GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 1 HOUSE BILL 932 Short Title: Ten Percent Raise/Teachers/First Responders. (Public) Sponsors: Representative A. Jones. For a complete list of sponsors, refer to the North Carolina General Assembly web site. Referred to: Rules, Calendar, and Operations of the House April 14, 2025 *H932 -v-1* A BILL TO BE ENTITLED 1 AN ACT ESTABLISHING THE 2025 TEACHERS' AND FIRST RESPONDERS' PAY 2 INCREASE PROGRAM TO PROVIDE A TEN PERCENT RAISE TO TEACHERS AND 3 FIRST RESPONDERS. 4 The General Assembly of North Carolina enacts: 5 6 PART I. FIRST RESPONDER PAY INCREASE PROGRAM 7 SECTION 1.1. The following definitions apply in this Part: 8 (1) Base salary. – The regular, recurring annual compensation of a first responder, 9 excluding overtime pay, shift differentials, longevity pay, or any other 10 supplemental forms of compensation. 11 (2) Employing authority. – A State agency or a city, county, or other local 12 political subdivision of this State that employs first responders. 13 (3) First responder. – A public employee whose primary duties involve the 14 protection of life, property, or public safety during emergency situations, 15 including specifically: 16 a. Law enforcement officers. 17 b. Firefighters. 18 c. Emergency medical services personnel. 19 d. Public safety telecommunicators or dispatchers. 20 e. Nurses employed by public hospitals, health departments, correctional 21 facilities, or other government healthcare facilities. 22 (4) Pay increase. – A permanent increase to the base salary of a first responder at 23 the rate of ten percent (10%) of the first responder's current base salary. 24 (5) Public employee. – A person employed by an employing authority. 25 (6) Years of service. – The total number of years that a first responder has been 26 employed in a qualifying position by any employing authority within the 27 State. 28 SECTION 1.2. Appropriation for First Responders' Pay Increase. – There is 29 appropriated from the General Fund to the Reserve for First Responder Pay Increases the sum of 30 seven hundred million dollars ($700,000,000) in each year of the 2025-2027 fiscal biennium to 31 provide a permanent ten percent (10%) pay increase to eligible first responders as defined in this 32 act. The Department of Public Safety and the Department of Health and Human Services shall 33 distribute these funds to employing authorities based on the total cost of implementing a ten 34 percent (10%) pay increase for all eligible first responders employed by each authority. Funds 35 General Assembly Of North Carolina Session 2025 Page 2 House Bill 932-First Edition distributed under this section shall be used exclusively for providing the mandated pay increase 1 to eligible first responders and may not be used for administrative costs or other purposes. The 2 pay increase provided pursuant to this section shall be added to the first responder's base salary, 3 effective July 1, 2025, and included in the first responder's base salary for purposes of calculating 4 future salary increases. This pay is subject to retirement contributions as provided by the 5 applicable retirement systems. 6 SECTION 1.3. Administration. – The Office of State Budget and Management shall 7 coordinate with the Department of Public Safety and the Department of Health and Human 8 Services to distribute funds to employing authorities by no later than August 15 of each fiscal 9 year within the 2025-2027 biennium. Employing authorities shall implement the pay increase for 10 eligible first responders effective July 1 of each fiscal year. To be eligible for the pay increase, a 11 first responder must be employed by an employing authority on July 1 of the fiscal year in which 12 the pay increase takes effect. First responders who work less than full time shall receive a 13 prorated pay increase based on the percentage of full-time equivalent hours worked. The Office 14 of State Budget and Management shall develop simplified procedures for the allocation and 15 distribution of pay increase funds and shall provide necessary guidance to the Department of 16 Public Safety and employing authorities. Employing authorities shall certify to the Department 17 of Public Safety the total cost of implementing the pay increase for eligible first responders by 18 August 1 of each fiscal year. By January 15 of each fiscal year, employing authorities shall submit 19 a verification that the pay increase has been implemented for all eligible first responders. Any 20 funds not expended for the purposes specified in this section by the end of each respective fiscal 21 year shall revert to the General Fund. 22 23 PART II. TEACHERS' PAY INCREASE PROGRAM 24 SECTION 2.1. Definition. – For purposes of this Part, the term "teacher" means a 25 classroom teacher, instructional support personnel, principal, or assistant principal employed by 26 a local school administrative unit, charter school, or regional school. 27 SECTION 2.2. Appropriation. – There is appropriated from the General Fund to the 28 Reserve for Teachers' Pay Increases the sum of nine hundred million dollars ($900,000,000) in 29 each year of the 2025-2027 fiscal biennium to provide a permanent ten percent (10%) pay 30 increase to eligible teachers in the public schools. The Department of Public Instruction shall 31 distribute these funds based on the total cost of implementing a ten percent (10%) pay increase 32 for all eligible teachers employed by each entity. Funds distributed under this section shall be 33 used exclusively for providing the mandated pay increase to eligible teachers and may not be 34 used for administrative costs or other purposes. The pay increase provided pursuant to this section 35 shall be added to the teacher's base salary, effective July 1, 2025, included in the teacher's base 36 salary for purposes of calculating future salary increases, and is subject to retirement 37 contributions as provided by applicable retirement systems. This pay is subject to all applicable 38 federal and State withholding taxes. 39 SECTION 2.3. Administration. – The State Board of Education and the Department 40 of Public Instruction shall establish procedures and guidelines for the administration of the 41 teacher pay increase program consistent with this Part, in coordination with the Office of State 42 Budget and Management. The Department of Public Instruction shall distribute these funds to 43 local school administrative units, charter schools, and regional schools no later than August 15 44 of each fiscal year within the 2025-2027 biennium. To be eligible for the pay increase, a teacher 45 must be employed by a local school administrative unit, charter school, or regional school on 46 July 1 of the fiscal year in which the pay increase takes effect. Teachers who work less than full 47 time shall receive a prorated pay increase based on the percentage of full-time equivalent hours 48 worked. Local school administrative units, charter schools, and regional schools shall certify to 49 the Department of Public Instruction the total cost of implementing the pay increase for eligible 50 teachers by August 1 of each fiscal year. By January 15 of each fiscal year, local school 51 General Assembly Of North Carolina Session 2025 House Bill 932-First Edition Page 3 administrative units, charter schools, and regional schools shall submit a verification that the pay 1 increase has been implemented for all eligible teachers. Any funds not expended for the purposes 2 specified in this section by the end of each respective fiscal year shall revert to the General Fund. 3 4 PART III. STATE BUDGET ACT 5 SECTION 3.1. State Budget Act Applies. – The provisions of this act are subject to 6 compliance with Chapter 143C of the General Statutes. If there is a conflict between this act and 7 the State Budget Act (SBA), the provisions of the SBA shall control. 8 9 PART IV. EFFECTIVE DATE 10 SECTION 4.1. Effective Date. – This act becomes effective July 1, 2025. 11