NC H540

Provides a $2,400 annual salary increase effective July 1, 2017 to all state employees earning less than $100,000, including teachers, judicial and legislative branch employees, university and community college staff, and temporary/part-time workers.

Excludes employees who resign, are dismissed, reduced in force, die, retire, or separate from state service before July 1, 2017, and excludes payroll checks issued after July 1, 2017 for services provided prior to that date.

Establishes new teacher salary schedules for public school teachers based on years of experience (ranging from $3,524 at 0 years to $5,124 at 25+ years) and salary ranges for school administrators and superintendents.

Appropriates $701,290,177 from the General Fund and $13,792,560 from the Highway Fund to the Reserve for Compensation Increases for the 2017-2018 fiscal year to fund the pay increases.

Allows the Director of the Budget to increase expenditures for receipt-supported personnel funded outside the General Fund or Highway Fund to provide the authorized salary increases.