Republicans pushed through the state Senate’s budget committee a bill that seeks cost savings to help close next year’s shortfall both by spending cuts and taking cash from places like tobacco trust and economic incentives funds. The bill would direct Democratic Gov. Beverly Perdue to find at least $400 million in budget savings this year, which Perdue has said she can meet.
But the Legislature also would siphon money from more than 20 reserve and dedicated funds, including money from the Golden LEAF Foundation and two incentives programs the Perdue administration has used to lure the likes of Red Hat. Perdue criticized the move as wrong when the state is trying to recruit new jobs and to expand existing businesses. Sen. Richard Stevens, R-Wake, a primary sponsor of the bill, said it’s all part of a plan that could find up to $1 billion to put toward next year’s projected $3.7 billion budget gap and build up the state’s rainy-day reserves.
Thursday, February 3, 2011
