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.

Governor Perdue has kept a busy schedule today despite the snowfall that has blanketed the state. This morning she declared a state of emergency as a precaution. The state of emergency activates the state's Emergency Operations Center and allows the Governor to call on the National Guard if necessary.

Also, this morning Governor Perdue, along with Transportation Secretary Conti, greeted DOT crews that had been working to clear roads all night long.

She continues to urge residents to use caution if they must leave their homes. Driving this evening and overnight may be treacherous as snow potentially turns to ice and we all should try to do a little traveling as possible.

Here was my view walking to work this morning...

On this day, as we celebrate and accomplishments of the life of Dr. Martin Luther King, Jr., we must never forget the potential for ordinary people to do extraordinary things. In fact, the Civil Rights Movement is replete with examples of ordinary people doing extraordinary things.

Dr. King was a single southern preacher who changed America. Rosa Parks was an ordinary woman who was tired and refused to stand up and in the process gave thousands the strength to stand up for themselves. And when four North Carolina A&T students sat down at a Woolworth's counter in Greensboro and refused to leave, they started a movement.

All of us have the potential and ability to make a difference. I grew up the daughter of two parents who never finished high school in a Virginia coal-mining town in Virginia, yet last week I had the honor of becoming our state's first female governor. And tomorrow, Barack Obama will become the first African-American President of the United States.

Despite these accomplishments, Dr. King's dream has yet to be fully realized. Particularly in these times of economic hardship, it's important to remember that you, too, can do extraordinary things by helping a friend or neighbor in need. And that lesson - that every one of us has the ability and obligation to make a difference – is one of the most important lessons we can learn from Dr. King.

Yesterday was Governor Perdue's birthday - but it was no piece of cake. She spent the day in Washington, DC meeting with our state's Congressional delegation, Senators Burr and Hagan, and President-elect Obama's transition to discuss an economic stimulus package.

It was a busy day of meetings, but it was worth it.

North Carolina - like the rest of the country - is facing a budget shortfall and economic challenges. People are worried about their jobs and their mortgages. Governor Perdue made the case that North Carolina and the nation need federal assistance now and urged quick passage of a stimulus and recovery package.

While we don't know how big the federal stimulus will be, we have identified approximately $18 billion in shovel-ready projects that will put people to work.

For the last two months Governor Perdue has been extremely busy putting together an administration by appointing highly qualified leaders to run various state government agencies and putting together a governing agenda.

She has been especially focused on the economy and jobs. Governor Perdue met with President-elect Obama about a federal economic stimulus package, as well as held a series of round table discussions on economic issues to gain valuable feedback from leaders across the state.

Governor Perdue has made a concerted effort to involve everyone in this transition process because she understands that not all the best ideas come from government. Perdue held open public meetings in late November on 14 specific state government policy topics. The meetings included a diverse array of experts and stakeholders from each field, were staffed and run by professional facilitators from the N.C. Small Business Technology Development Center and final reports were compiled by faculty from the UNC School of Government. You can find those final reports right here: Administration, Aging, Commerce, Corrections, Crime Control and Juvenile Justice, Cultural Resources, Education, Energy, Environment and Natural Resources, Health and Human Services, Mental Health, Military, Revenue, Transportation.

Additionally, Governor Perdue will continue to use online tools to have a 2-way dialogue with the citizens of North Carolina. Please check back often to share you thoughts or concerns and to keep up-to-date with the latest information.

We hope you will continue to be engaged.

Thank you for finding your way to our Governor's Office Blog. My staff and I will use this blog to keep you in the loop on what's happening in our administration. I hope the blog can provide some perspective on how government works and how policy is shaped. Hopefully, you will find it interesting and informative and will come back often!

The blog is just one part of our eTownhall. I hope that you will take advantage of all the features that will help you engage with your government. I am here to serve you, so I want to hear from you. From my experiences during the transition and gubernatorial campaign, the people of North Carolina are not shy about sharing their true feelings! And that's a good thing. We are going to build a better state because of it.