Local Politics

Perdue, Obama to discuss state budget deficit

Posted December 1, 2008 11:18 a.m. EST
Updated December 2, 2008 5:40 a.m. EST

— Governor-elect Beverly Perdue will meet Tuesday with President-elect Barack Obama to discuss the nation's struggling economy and its impact on North Carolina's budget.

Perdue and other governors, including outgoing North Carolina Gov. Mike Easley, will hold a closed-door meeting Tuesday morning in Philadelphia with Obama and incoming vice president Joe Biden.

The National Governors Association is sponsoring the meeting to build strong ties between the new administration and state leaders and to discuss how a federal stimulus package could help states deal with looming budget deficits.

Easley has ordered state agencies to cut their budgets by up to 5 percent in the current fiscal year to deal with a deficit that is expected to top $1 billion.

Some fiscal analysts have said that the deficit could grow to more than $3 billion during the budget year that starts next July as lower consumer spending and increased layoffs lead to declines in sales tax and personal and corporate income tax revenues.

During the meeting, Easley has been asked to discuss North Carolina’s Foreclosure Prevention Program.

Several states are seeking to adopt it as a model, and the National Governors Association is considering proposing federal legislation based on the program.

Watch the WRAL News at 6 p.m. Tuesday for a report on the governors' meeting.