Perdue unveils budget; 10,000 state positions cut

RALEIGH, N.C.-  Gov. Perdue released a budget plan Thursday that will cut more than $3 billion in state spending over the next two years in order to close the $2.4 billion deficit.  Gov. Perdue has had to make some drastic cuts to state government but she's also protecting what she calls the state's core.  The budget protects all state-funded teaching positions and it gives $500 million in tax relief for corporations and small businesses. 

Gov. Perdue says she's protecting what's important. 

“Look around you without this funded there wouldn't be an educational system in east Carolina,” she said at the construction site of ECU’s new dental school facility.    

ECU's dental school relies heavily on state funding.  The new facility is under construction and Perdue's budget plan will cover $3.5 million for faculty, staff and supplies. 

“I think she's forward thinking because education is something that will help protect North Carolina's future,” said Jim Hupp, ECU Dental School Dean. 

Continuing job growth and protecting teaching positions comes at a big cost.  About 10,000 state government positions could be cut.

Another 1,000 positions could be eliminated through early retirement.  At the local level, $200 million worth of costs could be passed down to counties statewide. 

“This is probably the worst that we've seen as we climb out of this recession,” said Scott Elliott, Pitt County Manager.  Elliott says Pitt County has already started stream-lining its departments- cutting back on positions and spending.  “We will come out of this storm stronger and better and leaner,” he said.    

Perdue is still budgeting for the temporary state sales tax implemented in July of 2009. 

“The sales tax will automatically eliminate itself by one quarter if the economy has recovered,” said Perdue.    

There will be three different evaluations of the economy's growth in coming years.  If growth continues the sales tax can automatically eliminate down to zero by 2013. 

Perdue says the interactive Balance the Budget Challenge on her website reinforced her decision to protect education.  She says 73% of users who completed the challenge and successfully balanced the budget chose to keep the sales tax increase to protect education.

The governor's budget proposal will go through the General Assembly for approval. 

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RALEIGH, N.C. - Governor Perdue released a budget plan this morning that will cut more than three billion dollars in state spending over the next two years. 

In Governor Perdue's State of the State address Monday night, she promised she would compromise and give up some of her own goals to protect education and job growth.

The budget she released to the legislature this morning holds her to those promises.

It protects every state-funded teacher and teacher assistant position, but, of course, that couldn't come without some painful consequences.

Perdue's plan is stream-lining state government.  She's reducing 176 state programs, consolidating the 14 state agencies down to 8, and eliminating 10,000 state worker positions.

On the job front, it's all about growth.

The budget gives 500 million dollars in tax relief for corporations and small businesses, lowering the corporate income tax to 4.9 %. That makes it the lowest in the southeast.

Perdue will be in Ayden this afternoon.

Nine On Your Side will ask her about the budget plan and we want you to participate.

If you have a question you'd like us to ask Governor Perdue, just go to our facebook page and post it there. 

We’ll have a full report tonight at six o'clock.