Identical to H 934, filed 4/30/24.

Defines state employee to mean a full-time or part-time permanent employee employed in a State agency, department, or institution of the legislative, judicial, or executive branches of State government (including The University of North Carolina System and the North Carolina Community Colleges System) employed on June 30, 2024, through June 30, 2025. Directs that the term does not include employees of (1) local boards of education; (2) local community colleges; or (3) schools operated by the Departments of Health and Human Services, Public Safety, or Adult Correction, or by the State Board of Education who are paid based on the Teacher Salary Schedule.

Establishes a Reserve for Appreciation Increases in the General Fund (Appreciation Reserve) in recognition of the valuable contribution made by State employees.  Directs the Appreciation Reserve to fund the following in two phases over the next two fiscal years: (1) a one-time bonus in the amount of $5,000 to be awarded to each State employee in Phase I, in appreciation for their continued  commitment and efforts, effective July 4, 2024, and (2) a moderate and equitable 5% across-the-board pay raise for State employees, effective on July 4, 2024, for Phase I and on July 4, 2025, for Phase II. Specifies that appreciation increases are in addition to any salary adjustment otherwise allowed or provided by law.  Provides for salary and pay schedule adjustments by the Office of Statement Budget and Management or by the employing unit to reflect the salary changes enacted by the act. Specifies that eligible employees will receive an appreciation increase notwithstanding any maximum salary ranges. Provides that the increase will be prorated and equitable for part-time State employees. 

Effective July 1, 2024, appropriates to the Appreciation Reserve the sum of $766,878,331 in recurring funds and the sum of $443,069,680 in nonrecurring funds for the 2024-25 fiscal year, to be funded as follows: (1) Requires the State Controller to transfer to the Appreciation Reserve from the unappropriated balance remaining in the General Fund for the 2024-25 fiscal year the sum of $221,000,503 and (2) requires the State Controller to transfer to the Appreciation Reserve, for the 2024-2025 fiscal year, the sum of: (1) $125 million from the Savings Reserve and (2) $863,947,508 from the State Capital and Infrastructure Fund. Directs that funds in the Appreciation Reserve are not subject to GS 143C-1-2(b) (pertaining to appropriations reversions) and will remain available for Phase II payments in the 2025-26 fiscal year. Provides for the Appreciation Reserve to be eliminated when the funds are fully expended.

Effective July 4, 2024, amends GS 135-5 (concerning the Teachers' and State Employees' Retirement System [TSERS]), GS 135-65 (concerning the Consolidated Judicial Retirement System [JRS]), and GS 120-4.22A (concerning the Legislative Retirement System [LRS]) to provide a 2% increase in the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2023, or a prorated amount for those whose retirement commenced after July 1, 2023 (TSERS and JRS] or January 1, 2024 (LRS), but before June 30, 2024, as determined by the respective Board of Trustees. Appropriates $100 million from the General Fund to the Reserve for Retiree Cost-of-Living Adjustments for the 2024-25 fiscal year to implement the increases.

Effective July 1, 2024, except as otherwise provided.