Governor Bev Perdue released her recommended biennial budget for 2011-2013 today. There are some good things in the budget, but a lot of the balancing comes on the back of continuing tax increases and shuffling expenses off to local governments. I will be back this afternoon with a more detailed breakdown, but for now here are some high (and low) lights:
-FY 2011-12 budget is $1.5 billion less than the FY 2008-09 budget and $2.2 billion less than 2009 continuation budget.
-Spends 11 percent less per capita than three years ago and has 4,300 fewer general government positions.
-Authorizes no new debt.
-Allocates an additional $150 million to Rainy Day Fund, doubling its total.
-Lowers corporate income tax rate from 6.9 percent to 4.9 percent making it the lowest in the Southeast and third lowest in the country.
-Combines and consolidates 14 executive branch agencies into eight.
-Does not move money from Golden LEAF fund (as authorized in SB13 which Perdue is expected to veto as soon as today).
-Keeps 3/4 of 1 cent sales tax increase in place (or reduces 2009 “temporary” sales tax increase by 1/4).
-Completely ignores state retirement fund insolvency.
Questions or comments can be directed to NCTPLegUpdate@gmail.com.