NC Governor Perdue to Keep Her Promise and Veto the Budget?

Budget Raises Taxes During Recession and Cuts Per Pupil Education Funding

August 6, 2009

NC NEWS -- Governor Bev Perdue has consistently pledged to North Carolina citizens she will not sign a budget that raises taxes on working people or cuts funding for education. The budget passed yesterday by the General Assembly does both.

As a candidate and as governor, Governor Perdue has solemnly promised she would not support raising taxes on working families during a recession. The budget places an increase in the regressive state sales tax squarely on the backs of all citizens.

Governor Perdue pledged as a candidate, "I don't believe that you can raise taxes in an economy with folks struggling the way they are." (News and Observer 10/23/08). The budget increases the state sales tax to 5.75 percent from 4.75 percent - an increase of 20 percent. The total tax increase in this budget is almost $1 billion this year and $1.3 billion next year.

Governor Perdue earnestly promised that the budget would increase funding for education. The Governor stated in her State of the State Address, "And yes, even in these tough times... we will increase per-pupil spending in our public schools." She would clearly renege if she signs the budget currently on her desk. Under the bill adopted by the legislature, per pupil spending by the state is cut by 4 percent from $5,523 to $5,090. (See calculation below.)

"The Governor promised our citizens she would never sign a budget that raises taxes on working families during a recession and cuts per pupil spending," said Representative Paul Stam of Wake County. "Her signature on this budget would break both of these of promises. I call on Governor Perdue to reject this budget and insist the legislature adopt a fiscally responsible bill consistent with her pledges to the people of North Carolina."