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With the short session of the General Assembly a little over a month away, Gov. Perdue plans to announce her budget for the second year of the biennium in two weeks.  The governor has been hands-on and deliberative during the rigorous budget development process as the state continues to tighten its belt during this tough economy.  Gov. Perdue’s budget will reflect her priorities of job creation and economic development, education, setting government straight and public safety. 

The global economic downturn, credit crunch and overall volatility in the financial markets have had a significant impact on our state budget. The Office of State Budget and Management expects a budget shortfall of between $1.8 billion and $2.2 billion for the current fiscal year.

We are carefully monitoring the situation and working to find solutions. Governor Perdue is committed to balancing the budget, and to doing so responsibly.

Last week she ordered state agencies to cut their budgets up to 7%, but as she has said, "we're not going to eat our seed corn." Schools, health care, mental health and public safety will be spared the worst.

Additionally, the Governor ordered 1) a stop to purchases of goods and services - except for materials required in the classrooms, 2) limits on travel, 3) a hold on pay-as-you-go appropriations for capital improvements, and 4) a freeze on hiring for vacant positions.

FY 2008-09 Budget Management Plan As Revised on 1-13-09

As State Budget Director it is my job to assist Governor Perdue in creating a state budget that meets its constitutional obligation. It'll take making tough decisions - which we have already begun - but we will balance the state budget in a responsible manner.