The $18.9 million budget represents a compromise reached by Senate and House conferees late last week.
Key points include an 8 percent pay raise for teachers, a 5.5 percent raise for state employees, and a 6 percent raise and 2 percent bonus for community college faculty members.
One provision of interest to county governments calls for a slowdown in local appropriations for Medicaid costs. It does not eliminate county responsibility but does cap county costs at last year's spending level.
For the first time in a number of years, the state had a substantial revenue surplus of $2.4 billion, almost 10 percent more than was available last year. This enabled lawmakers to cut a few taxes and increase spending. A temporary sales tax imposed during a fiscal crisis several years ago will be slightly lowered, and the income tax rate is lowered for top wage earners.
GAS TAX -- Of special interest in this period of high gasoline prices is a cap on the state gas tax. Under this almost-adopted budget, the gas tax remains 29.9 cents a gallon, and the budget bill compensates for losses to the highway fund.
The budget also contains additional spending for education, including $42 million for poor school districts, $4.7 million to provide 100 literacy coaches in middle schools and $26.7 million to help disadvantaged students.
Mental health programs benefit with some $80 million in appropriations.
Small businesses receive a $250 tax credit for employees earning up to $40,000 and for whom the business provides health insurance.
A one-dollar increase in the minimum wage did not make it into the budget, although some observers predict that a deal may be reached before a final vote is taken.
The new fiscal year began Saturday, and the budget was not official by that date. To keep state government running until a new budget is in place, the legislature on Friday passed a bill continuing last year's budget until formal adoption, probably by July 7.
ONE DAY -- For many folks the week of the Fourth of July is a holiday week, and that's the time they take their annual vacation.
Not so for the legislature, which was in session as usual Monday. Tuesday was a holiday, but lawmakers were cranked back up for business today.
COBLE -- Independence Day was a work day for Congressman Howard Coble, who was scheduled to ride in a parade in Jamestown and two parades in Greensboro. Coble also delivered a speech for a celebration at Grimsley High School in Greensboro and attended a 4-H sponsors luncheon in Greensboro, all on Tuesday.
The Greensboro Republican attended a Davidson County Farm Bureau picnic when he arrived home last Friday for the congressional break. On Saturday he was the speaker for the start of the Freedom Run/Walk Race in Greensboro. Later he presented a flag at an Independence Day celebration at Braxton Craven School in Trinity and delivered a speech at the Independence Day celebration in Pleasant Garden.
Coble had nursery duty at his church, Alamance Presbyterian, in Greensboro Sunday morning. In the afternoon he attended Jordan Washburn's birthday party at Victory Junction Gang Camp in Randleman.
Today he is having lunch with residents of the Village at Brookwood in Greensboro.
