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Perdue tightens state spending, to take another $145M

Thursday, April 9, 2009
(Updated 8:53 pm)

RALEIGH (AP) — Gov. Beverly Perdue said Thursday she would take another $145 million from state funds to help pay the government's bills and restrict further spending to manage North Carolina's budget shortfall.

"North Carolina continues to face budgeting challenges," Perdue said in a news release. "My decision to limit agency spending is crucial to North Carolina's ability to meet our financial obligations and to provide the essential services required by our citizens."

Perdue announced she would transfer money from 18 sources, including two trust funds that receive money from the national tobacco settlement, to ensure there's enough cash available in state coffers to cover day-to-day operations. While lieutenant governor, Perdue led one of those funds — the North Carolina Health and Wellness Trust Fund.

Budget officials project the shortfall will reach $2.2 billion when the fiscal year ends in June.

Perdue spokeswoman Chrissy Pearson said the governor already has secured more than $1 billion in reserves and dedicated funds since taking office to narrow the gap, including the $787 million in the state's rainy-day reserve fund and $50 million in a reserve with state lottery profits inside.

Perdue's budget office also issued tougher spending regulations, telling state agencies that orders for goods and services not received by April 16 must be canceled if paid with money from the state's general operating budget.

Money will be given to state agencies only for mandatory obligations such as salaries, debt service and utilities, with additional exceptions for public safety and welfare, direct classroom instructional expenses and compliance with federal stimulus money rules.

Paid travel by state employees has been terminated through the end of the fiscal year ending June 30, with few exceptions, and no promotions are allowed, according to a memo to department heads and finance officers dated Thursday.

State agencies already have had their funds cut by up to 9 percent compared to what had been budgeted last summer.

"Our challenge is great and I know that the governor and I can rely on you and your staff to help us through these most difficult times," state budget director Charlie Perusse said in the memo.

Comments

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eclipse3

April 10, 2009 - 2:36 am EDT

Ms. Perdue should slip under the fence and sneak into that garden with those money trees that Obama is farming and just pluck a few million ..........after she spends everything our state has of course. She can do it.

mthale

April 10, 2009 - 6:08 pm EDT

Oh god, help us. Have mercy on us. We have spent too much money for too long and don't know how to live anymore.

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