Local Politics

N.C. makes plans for more budget cuts

Posted September 3, 2010 8:31 a.m. EDT
Updated September 3, 2010 5:38 p.m. EDT

State budget

— In a memo to the leaders of all departments Thursday, the North Carolina state budget director advised them to plan for spending reductions of up to 15 percent in the next budget cycle.

"I am requesting that each state agency develop 5%, 10% and 15% reduction options," Charles E. Perusse wrote.

Memo: Budget reduction options

The next state budget is due next summer for fiscal 2011-12, but Perusse asked the agency heads to have suggestions available by Oct. 29.

Gov. Beverly Perdue said she wants to focus on eliminating programs and services that are no longer effective, reducing layers of management and administration and consolidating where possible.

"We've been doing this for two years. We've been shedding services. I think the data is about a 12.5 percent reduction in state government and 2,500 positions," she said.

"Every single department has been instructed, and were instructed more than a year ago, to do an analysis of performance objectives and to have some measurements," Perdue continued. "I want to see some metrics on the value of the services we're providing. And those services that our tax dollars are paying for that provides less value to the people of this state are the ones we have to shed."

The final 2010-11state budget totaled about $19 billion, down about $800 million from the year before.

Losers included the Personal Care Services program, which saw $50 million cut from efforts to provide in-home aid to elderly and disabled people; and Perdue's attempt to introduce hand-held devices to help teachers in lower grades assess student performance, which received $10 million instead of the requested $39 million.