The governor is set to release her budget at 10:00. Keep checking here. We’ll be posting details as they become available.
10:02 David Bass reports these first details:
* Lowers corporate tax from 6.9 percent to 4.9 percent
* Keeps the state sales tax at 5.5 percent; lowers it gradually by 0.25 percent as the economy improves (no mention of expiring income tax surcharge)
* Creates an unemployment insurance tax credit for small business
* Don’t see anything about video poker
* Most state programs face a 7 percent to 15 percent cut
* She recommends a $7 million nonrecurring reduction in the JDIG program
* Nonrecurring appropriation of $10 million to the One North Carolina Fund
* Reduces annual appropriations to the N.C. Biotech Center by 10 percent, or around $2 million
* Reduces funding to the Clean Water Management Trust Fund by 50 percent, or $50 million, for the 2011-13 biennium on a non-recurring basis.
* Overall, budget is $2.2 billion less than the continuation budget for the 2008-2009FY
* Allocates another $150 million to the Rainy Day Fund for a total balance of $300 million
10:09 As many as 5,000 state positions may be cut.
10:14 Perdue mentioned offers of early retirement for state workers in the State of the State. She expects 1,000 to take her up on the offer, at a savings of $208 million in first two years.
10:18 David notes that Perdue’s 0.25 cent sales tax cut would continue to leave in place three-quarters of the “temporary” increase passed in 2009. So it’s still a tax increase from 2009 levels.
10:20 On the economic incentives/”job creation” front, David also points out that the $7 million reduction in JDIG is more than offset by a $10 million increase in the One North Carolina Fund.
10:25 Perdue called “philosophical and moral debate” over video gambling a distraction. So she’s not addressing it now.
10:27 Senate President Pro Tem Phil Berger says “Gov. Perdue is balancing the budget on the backs of North Carolina taxpayers and local governments” and is “breaking her promise to end the taxes she raised.”
10:30 Perdue won’t touch Golden LEAF, says SB 13 (Balanced Budget Act) harms N.C.’s business incentives program. (Hasn’t said — yet — if she’ll veto it.)
10:32 Perdue says she’ll “work on” SB 13 today. Veto forthcoming?
10:45 Perdue’s budget “saves” $2.4 billion in first year of biennium, $2.0 billion in second
11:01 Budget director Charles Perusse says the governor estimates a 5.2% reduction in state govt work force compared to 2008. He also says the budget holds teacher and teacher assistant jobs harmless.
11:04 Roughly 4,500 jobs cut in K-12, all in auxiliary jobs: custodians, lunchroom workers, etc.
11:05 Perusse says new Career and College Promise program would cost $50 million; would let high school students now taking some community college courses get a full year’s credit at time of diploma. Then go to community college for one extra year and get associate degree. Starts July 1.
11:11 Perusse says no cuts in Medicaid first year of biennium, saving $300 million. $50 million in lower-than-expected savings in health plan, $100 million in lower payment to pension program that’s “healthy.”
See a Carolina Journal report on pension funding here.
11:20 Press conference ended. Budget will be presented to first General Assembly committee this afternoon. Another press conference featuring GOP legislative leaders this p.m. as well.