Posted on 03/18/2009 7:55:44 PM PDT by Libloather
N.C. governor uses money from savings reserve for bills
The Associated Press
March 11, 2009
BY GARY D. ROBERTSON
RALEIGH - Gov. Bev Perdue took nearly $800 million in North Carolina's rainy-day reserve fund Wednesday to ensure the state has enough money to pay its bills, a move that divided legislative leaders over whether she can spend it.
Perdue said she seized the savings reserve fund assembled by lawmakers as a "precautionary measure" to combat one of the sharpest declines in overall tax collections in recent state history.
The governor said she would use $250 million of the $787 million immediately to ensure the state employee health insurance plan still has cash at the end of the month.
The move came the same day the state said the jobless rate rose to 9.7 percent in January — the highest in more than 25 years — and that her budget office announced North Carolina tax collections are now nearly $1.2 billion below revenue projections this fiscal year.
Two weeks ago, Perdue said she would shift another $300 million from other reserve funds — including some state lottery proceeds — to manage cash flow.
"The sharp rise in unemployment combined with a significant decrease in state revenue has required me to take certain steps to responsibly manage the state's cash flow," Perdue said in a prepared statement. "Securing the rainy day fund is necessary for the continuance of day-to-day government operations."
Her decision drew sharp contrasts from House and Senate leaders.
While Senate leader Marc Basnight said he urged Perdue several weeks ago to tap into the fund, House Speaker Joe Hackney said she couldn't spend the money without the Legislature authorizing it.
(Excerpt) Read more at hamptonroads.com ...
And yet another state goes down the financial drain! Who’s next?
too many New Jersey residents moved to NC
How odd.
ANOTHER Democrat the center of more questionable spending practices.
I’m not sure if we can blame New Jersey retards for all of this. NC has been ruled by Democrats ever since the end of reconstruction. We’ve never really been able to depose them.
anything but rainy days?
anything but rainy days?
To pay for really important things, like more bricks for NCSU.
Since the loot was supposed to be for 'education' - that would be a good start - no?
Maybe to build a museum for the tobacco imdustry?
Yep, we’ve got some seriously inbred straight ticket Dhimmi voters in NC, it’s maddening.
Perdue was one of Sleazily’s co conspirators on the council of State, she was a crook then, and is a crook now.
Ah, the state’s slush fund. Unbelievable! Just like WA state. It’s called a “rainy day” fund but it’s really a slush fund.
People in NC have gone off the deep end since Senator Helms retired. Their future is not bright, I fear.
No. Thats what the NC Highway Trust fund is for.
Typical for D’s to raid it each year for around $170 million and then claim there is not enough money to get road projects completed.
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