STATEWIDE–Facing a state budget shortfall of as much as $3 billion, as well as the need to make “draconian” cuts to state programs if no federal help materializes, Governor Beverly Perdue Thursday asked all state agencies to immediately tighten their budgets by 7% – 2% more than has already been requested by former Governor Mike Easley.
“As Governor, I have a constitutional requirement to balance North Carolina’s budget,” she said earlier this week, “and I intend to do so responsibly.”
In addition to the additional 2% budget cuts, Perdue asked state agencies to cut funds using the following methods:
- Stop any purchases of goods or services unless specifically approved by a department head. This does not apply to equipment or materials needed for classrooms.
- Suspend travel and training except for public safety, public health, job requirements, economic development or emergency situations. Exceptions must be approved by department heads.
- Put on hold any pay-as-you-go appropriations for capital improvement and repair and renovation projects.
- Do not fill any vacant positions unless a prior commitment has been made. Department heads can approve filling vacancies as an “extraordinary exception.”
Meanwhile, Perdue traveled to Washington Wednesday to lobby North Carolina’s for emergency funding. Wrote Barbara Barrett in the Raleigh News and Observer:
Perdue asked Congress for two separate pots of money: One, at about $18 billion, would pay for new infrastructure. The projects include work on airports, highways, schools, clean water systems and public and private colleges. The projects on this list were presented as “shovel-ready.”
The second pot of money, an unspecified amount, would be used to fill North Carolina’s budget shortfall for next fiscal year.
Perdue has said the state is about $2 billion in the hole, and that while she can find some savings, she can’t find enough. And a day after declaring a budget emergency in Raleigh, Perdue also disputed the idea that any shortfall is the fault of the state.
“It is a crisis caused not by bad stewardship on the part of North Carolinians, but because of a global meltdown,” she said.
“I don’t believe it’s a handout,” Perdue said of her request. “It’s not just coming up here and saying, ‘Bail me out.’ “
Perdue’s request received mixed reviews, with N.C. Sen. Richard Burr, a Winston-Salem Republican, the sharpest critic.
“Only if they’re in the form of a loan,” Burr told Barrett. “But I’m not interested in substituting the usual appropriations process and fulfilling states’ shortfalls with emergency money just because the states aren’t making tough decisions they need to make.”
“They didn’t wake up six days ago and realize they have a … deficit,” he said.
Perdue otherwise hopes for relief through the federal stimulus bill now before congress, and hopes that the federal government will take on a higher percentage of medicaid costs.
More from the News and Observer here.