Governor Josh Stein released his first budget proposal on Wednesday, which contained minimal pay increases and no real COLA for retirees. With premium increases on the table at the State Health Plan, the proposed pay increase would not prevent employees from going in the hole.

The budget would grant most state employees a 2% pay increase and a one-time $1,000 bonus. Correctional officers would receive an additional 4.5%, for a total increase of 6.5%. Probation/Parole Officers would receive an extra 1% for a total increase of 3%.

Stein's proposal provides a 2% one-time bonus for retirees. It is NOT a recurring COLA. The proposal also fails to fully fund the retirement system. It's unprecedented for a governor's proposal not to include full funding for the pension plan.

The proposal spends approximately $726 million on teacher pay increases. While aiming to be closer to the top of the list in teacher pay is a noble goal, it leaves the rest of the state's workforce far behind. We question such spending at a time when, per Governor Stein, the state is likely approaching a fiscal cliff in year 2 of the budget.

This budget proposal is just the first step in the debate. The N.C. Senate will likely publish its proposal in the coming weeks, sparking the process in the legislature. The House and Senate will work together to pass a two-year budget and send it to Stein for his signature or veto. The process could last into the fall or beyond.

Our team discussed Gov. Stein's proposal on this week's episode of The SEANC View Podcast. If you have questions or comments for the podcast, email us at podcast@seanc.org.