Local Politics

Perdue calls for 2.5 percent cuts across state government

Posted December 21, 2010 6:12 p.m. EST
Updated December 22, 2010 6:21 p.m. EST

— Gov. Beverly Perdue on Tuesday requested that all state agencies trim their spending by 2.5 percent during the remainder of the 2010-11 fiscal year, which ends in June.

Members of Perdue's senior staff met with leaders in the General Assembly to discuss legislative action that would allow the governor to order the cuts for agencies that aren't part of her cabinet. Without legislative approval, Perdue can only request that state agencies scale back their spending.

The move is designed to better position North Carolina for the 2011-12 fiscal year, when budget analysts have projected the state will have a $3.7 billion deficit.

The 2.5 percent cuts are in addition to 1 percent reductions Perdue ordered in August.

The latest cutbacks include not filling vacant positions, except in cases where a teacher is needed for a classroom or public safety is at risk. Also, purchases, travel and training are to be limited, and no salary adjustments will be allowed unless someone has been promoted or reclassified to a new job.

"You can't get the billions some newcomers are talking about unless somebody other than me wants to go into every hospital and every classroom (and say), 'Well, you, you and you are fired today,'" Perdue said Wednesday. "I don't think that's good management."

She said she hopes the cuts will save the state about $200 million.