03/18/2009
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Wed: da Budget (Gov's version)
Created by
Laura Leslie
posted at 2009-03-18 09:42 | Last modified 2009-03-18 10:29
posted at 2009-03-18 09:42 | Last modified 2009-03-18 10:29
Sorry I didn't post this last night, but hey, it takes awhile to turn a foot-high stack of documents into five minutes of radio. If you missed my story on it this morning, it's here.
Some topline highlights:
- The Gov's budget plan comes in at around $21B for next year, about $360M or 1.8% smaller than last year's. Factoring in population growth, per capita spending would decrease almost 4%. Without the federal money, Perdue says the bottom line would've reflected a 10.8% cut. Ouch.
- The $3.4B shortfall is covered with $1.3B in state cuts, $1.7B in federal stabilization and recovery funds, and $580M in new revenue (see below).
- It includes two "sin taxes": a 5% surcharge on alcohol (that's on top of excise tax) and a dollar-per-pack increase in the cigarette tax (28% for other forms of tobacco).
- It includes no raises for state employees, but a 1.8% step increase for teachers. Workers owed longevity pay would get bonus leave instead.
- It cuts 1400 positions. Most are vacant or could be transferred, but about 268 employees would be laid off.
- It would close seven smaller prisons, moving their inmates to bigger facilities.
- It cuts about 20 programs, including the Office of Environmental Education, Sentencing Services for indigent defendants, the Neuse River Rapid Response Team, and the History Bowl program.
- It raises the Earned Income Tax Credit from 5% to 6.5%, and includes tax relief on the first $25K of profits for small businesses (<$100K).
More later, I'm sure. This is, as budget director Charlie Perusse put it, only "the first inning in a nine-inning game." Next batter up: the Senate.
P.S.: The Gov's proposal is online here.
Comments? Drop me a line.
