Part I.

Amends SL 2015-241 (2015 Appropriations Act) to keep the Governor's salary unchanged for 2015-16. Also provides that effective July 1, 2016, the Governor's salary is increased from $142,265 to $147,956. Effective July 1, 2016, increases the salaries for members of the Council of State by 4%. Makes conforming changes.

Amends SL 2015-241 to increase the salaries for specified executive branch officials by 4% for the 2015-17 fiscal biennium. Makes conforming changes.

Amends SL 2015-241 to, effective July 1, 2016, increase the salaries of the specified judicial branch officials for the 2016-17 fiscal year, to the specified amounts. Provides that the salaries of permanent full-time employees of the judicial Department whose salaries are not itemized in the act must not be legislatively increased for the 2015-16 fiscal year (was, 2015-17 fiscal biennium). Requires the district attorney or public defender of a judicial district, with the approval from the Administrative Officer of the Courts or the Commission on Indigent Defense Services, to 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 $75,709 and the minimum salary of any assistant district attorney or assistant public defender is at least $40,173 effective July 1, 2016.

Amends GS 7A-101, effective July 1, 2016, to increase the salaries of clerks of superior court.

Amends GS 7A-102, effective July 2016, to increase the minimum and maximum salaries for assistant and deputy clerks of court. 

Amends GS 7A-171.7, effective July 1, 2016, to increase the salaries of full-time magistrates. Also increases the minimum and maximum salary amounts to be paid magistrates who on June 30, 1994, were paid at a salary level of less than five years under the salary table in effect on that date.

Amends SL 2015-241 to increase the salaries of the Legislative Services Officer and nonelected General Assembly employees in effect on June 30, 2016, by 4%. Makes conforming changes.

Amends GS 120-37, effective July 1, 2016, to require that the sergeant-at-arms and the reading clerk in each house be paid $420 per week plus subsistence and mileage.

Amends GS 120-37, effective July 1, 2016, to require the principal clerks be paid a salary of $110,586.

Amends SL 2015-241 to increase the minimum salaries for nine-month, full-time curriculum community college faculty for 2016-17, with amounts dependent on education level. Prohibits a full-time faculty member from earning less than the minimum for the education level. Requires the pro-rata hourly rate of the minimum salary for each education level to be used to determine the minimum salary for part-time faculty members. Also adds that the State Board of Community Colleges must report on the use of funds for compensation to the 2017 General Assembly by March 1, 2017.

Amends SL 2015-241 to increase the compensation for all full-time UNC SHRA and EHRA employees by 4% for 2016-17. Makes conforming changes.

Amends SL 2015-241 to specify that employees of schools operated by the Department of Health and Human Services, Department of Public Safety, and the State Board of Education who are paid on the teacher salary schedule are to receive the increases given to teachers in this act.

Amends SL 2015-241 to increase the salaries of employees subject to or exempt from the North Carolina Human Resources Act by 4% for the 2016-17 fiscal year. Makes conforming changes. Also specifies that for 2016-17, the salary increases provided do not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, or whose last workday is before July 1, 2016. Provides that for 2016-17, payroll checks issued to employees after July 1, 2016, that represent payment of services provided before that date are not eligible for salary increases. 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 UNC.

Amends SL 2015-241 to increase the salaries in effect June 30, 2016, for the following employees by 4% for the 2016-17 fiscal year: (1) permanent full‑time State officials and persons whose salaries are set in accordance with the State Human Resources Act, (2) permanent full‑time State officials and persons in positions exempt from the State Human Resources Act, (3) permanent part‑time State employees, and (4) temporary and permanent hourly State employees.

Part II.

Establishes a monthly teacher salary schedule based on years of experience for licensed personnel of public schools who are classified as teachers for the 2016-17 fiscal year. Provides that the monthly salary schedule begins at 0-4 years of experience and goes up to over 25 years of experience, with class "A" teachers' monthly salary schedule ranging from $3,640 up to $5,200. 

Establishes that salary supplements for teachers paid on this schedule, as specified, are available to the following classifications: licensed teachers who have NBPTS certification, licensed teachers who are classified as "M" teachers, licensed teachers with licensure based on academic preparation at the six-year degree level, licensed teachers with licensure based on academic preparation at the doctoral degree level, and certified nurses.

Provides that the first step of the salary schedule 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 are equivalent to Step 5 of the "A" salary schedule. These personnel are to receive a salary supplement each month of 10% of their monthly salary and 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.

Provides that the twenty-sixth step of the salary schedule 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 is 7.5% higher than the salary received by these same employees on the twenty-fifth step of the salary schedule.

Directs that instead 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, beginning with the 2014-15 fiscal year.

Provides that a teacher compensated in accordance with the salary schedule for the 2016-17 school year will receive an amount equal to the greater of the following: (1) the applicable amount on the salary schedule; (2) for teachers who were eligible for longevity for the 2013-14 school year, the sum of the teacher's salary provided in Section 35.11 of SL 2013-360; the longevity that the teacher would have received under the longevity system in effect for the 2013-14 school year provided in Section 35.11 of SL 2013-360, based on the teacher's current years of service; and the annual bonus provided in Section 9.1(e) of SL 2014-100; or (3) for teachers who were not eligible for longevity for the 2013-14 school year, the sum of the teacher's salary and annual bonus provided in Section 9.1 of SL 2014-100.

Establishes that the term "teacher" is to include instructional support personnel.

Establishes a monthly salary schedule for school-based administrators based on years of experience. The monthly schedule is for the 2016-17 fiscal year commencing July 1, 2016, and applies only to principals and assistant principals. Provides that the monthly salary schedule begins at 0-9 years of experience and goes up to over 46 years of experience, with assistant principals' monthly salary schedule ranging from $4,133 up to $6,145 and principals' monthly salary schedule ranging from $4,496 up to $8,776 based on classification ranging from Principal I to Principal VIII.

Establishes that the appropriate classification for placement of principals and assistant principals on the salary schedule, except for principals in alternative schools and in cooperative innovative high schools, is determined based on the number of teachers supervised, as specified, with a range from Principal I supervising fewer than 11 teachers up to Principal VIII supervising more than 100 teachers. Provides that the number of teachers supervised includes teachers and assistant principals paid from State funds only and does not include teachers or assistant principals paid from non-State funds or the principal or teacher assistants. Provides that the beginning classification for principals in alternative schools and in cooperative innovative high school programs is the Principal III level, and that principals in alternative schools who supervise 33 or more teachers are to be classified according to the number of teachers supervised.

Establishes that a principal is to 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 and an additional step for every three years of experience serving as a principal on or before June 30, 2009. Establishes that a principal or assistant principal must also continue to receive any additional State-funded percentage increases earned for the 1997-98, 1998-99, and 1999-00 school years for improvement in student performance or maintaining a safe and orderly school.

Establishes that principals and assistant principals with certification based on academic preparation at the six-year degree level will be paid a salary supplement of $126 per month and at the doctoral degree level will be paid a salary supplement of $253 per month.

Requires longevity pay for principals and assistant principals to be as provided for State employees under the North Carolina Human Resources Act.

Provides that if a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State-allotted teachers, the principal is to be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification. Provides that if a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State-allotted teachers, the principal is to be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification. Establishes that this provision applies to all transfers on or after the effective date of the statute, except transfers in school systems that have been created, or will be created, by merging two or more school systems are exempt from the preceding provisions for one calendar year following the date of the merger.

Establishes that participants in an approved full-time master's in-school administration program is to receive up to a 10-month stipend at the beginning salary of an assistant principal during the internship period of the master's program, not to exceed the difference between the beginning salary of an assistant principal plus the cost of tuition, fees, and books and any fellowship funds received by the intern as a full-time student, including awards of the Principal Fellows Program. Requires the Principal Fellows Program or the school of education where the intern participates in a full-time master's in-school administration program to supply the Department of Public Instruction with certification of eligible full-time interns. 

Establishes that during the 2016-17 fiscal year, the placement on the salary schedule of an administrator with a one-year provisional assistant principal's certificate is to be at the entry-level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.

Establishes a monthly salary schedule for assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2016-17 fiscal year, beginning July 1, 2016. Provides that the monthly salary schedule for school administrators, as specified, ranges from $3,527 up to $8,817 based on classification from School Administrator I to School Administrator VII. Directs the local board of education to determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer within the salary ranges and within funds appropriated by the General Assembly for central office administrators and superintendents. Provides that the category in which an employee is placed is to be included in the contract of any employee.

Establishes a monthly salary schedule for public school superintendents for the 2016-17 fiscal year, beginning July 1, 2016. Provides the monthly salary schedule for public school superintendents, as specified, ranging from $5,012 up to $11,827 based on classification from Superintendent I to Superintendent V. Directs the local board of education to 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.

Establishes longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers must be as provided for State employees under the State Personnel Act.

Establishes that superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the six-year degree level will receive a salary supplement of $126 per month in addition to the compensation provided pursuant to the statute. Establishes that superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the doctoral degree level will receive a salary supplement of $253 per month in addition to the compensation provided for under the statute.

Provides that the State Board of Education cannot permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.

Establishes that, effective July 1, 2016, the annual salary for permanent full-time and part-time noncertified public school employees whose salaries are supported from the State's General Fund will be increased by 4%.

Part III.

Amends GS 135-5, concerning retirement benefits for teachers and state employees, adding new subsection (uuu), providing for cost-of-living increases of 2.5% depending on the retirement date of the individual, as specified.

Amends GS 135-65, concerning retirement benefits for individuals in the consolidated judicial retirement system, adding new subsection (ff), providing for cost-of-living increases of 2.5% depending on the retirement date of the individual, as specified.

Amends GS 120-4.22A, concerning retirement benefits for members of the legislative retirement system, adding new subsection (z), providing for cost-of-living increases of 2.5% depending on the retirement date of the individual, as specified.

Part IV.

Appropriates $545,511,209 from the General Fund to the Reserve for Compensation Increases for the 2016-17 fiscal year to implement the cost-of-living adjustment authorized in this act.

Appropriates $14,883,326 from the Highway Fund to the Reserve for Compensation Increases for the 2016-17 fiscal year to implement the cost-of-living adjustment authorized in this act.

Appropriates $105 million from the General Fund to the Reserve for Retiree Cost-of-Living Adjustments for the 2016-17 fiscal year to implement the cost-of-living adjustment authorized in this act.

Appropriates $3.2 million from the Highway Fund to the Reserve for Retiree Cost-of-Living Adjustments for the 2016-17 fiscal year to implement the cost-of-living adjustment authorized in this act.

Part V.

Effective July 1, 2016.