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."

ASSISTANT AND DEPUTY CLERKS OF COURT
SECTION 1.3B.  Effective July, 2016, 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	$33,913
Maximum	58,681
Deputy Clerks	Annual Salary
Minimum	$29,352
Maximum	45,871."

MAGISTRATES
SECTION 1.3C.  Effective July 1, 2016, G.S. 7A‑171.1 reads as rewritten:
"§ 7A‑171.1.  Duty hours, salary, and travel expenses within county.
(a)	The Administrative Officer of the Courts, after consultation with the chief district judge and pursuant to the following provisions, shall set an annual salary for each magistrate.
(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	$36,686
Step 1	39,468
Step 2	42,468
Step 3	45,646
Step 4	49,452
Step 5	54,038
Step 6	59,176.
...
(a1)	Notwithstanding subsection (a) of this section, the following salary provisions apply to individuals who were serving as magistrates on June 30, 1994:

	

	
(1)	The minimum and maximum 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:
Minimum	Maximum
Less than 1 year of service	$28,960
1 or more but less than 3 years of service	29,148	–	30,188
3 or more but less than 5 years of service	31,621	–	32,661
	Upon completion of five years of service, those magistrates shall receive the salary set as the Entry Rate in the table in subsection (a) of this section.
…."

LEGISLATIVE BRANCH SALARIES
SECTION 1.4.  Section 30.4 of S.L. 2015‑241 reads as rewritten:
"SECTION 30.4.(a)  For the 2015‑2017 fiscal biennium, the salaries of members and officers of the General Assembly shall remain unchanged at the amounts set under G.S. 120‑3, as provided in 1994 by the 1993 General Assembly.
"SECTION 30.4.(b)  The annual salaries of the Legislative Services Officer and of nonelected employees of the General Assembly in effect on June 30, 2015, shall not be legislatively increased for the 2015‑2016 fiscal year, but may be increased as otherwise allowed by law.
"SECTION 30.4.(b1)  The annual salaries of the Legislative Services Officer and of nonelected employees of the General Assembly in effect on June 30, 2016, are increased by four percent (4%).
"SECTION 30.4.(c)  Legislative employees paid pursuant to subsection (b) of this section shall receive the compensation bonus awarded by this act."

SERGEANT‑AT‑ARMS AND READING CLERKS
SECTION 1.5.  Effective July 1, 2016, 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 four hundred twenty dollars ($420.00) 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."

GENERAL ASSEMBLY PRINCIPAL CLERKS
SECTION 1.6.  Effective July 1, 2016, 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 one hundred ten thousand five hundred eighty‑six dollars ($110,586), payable monthly. Each principal clerk shall also receive such additional compensation as approved by the Speaker of the House of Representatives or the President Pro Tempore of the Senate, respectively, for additional employment duties beyond those provided by the rules of their House. 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 shall make appropriate recommendations for changes in those salaries. Any changes enacted by the General Assembly shall be by amendment to this paragraph."

COMMUNITY COLLEGES PERSONNEL
SECTION 1.7.  Section 30.5 of S.L. 2015‑241 reads as rewritten:
"SECTION 30.5.  The minimum salaries for nine‑month, full‑time curriculum community college faculty for the 2015‑2016 fiscal year shall remain unchanged as follows:
Education Level	Minimum Salary
Vocational Diploma/Certificate or Less	$35,314
Associate Degree or Equivalent	35,819
Bachelor's Degree	38,009
Master's Degree or Education Specialist	39,952
Doctoral Degree	42,753
No full‑time faculty member shall earn less than the minimum salary for his or her education level.
The pro rata hourly rate of the minimum salary for each education level shall be used to determine the minimum salary for part‑time faculty members.
"SECTION 30.5.(a1)  The minimum salaries for nine‑month, full‑time curriculum community college faculty for the 2016‑2017 fiscal year are as follows:
Education Level	Minimum Salary
Vocational Diploma/Certificate or Less	$36,727
Associate Degree or Equivalent	37,252
Bachelor's Degree	39,529
Master's Degree or Education Specialist	41,550
Doctoral Degree	44,463
No full‑time faculty member shall earn less than the minimum salary for his or her education level.
The pro rata hourly rate of the minimum salary for each education level shall be used to determine the minimum salary for part‑time faculty members.
"SECTION 30.5.(b)  For the 2015‑2017 fiscal biennium, the community college boards of trustees may provide personnel a salary increase pursuant to the policies adopted by the State Board of Community Colleges. Funds for compensation increases may be used for any one or more of the following purposes: (i) merit pay, (ii) across‑the‑board increases, (iii) recruitment bonuses, (iv) retention increases, and (v) any other compensation increase pursuant to policies adopted by the State Board of Community Colleges. The State Board of Community Colleges shall make a report on the use of these funds to the 2016 Regular Session of the 2015 General Assembly no later than March 1, 2016, and to the 2017 General Assembly by no later than March 1, 2017."

UNIVERSITY OF NORTH CAROLINA SYSTEM
SECTION 1.8.  Section 30.6 of S.L. 2015‑241 reads as rewritten:
"SECTION 30.6.(a)  Effective for the 2015‑2016 fiscal year, the annual compensation of all full‑time University of North Carolina SHRA and EHRA employees shall not be legislatively increased for the 2015‑2017 fiscal biennium, but may be increased as otherwise allowed by law.
"SECTION 30.6.(a1)  Effective for the 2016‑2017 fiscal year, the annual compensation of all full‑time University of North Carolina SHRA and EHRA employees shall be increased by four percent (4%)."

STATE AGENCY TEACHERS
SECTION 1.9.  Section 30.7 of S.L. 2015‑241 reads as rewritten:
"SECTION 30.7.(a)  Employees of schools operated by the Department of Health and Human Services, the Department of Public Safety, and the State Board of Education who are paid on the Teacher Salary Schedule shall receive any experience step increases authorized in Section 9.1 of this act.
"SECTION 30.7.(a1)  Employees of schools operated by the Department of Health and Human Services, the Department of Public Safety, and the State Board of Education who are paid on the Teacher Salary Schedule shall receive the increases authorized in Section 2.1 of this act."

ALL STATE‑SUPPORTED PERSONNEL
SECTION 1.10.  Section 30.8 of S.L. 2015‑241 reads as rewritten:
"SECTION 30.8.(a)  For the 2015‑2016 fiscal year:
(1)	Except as provided by Part 9, Section 30.5, Section 30.7, and Section 30.15 of this act, the annual salaries of all employees subject to or exempt from the North Carolina Human Resources Act shall be increased by three percent (3%).
(2)	All eligible State‑supported personnel shall receive a compensation bonus as authorized by this Part.
"SECTION 30.8.(a1)  For the 2016‑2017 fiscal year:
(1)	Unless otherwise specifically provided, the annual salaries of all employees subject to or exempt from the North Carolina Human Resources Act are increased by four percent (4%).
"SECTION 30.8.(b)  Salaries and Related Benefits for Positions That Are Funded. –
(1)	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.
(2)	Fully from sources other than the General Fund or Highway Fund shall be increased as provided by this act. The Director of the Budget may increase expenditures of receipts from these sources by the amount necessary to provide the legislative increase to receipt‑supported personnel in the certified budget.
"SECTION 30.8.(c)  For the 2015‑2016 fiscal year, except as otherwise provided, the salary increases provided in this act do not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, or whose last workday is prior to July 1, 2015.
"SECTION 30.8.(c1)  For the 2016‑2017 fiscal year, except as otherwise provided, the salary increases provided in this act do not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, or whose last workday is prior to July 1, 2016.
"SECTION 30.8.(d)  For the 2015‑2016 fiscal year, employees shall receive the statutory increases provided by G.S. 20‑187.3, 7A‑102, and 7A‑171.1. Notwithstanding G.S. 20‑187.3, the increases authorized by that statute for members of the State Highway Patrol become effective January 1, 2016. Notwithstanding any provision of law to the contrary, the salary increases authorized on the employee anniversary date by G.S. 7A‑171.1 for magistrates and G.S. 7A‑102 for assistant and deputy clerks of superior court shall become effective January 1, 2016.
"SECTION 30.8.(e)  For the 2015‑2016 fiscal year, payroll checks issued to employees after July 1, 2015, that represent payment of services provided prior to July 1, 2015, shall not be eligible for salary increases provided for in this act. This subsection applies to all employees paid from State funds, whether or not subject to or exempt from the North Carolina Human Resources Act, including employees of public schools, community colleges, and The University of North Carolina.
"SECTION 30.8.(e1)  For the 2016‑2017 fiscal year, payroll checks issued to employees after July 1, 2016, that represent payment of services provided prior to July 1, 2016, shall not be eligible for salary increases provided for in this act. This subsection applies to all employees paid from State funds, whether or not subject to or exempt from the North Carolina Human Resources Act, including employees of public schools, community colleges, and The University of North Carolina.
"SECTION 30.8.(f)  Nothing in this act authorizes the transfer of funds between the General Fund and the Highway Fund for salary increases."

MOST STATE EMPLOYEES
SECTION 1.11.  Section 30.9 of S.L. 2015‑241 reads as rewritten:
"SECTION 30.9.(a)  For the 2015‑2016 fiscal year, except as otherwise provided by this Part, the annual salaries in effect June 30, 2015, for the following employees shall not be legislatively increased, but may be increased as otherwise allowed by law:
(1)	Permanent full‑time State officials and persons whose salaries are set in accordance with the State Human Resources Act.
(2)	Permanent full‑time State officials and persons in positions exempt from the State Human Resources Act.
(3)	Permanent part‑time State employees.
(4)	Temporary and permanent hourly State employees.
"SECTION 30.9.(a1)  For the 2016‑2017 fiscal year, except as otherwise specifically provided, the annual salaries in effect June 30, 2016, for the following employees are increased by four percent (4%):
(1)	Permanent full‑time State officials and persons whose salaries are set in accordance with the State Human Resources Act.
(2)	Permanent full‑time State officials and persons in positions exempt from the State Human Resources Act.
(3)	Permanent part‑time State employees.
(4)	Temporary and permanent hourly State employees."

PART II. PUBLIC SCHOOL EMPLOYEE INCREASES

TEACHER SALARY SCHEDULE
SECTION 2.1.(a)  The following monthly teacher salary schedule shall apply for the 2016‑2017 fiscal year to licensed personnel of the public schools who are classified as teachers. The salary schedule is based on years of teaching experience.
2016‑2017 Teacher Monthly Salary Schedule
Years of Experience	"A" Teachers
0‑4	$3,640
5‑9	3,796
10‑14	4,160
15‑19	4,524
20‑24	4,836
25+	5,200.
SECTION 2.1.(b)  Salary Supplements for Teachers Paid on This Salary Schedule. –
(1)	Licensed teachers who have NBPTS certification shall receive a salary supplement each month of twelve percent (12%) of their monthly salary on the "A" salary schedule.
(2)	Licensed teachers who are classified as "M" teachers shall receive a salary supplement each month of ten percent (10%) of their monthly salary on the "A" salary schedule.
(3)	Licensed teachers with licensure 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 supplement provided to them as "M" teachers.
(4)	Licensed teachers with licensure 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 supplement provided to them as "M" teachers.
(5)	Certified school nurses shall receive a salary supplement each month of ten percent (10%) of their monthly salary on the "A" salary schedule.
SECTION 2.1.(c)  The first step of the salary schedule for (i) school psychologists, (ii) school speech pathologists who are licensed as speech pathologists at the master's degree level or higher, and (iii) school audiologists who are licensed as audiologists at the master's degree level or higher shall be equivalent to Step 5 of the "A" salary schedule. These employees shall receive a salary supplement each month of ten percent (10%) of their monthly salary and are eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six‑year degree level or the doctoral degree level.
SECTION 2.1.(d)  The twenty‑sixth step of the salary schedule for (i) school psychologists, (ii) school speech pathologists who are licensed as speech pathologists at the master's degree level or higher, and (iii) school audiologists who are licensed as audiologists at the master's degree level or higher shall be seven and one‑half percent (7.5%) higher than the salary received by these same employees on the twenty‑fifth step of the salary schedule.
SECTION 2.1.(e)  Beginning with the 2014‑2015 fiscal year, in lieu of providing annual longevity payments to teachers paid on the teacher salary schedule, the amounts of those longevity payments are included in the monthly amounts under the teacher salary schedule.
SECTION 2.1.(f)  A teacher compensated in accordance with this salary schedule for the 2016‑2017 school year shall receive an amount equal to the greater of the following:
(1)	The applicable amount on the salary schedule for the applicable school year.
(2)	For teachers who were eligible for longevity for the 2013‑2014 school year, the sum of the following:
a.	The teacher's salary provided in S.L. 2013‑360, Sec. 35.11.
b.	The longevity that the teacher would have received under the longevity system in effect for the 2013‑2014 school year provided in S.L. 2013‑360, Sec. 35.11, based on the teacher's current years of service.
c.	The annual bonus provided in S.L. 2014‑100, Sec. 9.1(e).
(3)	For teachers who were not eligible for longevity for the 2013‑2014 school year, the sum of the teacher's salary and annual bonus provided in S.L. 2014‑100, Sec. 9.1.
SECTION 2.1.(g)  As used in this section, the term "teacher" shall also include instructional support personnel.

SCHOOL‑BASED ADMINISTRATOR SALARY SCHEDULE
SECTION 2.2.(a)  The following monthly base salary schedule for school‑based administrators shall apply only to principals and assistant principals. This base salary schedule shall apply for the 2016‑2017 fiscal year commencing July 1, 2016.
2016‑2017 Principal and Assistant Principal Salary Schedules
Classification
Years of Exp	Assistant	Prin I	Prin II	Prin III	Prin IV
	Principal	(0‑10)	(11‑21)	(22‑32)	(33‑43)
0‑9	$4,133	‑	‑	‑	‑
10	$4,136	‑	‑	‑	‑
11	$4,288	‑	‑	‑	‑
12	$4,410	‑	‑	‑	‑
13	$4,496	$4,496	‑	‑	‑
14	$4,552	$4,552	‑	‑	‑
15	$4,611	$4,611	$4,669	‑	‑
16	$4,669	$4,669	$4,729	‑	‑
17	$4,729	$4,729	$4,790	$4,852	‑
18	$4,790	$4,790	$4,852	$4,915	$4,980
19	$4,852	$4,852	$4,915	$4,980	$5,045
20	$4,915	$4,915	$4,980	$5,045	$5,115
21	$4,980	$4,980	$5,045	$5,115	$5,182
22	$5,045	$5,045	$5,115	$5,182	$5,252
23	$5,115	$5,115	$5,182	$5,252	$5,324
24	$5,182	$5,182	$5,252	$5,324	$5,396
25	$5,252	$5,252	$5,324	$5,396	$5,474
26	$5,324	$5,324	$5,396	$5,474	$5,548
27	$5,396	$5,396	$5,474	$5,548	$5,625
28	$5,474	$5,474	$5,548	$5,625	$5,702
29	$5,548	$5,548	$5,625	$5,702	$5,783
30	$5,625	$5,625	$5,702	$5,783	$5,867
31	$5,702	$5,702	$5,783	$5,867	$5,951
32	$5,783	$5,783	$5,867	$5,951	$6,026
33	$5,867	$5,867	$5,951	$6,026	$6,145
34	$5,951	$5,951	$6,026	$6,145	$6,268
35	$6,026	$6,026	$6,145	$6,268	$6,394
36	$6,145	$6,145	$6,268	$6,394	$6,522
37	‑	$6,268	$6,394	$6,522	$6,652
38	‑	‑	$6,522	$6,652	$6,785
39	‑	‑	$6,652	$6,785	$6,920
40	‑	‑	‑	$6,920	$7,058
41	‑	‑	‑	$7,058	$7,200
42	‑	‑	‑	‑	$7,343
2016‑2017 Principal and Assistant Principal Salary Schedules
Classification
Years of Exp	Prin V	Prin VI	Prin VII	Prin VIII
	(44‑54)	(55‑65)	(66‑100)	(101+)
0‑19	$5,115	‑	‑	‑
20	$5,182	‑	‑	‑
21	$5,252	$5,324	‑	‑
22	$5,324	$5,396	$5,548	‑
23	$5,396	$5,474	$5,625	$5,702
24	$5,474	$5,548	$5,702	$5,783
25	$5,548	$5,625	$5,783	$5,867
26	$5,625	$5,702	$5,867	$5,951
27	$5,702	$5,783	$5,951	$6,026
28	$5,783	$5,867	$6,026	$6,145
29	$5,867	$5,951	$6,145	$6,268
30	$5,951	$6,026	$6,268	$6,394
31	$6,026	$6,145	$6,394	$6,522
32	$6,145	$6,268	$6,522	$6,652
33	$6,268	$6,394	$6,652	$6,785
34	$6,394	$6,522	$6,785	$6,920
35	$6,522	$6,652	$6,920	$7,058
36	$6,652	$6,785	$7,058	$7,200
37	$6,785	$6,920	$7,200	$7,343
38	$6,920	$7,058	$7,343	$7,490
39	$7,058	$7,200	$7,490	$7,640
40	$7,200	$7,343	$7,640	$7,793
41	$7,343	$7,490	$7,793	$7,949
42	$7,490	$7,640	$7,949	$8,108
43	$7,640	$7,793	$8,108	$8,270
44	‑	$7,949	$8,270	$8,435
45	‑	$8,108	$8,435	$8,604
46+	‑	‑	$8,604	$8,776
SECTION 2.2.(b)  The appropriate classification for placement of principals and assistant principals on the salary schedule, except for principals in alternative schools and in cooperative innovative high schools, shall be determined in accordance with the following schedule:
Classification	Number of Teachers Supervised
Assistant Principal
Principal I	Fewer 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	66‑100 Teachers
Principal VIII	More than 100 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.
The beginning classification for principals in alternative schools and in cooperative innovative high school programs shall be the Principal III level. Principals in alternative schools who supervise 33 or more teachers shall be classified according to the number of teachers supervised.
SECTION 2.2.(c)  A principal shall be placed on the step on the salary schedule that reflects the total number of years of experience as a certified employee of the public schools and an additional step for every three years of experience serving as a principal on or before June 30, 2009. A principal or assistant principal shall also continue to receive any additional State‑funded percentage increases earned for the 1997‑1998, 1998‑1999, and 1999‑2000 school years for improvement in student performance or maintaining a safe and orderly school.
SECTION 2.2.(d)  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.
SECTION 2.2.(e)  Longevity pay for principals and assistant principals shall be as provided for State employees under the North Carolina Human Resources Act.
SECTION 2.2.(f)  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.
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 subsection applies to all transfers on or after the effective date of this section, 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 subsection for one calendar year following the date of the merger.
SECTION 2.2.(g)  Participants in an approved full‑time master's in‑school administration program shall receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the master's program. The stipend shall not exceed the difference between the beginning salary of an assistant principal plus the cost of tuition, fees, and books and any fellowship funds received by the intern as a full‑time student, including awards of the Principal Fellows Program. The Principal Fellows Program or the school of education where the intern participates in a full‑time master's in‑school administration program shall supply the Department of Public Instruction with certification of eligible full‑time interns.
SECTION 2.2.(h)  During the 2016‑2017 fiscal year, the placement on the salary schedule of an administrator with a one‑year provisional assistant principal's certificate shall be at the entry‑level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.

CENTRAL OFFICE SALARIES
SECTION 2.3.(a)  The monthly salary ranges that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2016‑2017 fiscal year, beginning July 1, 2016.
School Administrator I	$ 3,527	$ 6,576
School Administrator II	$ 3,736	$ 6,972
School Administrator III	$ 3,963	$ 7,394
School Administrator IV	$ 4,120	$ 7,687
School Administrator V	$ 4,285	$ 7,997
School Administrator VI	$ 4,543	$ 8,477
School Administrator VII	$ 4,724	$ 8,817
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.
SECTION 2.3.(b)  The monthly salary ranges that follow apply to public school superintendents for the 2016‑2017 fiscal year, beginning July 1, 2016.
Superintendent I	$ 5,012	$  9,351
Superintendent II	$ 5,318	$  9,913
Superintendent III	$ 5,639	$ 10,513
Superintendent IV	$ 5,982	$ 11,150
Superintendent V	$ 6,346	$ 11,827
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.
SECTION 2.3.(c)  Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees under the State Personnel Act.
SECTION 2.3.(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 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.
SECTION 2.3.(e)  The State Board of Education shall not permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.

NONCERTIFIED PERSONNEL SALARIES
SECTION 2.4.  Effective July 1, 2016, the annual salary for permanent full‑time and part‑time noncertified public school employees whose salaries are supported from the State's General Fund shall be increased by four percent (4%).

PART III. STATE RETIREES INCREASES
SECTION 3.1.(a)  G.S. 135‑5 is amended by adding a new subsection to read:
"(uuu)	From and after July 1, 2016, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2015, shall be increased by two and one‑half percent (2.5%) of the allowance payable on June 1, 2016, in accordance with G.S. 135‑5(o). Furthermore, from and after July 1, 2016, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2015, but before June 30, 2016, shall be increased by a prorated amount of two and one‑half percent (2.5%) 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, 2015, and June 30, 2016."
SECTION 3.1.(b)  G.S. 135‑65 is amended by adding a new subsection to read:
"(ff)	From and after July 1, 2016, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2015, shall be increased by two and one‑half percent (2.5%) of the allowance payable on June 1, 2016. Furthermore, from and after July 1, 2016, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2015, but before June 30, 2016, shall be increased by a prorated amount of two and one‑half percent (2.5%) 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, 2015, and June 30, 2016."
SECTION 3.1.(c)  G.S. 120‑4.22A is amended by adding a new subsection to read:
"(z)	In accordance with subsection (a) of this section, from and after July 1, 2016, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before January 1, 2016, shall be increased by two and one‑half percent (2.5%) of the allowance payable on June 1, 2016. Furthermore, from and after July 1, 2016, the retirement allowance to or on account of beneficiaries whose retirement commenced after January 1, 2016, but before June 30, 2016, shall be increased by a prorated amount of two and one‑half percent (2.5%) 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, 2016, and June 30, 2016."

PART IV. APPROPRIATIONS
SECTION 4.1.(a)  There is appropriated from the General Fund to the Reserve for Compensation Increases the sum of five hundred forty‑four million five hundred eleven thousand two hundred nine dollars ($544,511,209) funds for the 2016‑2017 fiscal year to implement the legislative increases authorized by this act.
SECTION 4.1.(b)  There is appropriated from the Highway Fund to the Reserve for Compensation Increases the sum of fourteen million eight hundred eighty‑three thousand three hundred twenty‑six dollars ($14,883,326) funds for the 2016‑2017 fiscal year to implement the legislative increases authorized by this act.
SECTION 4.2.(a)  There is appropriated from the General Fund to the Reserve for Retiree Cost‑of‑Living Adjustments the sum of one hundred five million dollars ($105,000,000) for the 2016‑2017 fiscal year to implement the cost‑of‑living adjustment authorized by this act.
SECTION 4.2.(b)  There is appropriated from the Highway Fund to the Reserve for Retiree Cost‑of‑Living Adjustments the sum three million two hundred thousand dollars ($3,200,000) for the 2016‑2017 fiscal year to implement the cost‑of‑living adjustment authorized by this act.

PART V. EFFECTIVE DATE
SECTION 5.1.  This act becomes effective July 1, 2016.