Larry Nielsen, provost and executive vice chancellor at N.C. State, defended Mary Easley's new salary.

"Mary Easley brings unmatched experience to our students at N.C. State, and we are fortunate to have her as a member of our faculty," Nielsen said in a statement released Wednesday.

Easley, wife of Gov. Mike Easley, got a pay increase of $79,000 on Tuesday. Her new salary as a executive in residence and senior lecturer in the provost's office at N.C. State University will be $170,000.

In that job she has run the university's Millennium Seminar Series, among other duties. Her new five-year commitment with the university will expand her duties, Nielsen said. She will expand a program that will train public safety leaders, first responders and other security professionals. Her new duties also will include co-directing the pre-law services program and building partnerships with legal professions and area law schools.

"Mrs. Easley's experience in the legal profession and commitment to public service make her uniquely qualified to direct these efforts at N.C. State," Nielsen added. "Her salary is within the range of similar management and law faculty and administrators at N.C. State and other universities."

More than 200 state employees rallied Tuesday for higher pay raises than are in the legislative budget proposals.

State employees are pushing for 3 percent raises, or $1,100, which ever is more, plus one time $1,000 bonuses, Lynn Bonner reports.

The budget proposal has 2.75 percent or $1,100 raises for state employees.

The higher base pay raises would cost an additional $8 million over what's budgeted, according to State Employees Association of North Carolina executive director Dana Cope, and the bonuses would cost between $20 million and $25 million.

The 3 percent raises would bring state employees' raises in line with those proposed for teachers.

"Why do we want to split off teachers and state employees?" Cope asked.

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State Lottery Commission chairman John McArthur said proposed 5 percent raises for lottery employees encourage a better-run state lottery.

The House proposed Wednesday limiting the lottery employees' raises to that of other state employees. Other state employees would get across-the-board raises of 2.75 percent or $1,100, which ever is greater. The state lottery employees receive merit-based raises and the commission approved a budget that would allow for an average 5 percent raise.

McArthur said the lottery was created by the legislature and it can do what it wishes, but he said he would recommend keeping the raises as the lottery proposed.

"Making individual merit salary determinations based on employee performance is a part of trying to increase lottery revenue by trying to manage it as a business," McArthur said.

Rep. Pat Hurley threw a curve to House budget writers Tuesday when she sought to cut the salaries of top state lottery officials, particularly that of Executive Director Tom Shaheen, who makes $246,000 a year.

"There are four people who make more money than our governor, and I think we should look at this," said Hurley, an Asheboro Republican, during a budget committee meeting.

Gov. Mike Easley makes $135,854 a year. Executive deputies Lou Ann Russell, Robin Diehl and Alice Garland are each paid between $142,120 and $144,120.

Hurley also found it unfair that state employees are looking at a raise that's far less than the 5 percent increase the Lottery Commission approved for staff.

House leaders sought to discourage her amendment. House Rules Chairman Bill Owens, an Elizabeth City Democrat, said if the amendment passed, Shaheen would be leaving for another state offering a much more lucrative salary.

That's when Rep. Cary Allred, a barb-tongued Alamance County Republican, joined in. He took Hurley's side.

"When I voted for the lottery, I didn't mean for the director to be the winner of the lottery," Allred said. "And if he wants to leave then don't let the screen door hit you in the behind on the way out."

In the end, committee members agreed to order a study of state salaries.

Gov. Mike Easley said this morning that he was puzzled by the decisions of state House members to cut his proposed teacher raises and other educational expense increases.

"It's very puzzling to me how a House who was so progressive on education last year can retrench so rapidly this year, failing to fund More at Four for our predominately minority students, really stiffing the teachers and not providing enrollment increases for college," Easley said.

Easley made his comments to reporters this morning after a meeting of state elected officials.

"It's not only unacceptable, but it's just puzzling to me how they can be that far off the mark," Easley said.

The House's proposed budget did away with Easley's proposed sin taxes increases on cigarettes and alcohol which would have paid for teacher raises and other items. Instead the House's first draft raises certain fees.

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Gov. Mike Easley proposed a $21.5 billion budget Monday that would raise taxes on cigarettes and alcohol to help pay for teacher raises and mental health reform.

Easley's budget, a 4.2 percent increase from the previous year, would add a 4 percent tax to beer and wine and a 4 percent tax to liquor to pay for a $68 million fix to the state's failing mental health system.

Easley would raise the tax on cigarettes from 35 cents to 55 cents per pack to pay for public school teacher raises that would average 7 percent. Administrators would receive a 6 percent raise.

This is Easley's last budget proposal. He is prohibited by law from seeking a third term. He has said a major goal of his last year is to get teacher pay up to the national average.

Pay increases would be given at a higher rate for newer teachers, said Dan Gerlach, a senior budget advisor to Easley.

"We all have to keep in mind this is a salary that is going to have to continue to grow if we want a quality education across the nation," Easley told reporters Monday morning.

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