Perdue extends spending restrictions

RALEIGH, N.C. — Gov. Beverly Perdue says she'll keep purchase, travel and hiring restrictions in place for North Carolina's government while lawmakers work out a budget plan.

Perdue signed an executive order Friday that essentially extends belt-tightening from last fiscal year to the current year that started July 1.

“Until a budget is signed, this order will ensure that North Carolina maintains a balanced budget and that state agencies continue to follow the strict spending guidelines in place during the previous fiscal year,” she said in a statement.

Lawmakers thought they were close to a budget deal this week after House and Senate Democrats agreed to a tax plan that would raise $982 million in extra revenue. The deal collapsed Thursday after Perdue objected to a provision that would add a surcharge to individuals and businesses that still owed state income tax at the end of the year.

Senate budget negotiators said it's now likely North Carolina won't have a budget agreement for several weeks.

Perdue's executive order directs nearly all the spending restrictions that her budget director set out in an April memorandum through June 30 to stay in place.

Money will be given to state agencies only for mandatory obligations, such as salaries, debt service and utilities. Vacant positions can't be filled, and employee travel using state money is restricted.

There are some exceptions for public safety and welfare and direct classroom instructional expenses.

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Latest Comments

I hope we don't have another .5% pay cut this month like we did in May and June.

Blue Shirt
July 28, 2009 3:37 p.m.

I would like to know what travel/spending restrictions the Gov has been following.... There really are some great state employees out there, who are struggling to get their jobs done b/c they can hardly take a bathroom break without an approval these days. I agree with the idea of locking the Legislature in room until they get their job done. I bet if they can't go home, or wine and dine for a few days, they'll reach a consensus pretty darn fast! Put Bev in the room too and it'll be done even faster!

bekindinnc
July 24, 2009 6:16 p.m.

Hiring freezes have been in place even before the new year started; that's a meaningless order from Purdue. As for 'no unnecessary spending', at least in my office there's been hardly any spending at all. No training, no computer upgrades, nothing. She wants everything on her wish list and is unwilling to accept less; the legislature should go ahead and pass a budget and dare her to veto it, and if she does, override her veto and GIVE THIS STATE A BUDGET!

Bendal1
July 24, 2009 6:10 p.m.

Westral...stupid steps should not be taken...it is a gov't for the people right? I agree drastic steps should be taken but not in the direction Bev. is taking things.

corvair024
July 24, 2009 6:08 p.m.

People do not have the capacity to understand the underlying issues of the shape this state and this country are in. We have seen nothing like this since the Great Depression. Drastic steps must be taken.