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North Carolina Gov. Bev Perdue will not seek a second term in office, her campaign announced this morning.

The statement from Perdue, 65, confirms rumors that have been swirling since early this morning.

"The thing I care about most right now is making sure that our schools and schoolchildren do not continue to be the victims of shortsighted legislative actions and severe budget cuts inflicted by a legislative majority with the wrong priorities," Perdue said in a written statement. "Therefore, I am announcing today that I have decided not to seek re-election. I hope this decision will open the door to an honest and bipartisan effort to help our schools."

The announcement has set off a wave of speculation about who will replace Perdue as the state Democratic Party standard-bearer in 2012.

Lt. Gov. Walter Dalton announced Thursday that he will run for governor, according to the Associated Press.

Although the lieutenant governor's job is relatively low-profile, Dalton has had success raising money. He started the year with $591,000 in the bank and plans to hold a high-dollar fundraiser soon.

The other Democrat who has made clear he intends to run is Rep. Bill Faison, an Orange County lawmaker who has lent his own campaign $500,000 and aired a low-budget ad on a Sunday-morning political panel show.

"We've been anticipating this since December," Faison said of Perdue's likely decision, calling the governor "an historic figure."

Asked about his own plans, Faison said, "today is Gov. Perdue's day" and added that he'll make his own announcement "in due course."

Attorney General Roy Cooper, a Democrat who has been seen as a potential contender for the executive mansion over the year, said Thursday he would run to keep his current job.

“I am honored to serve as Attorney General and plan to file for re-election for that office to continue my work keeping people safe and moving North Carolina forward,” Cooper said.

It is unclear why Perdue is stepping away from a re-election battle for which she was raising money. In recent weeks, she has picked a high-profile fight with the General Assembly over funding for education that seemed to play into a general election strategy.

But Public Policy Polling, a firm that works mainly for Democratic candidates, points out that her own approval ratings have not been in positive territory since March of 2009, three months into her term. Since then she has been plagued by a series of campaign finance inquiries and minor speaking gaffs. Perdue's tenure has also been dogged by a faltering economy, with statewide unemployment hovering around 10 percent and voters unhappy with government's inability to fix the problem.

Perdue's decision takes on all the more importance because North Carolina is considered a battleground state for the presidential campaign. Charlotte will host the Democratic National Convention and Perdue is a close ally of President Barack Obama.

Pat McCrory, a former Charlotte mayor and the only well-known Republican to be planning a run for governor, expects to make his campaign official at an announcement in Greensboro next week.

Republicans reacted with glee at Perdue's rumored plans.

“It’s now clear that the past four years of having a Democratic governor in North Carolina have been a failure. North Carolina’s lost ground to its neighbors, and now has the worst unemployment rate in the region," said Republican Governors Association Executive Director Phil Cox. "It’s never been more clear that North Carolina needs a Republican governor who will bring fresh ideas and a new perspective to the governor’s office."

A longtime resident of New Bern, Perdue worked as a teacher and director of geriatric services at a hospital in her home town before entering politics. She served in the Legislature and as lieutenant governor before being elected governor.

Perdue's full statement to the media:

"Like the rest of the nation, North Carolina has been facing difficult economic times -- demanding many difficult decisions. I have had to make painful budget cuts in important areas of government. But I believe I have approached this challenge in a way that is consistent with my values and the values that have made our state a wonderful place to live and raise a family. I have spent my tenure in office - and, in fact, my adult lifetime - fighting for things that I care deeply about. And as anyone who knows me will tell you, I do not back down from tough fights.

"But I understand this: We live in highly partisan times, where some people seem more worried about scoring political points than working together to address the real challenges our state faces. And it is clear to me that my race for re-election will only further politicize the fight to adequately fund our schools. A re-election campaign in this already divisive environment will make it more difficult to find any bipartisan solutions.

"The thing I care about most right now is making sure that our schools and schoolchildren do not continue to be the victims of shortsighted legislative actions and severe budget cuts inflicted by a legislative majority with the wrong priorities. Therefore, I am announcing today that I have decided not to seek re-election. I hope this decision will open the door to an honest and bipartisan effort to help our schools.

"To those of you who have supported me throughout my years of public service, I will always be grateful for the confidence you have placed in me. In my remaining months in office, I look forward to continuing to fight for the priorities we share, by putting North Carolinians back to work and investing in our children's future. To my children and grandchildren, and especially to my husband Bob, thank you for always being there for me - especially as I've weighed this difficult decision.

"Thank you all, and God bless North Carolina."

See Friday's News & Record for full details and a look at what lies ahead.