RALEIGH Democratic Gov. Bev Perdue plans to introduce her plans for revamping state government this week, getting a jump on the Republican legislature that will take office in January.
After talking for several months about remaking state government to deal with the projected $3.5 billion shortfall, Perdue will announce her plans before a regional Chamber of Commerce meeting in Pinehurst on Thursday.
But on Tuesday she played down expectations, saying she would only talk about the broad outlines of her vision, leaving the details to her budget proposal, which she will submit to the legislature next year.
“It will be very abbreviated …. a philosophical statement about the organization of government,” Perdue told reporters Tuesday. “My budget document will have all the details. But it will give you a glimpse of the overall restructuring.”
The governor said she had been meeting with her advisers for the past two or three months about the budget and was getting a good sense of what she would propose in her budget to the legislature – probably sometime in February.
She said it would include “lots of downsizing and the eliminating of middle management.”
Perdue already has on the table major budget cuts, after asking state agencies to come up with proposals for cuts of 5 percent, 10 percent and 15 percent. If enacted, the cuts would likely result in the layoff of thousands of teachers and other state employees.
But Perdue said she was determined to protect education, viewing it as crucial to the state’s growth.
“Education is the bedrock of any kind of economic development,” Perdue said.
Perdue did not seem inclined to battle the new Republican legislature on tax cuts. In 2009, Perdue backed $1.3 billion in temporary tax increases – along with even larger budget cuts – to deal with a budget shortfall.
The newly elected Republican legislative leaders have said they plan to allow the tax increases to expire next year, and Perdue suggested Tuesday she would go along. “It is my intent right now not to do any taxes,” she said.
She also said she would fight to keep the state’s incentives program, which offers tax credits and grants to businesses that agree to move to North Carolina and to existing state businesses that expand. She said that 49 other states offer such incentives and that North Carolina must compete for jobs.
In a sign of unease about the continuing budget crisis, the Council of State on Tuesday delayed approval of $175 million in building and repair projects.
The council action came as elected leaders voiced concern about taking on added debt at a time when the state faced a projected $3.5 billion shortfall.
The projects had been approved by the legislature, but the council, which is a body of statewide elected officials, has to give approval before bonds can be sold.
“I do not want to issue these bonds at this time,” Republican Agriculture Commissioner Steve Troxler said.
Democratic State Auditor Beth Wood and Republican Labor Commissioner Cheri Berry also voiced concern.
The delayed projects included $55 million in capital and improvements to the University of North Carolina system and the state community college system. It also included $120 million in repairs and renovations projects in state government.
The delayed projects included a $1 million fire suppression sprinkler system and fire alarm upgrade at Polk Hall at N.C. State University, a $2.1 million exterior building restoration and roof replacement at Fetzer Gymnasium at UNC-Chapel Hill, a $455,000 roof replacement at Atkins Library at UNC Charlotte, and a $150,000 roof replacement and exterior building repair to the Criminal Justice Building at N.C. Central University.
Other projects delayed include $439,000 to replace the air-handling unit in the Labor Building, and $658,000 to replace to replace the air-handling units in the old Revenue Building.
Published Wed, Dec 08, 2010 06:09 AM
Modified Wed, Dec 08, 2010 02:48 PM
rob.christensen@newsobserver.com or 919-829-4532
