Gov. Bev Perdue today instructed state agencies to take several steps to balance North Carolina’s budget. The budget management plan is in response to the executive order she signed on Tuesday after new estimates showed the shortfall increasing to $2 billion.
“The global recession has forced our state to make tough financial decisions,” said Gov. Perdue. “North Carolina has earned a reputation for managing our money wisely, and I will continue our state’s practice of sound fiscal management. I will meet my constitutional obligation to balance the budget, and I will meet it responsibly.”
The executive’s orders budget balancing steps include:
1.) Require agencies to cut spending by 7 percent. This is an additional 2 percent cut, added to former Gov. Easley’s previously ordered 5 percent cut.
2.) Stop the purchase of all goods or services, unless specifically approved by a department head. This does not apply to the purchase of supplies, equipment and materials schools require for classroom instruction.
3.) All travel and training is suspended unless it involves public safety, public health, job requirements, economic development opportunities or emergency situations. Any exceptions to the directive must be approved by department heads.
4.) All pay-as-you-go appropriations for capital improvement and repair and renovation projects are to be placed on hold.
5.) A hold on hiring for vacant positions, unless a prior commitment has been made. Vacancies may only be filled if they are approved by a department head as an extraordinary exception to the directive.