North Carolina is $1 billion worse off than previously thought.
Gov. Beverly Perdue is expected to announce this morning that the state has a $3.3 billion shortfall in the current fiscal year, according to legislative leaders.
As part of a remedy, she is expected to propose furloughs of state workers, an idea she had previously rejected.
Update: Perdue signed an executive order this morning implementing a flexible furlough program for state workers that will save $65 million this year.
All teachers' and state workers' compensation will be reduced by an annualized amount equivalent to 0.5 percent for the rest of the fiscal year. In exchange, they will receive 10 hours of flex time.
In addition, Perdue plans to capture more special funds, tap the state's reserves and use more federal recovery dollars to raise the $1 billion needed to close the budget gap.
She has also asked the legislature to pass a bill holding longevity pay, unused leave, service credit and health and retirement benefits harmless.
"North Carolina continues to experience the effects of a national economic crisis, which force me to make difficult decisions in order to maintain a balanced budget through June," she said in a statement.




Re: Perdue announces furloughs
What an interesting time to choose to furlough state employees. Just when President Obama's stimulus package is sent out to help hard working americans make it through difficult times, Gov. Purdue takes it back in a furlough. There has to be other avenues other than a furlough or layoffs. First, I believe the people of North Carolina deserve a better explanation of the use of state funds and more clarity as to why there is such a short fall of funds other than taxes -which are high. This is a terrible move on behalf of the Governor and one that surely is not going to help in the next election. State employees and their families are already challenged with high health care costs from Blue Cross and Blue Shield because of the lack of competition for better rates. The legislature should be ashamed of themselves and stand in need of much prayer. Open the doors for competitive health care in North Carolina and quit breaking the backs of the people who serve their cities and this beautiful state everyday. Change has come to Washington, but what about here? Is this the change that moves us forward? Is this the change that helps our children develop? Is this really the change that North Carolinians hoped for? No furloughs and no layoffs. There are other options on the table. 5 percent for a worker making $20,000 dollars is not the same for an employee making $185,000-you can't justify that one. Governor Purdue has a difficult job, I'm sure we all would admit, but this decision I guarantee will shape her administration.