Local Politics

Perdue hopeful for budget agreement

Posted June 26, 2009

— With state budget negotiations at a stalemate and lawmakers gone home for the weekend, Gov. Bev Perdue says she's hopeful the General Assembly will reach an agreement soon on how to raise more money.

"We'll have a budget. It may take us 10 days longer than I want it too," she said Friday. "But at the end of the day, it's all going to work out, and we'll have a revenue stream."

Perdue keeps pushing for state revenue Perdue keeps pushing for state revenue

Both the state House and Senate have agreed to raise $990 million in revenue in fiscal 2009-10 and $1.3 billion in the second year of the budget. Perdue, in recent days, however, has asked them to generate $1.5 billion to avoid drastic cuts to education.

What she has not said is where that revenue should come from, and lawmakers – who have agreed where to cut the budget to erase a projected $4.6 million deficit – cannot agree on how to raise it.

"We have a philosophical difference," Sen. David Hoyle, co-chairman of the Senate Finance Committee. "I respect my colleagues in the House, but we're where we are. They're where they are, and I intend to stay close to where we are."

The Senate is proposing to lower the state sales tax and to tax more services, such as auto repair, lawn care and home improvement. The House wants to increase sales taxes and raise income taxes on couples making more than $200,000 a year.

Perdue hasn't publicly taken a stand.

"Whether it's one revenue stream or another, I think we're all open to those kinds of discussions," she said. "It is what it is. This is the oldest dance in American history."

Some legislators say the chances of passing a balanced budget by June 30, the end of the fiscal year, are about 50 percent.

Once lawmakers agree on how to generate the money, they then have to decide where it goes. Many say it should go to education and the Department of Health and Human Services, but not everyone agrees with that plan.

The Senate agreed Tuesday to approve a continuing resolution to keep the government operating past the end of June in case a budget isn't in place.

The bill orders Perdue to keep spending levels at no more than 85 percent of what was allocated in the past year's budget, because lawmakers are reducing spending due to declining tax collections.

The temporary spending plan also would prevent any pay increases for state workers, such as automatic step increases, from taking effect unless authorized by the General Assembly.

The House Appropriations Committee passed its own continuing resolution Thursday – House leaders have criticized the Senate bill because it doesn't include any expiration date – but House members say they are more focused on trying to get the budget done on time.


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  • s.wake.co Jun 29, 2009

    I like FreeAmerica's ideas.

  • s.wake.co Jun 29, 2009

    I've got an idea that should generate millions of dollars EVERY year for the state. The state could add a usage tax to cell phone accounts. Every call or text message would be taxed at $0.01, and an additional $0.01 per 10 minutes of talk time. That may cause people to use their cell phones more judiciously, but it wouldn't hurt the cell providers (too much) as they will get their $$ regardless of how much time users talk, except for those who constantly go over their allotted minutes and wind up paying a premium for excess minutes.

  • FreeAmerica Jun 26, 2009

    Liberal theme: life, liberty, and the pursuit of our happiness and the people who are actually producing's expense.

    Liberal theme: tax and spend, tax and spend. If we can't tax and spend again - start making people feel sorry for children.

    The solution is to give %5000 to every child - let the parent choose their child's educational provider. This will balance the budget, cause schools to either do a good job or get wiped out, and it will increase results.

    Whoever does the best job gets the money. But, this won't happen because they want a "monopoly" and to brainwash every child for LIFE. And, most of you reading this have probably bought into their lies.

    If a parent wants morals taught, spend $5000 on a school that teaches it. If a parent wants religion, prayer, etc. spend $5000 on a school that does. If they don't, let them send their child to a school that don't.

    When schools compete parents, children, and the community wins!

  • Dave Green Jun 26, 2009

    Enough. Look again and cut expenses.
    I'll be taking down names for reference in the next election.

  • colliedave Jun 26, 2009

    I am a UNC educated 1st grade TA that was just informed yesterday, that they have cut 4 more of us from the school.

    With that sheepskin from UNC you should be able to find a job outside the school system. It all depends on how you market yourself.

  • dws Jun 26, 2009

    Democrats are a MAJOR Fail

  • can u believe it Jun 26, 2009


    I couldn't agree more. I am truly sick and tired of hearing about education. Funding does not need to be increased in order to help our disfunctional education system. Education has and will continue to be the backbone of the democratic party.....and yes, it is a shame that people continue to buy into it...

  • whatelseisnew Jun 26, 2009

    This governor is a fool and those looking at raising taxes are complete idiots. If they want to see their future, they need only look at California. That is where they are heading.

  • yankee1 Jun 26, 2009

    How long has this state been run by the Democrat good ol' boys? How many are or should be in jail? When does it become more important to insure that your quality of life and that of your children is not stripped by politicians of either party rather than continuing to support some corrupt party you might belong to? As to the TA comment: I may be rather old, but when I was in school, classes were 20-30 deep, there were no TAs and there were no assistant principals. The problem is the social engineering and the parents. The illegals and the way we go out of our way for them is a big part of the problem. What part of illegal is so hard to get? People in all professions are losing jobs. This is not just about teachers. How about some accountability. How about not busing kids for three hours simply to be "fair". it's all a bunch of liberal nonsense. There is no reason to continually elect the same people over and over regardless of performance. That goes for Boards of Education too!

  • pbjbeach Jun 26, 2009

    Just please tell me what the difference in the people of this state being rob by a democrat or a republican legisture for when it come right down to it the politicians in raleigh have given the people of this state the choice of electing the devil or the witch over the last past several general elections what are you to do when you really dont have that good of a choice to choise from to start with i feel that this is being done by the pol's intentional in order to keep the party of their choseing in power rather then of the peoples chosing thank you