Gov. Mike Easley, warning of a spike in unemployment, has asked state agencies to ready plans to cut 3 percent, 5 percent and 7 percent.
In a memo sent Wednesday to all state departments, institutions and agencies, Easley warned that the nation lost more than 530,000 jobs in November.
"Reducing agency expenditures will be an essential component of providing a balanced budget to Governor-elect [Beverly] Perdue and the General Assembly," Easley wrote. "Those of us who have led state agencies for the past eight years are in the best position to create options for the incoming administration. You successfully completed this duty in 2001-2003 and I am confident you will do so again."
The governor is required to take steps to keep the state's budget balanced. The state has already seen a drop in revenue, although forecasters say it's too early to know how big of a hole the legislature will have to plug. Some analysts peg the deficit at $3 billion.
Easley's memo gives agencies until Jan. 14 to develop plans. Agencies are to give priority to services required by law or that reflect the agency's core mission. Agencies cannot cut back on capital projects, which would create jobs.
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