INPUT analyst Randi Powell reports on North Carolina’s newly-proposed budget.
North Carolina Governor Beverly Perdue presented her proposed biennial state budget (FY 11 – 13) on February 17, 2011. Like most governors, Perdue’s budget focused on cutting government spending and creating jobs. Despite the fact that North Carolina is one of eight states retaining a Triple-A credit rating, it is also one of 31 states facing a consecutive fiscal year with a double-digit deficit percentage ($2.4 billion, or 12.7 percent). Along with the absence of federal stimulus dollars to act as a safety net, North Carolina is projecting deeper spending cuts this year compared to last.
Compared to FY 10 – 11 spending, Governor Perdue’s FY 11 – 12 proposed budget cuts target community development (-12.05%) and social services (-10.35%) verticals. Many of these cuts translate into layoffs and the elimination or reduction of 176 state programs and commissions. Perdue’s FY 11 – 12 budget increases spending in economic development (133.75%) and public finance (60.15%) with the State Treasurer, Commerce, and Labor Departments seeing the biggest bumps.
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