Easley, Michael. Press Release, 2006-07-10, Gov. Easley Signs Budget That Keeps Education As NC's Top Priority; Plan Provides More Than $10.8 Billion For Schools, Cuts Taxes, Ensures Secure Communities

Michael F. Easley Governor State of North Carolina Office of the Governor For Release: IMMEDIATE Contact: Cari Boyce Date: July 10, 2006 Phone: 919/733-5612 GOV. EASLEY SIGNS BUDGET THAT KEEPS EDUCATION AS NC’S TOP PRIORITY Plan Provides More than $ 10.8 Billion for Schools, Cuts Taxes, Ensures Secure Communities RALEIGH - Gov. Mike Easley today signed the budget agreement passed by the General Assembly for the 2006-2007 fiscal year. He commended the legislature for enacting a plan that keeps education the state’s top priority by providing more than $10.8 billion in resources to improve education. “Investments in education continue to be our No. 1 priority in North Carolina,” said Easley. “This budget provides nearly $1.4 billion more this year in new support for pre-k through the community college and university systems in addition to targeting resources to reform high schools and help our low-wealth school districts. “Our continued commitment to progress in education, coupled with our top-ranked business climate, makes North Carolina one of the best locations to grow and expand a business not only in America, but in the world. “I commend the legislative leadership for their hard work in delivering a timely budget package that not only invests in education, but also ensures secure communities and provides tax relief.” Highlights of the budget adjustments for the 2006-07 fiscal year include: • Increasing North Carolina’s Commitment to Education - Provides an additional $943 million General Fund resources to education above 2005-06 levels, including teacher salary increases and bonuses, in addition to an anticipated $425 million in N.C. Education Lottery revenues for pre-k, class size reduction, school construction and college scholarships for those who cannot afford to pay. • Recruiting and Retaining Teachers in the Classroom - Includes $323 million for a teacher salary increases averaging 8 percent (paying for a step increase and increasing every step by $2,250), $10 million for an additional step at the top of the salary schedule, and $90 million for ABC bonuses. In addition $3.3 million will provide expanded teacher-training opportunities through the community college system, scholarships to prospective teachers, and more professional development for teachers and principals. • Increasing Resources for Low-Wealth and At-Risk Schools - Provides full funding for the low- wealth formula through an increase of $42 million and provides $27 million for disadvantaged students. Governor's Press Office State Capitol. Raleigh, NC 27603-8001 (919) 733-5612 - Toll Free 1-800-662-7005 FAX (919) 733-5166