A BILL TO BE ENTITLED
AN ACT appropriating funds to provide to state employees and public school personnel a legislative pay increase of five percent.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  The salaries in effect June 30, 2005, of all permanent full‑time State employees whose salaries are set in accordance with the State Personnel Act and who are paid from the General Fund or the Highway Fund shall be increased, effective July 1, 2005, by five percent (5%), unless otherwise provided by this act.
SECTION 1.(b)  Except as otherwise provided in this act, the fiscal year 2005‑2006 salaries for permanent full‑time State officials and persons in exempt positions that are recommended by the Governor or the Governor and the Advisory Budget Commission and set by the General Assembly shall be increased by five percent (5%), effective July 1, 2005, unless otherwise provided by this act.
SECTION 1.(c)  The salaries in effect for fiscal year 2005‑2006 for all permanent part‑time State employees shall be increased, effective July 1, 2005, by five percent (5%). 
SECTION 1.(d)  The Director of the Budget may allocate out of special operating funds or from other sources of the employing agency, except tax revenues, sufficient funds to allow a salary increase, effective July 1, 2005, in accordance with subsection (a), (b), or (c) of this section, including funds for the employer's retirement and social security contributions, for the permanent full‑time and part‑time employees of the agency, provided the employing agency elects to make available the necessary funds.
SECTION 1.(e)  Within regular Executive Budget Act procedures as limited by this act, all State agencies and departments may increase on an equitable basis the rate of pay of temporary and permanent hourly State employees, subject to availability of funds in the particular agency or department, by five percent (5%), effective July 1, 2005.
SECTION 2.(a)  Salaries and related benefits for positions that are funded partially from the General Fund or Highway Fund and partially from sources other than the General Fund or Highway Fund shall be increased from the General Fund or Highway Fund appropriation only to the extent of the proportionate part of the salaries paid from the General Fund or Highway Fund.
SECTION 2.(b)  The granting of the salary increases under this act does not affect the status of eligibility for salary increments for which employees may be eligible unless otherwise required by this act.
SECTION 2.(c)  The salary increases provided in this act are to be effective July 1, 2005, and do not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, or whose last workday is prior to July 1, 2005.
Payroll checks issued to employees after July 1, 2005, which represent payment of services provided prior to July 1, 2005, shall not be eligible for salary increases provided for in this act. This subsection shall apply to all employees, subject to or exempt from the State Personnel Act, paid from State funds, including public schools, community colleges, and The University of North Carolina.
SECTION 2.(d)  The Director of the Budget shall transfer from the Reserve for Compensation Increases in this act for fiscal year 2005‑2006 all funds necessary for the salary increases provided by this act, including funds for the employer's retirement and social security contributions.
SECTION 2.(e)  Nothing in this act authorizes the transfer of funds between the General Fund and the Highway Fund for salary increases.
SECTION 3.(a)  Effective July 1, 2005, G.S. 147‑11(a) reads as rewritten:
"(a)	The salary of the Governor shall be one hundred twenty‑seven thousand four hundred sixty‑one dollars ($127,461) annually, payable monthly."
SECTION 3.(b)  Effective July 1, 2005, the annual salaries for the members of the Council of State, payable monthly, for the 2005‑2006 and 2006‑2007 fiscal years are:

	Council of State	Annual Salary
	Lieutenant Governor	$112,493
	Attorney General	112,493
	Secretary of State	112,493
	State Treasurer	112,493
	State Auditor	112,493
	Superintendent of Public Instruction	112,493
	Agriculture Commissioner	112,493
	Insurance Commissioner	112,493
	Labor Commissioner	112,493
SECTION 4.  In accordance with G.S. 143B‑9, the maximum annual salaries, payable monthly, for the nonelected heads of the principal State departments for the 2005‑2006 and 2006‑2007 fiscal years are:

	Nonelected Department Heads	Annual Salary
	Secretary of Administration	$109,906
	Secretary of Correction	109,906
	Secretary of Crime Control and Public Safety	109,906
	Secretary of Cultural Resources	109,906
	Secretary of Commerce	109,906
	Secretary of Environment and Natural Resources	109,906
	Secretary of Health and Human Services	109,906
	Secretary of Juvenile Justice and Delinquency	109,906
	Secretary of Revenue	109,906
	Secretary of Transportation	109,906

SECTION 5.  The annual salaries, payable monthly, for the 2005‑2006 and 2006‑2007 fiscal years for the following executive branch officials are:

	Executive Branch Officials	Annual Salary
	Chairman, Alcoholic Beverage Control Commission	$100,034
	State Controller	139,997
	Commissioner of Motor Vehicles	100,034
	Commissioner of Banks	112,493
	Chairman, Employment Security Commission	139,819
	State Personnel Director	109,906
	Chairman, Parole Commission	91,343
	Members of the Parole Commission	84,331
	Chairman, Utilities Commission	125,281
	Members of the Utilities Commission	112,493
	Executive Director, Agency for Public Telecommunications	84,331
	Director, Museum of Art	102,502
	Executive Director, North Carolina Agricultural
		Finance Authority	97,369
	State Chief Information Officer	139,913

SECTION 6.(a)  The annual salaries, payable monthly, for specified Judicial Branch officials for the 2005‑2006 and 2006‑2007 fiscal years are:

	Judicial Branch Officials	Annual Salary
	Chief Justice, Supreme Court	$127,461
	Associate Justice, Supreme Court	124,130
	Chief Judge, Court of Appeals	121,026
	Judge, Court of Appeals	118,958
	Judge, Senior Regular Resident Superior Court	115,726
	Judge, Superior Court	112,493
	Chief Judge, District Court	102,149
	Judge, District Court	98,917
	Administrative Officer of the Courts	115,726
	Assistant Administrative Officer of the Courts	105,705

SECTION 6.(b)  The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts or the Commission on Indigent Defense Services, respectively, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district do not exceed sixty‑four thousand seven hundred eighty‑one dollars ($64,781), and the minimum salary of any assistant district attorney or assistant public defender is at least thirty‑three thousand six hundred thirty‑seven dollars ($33,637), effective July 1, 2005.
SECTION 6.(c)  Effective July 1, 2005, the annual salaries of permanent, full‑time employees of the Judicial Department whose salaries are not itemized in this act shall be increased by five percent (5%).
SECTION 6.(d)  Effective July 1, 2005, the annual salaries of permanent, part‑time employees of the Judicial Department whose salaries are not itemized in this act shall be increased by five percent (5%).
SECTION 7.  Effective July 1, 2005, G.S. 7A‑101(a) reads as rewritten:
"(a)	The clerk of superior court is a full‑time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the population of the county as determined in subsection (a1) of this section, according to the following schedule:
Population	Annual Salary
Less than 100,000		$75,242
100,000 to 149,999		84,434
150,000 to 249,999		93,627
250,000 and above		102,821.
The salary schedule in this subsection is intended to represent the following approximate percentage of the salary of a chief district court judge:
Population	Annual Salary
Less than 100,000	73%
100,000 to 149,999	82%
150,000 to 249,999	91%
250,000 and above	100%.
When a county changes from one population group to another, the salary of the clerk shall be changed, on July 1 of the fiscal year for which the change is reported, to the salary appropriate for the new population group, except that the salary of an incumbent clerk shall not be decreased by any change in population group during his continuance in office."
SECTION 8.  Effective July 1, 2005, G.S. 7A‑102(c1) reads as rewritten:
"(c1)	A full‑time assistant clerk or a full‑time deputy clerk, and up to one full‑time deputy clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the following minimum and maximum rates:
Assistant Clerks and Head Bookkeeper	Annual Salary
Minimum		$28,891
Maximum		50,007

Deputy Clerks	Annual Salary
Minimum		$24,743
Maximum		38,781."
SECTION 9.(a)  Effective July 1, 2005, G.S. 7A‑171.1(a) reads as rewritten:
"(a)	The Administrative Officer of the Courts, after consultation with the chief district judge and pursuant to the following provisions, shall set an annual salary for each magistrate.
(1)	A full‑time magistrate shall be paid the annual salary indicated in the table set out in this subdivision. A full‑time magistrate is a magistrate who is assigned to work an average of not less than 40 hours a week during the term of office. The Administrative Officer of the Courts shall designate whether a magistrate is full‑time. Initial appointment shall be at the entry rate. A magistrate's salary shall increase to the next step every two years on the anniversary of the date the magistrate was originally appointed for increases to Steps 1 through 3, and every four years on the anniversary of the date the magistrate was originally appointed for increases to Steps 4 through 6.

Table of Salaries of Full‑Time Magistrates

Step Level	Annual Salary
Entry Rate		$29,283
Step 1			32,051
Step 2			35,063
Step 3			38,349
Step 4			41,950
Step 5			45,978
Step 6			50,438.
(2)	A part‑time magistrate is a magistrate who is assigned to work an average of less than 40 hours of work a week during the term, except that no magistrate shall be assigned an average of less than 10 hours of work a week during the term. A part‑time magistrate is included, in accordance with G.S. 7A‑170, under the provisions of G.S. 135‑1(10) and G.S. 135‑40.2(a). The Administrative Officer of the Courts designates whether a magistrate is a part‑time magistrate. A part‑time magistrate shall receive an annual salary based on the following formula: The average number of hours a week that a part‑time magistrate is assigned work during the term shall be multiplied by the annual salary payable to a full‑time magistrate who has the same number of years of service prior to the beginning of that term as does the part‑time magistrate and the product of that multiplication shall be divided by the number 40. The quotient shall be the annual salary payable to that part‑time magistrate.
(3)	Notwithstanding any other provision of this subsection, a magistrate who is licensed to practice law in North Carolina or any other state shall receive the annual salary provided in the Table in subdivision (1) of this subsection for Step 4."
SECTION 9.(b)  Effective July 1, 2005, G.S. 7A‑171.1(a1) reads as rewritten:
"(a1)	Notwithstanding subsection (a) of this section, the following salary provisions apply to individuals who were serving as magistrates on June 30, 1994:
(1)	The salaries of magistrates who on June 30, 1994, were paid at a salary level of less than five years of service under the table in effect that date shall be as follows: 
Less than 1 year of service		$23,441
1 or more but less than 3 years of service		24,558
3 or more but less than 5 years of service		26,807.
Upon completion of five years of service, those magistrates shall receive the salary set as the Entry Rate in the table in subsection (a).
(2)	The salaries of magistrates who on June 30, 1994, were paid at a salary level of five or more years of service shall be based on the rates set out in subsection (a) as follows: 
Salary Level	Salary Level
on June 30, 1994	on July 1, 1994
5 or more but less than 7 years of service	Entry Rate
7 or more but less than 9 years of service	Step 1
9 or more but less than 11 years of service	Step 2
11 or more years of service	Step 3
Thereafter, their salaries shall be set in accordance with the provisions in subsection (a).
(3)	The salaries of magistrates who are licensed to practice law in North Carolina shall be adjusted to the annual salary provided in the table in subsection (a) as Step 4, and, thereafter, their salaries shall be set in accordance with the provisions in subsection (a).
(4)	The salaries of "part‑time magistrates" shall be set under the formula set out in subdivision (2) of subsection (a) but according to the rates set out in this subsection."
SECTION 10.  Effective July 1, 2005, G.S. 120‑37(c) reads as rewritten:
"(c)	The principal clerks shall be full‑time officers. Each principal clerk shall be entitled to other benefits available to permanent legislative employees and shall be paid an annual salary of ninety‑five thousand forty dollars ($95,040) payable monthly. The Legislative Services Commission shall review the salary of the principal clerks prior to submission of the proposed operating budget of the General Assembly to the Governor and Advisory Budget Commission and shall make appropriate recommendations for changes in those salaries. Any changes enacted by the General Assembly shall be by amendment to this paragraph."
SECTION 11.  Effective July 1, 2005, G.S. 120‑37(b) reads as rewritten:
"(b)	The sergeant‑at‑arms and the reading clerk in each house shall be paid a salary of three hundred twenty‑seven dollars ($327.00) per week plus subsistence at the same daily rate provided for members of the General Assembly, plus mileage at the rate provided for members of the General Assembly for one round trip only from their homes to Raleigh and return. The sergeants‑at‑arms shall serve during sessions of the General Assembly and at such time prior to the convening of, and subsequent to adjournment or recess of, sessions as may be authorized by the Legislative Services Commission. The reading clerks shall serve during sessions only."
SECTION 12.  Effective July 1, 2005, the Legislative Services Officer shall increase the salaries of nonelected employees of the General Assembly in effect for fiscal year 2005‑2006 by five percent (5%).  Nothing in this act limits any of the provisions of G.S. 120‑32.
SECTION 13.  The Director of the Budget shall transfer from the Reserve for Compensation Increases, created in this act for fiscal years 2005‑2006 and 2006‑2007, funds to the North Carolina Community Colleges System Office necessary to provide an annual salary increase of five percent (5%), including funds for the employer's retirement and social security contributions, commencing July 1, 2005, for all community college employees supported by State funds.
SECTION 14.(a)  The Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Compensation Increases, created in this act for fiscal years 2005‑2006 and 2006‑2007, to provide an annual salary increase of five percent (5%), including funds for the employer's retirement and social security contributions, commencing July 1, 2005, for all employees of The University of North Carolina, as well as employees other than teachers of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act (EPA).
SECTION 14.(b)  The Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Compensation Increases, created in this act for fiscal years 2005‑2006 and 2006‑2007, to provide an annual salary increase of five percent (5%), including funds for the employer's retirement and social security contributions, commencing July 1, 2005, for all teaching employees of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act (EPA).  These funds shall be allocated to individuals according to the rules adopted by the Board of Trustees of the North Carolina School of Science and Mathematics and may not be used for any purpose other than for salary increases and necessary employer contributions provided by this section.
SECTION 15.(a)  There is appropriated from the General Fund to the Reserve for Compensation Increases the sum of four hundred sixty‑six million eight hundred fifty thousand dollars ($466,850,000) for the 2005‑2006 fiscal year and the sum of four hundred sixty‑six million eight hundred fifty thousand dollars ($466,850,000) for the 2006‑2007 fiscal year to implement the legislative pay increases authorized by this act for public school personnel and State employees.
SECTION 15.(b)  There is appropriated from the Highway Fund to the Reserve for Compensation Increases the sum of twenty‑two million eight hundred thousand dollars ($22,800,000) for the 2005‑2006 fiscal year and the sum of twenty‑two million eight hundred thousand dollars ($22,800,000) for the 2006‑2007 fiscal year to implement legislative pay increases authorized by this act.
SECTION 16.  The Director of the Budget shall transfer to the State Board of Education from the Reserve for Compensation Increases for fiscal years 2005‑2006 and 2006‑2007 funds necessary to provide an average annual salary increase, effective July 1, 2005, of five percent (5%), including funds for the employer's retirement and social security contributions for all public school personnel.
Notwithstanding any other provision of this act, these funds shall be used to:
(1)	Provide for an average salary increase of five percent (5%) for teachers, school‑based administrators, and all other certified public school personnel who are not at the top of their respective salary ranges.
(2)	Provide all permanent personnel with 29 or more years of experience with a one‑time bonus equivalent to the average salary increase of the 26‑ to 29‑year steps.
(3)	Provide permanent personnel who are at the top of the principal and assistant principal salary schedule with a one‑time bonus equivalent to the average salary increase of the 35‑ to 41‑year steps.
SECTION 17.  This act becomes effective July 1, 2005.