No freeze ordered, but McCrory seeks 'tight hand' on spending

Posted March 27, 2014

Gov. Pat McCrory holds a news conference at the Governor's Mansion on Jan. 21, 2014.

— Gov. Pat McCrory on Thursday asked all state government leaders to slow spending in the final three months of the fiscal year, but he stopped short of ordering a spending freeze, as has happened several times in recent years.

“North Carolina’s balance sheet is in pretty good shape,” McCrory said in a statement. “I want to keep it that way, so I am requesting the Council of State, cabinet secretaries, agency heads and the judiciary to keep a tight hand on the taxpayer’s purse.”

In a memo sent to agency heads, he asked that purchases be limited to essential goods and services. He also requested that travel be reduced and that salary increases, outside of those already approved by the Salary Adjustment Fund, be limited.

Revenue collections are slightly ahead of what they were a year ago, and the state has an unreserved fund balance of $770.7 million through March 26, which is 76 percent higher than what it was a year ago, officials said.

McCrory noted, however, that projections of Medicaid spending are foggy. On Wednesday, state Department of Health and Human Services officials said Medicaid spending this year likely would be about $130 million over budget, but potential claims by tens of thousands of backlogged Medicaid applicants, delayed or erroneous cuts to the state's benefit program and thousands of provider claims stuck in the billing system make it difficult to obtain a more precise forecast.

House Speaker Thom Tillis called McCrory's requests prudent and fiscally responsible.

"We are pleased that the balance sheet is moving in the right direction and that steps are being taken to ensure that remains the case," Tillis said in a statement.


This blog post is closed for comments.

Oldest First
View all
  • WRAL_USER Apr 1, 2014

    View quoted thread

    Actually more correct than you realize...

  • Sally Bethune Mar 31, 2014
    user avatar

    View quoted thread

    I read your rich and right are might poo every day. It is not just for the top 5% of wage earners to get a tax cut in NC while teachers and state employees and students go with out. It is not right that people who have so much with regards to money get to keep more while food banks run out of food weekly and veterans in NC have their unemployment cut short. And childhood obesity is a problem because cheap highly processed food in a can is much cheaper that fresh fruits and vegetables. And my guess is there are very few fat cat republican that EVER roll through poverty stricken neighborhoods unless it is to take their maid or babysitter home.

  • Bobby Medlin Mar 28, 2014
    user avatar

    Who in the world believes Mcrory?

  • Ty Shrake Mar 28, 2014
    user avatar

    "So why do you seek "tight hands" on projects that aid the children and old and poor of NC, but give corporations and NC's richest 5% tax cuts? " - SALLY

    Let me guess... under McCrory the chillren, the old and the poor will nearly starve to death (while we wage a campaign against childhood obesity in every school in the state). Meanwhile, fat cat corporate Republicans will spend their days rolling through poverty stricken neighborhoods in gold plated limo's laughing at the untouchables. Is that about right?

  • 68_dodge_polara Mar 28, 2014

    View quoted thread

    I can't believe people can't see that one coming. Is it just denial or do they not care because they think someone else will end up paying for it? The truth is those other people are our children.

  • glarg Mar 28, 2014

    Its good to see someone with some fiscal responsibility and an understanding of accounting.

    It will be interesting to watch these other states as the "free" Medicaid expansion blows up on them.

  • WralCensorsAreBias Mar 28, 2014

    He can't do that, the libs will have nothing new to complain about.

    Sally must be one of those.

  • Singlemalt Mar 28, 2014

    Sally, get over yourself. There are every bit crucial people on the state payroll that are not teachers.

  • raleighboy524 Mar 28, 2014

    "Tight hand" advice from the guy who hired several inexperienced people into key state jobs and paid them outrageous salaries? LOL.

  • tracmister Mar 27, 2014

    Stop complaining about the situation. It's more than Pat! Get some balance in the house or feel the pain for years to come.