Local Politics

Perdue drops hints on budget plans

Posted March 12, 2009

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— During an economic roundtable Thursday, Gov. Beverly Perdue said her proposed budget would invest in jobs initiatives and provide tax breaks for small businesses.

The announcement provided the first hints at how Perdue will address a ballooning deficit and rising unemployment when she submits her proposed budget to lawmakers next Tuesday.

“We must continue to move North Carolina forward even in these challenging times," Perdue said. "In my budget, I will make targeted investments to create jobs and prepare North Carolina to be an economic leader as our nation recovers. Helping small businesses compete more effectively, developing our work force and fostering innovation and entrepreneurship are all vital to a strong business climate.”

State Employment Security Commission officials reported Wednesday that North Carolina has a record number of people out of work, and the state's 9.7 percent unemployment rate is the highest in 26 years. The unemployment rate also is the sixth-highest in the nation.

Perdue's budget director, Charlie Perusse, said Wednesday that state revenues are more than $1 billion below projections for the year. The state budget will likely have a $3.4 billion hole for the 2009-10 fiscal year, which starts in July, Perusse said.

Perdue's budget plans include allowing businesses with profits of less than $100,000 to exempt the first $25,000 of net income from state tax. Businesses with profits between $100,000 and $200,000 will be able to exempt the first $15,000.

The governor said she also will include several jobs initiatives in her budget:

  • Jobs Now: More than $17 million for community college and vocational education courses and programs focused on job training and preparing students for 21st-century careers.
  • Green Business Fund: $5 million to encourage the growth of North Carolina businesses that focus on using fuel and other natural resources more wisely and effectively.
  • Defense and aerospace: $3 million for expanding North Carolina’s defense and aerospace industry to create jobs.
  • Water and sewer infrastructure: More than $47 million to maximize federal resources for water, sewer and other similar infrastructure projects that support economic growth.
  • Main Street Solutions: $7 million to create a comprehensive economic development tool to drive regional job creation in small and medium-sized towns and cities.
  • Destination N.C.: $1.5 million to brand the state as a business and tourism destination.

Other proposals include expanding the Earned Income Tax Credit from 5 percent to 6.5 percent in 2010, establishing a "founder's credit" to exclude initial stock investments in some start-up companies from capital gains taxes and creating a One North Carolina Small Business Fund to provide $2 million for small companies to match federal innovation grants.

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  • affirmativediversity Mar 12, 2009

    Yeah buddy, just what we need in North Carolina MORE SOCIAL PROGRAMS...wooohooooo, can't wait to see my tax liability next year!

  • My-Humble-Opinion2 Mar 12, 2009

    I would like to know when those of us should be expecting our refund. She wants to give tax breaks but how are they going to pay them? I am waiting 6 weeks so far, I filed electronically and it was supposed to be DD. Maybe Bev can cut me a check

  • exwife1956 Mar 12, 2009

    And what is she gonna do for state employees? She would lower unemployment if she would lift the hiring freeze with state govt. People don't need new programs, they need jobs.

  • seeingthru Mar 12, 2009

    she is so full of as so many in office are-pork sausage

  • 1Moms_View Mar 12, 2009

    sentramom, you keep calling people who comment on the EIC uneducated, yet you are the one with an incorrect understanding of EIC. It may have been intended to assist people who actually WORKED, but the ones who really benefit are the ones who sit home and get paid (welfare) by the government already. They are the ones getting that EIC handout every year by filing taxes to get that money when they nevr work at all.

  • time4real Mar 12, 2009

    hey cool, i'm going to get some more free money for my house full 'O kids! Yeah baby!!!!!!!!!!

  • onoudont Mar 12, 2009

    To Sentramom - Ignorance of the facts does not make one stupid.

  • Caveman93 Mar 12, 2009

    I heard you can do Aerospace and Defense plants for $9.95 on Friday's at The Olive Garden!

  • beachboater Mar 12, 2009

    Bev sounds just like she did on the campaign trail. Bev, the campaign is over. Now you are supposed to deliver what you promised. Still going to spend additional dollars on additional programs, including increased per student spending. How Bev, really, seriously, HOW Bev?????? How are you going to pay for any of this?

    We are already the highest taxed state in the southeast. Are you trying to become the highest taxed state in the country?

    You can't raise taxes and pump up the economy. It doesn't work that way.

    When will we as voters wake up..............geez.

  • Beachnut Mar 12, 2009

    To extend gopack's comment on the EIC: when folks start making too much to qualify for the EIC, they get completely annoyed at their tax preparer because their refund goes down. It's just another example of a well-intentioned tax device having the unintended practical consequence of removing incentives for people to move up the economic ladder. But it's what you get when you let a bunch of well-intentioned amatuers make the rules!

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