Perdue Slashing Her Way To More Spending
Gotta love Gov. Bev’s math, or at least admire it for creativity. Perdue’s recommended state budget, released yesterday, prompted the obligatory headlines that focused on nearly $1-billion in savings proposed by the governor. The buzzword “slashed” was all the vogue.
Odd thing, though, about those slashes: they result in a bottom-line spending increase of about $170 million, bumping Perdue’s total proposed budget to nearly $21 billion. In a deft sleight-of-hand, Perdue tags about $578 million in federal stimulus money North Carolina received as – wait for it – budget cuts.
In other smoke-and-mirror gimmickry, Perdue’s budget plan tucks about $102 million into the state’s rainy-day emergency reserve fund. Cloudy would be more appropriate, as about $85 million is being set aside to offset a temporary repeal of the estate tax, which is expected to return from the grave next year.
The governor’s proposed budget also calls for slashing 600 jobs, the majority of which – wait for it – are already vacant. The spending plan calls for no new taxes, but includes a 25 percent hike on driver’s license records and car and truck registration fees.
Perdue’s recommended budget purports to reduce overall spending by some $950 million, with most state agencies slated for cuts between 5 to 7 percent, and schools, community colleges and universities taking a 4 percent hit.
A bulk of the so-called savings, however, are being redirected to help pay for an expansion of the governor’s “Ready Set Go!” education initiative (check out, in particular, the nifty, student barcode readers that teachers – the ones who still have jobs, that is – will get); small business tax breaks (including about $15 million for the “Back to Work” program that gives tax rebates to small businesses hiring workers who have been unemployed for 60 or more days); and about $15 million for corporate bribes, er, incentives.
The state legislature convenes next month to hash over the governor’s recommended budget, with the House and Senate each taking cracks at writing their own. When both chambers eventually reach a budget agreement, Perdue can either sign it or veto it.
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