Log in to WRAL.com with one click using your favorite social network:
OR
Log in using your WRAL.com account:



Wrong email/password combination.

Forgot password?

Register with WRAL.com using your favorite social network:
OR
Register for a WRAL.com account using our web form.

7:55 a.m. • 5-20-13

Weather Forecast for Raleigh

  • Today: Thunderstorm.
    • Hi: 76° F
  • Tue: Thunderstorm.
    • Hi: 82° F
  • Wed: Partly Cloudy.
    • Hi: 86° F

Other Locations

> 7 Day Forecast

Doppler Image

Published: 2009-01-12 17:26:00
Updated: 2009-03-09 17:12:10

New governor faces economic woes from Day 1


Gov. Bev Perdue signed executive orders on her first day in office.
Gov. Bev Perdue signed executive orders on her first day in office.
print friendly

Between her victory speech in November and her inauguration last Saturday, the job of governor got tougher for Bev Perdue.

From her first day on the job, Perdue will face challenges to come through on her campaign promises. The nationwide economic downturn means the new governor walks into a big budget mess.



North Carolina lost a greater percentage of jobs in October and November than any state in the country.

The State Health Plan needs a $300 million bailout.

Every monthly budget statement shows state revenue sinking along with the economy.

"It's as bad in my mind as it's been anytime since the Great Depression," Perdue said Monday.

The state will need to weather the storm with a combination of spending cuts and raising revenue.

"It won't be pretty," she admitted. "Nobody will be happy."

Each state department is being asked to provide budget proposals with suggested cuts for 3, 5 and 7 percent.

The new governor will head to Washington, D.C, Wednesday to lobby for federal stimulus money to get approved projects off the ground.

Administration Secretary Britt Cobb said Monday that programs and people are on the line. "I would say in all probability that there will some positions that will be eliminated."

Elaine Mejia, of the North Carolina Budget and Tax Center, thinks the new governor will be forced to consider new taxes.

"Unless lawmakers are willing to cut the heart out of state government, they'll need to produce more revenue," she said.

"The budget shortfall this year and (in) another couple of years is going to be so large, it's going to require having these kinds of discussions that you don't have to have when times are good," she said.

Plenty of lawmakers disagree, saying now is the worst time to consider new taxes.

Perdue did not offer specifics Monday.

"It just really hurts me to think about any of those discussions," Perdue said. "I'm not naïve enough to say 'never' to anything. I don't know, but I have a requirement to balance the budget."

Before her inauguration, the governor acknowledged that some of her plans would have to be put on hold, but said she remains committed to offering free access to community college.


14 Comments


WRAL.com welcomes your comments on this story. All comments are moderated prior to publication based on our posting guidelines. Please review them prior to posting and if your message is not approved.

View Comments VIEW ALL 14 COMMENTS

This story is closed for comments. Comments on WRAL.com news stories are accepted and moderated between the hours of 8 a.m. and 8 p.m. Monday through Friday.

Latest Comments
"It won't be pretty," she admitted. "Nobody will be happy." wow nobodys happy now dosent sound like anything is going to change other than the face !!!!!!!!!!

Try cutting just half the waste in state government and you will be swimming in money.

As LT governor you saw this 12 to 18 months ago and promised the moon in your election , now you are faced with what all NC workers/ businesses are faced with, I see no govt. jobs cut , take control and cut the govt. work force , labor is your biggest cost.

she understands "fundementals" so she'll do just fine. Since she's not really sure of her first name that could be a problem though.

Take your birthday party "donations" of $500-10,000, put it in to the general funds. We know that it will find its way back to you and your husband to pay the $900,000 that you loaned your campaign fund

View Comments VIEW ALL 14 COMMENTS