Bigger budget surplus gives NC lawmakers wiggle room

The main purpose of the legislature’s short session is to adjust the state’s biannual budget based on how revenue and expenses shake out.

Lawmakers will have a little extra money to play with this spring: a projected $237 million surplus in the $21.7 billion budget. In December, the surplus was predicted to be $120 million. The extra funds are coming from individual income tax collections, which are making up for weak sales tax revenue, according to legislative staff.

Senate Leader Phil Berger said the revenue picture was “a much different situation than five years ago,” when Republicans took control of the General Assembly, and he credited Republican economic policies.

Gov. Pat McCrory made public highlights of his version of the revised budget on Friday, and will present the full proposal to the legislature on Wednesday. He has said he wants to increase teacher pay by an average of 5 percent, bringing the average salary to more than $50,000, and to include bonuses for veteran teachers.

Berger has said he considers $50,000 a worthy goal but not one that would necessarily happen this year. He said there would be a raise for teachers, but he doubted there was support for an across-the-board raise for all state workers.

Berger said he and House Speaker Tim Moore had begun conversations about what they can realistically accomplish in a session that probably will last two or three months.

McCrory also proposed $30 million in his health and human services budget to help people with mental illness or substance abuse disorders.

The legislature is also expected to maintain a rainy-day fund for natural disasters, economic downturns and other emergencies. After putting in $450 million in 2014-15, the state has more than $1 billion in its savings reserve account, the most ever.

This story was originally published April 23, 2016 at 7:00 AM with the headline "Bigger budget surplus gives NC lawmakers wiggle room."