State Budget Adopted
On Nov. 18, Gov. Cooper signed into law a budget S105: 2021 Appropriations Act passed out of the General Assembly. S105v2.pdf (ncleg.gov)
The budget will spend $25.9 billion in FY2021-22, and $27 billion in FY2022-23. Coming in at nearly $1.1 billion more than the current operating budget, the final spending plan is nearly 4.5% larger than the last budget enacted in 2017.
Some highlights of the budget:
$ It issues significant tax relief reducing the franchise tax and the personal income tax rate to 3.99% over six years, down from 5.25%. The corporate income tax rate would be phased to zero by 2030. Additionally, the standard deduction would be raised from $10,750 to $12,750, and from $21,500 to $25,500 for married couples. The bill will also eliminate state income tax for retired military personnel and will increase the child tax deduction by $500 per child.
$ It invests heavily in broadband expansion to bring high-speed internet to rural counties.
$ It also allocates $5.4 billion of federal American Rescue Plan Act funds to various grants and programs to respond to the pandemic.
$ Retroactive bonuses and raises for teachers and state employees.