State agency heads are being told to cut their budgets by two percent in the current fiscal year as the economic downturn takes its toll on revenues.

A memo from State Budget Director Charles Perusse to state agency heads last week says that "allotments ... will be reduced by two percent of each agency's authorized budget," Ben Niolet and Dan Kane report.

"We are not immune from the nation's economic slowdown and are implementing measures now to give us as much time possible to manage a revenue shortfall should it arise," Perusse wrote.

Kennon Briggs, the executive vice president and chief of staff for the N.C. Community College system, said Perusse met with community college officials last week and told them there would be an across the board cut of two percent, with the possible exception of public schools.

A two percent cut amounts to roughly $400 million from a $21.4 billion state budget lawmakers passed in July. The colleges were told in a system memo released Friday to comply with the cuts by Oct. 17.

A copy of the memo also said that agencies are being asked to hold back an additional one percent of their budgets in case further cuts "are required later this year."

The new president of the State Board of Community Colleges will face a white-hot controversy.

The system is in the midst of a statewide debate over a recent directive to require the colleges admit illegal immigrants.

The board will interview three finalists to succeed Martin Lancaster, who will retire in May after nearly 11 years on the job. They will vote this afternoon.

The finalists are Kennon Briggs, vice president for business and finance for the past 10 years; Philip R. Day Jr., chancellor of City College of San Fransisco for the past nine years; and Scott Ralls, president of Craven Community College for the past five years. (N&O)

The three finalists for president of the North Caroina Community College system are (drumroll, please):

-- Kennon Briggs, vice president of business and finance the system.

-- Philip R. Day Jr., chancellor of City College of San Francisco.

-- Scott Ralls, president of Craven Community College.

Board members declined to comment on the choices or how they voted.