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Budget analysts question Perdue's math

Posted July 6, 2009
Updated July 7, 2009

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— The Fourth of July break was the latest obstacle to the passage of a new state budget. With little compromise reached during two weeks of discussion, lawmakers weren't scheduled to return to negotiations until Tuesday.

"We've kind of jumped the track right now. We're not getting along very well with one another," Senate Majority Leader Tony Rand said.

State budget Budget talks continue after holiday break

The House and Senate are trying to erase a projected $4.6 billion deficit and agree on how to raise $1 billion in new revenue. The revenue side of the equation has proved to be the most contentious point of the debate, with the House calling on increases to sales and income taxes and the Senate seeking new taxes on many services.

Gov. Beverly Perdue last week demanded a new budget, saying the state was losing $5 million a day by operating on a continuing resolution.

Legislative budget analysts said Monday that the governor's math doesn't add up because the continuing resolution the General Assembly approved to keep state government running specifies that spending needs to be kept at 85 percent of previous levels.

"If we had tax credits or tax increases going into effect on July 1, it would be costing us, but we didn't," House Majority Leader Hugh Holliman said.

In the House plan, some additional taxes are planned for Aug. 1, but the majority of them would be effective in either October or January.

"I think she's trying to light a spark under all of us over here, but I really don't think we need a spark. I think we know we need to get the job done," said Holliman, D-Davidson.

Perdue's office declined to provide a breakdown of how the governor arrived at the $5 million-a-day figure.

Holliman said House leaders gave Senate budget writers a budget proposal and are waiting for a counter-offer to restart negotiations.


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  • ncblue2 Jul 7, 2009

    The "temporary" tax increases would run out in mid-2010.


    History tells that there is no such thing as "temporary" tax increase !!! :(((

  • larieke Jul 7, 2009

    jpquick, you are absolutely right! $5 mil a day is lost revenue from new taxes. That's $64.52 PER MONTH that a family of four will have in their pocket instead of the government's coffers. And don't be nieve, increased taxes on businesses and the "rich" is a tax on everyone, EVERYONE. I pass increased taxes on to my employees in lower salaries and to the people that buy my services and products, and to renters.

  • Commentor5 Jul 7, 2009

    OK - so this woman is supposed to be a teacher and she has math trouble? What about those poor kids she taught?

  • Bendal1 Jul 7, 2009

    The N&O is reporting that Purdue has requested a "temporary" sales tax increase of one cent, plus higher income taxes for the upper wage brackets, plus a $0.50/pack cigarette tax increase, plus alcohol/beer tax increases, to reach her magical $1.6 billion figure. The "temporary" tax increases would run out in mid-2010.

    I'm surprised she is proposing the one tax increase that impacts the most people, and hits the poor the hardest. I guess when she said she was an "education governor" she meant "I'll beggar the entire state to support the education lobby".

  • ncblue2 Jul 7, 2009

    She can't do math or run a state. Go figure. Who elected her?


    People who voted for CHANGE party line !

  • prn13norm Jul 7, 2009

    Fine all of them $500 per day until they approve a budget!

  • 1carpe Jul 7, 2009

    "I think she's trying to light a spark under all of us over here, but I really don't think we need a spark. I think we know we need to get the job done," said Holliman, D-Davidson." Could it be their "knowing how to get the job done" is part of what got us in this mess. Clayt85 you can in fact receive those services with out paying taxes. I have not been able to find the NC figures (yet), but on a national basis only 51% of WORKING Americans actually pay net taxes. By extention,if NC is even close to that figure, then a lot of people in this state receive services with out paying taxes. You are partially correct, we cannot receive those services with out somebody paying taxes.

  • jet2rdu Jul 7, 2009

    Some of the problems with getting the citizens of NC to fully understand our state budget problem is that Public Schools do not teach students economics and finance as they apply to real life, taxes and government. If we have people, young and old, who can't balance check books or understand compound interest and credit card rates, how well can they understand a budget more complex and higher then they can comprehend. It will take someone to place thousands of stacks of $1 bills at the entrance to the NC legislature on Jones Street, blocking the entrance, before a majority of the NC population understand the financial problems brought to us by the Democratic budgets over the last few years.

  • EyesintheSkies Jul 7, 2009

    lkanzig, I think the posters you're jousting with are trying to ask that you do some research before you post.

    Poor old NC has been controlled by the same bunch of good ole boys as long as I've been around (60+ years). Even when a Repub gets in office, he has had a Dem Lt Guv watching and waiting.

    So Bev is just same stuff, different day. You will find the people of this state are yellow dog Democrats, content to shoot the nose off their own face. This most recent election is ample proof.

  • Here kitty kitty Jul 7, 2009

    Gimme and f "F" "U" "Z" "Z" "Y"...what's it spell? FUZZY!!! Hooray for fuzzy math!! Go team!! Woohoo! I've got a headache where's the tylenol?