As part of Gov. Perdue’s ongoing efforts to manage the current fiscal year budget shortfall, she is taking the following steps under Executive Order No. 6:
Asking most state agencies for further reduction amounts from 7 percent to 9 percent. Governor Perdue will continue to protect public education as much as possible while managing the shortfall.
As a precautionary step to manage cash flow, the state will transfer up to $300 million dollars from several special accounts into the General Fund. The money will be put into a reserve and may be used to support General Fund obligations if necessary. These transfers will be managed so that existing activities supported by these special funds aren't impacted. The state annually faces cash flow issues between mid-February and April 15. The state's cash position is more heavily impacted this year because final corporate payments are now due by April 15, 2009, rather than March 15, 2009.
Reserve Transfer Amount Current Cash Balance
Education Lottery Reserve Fund $50 million $50 million
Clean Water Management Trust Fund $100 million $251 million
Public School Building Capital Fund $100 million $316 million
Public School Textbook Fund $50 million $65 million
Total $300 million $682 million
“The state constitution requires that I balance the state budget, and I will do that while protecting public education as much as possible,” said Gov. Perdue