Gov. Beverly Perdue expects to save $150 million by not paying for vacant jobs.

Traditionally in North Carolina, the state budget has funded salaries for vacant jobs even though state agencies don't typically fill all of them.

But this year, Perdue proposes to reduce that to a number closer to what will actually be spent on salaries.

For the N.C. Community College System and the N.C. Department of Public Instruction, that's 97 percent of fully-funded salaries. For the N.C. Department of Correction, 92.5 percent.

Perdue alluded to the change during her State of the State address, saying that "truth in budgeting time is here."

In past years, legislators have said that state agencies use some of the lapsed salary money for other budget items, such as paying for prisoner meals or hiring contractors at state psychiatric hospitals.

The accounting change is one of the biggest savings on Perdue's proposed budget. 

Hat Tip: Scott Mooneyham

Gov. Beverly Perdue proposes to raise per-pupil spending $139.

At a presentation this morning, Perdue proposed raising per-student spending from $5,597 to $5,736, putting specifics on a pledge she first made at her State of the State speech.

As expected, Perdue would achieve that in two ways: Fewer students and more federal money.

The drop is partly caused by a change in kindergarten age requirements. The budget says overall enrollment is expected to decline by .79 percent.

Perdue also expects $581 million from the federal stimulus package to be used on education.

Overall, education spending would increase by $118 million in Perdue's budget, including $64 million for teacher pay raises, $6.7 million for dropout prevention, $4.7 million for more diagnostic testing of students and $3.5 million for underperforming schools.

At the same time, the state would cut funding for buying textbooks, replacing older school buses and running multicampus community college centers. It would raise fees on some continuing education courses.

It's the Zapruder film of hugs.

A brief snippet of video from UNC-TV has been watched by political observers around North Carolina today who want to know if Gov. Beverly Perdue snubbed Superintendent June Atkinson on Monday.

Perdue and Atkinson have been engaged in a battle royale of late over which of them should have control over state education.

So when Perdue made her way to the podium in the House chamber to give her biennial State of the State address to the legislature, her behavior toward Atkinson was watched.

As seen in the video, Perdue shook hands and hugged several state politicians, including Rep. Garland Pierce, Secretary of State Elaine Marshall and state Auditor Beth Wood.

But between Marshall and Wood, she bypassed Atkinson, who was standing less than two feet away.

Was it intentional, or just an oversight in a busy evening? Watch the video for yourself and decide.

Major budget cuts are on the way. 

Gov. Beverly Perdue will propose significant cuts in public services next week, as she faces the biggest drop in tax revenue in recent memory, her chief budget advisor said Wednesday.

"The decisions the governor has to make are some the toughest that have had to be made in the last 80 years," said Charlie Perusse, her budget director said at a briefing for the news media, Rob Christensen reports.

There was no hint of how Perdue will balance the budget — whether agencies or programs will be eliminated, prisons closed, state employees laid off, or taxes raised.

"She has charged my office to look line by line at the agency's budget to focus on protecting core services: education, health care, public safety," Perusse said. "There are going to be substantial reductions in our budget."

Perusse said the governor had asked his office to make "strategic cuts," not just across the board reductions, looking whether the taxpayers were benefiting from the program.

Perdue's recommendations are scheduled to be made Tuesday. But aides said she will make a speech Monday outlining her some of recommendations on education.

In her State of the State speech to a joint session of the legislature Monday night, Perdue said she would increase per pupil spending in the public schools.

Gov. Beverly Perdue's budget-cutting panel seems to be on hold.

During the fall campaign, Perdue pledged to create an independent and bipartisan panel of 15 citizens to suggest ways to trim state spending.

The proposal was modeled after the Base Realignment and Closure process which suggests military base closures subject to an up-or-down vote in Congress. The idea is to reduce the influence of backroom deals.

On her first day in office, Perdue signed an executive order creating the Budget Reform and Accountability Commission. Her Web site makes no mention of any appointments to it, however, even as Perdue is putting the finishing touches on her budget.

As noted elsewhere, she made no mention of the reform during her budget-heavy State of the State speech last night.

Senate Majority Leader Tony Rand said he doesn't think the new BRAC panel could get set up in time for this year's budget.

"That wouldn't be in place in time for what we're doing right now," he said.

Update: Spokeswoman Chrissy Pearson said that Perdue will make an announcement about the BRAC budget reform process on Friday.

It's fair to say that was the first State of the State to be tweeted.

Gov. Beverly Perdue's first speech to the legislature was touted as historic because she is the state's first female governor, but it may be recalled as well as the first to be micro-blogged on the popular site Twitter.

A sample of the live reactions to the speech: 

* "who cares? It would only be interesting had Munger won." — Sam Spencer

* "Anyone else think it's ironic that the hashtag for the state of the state address is #ncsos? Guv'nah Bev's sending out an S-O-S!" — Ben McNeely

* "Perdue: "We don't have time for talk-show political posturing or petty partisan games." Not Political Connections I hope? lol" — Tim Boyum, News 14 North Carolina host

* ""Vocational, CC, or college" .... Glad to see McCrory at least influenced debate on the issue." Ryan Radford

* "Governor just called me out for twittering while she talks. Well me and people actually there" — Will Cubbison, Young Democrats labor chair

* "Great example with the flight attendant from the Miracle on the Hudson flight, but "Sheroes"? Really?" — Joe Colletti, John Locke Foundation

* "Brace yourself for a Gov. O. Max Gardner reference. Gardner was governor during the great depression, spent money rather than cut." — Mark Binker, Greensboro News-Record reporter

To read the full discussion, go to search.twitter.com and type #ncsos

Reaction from the capitol pundits on the State of the State:

* Conservative columnist John Hood said he appreciated Gov. Beverly Perdue's "call for fiscal conservatism" and an end to "business as usual" at the legislature, but wonders if state lawmakers are ready to follow.

* Liberal columnist Chris Fitzsimon said that Perdue didn't say anything about raising taxes to "protect vital services" and predicted that "market fundamentalists" were gleefully anticipating devastating cuts to the state budget.

* Conservative advocate Francis De Luca said that he appreciated Perdue's creation of a Web site with information about how the state is spending stimulus money and her remark that the state will have to cut programs.

* Liberal blogger Greg Flynn said that he "read the speech twice" to find specifics, but he'll have to wait for the budget to see the "big cuts" on the spending side, instead of revenue reform to broaden the tax base. 

Reaction from the capitol press corps on the State of the State:

* Greensboro News-Record reporter Mark Binker said the speech was notable for what didn't happen. "You didn't hear a lot of push-back afterward," he writes, noting that Republican and Democratic legislators seemed reconciled to the deep budget cuts promised.

* WUNC radio reporter Laura Leslie said the speech was "math-lite" for its failure to mention taxes or dwindling revenue and made little news in part because Perdue's been so accessible that everyone knew what she was going to say. 

* Independent Weekly reporter Bob Geary said that liberal groups hoping to hear that the state can't "cut, cut, cut its way" out of a $3 to $4 billion shortfall heard nothing, but Perdue didn't make any "no new taxes" promises either.

Gov. Beverly Perdue pledged to raise per-student spending even as the economy worsens.

In her first State of the State speech before the legislature last night, Perdue said she would include more money for secondary and elementary schools in her budget even as she cuts money for other programs.

Her 27-minute speech was slightly shorter than average for a North Carolina governor. It also did not include calls for any sweeping new programs. (N&O)

Perdue did not give any specifics about numbers or where she might look for cuts in her budget, but she was clear that nobody would be happy with her proposed budget. (GN-R)

She also pledged to bring more transparency and accountability to governement, standing up to the "sweet seductions of special interests" and the "temptations of politically popular pork-barrel spending." (WS-J)

Perdue made no mention of taxes in the speech. (RMT) Lawmakers gave the speech high marks, but said the proof will be in the specific cuts she proposes next week. (ENCT)