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As Gov. Bev Perdue did this year, Gov. Mike Easley faced a financial crisis early in his administration. There was a danger that the state budget would topple out of balance -- an occurrence that the N.C. Constitution says the governor must not let happen.

So, in February 2002, Easley issued an executive order that, among other things, directed his budget office to shift money from the state's Highway Trust Fund to the general fund. Shortly after, $80 million was transferred.

Easley cited the constitutional provision that empowers the governor to "effect the necessary economies" to reduce expenditures and maintain a balanced budget. But did that language cover the transfer of $80 million from the Highway Trust Fund?

Critics -- former state Sen. Bill Goldston of Eden among them -- contended it did not and filed suit. For seven years, the case has worked its way up and down the court system, getting bogged down for a long time over technical issues. This week, however, the N.C. Court of Appeals ruled in a divided opinion that Easley exceeded his constitutional authority.

"Diverting the Highway Trust Fund to the General Fund and expending the money does not reduce the 'total expenditure' of state government but merely transfers money," Judge Robert N. Hunter Jr. of Greensboro wrote for the court.

Because the three-judge panel was not unanimous, the state Supreme Court will hear this case next. The events it covers are in the past, but the same issues return regularly. This year, Perdue ordered money from the state's lottery fund shifted to the general fund. She later restored the money, but the action seemed to mirror Easley's shift from the Highway Trust Fund. The courts should establish whether such moves legitimately fall under the governor's authority to achieve budget "economies."

This week's decision says the governor is empowered to cut spending but not redirect it from purposes laid out by the legislature. It's an important question, and only the state's highest court can settle it for good -- before the next crisis if it hurries.