Local Politics

Perdue again taps trust funds for spending

Posted April 9, 2009

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— Gov. Beverly Perdue on Thursday ordered a state hiring freeze and identified $145 million in various trust funds that could be used to pay the state government's day-to-day bills.

“North Carolina continues to face budgeting challenges. 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 said in a statement.

North Carolina flag, NC flag, state flag, N.C. flag Perdue orders hiring freeze

In addition to freezing hiring, she ordered freezes on agencies buying goods and services and all travel not approved for public safety, public health and economic development reasons. Exceptions to the freezes might be allowed for classroom instruction expenses and emergency situations related to law enforcement, health care and public safety.

The 18 trust funds Perdue is tapping include the Health and Wellness Trust Fund, the Tobacco Trust Fund and several in the Department of Environment and Natural Resources.

A Department of Environment and Natural Resources spokesperson said Perdue’s order could mean state park construction, acquisitions and grants will have to delayed.

Budget officials project a  shortfall up to $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.

“Clearly, we are in crisis,” state Rep. Nelson Dollar, R-Wake County, said. “We need a much fuller understanding.”

In February, Perdue tapped the lottery reserve fund and three other funds to create a $300 million emergency account for operations.


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  • ncemployee Apr 10, 2009

    Bev ordered a hiring freeze on Thursday? Well what did Mike order back in October? Thought we had been on a hiring freeze.

  • shep8851 Apr 10, 2009

    gammasandi: Thanks for the invite---I'll be there...

  • alwayslovingu30 Apr 10, 2009

    Perdue is going to finish Putting United states in the hole it wont be much longer with her waste an pork.She is going to be 1 of the worst Governors ever.Constantly taking money that is reserved for other programs.Less Pork more truth

  • gammasandi Apr 10, 2009


  • TheLibertine Apr 10, 2009

    Just wait until they start jacking up everyone's taxes...well, let me clarify...jacking up the taxes for those of us who actually pay for everyone else.

    Change you all wanted...before you know it, what's left of the middle class will be living on cat food and ketchup soup.

  • shep8851 Apr 10, 2009

    It is absolutely amazing to me---we ( me included) come on this web site and vent--moan and groan--. Problem is that nobody about whom we speak reads these posts. Nobody who can do anything about the situation reads these posts. Its all in here. What needs to happen is that feet need to be put in the street--loud voices need to be hear out in the open. The news media ( if that is ever possible) needs to give the average person the opportunity to speak his/her peace out where other people can hear them. Want to know what is going on??? Want to know how the average person in this state and nation feels--give them the venue to express their feelings. Given the kind of federal and state government--and news media we have---this will never happen.

  • Ouaouaron Apr 10, 2009

    I want to take this opportunity to sincerely thank all those straight-ticket voters. Once she and her minions are done eating through the trust funds - what next?

  • ObamaMustGo aka NCcarguy Apr 10, 2009

    I hope you all realize that we are closing in on EVERYONE being a "government" employee.....so ask yourselves, how many wealthy "government" employees do you all know? or do most of them BARELY GET BY???? Is this the CHANGE you all wanted?

  • RonnieR Apr 10, 2009

    emtp2k, that is a 5th office in Charlotte, there have been four for a very long time, New Bern, Raleigh (2 Capitol and
    Administrtative Bldg) and Asheville.

  • emtp2k Apr 10, 2009

    Funny how she is freezing jobs, cutting agencies budgets yet she is increasing the governor's office spending by opening a second office in charlotte, naming dempsey benton as "stimulus czar" and paying him quite a bit to do so when the state's treasurer could have taken on the job and should have been tasked with the job. Dempsey couldn't even run the office he used to run. She named former cumberland county school system director as "ceo" of the public school system when the voters voted in a school superintendent to run the show. More pork barrel waste and smoke screen politics.