Perdue: State deficit cut by $1B

Posted February 9, 2011
Updated February 10, 2011

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— Gov. Beverly Perdue took to the Internet Wednesday to deliver some big budget news.

In a YouTube video, Perdue announced that the budget shortfall for the fiscal year that starts in July will be about $1 billion smaller than previously projected.

As recently as last month, economists said the state would likely bring in $3.7 billion less next year than it would need to spend -- a budget gap of about 18 percent. Perdue said Wednesday that the projected shortfall has now been revised down to $2.7 billion.

"A billion dollars less is great news, but let me be very direct, we still have a very steep budget hole to overcome," Perdue said in the video. "There will be many tough, hard budget choices made in the next few weeks."

Perdue will deliver her annual State of the State address next Monday and is expected to unveil her budget proposal later in the week.

The governor said a combination of factors led to the improved budget picture. The state expects to bring in $700 million more than anticipated in sales, income and corporate taxes, which she attributed to job recruitment efforts.

Perdue spokesman Mark Johnson said another $250 million has come from cost savings in Medicaid and the State Health Plan. The last $50 million comes from what Johnson called a “hodgepodge” of savings in other areas.

Senate President Pro Tempore Phil Berger said in a statement that it's too soon for Perdue to be crowing about the budget.

“We are pleased the economy is showing signs of life, but we are alarmed Gov. Perdue is declaring ‘mission accomplished’ before the real work is done,” said Berger, R-Rockingham.

House Speaker Thom Tillis said he's "glad to hear that the revenues are up. We anticipated some of that. But we still have a very deep hole to fill.”

The new revenue numbers were sent to lawmakers just minutes before the House debated a proposal to cut economic development funds against the Governor's wishes.  But Tillis doesn't think the timing is suspect. 

"I'll take it at face value," Tillis said. "Things are moving quickly. But we still shouldn’t feel good about the fact that we still have a 2.7 billion dollar deficit. And that’s what we have continue to be disciplined and focus on." 

Perdue's press secretary Chris Mackey said the video was filmed in Perdue's office at the old Capitol.  Mackey said the announcement was made online because the Governor "wanted to share it across the state 'in person' as much as possible."  


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  • heels21 Feb 10, 2011

    @pappybigtuna What you dont realize if you vote her out that just means the next persons spouse will get the same perks. It doesnt matter who is in there. Color, political party or whatever. If it is a politician it is a CROOK period.

  • tarheelfan41 Feb 10, 2011

    Fire Perdue!

  • I Change This Name Daily Feb 10, 2011

    Thank you for commenting. Your message will be reviewed by a moderator and posted to the site if it adheres to our posting guidelines.

  • I Change This Name Daily Feb 10, 2011

    yeah vote her out so a man can do the job

    for the same salary

    make him conservative too, yah, that'll get the ticket

    then his wife can get the perks bevvy's hubby has now

  • pappybigtuna1 Feb 10, 2011

    CUT HER SALERY? are you kidding, bet you did not know that her husband gets a state funded allowance, he also gets a fully funded retirement program paid for by the tax payers, and behind door 3 he gets full medical paid for by the tax payers, he gets free food, free rent, free transportation and all the perks extended to him. IT'S GOOD TO BE QUEEN
    Hopeful the folks of NC will wake up at the next election

  • wildcat Feb 10, 2011

    Will Purdue cut her salary? She should. She is cutting everything else. Cannot wait for voting time to get here so I can vote her OUT!

  • I Change This Name Daily Feb 10, 2011

    i blame obamacare

  • dws Feb 10, 2011

    smoke and mirrors

  • Lars Marson Feb 10, 2011

    I agree, during times of tight budgets, one has to cut corners, but not in those sectors that are most needed by the public. Such as quality teachers, quality emergency services(firemen, broad band communication), we can slow down on the bulding of schools, because our state seems to build new schools at a MUCH higher rate then we increase the salaries of good teachers. The news about the high speed railing Pres. Obama passed will be good news for our state, since Amtrak covers about half of NC, but competition will allow their prices to drop but will also bring jobs to NC for those who are hired to engineer, construct, lay, maintain the high speed railings in NC. Our state needs to do a better job of tapping into the creative resources of our state's talented high school seniors, not ALL of them are meant to go to college, some of the bright ones would be best served doing a one year stint in community colleges and then opening up businesses of their own.

  • ynniyric Feb 10, 2011

    I can only say this...if we layoff government employees, especially teachers, fireman and police officers, our economy will not improve. That is just a fact. For you of you folks that want to wine about your high taxes we don't pay much tax in NC. that's why all of these people moved her. All we need to do is to not all the temp sales tax to expire and the budget will nearly be balanced.