Bill
HB 1054
The act provides across-the-board pay increases for public employees and school personnel, plus a 3% retiree COLA, funded by near $1 billion in recurring funds for 2026-27.
Short Title: Government Employee Raises and Retiree COLA
Authoring Body: North Carolina House of Representatives (Sponsor: Rep. Logan)
Effective Date: July 1, 2026
Overall aim: This act provides across-the-board pay increases for a wide range of public employees and school personnel, enhances state employee sick leave benefits, and implements a 3% cost-of-living adjustment (COLA) for retirees in several state pension systems. It also establishes large recurring funding to support these increases and related benefits.
Section-by-Section overview
Part I. Public School Employees
- Teacher Salary Schedule (2026-2027)
- Establishes a monthly salary table for licensed teachers based on years of experience (A schedule), starting at approximately $4,469/month for 0 years and rising to $6,099/month for 25+ years.
- Salary Supplements for Teachers
- NBPTS certified teachers receive a 12% monthly supplement.
- “M” teachers receive a 10% monthly supplement.
- Additional monthly supplements for higher-education preparation levels (e.g., $126 for six-year degree level, $253 for doctoral level) on top of the “M” supplement.
- Special supplements for school psychologists, speech pathologists (master’s level or higher), and audiologists (master’s level or higher) with details on step equivalencies and monthly supplements ($350 for certain roles; other supplements as described).
- Certain administrative and clinical staff (nurses, counselors) receive specified supplements.
- Principal, Assistant Principal, Central Office, and Other Administrative Salaries
- Principal salary schedule increased (with growth-based placement determined by school growth scores and average daily membership). Includes supplements for advanced degrees.
- Assistant principals: base equal to teacher A-schedule plus 19%; additional supplements for six-year (126) and doctoral (253) degree levels.
- Central office staff (superintendents, assistant superintendents, etc.) receive a 9% across-the-board increase; explicit maximums and placement guidance provided.
- Longevity payments are incorporated into the base schedules (no separate longevity payments starting 2017-2018 cycles for various roles).
- Noncertified Personnel
- 9% increase for permanent, full-time 12-month employees; equitable adjustments for less-than-12-month, part-time, and hourly staff.
- State Agency Teachers
- Employees in certain state-operated schools (DHHS, Public Safety, etc.) paid on the teacher schedule receive the same increases.
- appropriation
- A total recurring appropriation of $939,800,000 for 2026-2027 is provided to fund these increases.
Part II. State Employees
- 7% Legislative Salary Increase
- Most state-funded employees (except specified categories) receive a 7% COLA-like increase effective July 1, 2026, plus any other lawful adjustments.
- Eligibility limitations
- Excludes certain categories (local boards of education, UNC-system employees, judges, clerks, various state agencies, and several health/education entities operating under state funds).
- Part-time employees receive prorated increases.
- No employee may be barred from the 7% increase due to ending of position funded at a higher-than-range salary.
- Executive, Judicial, Legislative salary adjustments
- Governor and Council of State, various executive officials, judicial branch officials, clerks, and others receive specified annual salaries effective July 1, 2026 (with listed amounts for several roles).
- Other state-wide pay schedules
- Includes adjustments for community college faculty, UNC SHRA/EHRA employees, corrections and juvenile justice staff, highway patrol, SBI/ALO, probation/parole, magistrates, and more, with specified salary tables and supplements.
Part II, continued funding and use of funds
- Across-the-board increases and adjustments are funded from General Fund appropriations; the act provides administrative flexibility for budgeting and reporting on fund use and reallocations if needed.
- 7% across-the-board increases and related supplements are intended to apply to all eligible state-funded positions as defined.
Part III. Retiree COLA
- Retiree COLA
- Adds a 3% annual increase to retirement allowances for beneficiaries of multiple state retirement systems (Teachers’, State Employees’, Consolidated Judicial, Legislative, and Local Governmental Employees’ systems) effective July 1, 2026.
- Short- and prorated-implementation for beneficiaries who began retirement at different times in 2025-2026.
- Funding for COLA
- Allocates $250,000,000 in recurring funds (2026-2027) to implement the retiree COLA.
Part IV. Effective Date
- The act becomes effective July 1, 2026.
Impact
- Substantial pay increases for public school employees, central office staff, and many state employees starting July 2026.
- Expanded and enhanced sick leave framework to be implemented by 2027 (HR Commission rulemaking deadline: Jan 1, 2027).
- Significant COLA for retirees across multiple systems, funded with dedicated recurring funds.
- Broad fiscal implications: nearly $1 billion in recurring funding for 2026-27 for salary increases and benefits, plus ongoing retiree increases.
Compiled from official sources — confirm details with the bill’s official record.
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