Perdue: Budget deficit will reach $2B
Posted January 13, 2009
RALEIGH, N.C. — Gov. Beverly Perdue says she's taking additional steps to keep North Carolina's budget balanced after word from fiscal analysts that thisfiscal year's shortfall will now reach $2 billion.
Perdue announced late Tuesday afternoon that she has signed an executive order outlining options to address the shortfall. The new governor said that a more detailed management plan will be released by the end of the week.
Gov. Mike Easley had assembled a plan in the fall to hold back money and free up other funds totaling $1.2 billion. That's when state budget officials agreed with legislative economists who said the shortfall could reach $1.6 billion.
Easley ordered state agencies to have detailed plans to cut from 3 to 7 percent ready for Perdue by Thursday.
Perdue said her budget officials are now saying the amount could reach $2 billion or higher.