Saving, Spending and Taxing: Governor proposes $1 billion in new operating appropriations

Key facts:

• Gov. Easley proposed $21.4 billion in state appropriations for continuing operations in fiscal year 2009, up $1 billion (4.9 percent) from the final budget for fiscal year 2008.

• Combined pay increases, including one-time bonuses, for teachers and state employees total $594 million.

• Less than a fifth of the $400 million in spending reductions are much more than reclaiming money that would not otherwise be spent.

• Cigarette smokers and alcohol drinkers would face $165 million in new taxes.

• The proposal includes $553 million in new debt without voter approval and another $97 million in capital spending.

• Transportation spending declines another $30 million due to lower dedicated revenues.

• The budget would make money available to hire nearly 830 new state employees, including 282 clinical and other staff in state mental hospitals, 132 new staff for local mental health crisis response, and 42 chief probation/parole officers.

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