RALEIGH, N.C. (AP) — Highlights of Gov. Pat McCrory’s $21.5 billion spending plan released Thursday for the 2015-16 fiscal year. Unless otherwise noted, the dollars amounts are for the 2015-16 year only. For spending changes, figures are for amount spent or saved compared to what was projected or needed to keep operating at current levels.

PUBLIC EDUCATION:

— locate $111 million to increase the floor for early-career teacher salaries from $33,000 to $35,000 and to give experienced-based raises.

— hire 1,400 new teachers to cover expected public school enrollment growth of more than 17,300 students next fall.

— give $15 million over next two years to new endowment designed to award teachers additional pay for improved student performance.

— increase textbook and instructional materials funding by $35 million, with more flexibility to local districts on how to spend it.

— reduce the Department of Public Instruction budget by 10 percent, or $4.1 million.

— save $3 million in community college system to reflect decreased enrollment by 1.6 percent.

— increase community college tuition by $4 per credit hour, collecting $16.1 million.

— give $49.3 million to University of North Carolina system to meet projected 1.7 percent enrollment growth.

— provide $8 million in operating funds for East Carolina University’s medical school.

— implement 2 percent efficiencies within the UNC system, or $49.9 million in savings.

HEALTH AND HUMAN SERVICES:

— locate $18 million for operations, modernization and maintenance of NC FAST and NC TRACKS computer programs.

— expand permanently the number of slots for North Carolina Pre-K program for 4-year-olds to 26,800, at a cost of $2.3 million.

— spend $5.3 million over two years to modernize Office of Chief Medical Examiner.

— develop electronic death records system, at a cost of $1.9 million over two years.

— increase foster care funds by $4.5 million to reflect higher caseload volume.

— require $287 million in additional Medicaid funds to reflect higher enrollment and patient costs.

— lay groundwork for potential Accountable Care Organizations designed to treat Medicaid patients, costing $1.2 million.

— reduce personal services contracts by $1.2 million.

— spend $16.6 million to help open new Broughton mental hospital in Broughton in 2016.

— eliminate $8.5 million carry-over of liabilities from mental health facilities.

COMMERCE AND TAXES:

— give $10 million more to a new film and TV production grant program that replaced a tax credit program that was allowed to expire last year.

— allocate $33.5 million more to the Job Development Investment Grant, Job Maintenance and Capital Development Fund and One North Carolina Small Business economic incentives programs.

— restore the state’s Historic Preservation Tax Credit for repairing old buildings. The credit was allowed to expire last year.

— extend various current tax credits or refunds related to research and development, renewable energy for non-solar projects and for jet fuel.

— calculates road building revenues based on 35-cent per gallon motor fuels tax.

COURTS, PRISONS AND LAW ENFORCEMENT:

— provide $16 million over two years to restore court funding to pay for jurors, interpreters, expert witnesses and equipment.

— increase payments for private indigent defense lawyers by $3.2 million.

— create six lab technician positions at State Crime Laboratory for $251,000 to help reduce criminal case backlog.

— give 5 percent pay raises to 700 state troopers, at a cost of $1.8 million.

— replace 75 aging State Bureau of Investigation and Alcohol Law Enforcement vehicles for $1.9 million.

— begin process of reclassifying correctional officers and raise pay, with salaries increasing beginning in mid-2016.

— create 181 positions to improve mental health services for prisons, at a cost of $6.4 million.

TRANSPORTATION

— give $19.6 million from Highway Fund for general road maintenance reserve.

— complete modernization of Division of Motor Vehicles statewide automated driver license system.

— provide $58 million more to carry out state Department of Transportation’s new 10-year road-building plan.

OTHER STATE AGENCIES:

— locate 2 percent cut in Governor’s Office, or $110,000.

— add portfolio manager’s position in State Treasurer’s Office, costing $176,000.

— create new Cabinet-level Department of Veterans Affairs and Department of Information Technology from existing programs.

— shift state parks, Museum of Natural Sciences, state aquariums and N.C. Zoological Park from the Department of Environment and Natural Resources to the Department of Cultural Resources.

— privatize state motor pool for short-term vehicle rental services.

RESERVES, OTHER PLANS:

— place another $47 million in the state’s rainy day reserve fund, increasing it to $698 million.

— earmark $175 million over two years in a Medicaid risk reserve that could be tapped to cover potential shortfalls.

— set aside $82 million over two years for salary fund for pay increases in hard-to-find and hard-to-retain positions.

— increase reserve for health insurance plan for public employee by $34 million.

— McCrory will propose two bonds: one for transportation projects and a second for government building repairs and renovations. Each one will range from $1.2 billion to $1.4 billion.

UNC System President Tom Ross issued the following statement regarding Governor McCrory’s proposed budget:

We appreciate Governor McCrory’s recognition of the value of UNC’s research efforts and the significant intellectual property created by our world-class faculty, as evidenced by his support of our UNC Strategic Directions efforts to commercialize university research. We are also pleased that the Governor’s proposed budget funds growth in student enrollment and much-needed emergency support for East Carolina University’s medical school and Elizabeth City State University.
 
The University of North Carolina has long been key to our State’s economic vitality and way of life.  A recently released report shows that UNC contributes $27.9 billion in added value to the state’s economy and offers an impressive $3.90 return for every $1 invested by the taxpayers. The UNC system has worked successfully to become more efficient through efforts dating back to before the start of the recession. We are disappointed to see an additional cut of 2% proposed and no salary raises for faculty and staff as the state’s economy continues to recover and grow.  We are also concerned that the Governor’s budget proposes an $18-million reduction in funds available to our campuses to build and expand private partnerships. To continue to improve North Carolina’s economic position, attract new industry, and create needed new jobs, North Carolina must continue to maintain and invest in our strong public university system.
We are committed to working with the Governor and the General Assembly throughout the budget process to meet state needs and address key University priorities. 
Related Stories
With Cuts Possibly Looming, UNC Centers State Their Cases
UNC System President Praises GA's Work On Budget
Art Pope Slams UNC System's Budget 'Needs' For 2014-15
UNC Strategic Plan Hurt By Budget Cuts