A BILL TO BE ENTITLED
AN ACT to appropriate funds to raise salaries for public school employees and state employees, to enhance state employee sick leave benefits, and to provide a cost‑of‑living adjustment for certain retirees.
The General Assembly of North Carolina enacts:

part i. public school employees

TEACHER SALARY SCHEDULE
SECTION 1.1.(a)  The following monthly teacher salary schedule shall apply for the 2026‑2027 fiscal year to licensed personnel of the public schools who are classified as teachers. The salary schedule is based on years of teaching experience.
2026‑2027 Teacher Monthly Salary Schedule
Years of Experience	"A" Teachers
0	$4,469
1	$4,551
2	$4,633
3	$4,714
4	$4,796
5	$4,878
6	$4,983
7	$5,083
8	$5,181
9	$5,280
10	$5,379
11	$5,477
12	$5,576
13	$5,675
14	$5,774
15‑24	$5,873
25+	$6,099
SECTION 1.1.(b)  Salary Supplements for Teachers Paid on This Salary Schedule. –
(1)	Licensed teachers who have NBPTS certification shall receive a salary supplement each month of twelve percent (12%) of their monthly salary on the "A" salary schedule.
(2)	Licensed teachers who are classified as "M" teachers shall receive a salary supplement each month of ten percent (10%) of their monthly salary on the "A" salary schedule.
(3)	Licensed teachers with licensure based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the supplement provided to them as "M" teachers.
(4)	Licensed teachers with licensure based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the supplement provided to them as "M" teachers.
(5)	Certified school nurses shall receive a salary supplement each month of ten percent (10%) of their monthly salary on the "A" salary schedule.
(6)	School counselors who are licensed as counselors at the master's degree level or higher shall receive a salary supplement each month of one hundred dollars ($100.00).
SECTION 1.1.(c)  For school psychologists, school speech pathologists who are licensed as speech pathologists at the master's degree level or higher, and school audiologists who are licensed as audiologists at the master's degree level or higher, the following shall apply:
(1)	The first step of the salary schedule shall be equivalent to the sixth step of the "A" salary schedule.
(2)	These employees shall receive the following salary supplements each month:
a.	Ten percent (10%) of their monthly salary, excluding the supplement provided pursuant to sub‑subdivision b. of this subdivision.
b.	Three hundred fifty dollars ($350.00).
(3)	These employees are eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six‑year degree level or the doctoral degree level.
(4)	The twenty‑sixth step of the salary schedule shall be seven and one‑half percent (7.5%) higher than the salary received by these same employees on the twenty‑fifth step of the salary schedule.
SECTION 1.1.(d)  Beginning with the 2014‑2015 fiscal year, in lieu of providing annual longevity payments to teachers paid on the teacher salary schedule, the amounts of those longevity payments are included in the monthly amounts under the teacher salary schedule.
SECTION 1.1.(e)  A teacher compensated in accordance with this salary schedule for the 2026‑2027 school year shall receive an amount equal to the greater of the following:
(1)	The applicable amount on the salary schedule for the applicable school year.
(2)	For teachers who were eligible for longevity for the 2013‑2014 school year, the sum of the following:
a.	The salary the teacher received in the 2013‑2014 school year pursuant to Section 35.11 of S.L. 2013‑360.
b.	The longevity that the teacher would have received under the longevity system in effect for the 2013‑2014 school year provided in Section 35.11 of S.L. 2013‑360 based on the teacher's current years of service.
c.	The annual bonus provided in Section 9.1(e) of S.L. 2014‑100.
(3)	For teachers who were not eligible for longevity for the 2013‑2014 school year, the sum of the salary and annual bonus the teacher received in the 2014‑2015 school year pursuant to Section 9.1 of S.L. 2014‑100.
SECTION 1.1.(f)  As used in this section, the term "teacher" shall also include instructional support personnel.

PRINCIPAL SALARY SCHEDULE
SECTION 1.2.(a)  The following annual salary schedule for principals shall apply for the 2026‑2027 fiscal year, beginning July 1, 2026:
2026‑2027 Principal Annual Salary Schedule
Avg. Daily Membership	Base	Met Growth	Exceeded Growth
0‑200	$84,793	$93,271	$101,752
201‑400	$89,032	$97,935	$106,839
401‑700	$93,271	$102,600	$111,927
701‑1,000	$97,512	$107,263	$117,015
1,001‑1,600	$101,752	$111,927	$122,102
1,601+	$105,991	$116,590	$127,189
A principal's placement on the salary schedule shall be determined according to the average daily membership of the school supervised by the principal, as described in subsection (b) of this section, and the school growth scores, calculated pursuant to G.S. 115C‑83.15(c), for each school the principal supervised in at least two of the prior three school years, as described in subsection (c) of this section, regardless of a break in service, and provided the principal supervised each school as a principal for at least a majority of the school year, as follows:
(1)	A principal shall be paid according to the Exceeded Growth column of the schedule if the school growth scores show the school or schools exceeded expected growth in at least two of the prior three school years.
(2)	A principal shall be paid according to the Met Growth column of the schedule if any of the following apply:
a.	The school growth scores show the school or schools met expected growth in at least two of the prior three school years.
b.	The school growth scores show the school or schools met expected growth in at least one of the prior three school years and exceeded expected growth in one of the prior three school years.
c.	The principal supervised a school in at least two of the prior three school years that was not eligible to receive a school growth score.
(3)	A principal shall be paid according to the Base column if any of the following apply:
a.	The school growth scores show the school or schools did not meet expected growth in at least two of the prior three school years.
b.	The principal has not supervised any school as a principal for a majority of the school year in at least two of the prior three school years.
SECTION 1.2.(b)  For purposes of determining the average daily membership of a principal's school, the allotted average daily membership for the school for the applicable school year shall be used. For purposes of this section, the allotted average daily membership of a principal's school shall include any prekindergarten students in membership at that school.
SECTION 1.2.(c)  For purposes of determining the school growth scores for each school the principal supervised in one or more prior school years, the following school growth scores shall be used during the following time periods:
(1)	For the first six months of the applicable fiscal year, the school growth scores from the first, second, and third years.
(2)	For the second six months of the applicable fiscal year, the school growth scores from the second, third, and fourth years.
(3)	If a principal does not have a school growth score from any of the school years identified in this subsection, the most recent available growth scores, up to the fourth year, shall be used.
SECTION 1.2.(d)  Beginning with the 2017‑2018 fiscal year, in lieu of providing annual longevity payments to principals paid on the principal salary schedule, the amounts of those longevity payments are included in the annual amounts under the principal salary schedule.
SECTION 1.2.(e)  A principal compensated in accordance with this section for the 2026‑2027 fiscal year shall receive an amount equal to the greater of the following:
(1)	The applicable amount on the principal salary schedule for the applicable fiscal year.
(2)	For principals who were eligible for longevity in the 2016‑2017 fiscal year, the sum of the following:
a.	The salary the principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.
b.	The longevity that the principal would have received as provided for State employees under the North Carolina Human Resources Act for the 2016‑2017 fiscal year based on the principal's current years of service.
(3)	For principals who were not eligible for longevity in the 2016‑2017 fiscal year, the salary the principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.
SECTION 1.2.(f)  For purposes of this section, the following definitions apply:
(1)	First year. – The school year immediately preceding the second year.
(2)	Fourth year. – The school year immediately preceding the applicable school year.
(3)	Second year. – The school year immediately preceding the third year.
(4)	The applicable fiscal year. – The 2026‑2027 fiscal year.
(5)	The applicable school year. – The 2026‑2027 school year.
(6)	Third year. – The school year immediately preceding the fourth year.

ASSISTANT PRINCIPAL SALARIES
SECTION 1.3.(a)  For the 2026‑2027 fiscal year, beginning July 1, 2026, assistant principals shall receive a monthly salary based on the salary schedule for teachers who are classified as "A" teachers plus nineteen percent (19%). An assistant principal shall be placed on the step on the salary schedule that reflects the total number of years of experience as a certified employee of the public schools. For purposes of this section, an administrator with a one‑year provisional assistant principal's certificate shall be considered equivalent to an assistant principal.
SECTION 1.3.(b)  Assistant principals with certification based on academic preparation at the six‑year degree level shall be paid a salary supplement of one hundred twenty‑six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty‑three dollars ($253.00) per month.
SECTION 1.3.(c)  Participants in an approved full‑time master's in school administration program shall receive up to a 10‑month stipend during the internship period of the master's program. The stipend shall be at the beginning salary of an assistant principal or, for a teacher who becomes an intern, at least as much as that person would earn as a teacher on the teacher salary schedule. The North Carolina Principal Fellows Program or the school of education where the intern participates in a full‑time master's in school administration program shall supply the Department of Public Instruction with certification of eligible full‑time interns.
SECTION 1.3.(d)  Beginning with the 2017‑2018 fiscal year, in lieu of providing annual longevity payments to assistant principals on the assistant principal salary schedule, the amounts of those longevity payments are included in the monthly amounts provided to assistant principals pursuant to subsection (a) of this section.
SECTION 1.3.(e)  An assistant principal compensated in accordance with this section for the 2026‑2027 fiscal year shall receive an amount equal to the greater of the following:
(1)	The applicable amount on the salary schedule for the applicable year.
(2)	For assistant principals who were eligible for longevity in the 2016‑2017 fiscal year, the sum of the following:
a.	The salary the assistant principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.
b.	The longevity that the assistant principal would have received as provided for State employees under the North Carolina Human Resources Act for the 2016‑2017 fiscal year based on the assistant principal's current years of service.
(3)	For assistant principals who were not eligible for longevity in the 2016‑2017 fiscal year, the salary the assistant principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.

CENTRAL OFFICE SALARIES
SECTION 1.4.(a)  For the 2026‑2027 fiscal year, beginning July 1, 2026, the annual salary for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers whose salaries are supported from State funds shall be increased by nine percent (9%).
SECTION 1.4.(b)  The monthly salary maximums that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2026‑2027 fiscal year, beginning July 1, 2026:
2026‑2027 Fiscal Year
Maximum
School Administrator I	$8,255
School Administrator II	$8,746
School Administrator III	$9,267
School Administrator IV	$9,629
School Administrator V	$10,014
School Administrator VI	$10,607
School Administrator VII	$11,031
The local board of education shall determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer within the maximums and within funds appropriated by the General Assembly for central office administrators and superintendents. The category in which an employee is placed shall be included in the contract of any employee.
SECTION 1.4.(c)  The monthly salary maximums that follow apply to superintendents for the 2026‑2027 fiscal year, beginning July 1, 2026:
2026‑2027 Fiscal Year
Maximum
Superintendent I	$11,692
Superintendent II	$12,389
Superintendent III	$13,133
Superintendent IV	$13,923
Superintendent V	$14,760
The local board of education shall determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents.
SECTION 1.4.(d)  Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees under the North Carolina Human Resources Act.
SECTION 1.4.(e)  Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided pursuant to this section. Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for under this section.
SECTION 1.4.(f)  The State Board of Education shall not permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.

NONCERTIFIED PERSONNEL SALARIES
SECTION 1.5.  For the 2026‑2027 fiscal year, beginning July 1, 2026, the annual salary for noncertified public school employees whose salaries are supported from State funds shall be increased as follows:
(1)	For permanent, full‑time employees on a 12‑month contract, by nine percent (9%).
(2)	For the following employees, by an equitable amount based on the amount specified in subdivision (1) of this section:
a.	Permanent, full‑time employees on a contract for fewer than 12 months.
b.	Permanent, part‑time employees.
c.	Temporary and permanent hourly employees.

STATE AGENCY TEACHERS
SECTION 1.6.  For the 2026‑2027 fiscal year, employees of schools operated by the Department of Health and Human Services, the Department of Public Safety, the Department of Adult Correction, and the State Board of Education who are paid on the teacher salary schedule shall be paid as authorized under this act.

APPROPRIATION
SECTION 1.7.  There is appropriated from the General Fund to the Department of Public Instruction the sum of nine hundred thirty‑nine million eight hundred thousand dollars ($939,800,000) in recurring funds for the 2026‑2027 fiscal year to provide the compensation increases for public school employees authorized in this Part.

part ii. state employees/increase/sick leave

SEVEN PERCENT LEGISLATIVE SALARY INCREASE AWARDED TO ELIGIBLE STATE‑FUNDED EMPLOYEES
SECTION 2.1.(a)  Effective July 1, 2026, except as provided by subsection (b) of this section, a person (i) whose salary is set by this Part, pursuant to the North Carolina Human Resources Act, or as otherwise authorized in this act and (ii) who is employed in a State‑funded position on June 30, 2026, is awarded a legislative salary increase in the 2026‑2027 fiscal year, as follows:
(1)	A cost‑of‑living adjustment in the amount of seven percent (7%).
(2)	Any other salary adjustment otherwise allowed or provided by law.
SECTION 2.1.(b)  Effective July 1, 2026, the following persons are not eligible to receive the legislative salary increases provided by subsection (a) of this section:
(1)	Employees of local boards of education.
(2)	Local community college employees.
(3)	Employees of The University of North Carolina.
(4)	Clerks of superior court compensated under G.S. 7A‑101.
(5)	Officers and employees to which Section 2.13 of this Part applies.
(6)	Officers and employees to which Section 2.14 of this Part applies.
(7)	Officers and employees to which Section 2.15 of this Part applies.
(8)	Officers and employees to which Section 2.16 of this Part applies.
(9)	Employees of schools operated by the Department of Health and Human Services, the Department of Public Safety, the Department of Adult Correction, the Governor Morehead School for the Blind, the Eastern North Carolina School for the Deaf, the North Carolina School for the Deaf, and the State Board of Education who are paid based on the teacher salary schedule.
SECTION 2.1.(c)  Part‑time employees shall receive the increases authorized by this section on a prorated and equitable basis.
SECTION 2.1.(d)  No eligible State‑funded employee shall be prohibited from receiving the full salary increases provided in this section solely because the employee's salary after applying the legislative salary increase is above the maximum of the salary range prescribed by the State Human Resources Commission.

GOVERNOR AND COUNCIL OF STATE
SECTION 2.2.(a)  Effective July 1, 2026, G.S. 147‑11(a) reads as rewritten:
"§ 147‑11.  Salary and expense allowance of Governor; allowance to person designated to represent Governor's office.
(a)	The salary of the Governor shall be two hundred seventeen thousand two hundred eighty‑eight dollars ($217,288) annually, payable monthly."
SECTION 2.2.(b)  Effective July 1, 2026, the annual salaries for members of the Council of State, payable monthly, are set as follows:
Council of State	Annual Salary
Lieutenant Governor	$180,171
Attorney General	$180,171
Secretary of State	$180,171
State Treasurer	$180,171
State Auditor	$180,171
Superintendent of Public Instruction	$180,171
Agriculture Commissioner	$180,171
Insurance Commissioner	$180,171
Labor Commissioner	$180,171

CERTAIN EXECUTIVE BRANCH OFFICIALS
SECTION 2.3.  Effective July 1, 2026, the annual salaries, payable monthly, for the following executive branch officials are as follows:
Executive Branch Officials	Annual Salary
Chairman, Alcoholic Beverage Control Commission	$150,703
State Controller	$209,847
Commissioner of Banks	$169,141
Chair, Board of Review, Division of Employment Security	$165,909
Members, Board of Review, Division of Employment Security	$163,881
Chairman, Parole Commission	$165,909
Full‑time Members of the Parole Commission	$153,399
Chairman, Utilities Commission	$188,069
Members of the Utilities Commission	$169,141
Executive Director, North Carolina Agricultural Finance Authority	$146,762
State Fire Marshal	$148,784

JUDICIAL BRANCH
SECTION 2.4.(a)  Effective July 1, 2026, the annual salaries, payable monthly, for the following judicial branch officials are as follows:
Judicial Branch Officials	Annual Salary
Chief Justice, Supreme Court	$217,288
Associate Justice, Supreme Court	$211,648
Chief Judge, Court of Appeals	$208,301
Judge, Court of Appeals	$202,894
Judge, Senior Regular Resident Superior Court	$186,448
Judge, Superior Court	$180,964
Chief Judge, District Court	$179,276
Judge, District Court	$174,003
Chief Administrative Law Judge	$154,868
District Attorney	$179,051
Assistant Administrative Officer of the Courts	$162,442
Public Defender	$179,051
Director of Indigent Defense Services	$180,365
SECTION 2.4.(b)  The district attorney of a judicial district, with the approval of the Administrative Officer of the Courts, and the public defender of a judicial district, with the approval of the Commission on Indigent Defense Services, shall set the salaries of assistant district attorneys and assistant public defenders in that district such that the average salary of those assistants in that district does not exceed one hundred eight thousand three hundred ninety dollars ($108,390) and the minimum salary of any assistant is at least fifty‑eight thousand one hundred seventy‑five dollars ($58,175), effective July 1, 2026.

CLERKS OF SUPERIOR COURT
SECTION 2.5.  Effective July 1, 2026, G.S. 7A‑101(a) reads as rewritten:
"§ 7A‑101.  Compensation.
(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 number of State‑funded assistant and deputy clerks of court as determined by the Administrative Office of Court's workload formula, according to the following schedule:
Assistants and Deputies	Annual Salary
0‑19	$119,547
20‑29	$132,132
30‑49	$144,175
50‑99	$157,301
100 and above	$160,445
If the number of State‑funded assistant and deputy clerks of court as determined by the Administrative Office of Court's workload formula changes, 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 that new number, except that the salary of an incumbent clerk shall not be decreased by any change in that number during the clerk's continuance in office."

ASSISTANT AND DEPUTY CLERKS OF COURT
SECTION 2.6.  Effective July 1, 2026, 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	$43,316
Maximum	$80,027

Deputy Clerks	Annual Salary
Minimum	$38,857
Maximum	$62,852"

MAGISTRATES
SECTION 2.7.  Effective July 1, 2026, G.S. 7A‑171.1(a)(1) reads as rewritten:
"(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	$50,534
Step 1	$54,264
Step 2	$58,288
Step 3	$62,549
Step 4	$67,654
Step 5	$73,801
Step 6	$80,694."

LEGISLATIVE EMPLOYEES
SECTION 2.8.(a)  Effective July 1, 2026, the annual salaries of the Legislative Services Officer and of nonelected employees of the General Assembly in effect on June 30, 2026, shall be legislatively increased by seven percent (7%).
SECTION 2.8.(b)  Nothing in this act limits any of the provisions of G.S. 120‑32.

GENERAL ASSEMBLY PRINCIPAL CLERKS
SECTION 2.9.  Effective July 1, 2026, 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 one hundred forty‑three thousand three hundred twelve dollars ($143,312), payable monthly. Each principal clerk shall also receive such additional compensation as approved by the Speaker of the House of Representatives or the President Pro Tempore of the Senate, respectively, for additional employment duties beyond those provided by the rules of their House. 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 shall make appropriate recommendations for changes in those salaries. Any changes enacted by the General Assembly shall be by amendment to this subsection."

SERGEANTS‑AT‑ARMS AND READING CLERKS
SECTION 2.10.  Effective July 1, 2026, 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 five hundred sixty‑five dollars ($565.00) 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."

COMMUNITY COLLEGES
SECTION 2.11.(a)  Effective July 1, 2026, the State Board of Community Colleges shall provide community college faculty and non‑faculty personnel with an across‑the‑board salary increase in the amount of seven percent (7%).
SECTION 2.11.(b)  Effective July 1, 2026, the minimum salaries for nine‑month, full‑time curriculum community college faculty are as follows:
Educational Level	Minimum Salary
Vocational Diploma/Certificate or Less	$46,138
Associate Degree or Equivalent	$46,780
Bachelor's Degree	$49,563
Master's Degree or Education Specialist	$52,033
Doctoral Degree	$55,593
SECTION 2.11.(c)  No full‑time faculty member shall earn less than the minimum salary for the faculty member's education level. The pro rata hourly rate of the minimum salary for each education level shall be used to determine the minimum salary for part‑time faculty members.

THE UNIVERSITY OF NORTH CAROLINA
SECTION 2.12.  Effective July 1, 2026, the Board of Governors of The University of North Carolina shall provide SHRA employees, EHRA employees, and teachers employed by the North Carolina School of Science and Mathematics with an across‑the‑board salary increase in the amount of seven percent (7%).

CORRECTIONAL OFFICERS/YOUTH COUNSELORS/YOUTH COUNSELOR TECHNICIANS/YOUTH SERVICES BEHAVIORAL SPECIALISTS – SALARY SCHEDULE
SECTION 2.13.(a)  Effective July 1, 2026, State employees serving as correctional officers in the Department of Adult Correction shall be compensated at a specific pay rate on the basis of a salary schedule determined according to the duration of the employee's correctional officer work experience pursuant to the salary schedule in subsection (b) of this section.
SECTION 2.13.(a1)  Effective July 1, 2026, State employees serving in the Department of Public Safety, Division of Juvenile Justice and Delinquency Prevention, shall be compensated at a specific pay rate set on the basis of a salary schedule determined according to the duration of the employee's work experience, as follows:
(1)	Youth Counselor Technicians shall be paid under the Correctional Officer I salary schedule, as established in subsection (b) of this section.
(2)	Youth Services Behavioral Specialists shall be paid under the Correctional Officer II salary schedule, as established in subsection (b) of this section.
(3)	Youth Counselors shall be paid under the Correctional Officer III salary schedule, as established in subsection (b) of this section.
SECTION 2.13.(b)  Effective July 1, 2026, the following annual salary schedule will apply under subsections (a) and (a1) of this section:
Experience	COI	COII	COIII
0	$40,254	$41,579	$44,467
1	$43,071	$44,488	$47,581
2	$45,657	$47,205	$50,437
3	$47,939	$49,516	$52,959
4	$49,856	$51,497	$55,076
5	$51,353	$53,041	$56,728
6+	$52,380	$54,102	$57,863
SECTION 2.13.(c)  If an employee will not receive a salary increase under this section because the employee's salary exceeds the scheduled salary level, then the employee shall receive an annual salary increase equal to the amount of the across‑the‑board legislative salary increase authorized in this Part.

STATE HIGHWAY PATROL SALARY SCHEDULE
SECTION 2.14.(a)  Effective July 1, 2026, law enforcement officers of the State Highway Patrol compensated pursuant to an experience‑based salary schedule shall be compensated based on the officer's respective work experience pursuant to the salary schedule in subsection (b) of this section.
SECTION 2.14.(b)  Effective July 1, 2026, the following annual salary schedule applies under subsection (a) of this section:
Years of Experience	FY 2026‑2027
0	$58,850
1	$62,675
2	$66,749
3	$71,088
4	$75,708
5	$80,629
6+	$85,870
SECTION 2.14.(c)  If an employee will not receive a salary increase under this section because the employee's salary exceeds the scheduled salary level, then the employee shall receive an annual salary increase equal to the amount of the across‑the‑board legislative salary increase authorized in this Part.

STATE LAW ENFORCEMENT OFFICER SALARY SCHEDULE/INCREASES
SECTION 2.15.(a)  Effective July 1, 2026, law enforcement officers of the State Bureau of Investigation and Alcohol Law Enforcement shall be compensated pursuant to an experience‑based salary schedule and shall be compensated based on the officer's respective work experience pursuant to the salary schedule in subsection (b) of this section.
SECTION 2.15.(b)  Effective July 1, 2026, the following annual salary schedule applies under subsection (a) of this section:
Years of Experience	FY 2026‑2027
0	$57,220
1	$60,941
2	$64,902
3	$69,121
4	$73,614
5	$78,399
6+	$83,495
SECTION 2.15.(c)  If an employee will not receive a salary increase under this section because the employee's salary exceeds the scheduled salary level, then the employee shall receive an annual salary increase equal to the amount of the across‑the‑board legislative salary increase authorized in this Part.

PROBATION AND PAROLE OFFICERS/JUVENILE COURT COUNSELORS – SALARY SCHEDULE
SECTION 2.16.(a)  Effective July 1, 2026, probation and parole officers shall be compensated pursuant to the experience‑based salary schedule based on the officer's respective work experience, as established in subsection (b) of this section.
SECTION 2.16.(a1)  Effective July 1, 2026, State employees serving in the Department of Public Safety, Division of Juvenile Justice and Delinquency Prevention, as Juvenile Court Counselors shall be compensated under the probation and parole officer salary schedule, as established in subsection (b) of this section.
SECTION 2.16.(b)  Effective July 1, 2026, the following annual salary schedule applies under subsections (a) and (a1) of this section:
Years of Experience	FY 2026‑2027
0	$48,602
1	$51,760
2	$55,126
3	$58,709
4	$62,525
5	$66,589
6+	$70,917
SECTION 2.16.(c)  If an employee will not receive a salary increase under this section because the employee's salary exceeds the scheduled salary level, then the employee shall receive an annual salary increase equal to the amount of the across‑the‑board legislative salary increase authorized in this Part.

MOST STATE EMPLOYEES
SECTION 2.17.  Effective July 1, 2026, unless otherwise expressly provided by this Part, the annual salaries in effect for the following persons on June 30, 2026, shall be legislatively increased as provided by this act:
(1)	Permanent, full‑time State officials and persons whose salaries are set in accordance with the North Carolina Human Resources Act.
(2)	Permanent, full‑time State officials and persons in positions exempt from the North Carolina Human Resources Act.
(3)	Permanent, part‑time State employees.
(4)	Temporary and permanent hourly State employees.

ALL STATE‑SUPPORTED PERSONNEL
SECTION 2.18.(a)  The legislative salary increases authorized by this act shall be paid effective on July 1, 2026, and do not apply to persons separated from service due to resignation, dismissal, reduction in force, death, or retirement or whose last workday is prior to June 30, 2026.
SECTION 2.18.(b)  The Director of the Budget is granted flexibility to administer the compensation increases enacted by this act. The State employer contribution rates enacted by this act for retirement and related benefits may be deemed by the Director of the Budget for administrative purposes to become effective after July 1 to provide flexibility in the collection and reconciliation of salary‑related contributions as required by law, provided the estimated amount contributed to any affected employee benefit trust equals the amount that would have been contributed to the employee benefit trust if the enacted employer contribution rates had been effective on July 1.
SECTION 2.18.(c)  This section applies to all employees paid from State funds, whether or not subject to or exempt from the North Carolina Human Resources Act, including employees of public schools, community colleges, and The University of North Carolina.

USE OF FUNDS APPROPRIATED FOR LEGISLATIVELY MANDATED INCREASES
SECTION 2.19.(a)  The Office of State Budget and Management shall ensure that the appropriations made by this act for legislatively mandated salary increases and employee benefits are used only for those purposes.
SECTION 2.19.(b)  If the Director of the Budget determines that funds appropriated to a State agency for legislatively mandated salary increases and employee benefits exceed the amount required by that agency for those purposes, the Director may reallocate those funds to other State agencies that received insufficient funds for legislatively mandated salary increases and employee benefits.
SECTION 2.19.(c)  Funds appropriated for legislatively mandated salary and employee benefit increases may not be used to adjust the budgeted salaries of vacant positions, to provide salary increases in excess of those required by the General Assembly, or to increase the budgeted salary of filled positions to the minimum of the position's respective salary range.
SECTION 2.19.(d)  Any funds appropriated for legislatively mandated salary and employee benefit increases in excess of the amounts required to implement the increases shall be credited to the Pay Plan Reserve.
SECTION 2.19.(e)  No later than May 1, 2027, the Office of State Budget and Management shall report to the Fiscal Research Division on the expenditure of funds for legislatively mandated salary increases and employee benefits. This report shall include at least the following information for each State agency:
(1)	The total amount of funds that the agency received for legislatively mandated salary increases and employee benefits.
(2)	The total amount of funds transferred from the agency to other State agencies pursuant to subsection (b) of this section. This section of the report shall identify the amounts transferred to each recipient State agency.
(3)	The total amount of funds used by the agency for legislatively mandated salary increases and employee benefits.
(4)	The amount of funds credited to the Pay Plan Reserve.

APPROPRIATION
SECTION 2.20.  Effective July 1, 2026, there is appropriated from the General Fund the sum of nine hundred thirty‑nine million eight hundred thousand dollars ($939,800,000) in recurring funds for the 2026‑2027 fiscal year for the costs associated with implementing the provisions of this Part.

ENHANCED SICK LEAVE
SECTION 2.21.(a)  By January 1, 2027, the State Human Resources Commission shall adopt rules to implement enhanced sick leave benefits for State employees, effective July 1, 2027, that provide for the following:
(1)	Sick leave shall accrue at the rate of one hour per 20 hours worked, commencing on the first day of employment. Accrued sick leave is cumulative without limit. A State agency may loan time in advance of accrual not to exceed the amount an employee can accumulate during the current calendar year.
(2)	If an employee is separated and rehired within 90 days by the same State agency, previously accrued unused sick leave is reinstated.
(3)	Permissible uses of sick leave shall include the following:
a.	The employee's own physical or mental illness, injury, medical condition, preventive care, or routine medical appointment; and temporary disability due to childbirth or recovery therefrom.
b.	Death of an immediate family member.
c.	Donations to a member of the immediate family who is an approved voluntary shared leave recipient.
d.	Adoption of a child limited to a maximum of 30 days for each parent.
e.	Absences related to the employee being the victim of domestic violence, sexual assault, or stalking, taken for the purpose of medical care, counseling, relocation, or legal proceedings.
f.	The same uses as sub‑subdivision a. of this subdivision for an immediate family member.
(4)	For the purposes of this section, an "immediate family member" means (i) a spouse, domestic or civil union partner, (ii) a parent, including a biological, adoptive, or stepparent; a parent‑in‑law; or a person who stood in loco parentis to the employee, (iii) a child, including a biological, adoptive, foster, or stepchild; a child‑in‑law; a legal ward; or a person for whom the employee stands in loco parentis, (iv) a brother or sister, including adoptive, step, half, and in‑law relationships, (v) a grandparent, great‑grandparent, grandchild, or great‑grandchild, including step and in‑law relationships thereto, and (vi) any dependent living in the employee's household.
(5)	If an employee or the employee's spouse, parent, or child has a serious illness that qualifies under the federal Family Medical Leave Act (FMLA), the FMLA provisions apply. If the illness does not qualify under FMLA, the provisions of the State Human Resources Act (SHRA) apply.
(6)	A State agency may require documentation when an employee absence exceeds three consecutive working days, but the agency shall not require disclosure of details beyond what is reasonably necessary to verify the permissible purpose of the leave. Evidence to support leave for adoption‑related purposes may be required. Sick leave shall be taken and charged in units appropriate and consistent with agency operational needs. Only scheduled work time shall be charged when calculating the amount of leave taken. When exhausting leave, an employee continues to accumulate leave, is entitled to holidays, and remains eligible for salary increases.
(7)	Nothing in this section shall be construed to affect existing rules and policies concerning the transferability of sick leave or how sick leave is handled upon separation and reinstatement unless specifically set forth in this section.
SECTION 2.21.(b)  Nothing in this section shall be construed to modify the treatment of sick leave for purposes of retirement credit under Chapter 135 of the General Statutes.

part iii. cost‑of‑living adjustment for retirees of the teachers' and state employees' retirement system, the consolidated judicial retirement system, the legislative retirement system, and the local governmental employees' Retirement System
SECTION 3.1.(a)  G.S. 135‑5 is amended by adding a new subsection to read:
"(aaaa)	Effective July 1, 2026, the retirement allowance payable to, or on account of, beneficiaries whose retirement commenced on or before July 1, 2025, is increased by three percent (3%) of the allowance payable on June 1, 2025, in accordance with subsection (o) of this section. Effective July 1, 2026, the retirement allowance payable to, or on account of, beneficiaries whose retirement commenced after July 1, 2025, but before June 30, 2026, is increased by a prorated amount of three percent (3%), as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2025, and June 30, 2026."
SECTION 3.1.(b)  G.S. 135‑65 is amended by adding a new subsection to read:
"(ll)	Effective July 1, 2026, the retirement allowance payable to, or on account of, beneficiaries whose retirement commenced on or before July 1, 2025, is increased by three percent (3%) of the allowance payable on June 1, 2025. Effective July 1, 2026, the retirement allowance payable to, or on account of, beneficiaries whose retirement commenced after July 1, 2025, but before June 30, 2026, is increased by a prorated amount of three percent (3%), as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2025, and June 30, 2026."
SECTION 3.1.(c)  G.S. 120‑4.22A is amended by adding a new subsection to read:
"(ff)	In accordance with subsection (a) of this section, effective July 1, 2026, the retirement allowance payable to, or on account of, beneficiaries whose retirement commenced on or before January 1, 2026, is increased by three percent (3%) of the allowance payable on June 1, 2026. Effective July 1, 2026, the retirement allowance payable to, or on account of, beneficiaries whose retirement commenced after January 1, 2026, but before June 30, 2026, is increased by a prorated amount of three percent (3%), as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between January 1, 2026, and June 30, 2026."
SECTION 3.1.(d)  G.S. 128‑27 is amended by adding a new subsection to read:
"(hhh)	Effective July 1, 2026, the retirement allowance payable to, or on account of, beneficiaries whose retirement commenced on or before July 1, 2025, is increased by three percent (3%) of the allowance payable on June 1, 2025, in accordance with subsection (k) of this section. Effective July 1, 2026, the retirement allowance payable to, or on account of, beneficiaries whose retirement commenced after July 1, 2025, but before June 30, 2026, is increased by a prorated amount of three percent (3%), as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2025, and June 30, 2026."
SECTION 3.2.  There is appropriated from the General Fund to the Reserve for Retiree Cost‑of‑Living Adjustments the sum of two hundred fifty million dollars ($250,000,000) in recurring funds for the 2026‑2027 fiscal year to implement this Part.

part iv. effective date
SECTION 4.  This act becomes effective July 1, 2026.