RALEIGH, N.C. - Gov. Mike Easley wants to raise the tax on cigarettes and alcohol so the state can pay for mental health programs and increase teacher pay to the national average.

Easley released the final budget proposal of his administration Monday, a day before the Legislature opens its 2008 session.       The $21.5 billion spending plan would find new revenue by raising the cigarette tax from 35 cents per pack to 55 cents. The $100 million raised annually would go to raise teacher salaries, which would go up an average 7 percent. Most other state employees would see raises of 1.5 percent.       Taxes on beer, wine and liquor also would increase to fund the state's mental health system, which is struggling with reform efforts that began seven years ago.       Easley also wants more than $700 million in new construction projects for state government.