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Perdue's budget slashes state jobs, protects education

The proposed $19.9 billion budget unveiled by Gov. Bev Perdue this morning would slash about 10,000 state jobs while seeking to protect funding for K-12 education and the state university system.

As she mentioned in her State of the State address earlier this week, Perdue would cut the state's corporate tax rate from 6.9 percent to 4.9 percent. The cut would make the state's tax on businesses among the lowest in the nation and give Republicans a political victory.

VIDEO: See Perdue discuss her proposed budget

Touting the need to create jobs, Perdue also largely protected funding for corporate incentives programs used to lure new businesses to the state and help existing ones expand.

“This budget stands up to our economic challenges and equips us for the future by resetting how we grow jobs, educate our children and operate state government,” said Perdue, a Democrat. “The cuts are deep, and some are painful. But through careful management of our resources we can also make investments in our core priorities."

However, Perdue's budget also keeps most of the 1-cent temporary sales tax Republicans have pledged to let expire. Perdue's budget keeps the temporary tax at 3/4 cent, making the total state portion of the sales tax at 5.5 cents. Counties impose additional sales taxes on top of that.

Republican quickly slammed Perdue's budget.

“Instead of making tough choices to tighten the state’s belt, Gov. Perdue is balancing the budget on the backs of North Carolina taxpayers and local governments," said Senate President Pro Tempore Phil Berger, a Republican from Eden. "She is breaking her promise to end the taxes she raised, she is underfunding our retirement system and she is saddling local governments with hundreds of millions in additional expenses. This is not how to get North Carolina back on track.”

Perdue elected not to raise new tax revenues through legalizing video poker and internet sweepstakes games, as she had considered. 

Perdue's budget proposes eliminating about 5,000 state jobs through eliminating or reorganizing 176 state-supported programs, and another 4,000 positions through mandated cuts at state agencies.

State budget director Charlie Perusse said the majority of the positions to be eliminated are currently vacant. He estimated only about 3,000 state workers would actually lose their jobs, reports The N&O's J. Andrew Curliss. 

Another 1,000 jobs are to be shed through offering early retirement packages to state workers. Workers could get payments of between $10,000 and $20,000 to leave, depending on whether they have the years in to be eligible for full or partial retirement benefits.

None of those job cuts would be in K-12 classrooms. Perdue's budget protects all state-funded teachers and teacher assistants. She also gives a modest increase in funding to the UNC-system to help cover the cost of enrollment growth. There will still be cuts to programs at the universities and a tuition increase for students.

Community colleges also fare reasonably well. Perdue has proposed the N.C. Career and College Promise — a new program that provides two-years of tuition-free college credit to state high school students who maintain high grades and meet other standards.

Perdue's budget also trims some popular state services. State parks would be closed two days a week, as would the state welcome centers at interstate rest stops. Another $40 million would be cut from the state's portion of Medicaid. 

The budget sets aside $75 million to strengthen the state's struggling mental health system and $77 million for the mobility fund to help reduce traffic congestion and expand the transportation infrastructure.


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federal pensions

It's my understanding that the federal pension system, which USED to provide defined benefits, was changed in the 80's and now provides for a 'Defined Contribution" plan.

 

That is, fixed dollar amount pensions  are no longer guaranteed by the federal governemt. Instead, employees contribute to Social Security like everybody else, and they also have a 401k type plan where they contribute a portion of their pay and the government matches it up to a maximum percentage. They are given a choice of several investments to put the money in and, when they retire, they start drawing it like in any other 401k

 

No more guaranteed benefits.....that is probably what most states are going to move to.

 

University coaches make OUTRAGEOUS salaries!!

Case in point, Buzz Peterson - he coaches the UNCW Seahawks - he gets $400,000 + perks a year!! For coaching the Seahawks? OMG!!  When I read this figure recently I just couldn't believe it folks.  A b-ball coach making that kind of money - my money, your money OUR TAX MONEY! I bet none of these FAT coaching salaries were cut out of the budget because we would all just die if we didn't have b-ball, right?!!  In these dire days and times I would think that someone up on the hill would have sense enough to mention OUT LOUD that perhaps the highly paid athletic posts should be trimmed back a bit?  My child's high school teachers have to ask parents for money to help with classroom supplies when the funds run out by mid year, the PTA helps out when they can. It is a crying shame that my child, your child, should even have to worry if they will be able to afford to go to a publicly funded university yet that is happening today with the spiraling costs.  I am picking on the athletics here in my post as I don't have enough room to go into all the other overpaid FAT cats on the hill and elsewhere at the state level. What is it going to take for us to get back to some level of reality when it comes to spending?  I don't have a degree in economics or accounting but I can sure see what the heck is wrong with the budget when there is a b-ball coach making 400K but my child doesn't have copy paper at school! 

smoke and mirrors

this hits the nail right on the head.  the claim of cutting 10,000 jobs, and reducing the budget by some huge amount, is merely rhetoric.  if 7,000 of those jobs are currently vacant, then there is no real savings.  it just makes this year's budget look smaller than last year's on paper.  of course, i am assuming the state isn't issuing paychecks to empty chairs.

if you want to find out the difference in real live dollars (rather than accounting dollars), compare this year's actual expenditures with next year's budget.  you'll most likely find that all the budget cutting hooplah is just that, "hooplah".  it might also be worthwhile to consider "out of budget" expenditures, i.e. all the money spent by the state last year that wasn't included in the budget.

How hard will the "Education

How hard will the "Education Governor" go after the $40,000,000 debt owed by the GTP to the NC Escheat Fund?  That $40,000,000 would help many UNC system students as well as community college students.  Looking after the 'accounts receivable' is as important as writing the budget.

How hard will the "Education

How hard will the "Education Governor" go after the $40,000,000 debt owed by the GTP to the NC Escheat Fund?  That $40,000,000 would help many UNC system students as well as community college students.  Looking after the 'accounts receivable' is as important as writing the budget.

Budget

All those teachers and state workers who voted for Bev, Obama and the rest of the Liberal Democrats should resign immediately. They are responsible for the economic crash of our country and the corruption that has bankrupted the state of North Carolina! 

Tragdy Again

I hear Bev's gone to drinking right heavy again.  Tragedy.  Heartbreaking. 

Judge Lynch

Sounds like a perfect case for Judge Lynch to me.

How ANYBODY......

How ANYBODY could vote for ANY of the lying, thieving, CROOKS is beyond me.  What difference does it make? 

I'll give her some credit

She is doing more than those democrat jack@$$es in Washington who are running TRILLION dollar deficits (three in a row) and have adamantly refused to cut anything whatsoever.

capitals

It's difficult to read all CAPS.

That should raise the unemployment numbers....

The Guv takes credit for bringing in "employment opportunities" when a new company sets up shop in North Carolina.  BUT you notice that she never corrects the final number of employment opportunities by subtracting out the thousands of state employees she fires.  If you bring in 500 jobs with Red Hat and then fire 2000 state employees, you have still decreased the job maket by 1500 jobs!  I realize that state employees are much maligned -- even by their employers -- but doesn't it count in the tally when they end up in the unemployment line??? 

"would slash about 10,000

"would slash about 10,000 state jobs" ...... uh, not really Dumpling.

****

Nope, of those "10,000 jobs", 7,000 of them exist only on paper and involve no "actual people" packing up their personal items and exiting the premises.  These were simply places to hide budget dollars under the previous GenAssem politburo.

Dumpling, in her new tuff as nails persona, wants you to see her as real chainsaw manager.  Nope.  Just a sneaky little Dumpling hoping you won't read beyond the first paragraph which many of you didn't.
 

Only problem is Perdue is a democrat

This budget is proposed by a democrat.  Not a republican. I don't why y'all are picking on republicans they had nothing to do with this budget proposal. And the republican party had little to do with how this state has been run for the last 100 years. And what about us independents, maybe they should be laid off first. Independents are the swing voters now ya know.  The reason this state has a budget deficit is because the democratic party missmanaged funding, went after every federal dollar they could and soon became dependent upon federal funding to help balance the budget and fund programs. Now with the economic recession in full force and federal fatback from DC ending we have a deficit. I don't hold state employees accountable just as I don't hold any private business employee accountable for the cost of a product or service. Although employees in both sectors end up paying, they did not cause the deficit. It was poor management pure and simple, starting at the top and working through every legislator and every department head. 

Republican state employees

I was attempting to reply to a post stating that those state employees who voted for Republicans should be first in line to lose their jobs.

I thought that the poster was right on the money. How any educator or state employee with any sense could vote Republican defies understanding, but somehow they do.

RE: STATE EMPLOYEES PENSION AN ETIREMENT BENEFITS

 THE STATE GOVERNORS AN THE STATE GOVERNMENT HAS BEEN SEEKING FOR YEARS TO GET IT'S GRUBBY LITTLE HANDS INTO THE PENSION PLANS OF THE STATE EMPLOYEE S OF THIS AN HAD THEY BEEN SUCCESSFUL AT DOING SO THERE WOULD BE NO PENSION WHATSOEVER TO  ARGUE ABOUT FOR STATE EMPLOYEES TO EVEN BENEFIT FROM IN THE FIRST PLACE FOR THEY WOULD HAVE SEEN TO IT THAT THE WHOLE THING WOULD HAVE BEEN PISSED  AWAY THROUGH GIVE AWAY PROJECT IN WHICH THE COPORATE INSTREST WOULD HAVE BEEN AKLLOWED TO HAVE BANCKRUPTED IT ONCE AN FOR ALL AN THEN THERE WOULD HAVE BEEN NOTHING LEFT FOR THE STATE EMPLOYEE OR THE RETIRES OR FOR ANY ONE THAT HAD WORK AN EARNED A PENSION . I AM PERSONAL GRATEFUL THAT THEY WERE NEVER ABLE TO OR ALLOWED TOGET THEIR HANDS INTO THE STATE EMPLOYEE RETIREMENT SYSTEM AT ALL AN I HOPE THEY NEVER WILL BE ALLOWED TO BANKRUPT IT. THANK YOU

Budget Cuts

I suggest a reduction in pay and job cuts for college adminsitrators and faculty instead of placing the burden on the backs of students. I believe they call it shared sacrifice.
 

The Budget Director says

The Budget Director says that the majority of the jobs to be cut are already vacant.  What???  Taxpayers are tired of the shell games with pots of state funds hidden here and there.  This suggests that there has been a bloated system for some time and there is still much to cut. I hope the Governor's interactive budget dog can find enough earth to cover up this poop.  The plan stinks!  

Bravo Governor!

Bravo Governor Purdue! Sounds like a plan to me. I would keep the sales tax intact. It's fair. Let it expire when we have more money. And keep the parks open. But mostly the plan is sound. Don't let these windbags scare you. Pension program the problem? Teachers retire with $4000 dollars per month! You can tell these people are real thinkers. They are the ones who sent the Republicans to Raleigh to solve all the problems. Let those newly-elected republicans-who-think-they-are-magicians cater to them. Keep doing your job. I'll vote for you.

Federal law

Because it is illegal under the Age Discrimination in Employment Act to force people to retire. You can incentivize them, but you cannot force them.

state workers

A good and highly respected family I know was harassed by NC   housing department staffs for the claim has no proof.  An Africa America woman claimed the husband didn’t rent the house to her because her being black. She claimed she spoke to a woman while the husband is “MAN”.  The husband never spoke to the black woman obviously. The busy wife spent much  time explained to the housing staffs that case has no merit definitely.  The black woman not only accused wrong people, but also provided no evidence at all.  The Housing staff threaten the family to subpoena their   phone record if they won’t give the woman $5k.   They choose to fight for justice not to give in.  The housing staffs kept the case open for 7 months then close it without any proof.  Our tax money was spent on the state staffs  for 7 month work on a case which can be dismissed at the beginning.

This is a true story.

We have too many staffs in NC Fair Housing have nothing important to do. Cut the department.

government is too big

Our government grows too big, Too many state empolyee have nothing important to do.

Why wait for year to cut the spending ? In private sectors, people were laid off at most 30 days notice, some  have no advanced notice at all. Why state employee got special treatment ? more than 1 year advance notice ?

 

"Today, a school teacher can

"Today, a school teacher can retire after 30 years with a $4000/month pension."

Really? The formula is 50% of the average of the highest five years salary after 30 years of service. To get $4000/mo. the teacher would have needed to average five years at $96K annual salary. Highly unlikely. 

Addtionally, state employees contribute 6% of every dollar they earn into the retirement system over the life of their employment. Many may not live long enough to collect what they contributed.

If you are going to spin it at least get your facts straight.

 

Understood

I agree with that and your statement I say, there are many other options - one which I vaguely outlined - for us to explore before we are hit with another tax. 

Althought, Mayor Pat might like for Bev's "temporary" tax to become permanent so that we can get real leadership in the Governor's Manison come 2012. 

Mr. Curliss and Rest of N&O Political TEAM - ASK WHERE THE BILLION CAME FROM - DO YOUR JOB!

FACT CHECK

"....Today, a school teacher can retire after 30 years with a $4000/month pension...."

I don't think so......

1. The average school teacher in NC doesn't even make that much money while working.

2. A state employee/teacher whose average highest 4 years of compensation is $50,000, with 30 years of service, will receive a maximum monthly benefit of $2,275 per month from the NC TSERS. 

3. They would have to be making $90,000 for your statement to be true.

not a matter of accepting

it's a matter of prefering. I would rather the tax expired. but if I am going to be taxed I would prefer a sale tax. As for the one billion, yeah it is interesting how it just appeared. 

Perdue lied

In 2009, when the General Assembly, controlled by the Democrats, passed these "temporary" taxes to expire this year.  Even our "beloved" Governor guarenteed the citizens of North Carolina that she would let these temporary sales taxes expire. 

While I do completely understand that the citizens all contribute to the sales tax based on their consumption, but what many posters fail to realize is that there are so many other ways to close the deficit without these taxes. 

Firstly, how come no journalist is asking Gov. Perdue how the deficit went from $3.7 billion to $2.7 billion. I am happy the hole is not as bad, but if the Republicans were not in office, would this "mysterious" $1 billion have reappeared.

The fact that so many "conservatives" have given up and accepted this tax is beyond me considering the Republicans in the General Assembly have already highlighted a vast amount of mismanaged funds in North Carolina.  For example, Senate Bill 13 would use unallocated funds to help close the deficit.  Did you know there are over 15 organizations, all with executives appointed by the Governor and old General Assembly, that execute "econonomic development" activities.

There are so many better options than maintaining the "temporary" sales tax. 

I am personally sick and tired of being taxed to death - gas, sales, property (car and home) income, sales, etc. 

Agreed

I consider myself a fiscal conservative and I have to agree with you - the best way to keep revenue in place is the sales tax - it does encompass everyone, illegal workers, drug dealers etc....  I am also a firm believer in usage taxes (state and county) if I had to pay a couple of bucks to visit a state park or have a library card then I am fine with that - if we need money for roads then use the gasoline tax (which would be a first to use this tax 100% on infastructure).

I agree

I don't like taxes but if I have to choose one a sale tax is the fairest way to go. We get taxed on what we spend not what we earn. And everyone pays to play.  

A good start

I am impressed the governor made the tough choices to reduce spending--that's what is needed, and, of course, the sales tax should be kept to pay for the items kept in the budget. As someone here noted, though, the state's pension plan ought to be reviewed--it was established long ago in the Stone Age when everybody kept a job for life. Today, employees must manage their own retirement plan, and the state should bring their pension plan into the modern age. Today, a school teacher can retire after 30 years with a $4000/month pension. Many of us do not even earn that much when we work everyday.

Pensions are important, but they are one reason bad teachers cling to the jobs in spite of all indications to the contrary.  State government ought to develop a 50/50 combination plan wherein employees contribute half to their own 401ks.

Sales Tax

I don't understand why people are so intent on letting the sales tax expire!  It is the only tax that EVERYBODY pays; workers, unemployed, illegals, tourists, etc.  It will fund over $1 billion, which 2 of those previously mentioned groups do nothing but suck out of.  As a worker, I'd much rather pay an extra 1 cent sales tax than have my inspection, renewal sticker, property tax, and/or income tax increase.  Workers are already taxed enough to pay for all the 'withdrawals'.  Let everyone equally foot the bill.

look at your spelling.Check

look at your spelling.Check yourself before judging others

Tax Breakulus

A lot of that "porkulus" consisted of tax breaks designed to incentivize private hiring.  Reeps trashed that as they are more interested in not paying their share in taxes than seeing unemployment improve.  Hey, if unemployment is high, you can continue to pay educated middle class workers low wages.  I would say stick it to Bev for increasing unemployment in 2012 but we know we know her reep opponent would simply privatize state government at twice the cost and 1/4 the services.

Roll On the Floor Laughing!

Some of you folks are too funny!

The spelling errors alone have my holding my sides in pain I'm laughing so hard!

Thanks!

Who wants to bet...

that Mike27513 is another government employee that hates the government? 

The Obama porkulus checkbook

The Obama porkulus checkbook is starting to run dry.  And now the states aren't be propped up with federal tax dollars to the extent they were before.  And now the bills hotta be paid and we are out of money.

The "stimulus" was nothing more than a slush fund for the demcorats to pay off their government and union supporters and keep them afloat through the 2010 mid terms, hoping against hope that economic growth would have kicked in by then, and continued slush funding of states and unions wouldn't be needed any more.

Well, as all thinking people knew, it didn't work and now the bell has tolled.

Enjoying the change?

The Communists Reply

I see the Communist Party is active posting today

yeah but

our unemployed will be better educated than any other nations unemployed. So we have that going for us. 

Bev Perdue...

Education & No Job...The Story of My Life!!!

Pensions

As others have already commented, qvoraw, is completely wrong about the state retirement system.  TSERS is in fine financial shape.  Employees fund a significant part of the plan with a mandatory 6% contribution from their salaries.  And a quality pension plan is one of the few ways that the state can keep good employees.

And since qvoraw also refers to federal pensions, I will add that he is equally misinformed on that issue.  Back in the 1980s, the federal government replaced the old Civil Service Retirement System, a defined benefit pension plan, with the Federal Employee Retirement System (FERS), which was optional for then current employees and mandatory for all new employees.  FERS consists of 2 parts.  FERS retirees receive a relatively small defined benefit pension based on final salary and years of service (about half of what an NC state employee would receive having worked the same length of time at a similar salary).  These federal employees also participate in FERS's Thrift Savings Plan, which is very similar to a 401k, and the government matches employee contributions up to a point.  So, at the federal level, employees are already being encouraged to save for their retirement through the Thrift Savings Plan.  And like NC's TSERS, FERS is in great financial shape.  Pensions have very little to do with the federal government's short- or long-term budget problems.
 

RE THE REPUBLICAN STROM

                                                                                                    FEBUARY 17 2011

 

GOP127

I am personaly in 1000% agreement with your postin on here this whole nation wude ecomonic downturn recession/ depression has been nearly entirely at the hands of the blue dog democrats an the republicans going back to the time of georgeie pordgy "w" afminstratyion an because of his efforts to deregulate this entire neation in every aspect of society from the finicinal markets to the coporate board rooms to the border patrol to illegals allowed in this country so as to give big coporat instrest coporation cheap mexican labor an to the outsourcing of jobs to overseas markets of china india or where an then the decision by the u.s supreme court to give coporate instrest the statues of an average citizen with the enactment of the recently passed bill thank you

And still not a word about

And still not a word about the illegals that we continue to hemmorhage money to keep here.  Nothing said about the taxpayer subsidy of their schooling, medical and hospital bills, and prison costs, not to mention the money spent on food stamps, WIC and various other social service programs for people who legally do not belong in this country.

I'm sick of seeing illegals driving up and down the interstate in work trucks while Americans can't find jobs.  And now Bev's going to eliminate 10,000 more American jobs!?? 

How about it, Dumplin? 

I can't wait for 2012.

Let the state employees

that voted Republican go first.  They wanted this, they should be the ones that suffer.  But of course we all know that will not happen.  They will continue to work on the state's dime and complain about the same taxes that pay their salaries.  I never did understand how those people look in the mirror?

Another Repeated Comment "GOP127"

An exact "cut and paste" of your earlier post GOP127.

We all know you are working for the Democrat/Socialist/Communist party.

The Citizens of NC understand that the Corrupt NC Democrat Machine has controlled NC for over 100 years and are responsible for the Massive debt and economic problems of this state.

re; REDUCTION OF STATE EMPLOYEE:

question to the wonderful governor dumpling:? where are the cuts to the ncdot mangament an the internal mangers. suggestion cut down on the amount of an the volume of contracting thatis allowed to go on in this state an go back to letting the state employee that have already bee hired to do these jobs actual do their jobs dutys an quit privatiizing their work positionswoth outragous contracting praftice that allowed for these contractors to get paid for bad non specefiaction work an then it having to be redone time an time an time again at extremely high cost to the taxpayers can anyone out there say I-40-15/501 OR I-795 that both of the projects cost the taxpaers an additional 22 million dollars apeice that equals to 44 million dollars of tapayers money while i relized in a hugh 17.0 billion dolar over all budget this is only a drop in the perverberal bucket but with accumlative drops it will fast add up to huige money in the budget an these are just what project have seen the light of day at to say anything about the one that no one has information about  thank you

Welcome to Year Three of the Democrat Depression State Workers!

Into Year Three Three of the Obama Depression, the effects finally hit State workers.

So instead of eliminating the Corrupt NC Democrat political positions, state workers will pay the price. Instead of eliminating useless Welfare programs that reward having illegitimate children and becoming dependent on State programs she keeps them.

The Corrupt NC Democrat Party lead by Baby Dumplin' Perdue has caused NC to go into massive  Debt. Remember Convicted Democrat Felon Governor Easley which hand-picked Baby Dumplin' Perdue as his successor. Remember Convicted Democrat House Speaker Jim Black

The only solution is to vote out these criminals. Remember this  in 2012.

"Why does the state not make

"Why does the state not make everyone with 30 years retire or with the age requirement retire? I understand a lot of these people do not want to retire. Is it not better to let them retire then move some other state workers to the unemployment line?"

They do not. Where did you get this from?  I know someone who retired with 45 years of service recently.

The Perfect Republican Economic Storm

The continuing economic slowdown with unemployment above 9% will result in state budget deficits [nationwide] in excess of $150 billion per year over the next year or two.  These deficits will have to be closed essentially by spending cuts because Republicans will NOT tolerate ANY tax increases.  These cuts will likely dramatically impact k-12 and higher education, as well as road, highway and bridge construction. The Republican controlled U. S. House of Representatives and the increased strength of the Republican minority in the Senate will PRECLUDE ANY further federal economic assistance to the states.  Additionally, Republicans in the U. S. Congress will press for IMMEDIATE cuts in federal spending, which could amount to several hundred $billion per year…perhaps $100 billion per year.  The combined state and federal spending cuts will likely be in the range of $250 billion per year.

 

To cut $250 billion per year will result in job losses in the range of 1.5 million across the United States.  Unemployment will rise to above 11% and there will be further increases in foreclosures, downward pressure on real estate prices and reduced demand for goods and services.  This dampening of demand will, in turn, result in additional job losses and a further downward spiral in the economy with unemployment perhaps bottoming in the 12-13% range.  Republicans will block ANY further assistance for the unemployed and the only support for the unemployed will be private charities which are ALREADY stretched beyond their capability.  These conditions could last several years with lasting damage to the fabric and stability of American society.  It could take more than two generations or one-half century for the American economy to recover, if it ever recovers.

 

The British Tories have already thrown the UK economy back into recession in less than a year of trying to “cut their way out of recession”.

 

The electorate voted for this plan.  I hope they are prepared for the impact….hello street corner vendors and ‘Work For Food’ signs.

Budget

Why does the state not make everyone with 30 years retire or with the age requirement retire? I understand a lot of these people do not want to retire. Is it not better to let them retire then move some other state workers to the unemployment line?  

State Pensions

6% of my gross pay from the state goes to the TSERS it has since the day I started.  I contribute to 401K and 457.  Why would anyone even bring up the state pensions....they are not being totally funded by the state.  By the way legislators, I am one of the Republicans who put you in office...I expected you to think and to listen, most people I talk to both Democrats and Republicans don't have a problem with the taxes staying as is.  Yes there are cuts to be made, but cuts can only go so far you need to raise revenue as well.  Leave it where it is at so in 2 years we don't have to have a huge tax increase.  Also is it the smartest thing to close parks 2 days a week?  Won't towns around the state parks lose revenue with the closing 2 days a week?

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