A ruling by a State Superior court judge has revived the battle over the state budget.

Members of Congress from North Carolina are weighing in on the talks in Washington about the debt ceiling. The country could default on its debt after August 2nd if a deal isn't reached between Congress and the White House. Much of the impasse centers around taxes. Second district Representative Renee Ellmers says she is with her Republican colleagues who say tax increases are off the table.

UNC-Chapel Hill is taking the largest budget cut in the university system. Chapel Hill will receive 18 percent less funding from the state this year.

Deep Budget Cuts

Jun 28, 2011

North Carolina’s General Assembly recently passed the budget for the fiscal year beginning July 1st. The $19.7 billion budget was vetoed by Democratic Governor Bev Perdue. But a handful of Democrats sided with Republicans, giving them enough votes to override that veto.

Judge Howard Manning heard closing statements today in a hearing convened to decide whether the newly passed state budget provides students the kind of education that's constitutionally guaranteed to them.

Educational experts testified in a Wake County courtroom yesterday in a hearing over how the state's recently passed budget will affect North Carolina's schools.

Lawmakers in North Carolina's legislature have officially overturned Governor Perdue's veto of a Republican-penned 19-point-7 billion dollar budget. The Senate voted to reject the governor's veto this afternoon. House lawmakers voted to override after midnight early this morning. Republican Senator Richard Stevens is a lead budget writer.

House lawmakers voted early this morning to override Governor Perdue's veto of a Republican-penned 19.7 billion dollar budget.

Perdue Vetoes Budget

Jun 13, 2011

Governor Bev Perdue has vetoed the budget sent to her by the North Carolina General Assembly. The decision comes a week after the Republican-led House and Senate passed the bill, sending it to Perdue's desk. It's the first time in state history that a governor has vetoed a budget passed by the Legislature. Speaking from the Capitol's old Senate chamber yesterday, Perdue said the bill would hurt public education, the environment and health care.

Gov. Bev Perdue

  Governor Bev Perdue is studying the budget plan sent to her over the weekend by the Republican controlled General Assembly. It spends about $500 million less than the budget she proposed. 

Earlier today, lawmakers in the state Senate tentatively approved a 19-point-7 billion dollar spending plan for the next two years. The framework of the plan was a reworked budget proposal released earlier this week after negotiations between Republican leaders in both the House and the Senate.

Republican budget writer Richard Stevens was the first lawmaker to speak about the plan- otherwise known as House Bill 200- on the Senate floor earlier today. He told his colleagues that he and other Republicans have produced the kind of plan they promised they would.

 Republican leaders in the legislature have come up with a new budget they hope members of both parties will pass. 

Republican leaders in the state Senate have released a $19.4 billion dollar budget that would still make deep cuts to education. The Senate plan would give more money to public schools and universities than a House plan passed a few weeks ago, but community colleges would receive less funding. The proposed Senate budget would also lower personal income taxes, exempt small businesses from paying some taxes and establish merit pay for teachers. Phil Berger is the President Pro Tem of the Senate.

Many school districts are beginning to lay off teachers and other employees in anticipation of deep budget cuts by lawmakers. A budget plan approved by the state House would cut public education by almost a billion dollars. State senators haven't come up with a final plan yet, but Republican budget writers say they'd like to cut a hundred million dollars more than the House would. Jennifer Tuft is a kindergarten teacher in Randolph County who found out last week that her position will be cut. 

Lawmakers in the state House have tentatively approved a 19 billion dollar budget that makes deep cuts to education and health care. 

 Legislators debated the Republican penned budget for nearly ten hours yesterday. Republican representative Mitch Gillespie of Marion told colleagues it's the most responsible budget that could be put together in a slow economy. 

Republican and Democratic leaders are playing hard-ball with the state budget.  And extended unemployment benefits seem to be the latest pawn.

Republicans are tying additional unemployment benefits for 37-thousand people to a provision that would have state government operate at lower funding levels if a budget is not approved by June 30th.  Governor Bev Perdue calls the legislation “extortion.”  House Speaker Thom Tillis.

Thom Tillis:  "Ideally what she’ll do is take seriously our budget proposal which will come to her the first week of June and sign it."

Lawmakers at the General Assembly have begun rolling out suggested budget cuts. It's part of the process of putting together the state's spending plan for the next two years. But with an estimated shortfall of about two billion dollars, cobbling together a budget this year is more painful than usual. That's especially true in the area of education, which takes up 60 percent of the state's budget.

This morning Democratic Representative Marian McLawhorn of Grifton was sitting in her office, reading through two official-looking packets that are already a little dog eared.

The North Carolina House has proposed budget cuts that include more than $170 million from public safety agencies. Part of that spending plan would eliminate nearly 400 jobs from the court system. Officials say services like drug courts and family courts would have to make significant cutbacks. John Smith is the director of the state Administrative Office of the Courts.

John Smith: "We were prepared to reduce our positions by as many as 200 positions and felt that we could continue to provide the services. This will be double that."

Senators Kay Hagan and Richard Burr have joined several lawmakers who want the federal government to adopt a budget process similar to North Carolina's. Hagan and Burr have co-sponsored a bipartisan bill that would require Congress to write budgets every two years rather than annually. Lawmakers face a government shutdown if they don't agree on a spending plan before this weekend.

State lawmakers tried to override two measures the governor has already vetoed during this legislative session.

North Carolina is facing one of the largest potential budget shortfalls in its history. Right now it amounts to 2.4 billion dollars, but that number could change. Two years ago, the Democratic-controlled legislature enacted temporary tax increases- including a one cent sales tax increase- to help balance the state budget. But Republican leaders who’re now in control say they don’t need the tax increase this time.

Governor Bev Perdue released her proposed budget in Raleigh earlier today. The $19.9 billion dollar plan would protect existing teacher and teacher assistant jobs, but it would eliminate about ten thousand other state jobs through cuts and through the reorganization of state agencies.

The 2011-2012 legislative session begins today.

GOP Seeks Current-Year Cuts

Dec 16, 2010
Thom Tillis
NC General Assembly

The state legislature isn’t back in session till January. But incoming Republican leaders are asking Governor Bev Perdue to start cutting spending now.

At a special budget meeting Wednesday, leaders of state agencies painted a grim fiscal picture, projecting that next year’s revenue will fall around $3.7 billion short.  That means lawmakers will either have to raise revenue or cut spending by about 20%.

Perdue, GOP Agree On Slimmer State Payroll

Dec 10, 2010
Gov. Perdue
Laura Leslie

Incoming Republican leaders are applauding a new plan by Governor Bev Perdue to streamline state government, cut state jobs, and save millions of dollars.