Gov. Beverly Perdue said today that some sort of tax increase might be needed to close a projected $4.5 billion budget shortfall.
The governor didn't say what tax hikes she might support. But she noted that her budget proposal called for an increase in the excise taxes on cigarettes and alcohol. She said she would not rule out other taxes, Rob Christensen reports.
"I think we cannot do what we have to do as a people on cuts alone," Perdue told reporters after addressing a stimulus recovery workshop at Wake Tech. "As to the mix of revenue, I am very seriously looking at all the options. I'm very serious about hard, tough cuts."
Perdue made the comment as House budget leaders prepare to unveil a budget that would cut the current $21.4 billion budget to $17.5 billion including sharp cuts in services, an increase in the size of public school classes, and thousands of layoffs.
She called the proposed House cuts "horrific for the people of North Carolina."
More after the jump.
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Perdue likened the budget debate to being in the third quarter of a football game. She said the House, Senate and governor would have to develop a consensus.
But Perdue said she would not discuss what sort of budget she would sign or veto.
She also declined to criticize her schools chief, William Harrison, who suggested the legislature consider a temporary sales tax hike. She said that Harrison was “a fabulous job.”
"I believe the discussions (of tax increases) I had in my own budget will only intensify," Perdue said. "Where I singled out alcohol and tobacco, the czar of education, Dr. Harrison, is singling out the sales tax.
"I think as far as I can see at this point in time we’ve got to make deep deep cuts," Perdue said. "Then we have to see what is left on the table and how far the people of North Carolina want to go."




Re: Perdue might support tax hike
CAN'T MAKE PAYROLL FOR STATE EMPLOYEE'S BEVERLY????
DON'T TAX THE REST OF US TO PAY FOR A QUARTER OF A MILLION STATE EMPLOYEE'S
WE ARE ALREADY THE 4TH MOST UNFAIRLY TAXED STATE IN THE UNION.
TRY IT BEV, JUST TRY IT. YOU START LAYING OFF EMPLOYEES. THE OLD MODEL OF MASS MICRO MANAGEMENT IS OVER IN THE "NEW WORLD ORDER" YOU SOCIALISTICRATES
STARTED. LIVE WITH IT. THE REST OF US HAVE TO,,,,,NOW.
CHANGE IS COMING.....LOL....