Gov. Perdue Signs State Budget with Focus on Jobs, Economic Recovery

Press Release

Gov. Bev Perdue today signed the budget for fiscal year 2010-11, which cuts more than $1 billion from state government while making critical investments in job creation, education and setting government straight.

"I signed a budget today that does more with less, but still keeps North Carolina moving forward toward a full economic recovery," said Gov. Perdue. "This year was tough, but next year will be tougher. This budget puts our state on firm ground as we head towards the challenges of next year."

Perdue submitted a budget to the General Assembly in April that laid out four core priorities -- jobs and the economy, education, setting government straight and safer and healthier communities. These remained the focus of budget negotiations and are reflected in the investments made for the next fiscal year.

Jobs and the Economy

The adopted budget provides more than $200 million for several key investments around assistance to small businesses and infrastructure that will help sustain or create 20,000 jobs over the next three years.

- $58 million to establish the North Carolina Mobility Fund that will relieve traffic congestion, improve logistic capabilities and create jobs around the state.

- $34 million in tax relief by establishing a 25 percent refundable tax credit against unemployment insurance contributions.

- Investments in the Main Street Solutions program and other small business assistance programs to grow home-grown businesses that create the bulk of new jobs.

Education: Career and College -- Ready, Set, Go

- $10 million recurring funds to supply teachers with diagnostic assessment tools that will give them the unprecedented ability to track individual students in real time, showing where they need help so teachers can keep them from falling behind.

- Funding enrollment growth and financial aid at both the community college and university levels to meet the growing demands on higher education.

Setting Government Straight

The governor's efforts to find efficiencies and ferret out waste, fraud and abuse were supported with the expectation of saving an estimated $35 million in Medicaid alone. In addition, the budget:

- Reduces spending by $20.5 million by linking inmate medical costs to the Medicaid fee schedule.

- Supplies increased funds for the State Ethics Commission and the State Board of Elections.

Safer and Healthier Communities:

- $8.8 million for the Criminal Justice Law Enforcement Automated Data Services (CJLEADS) project that will merge all criminal data records into one interactive and comprehensive system.

- $4.7 million to expand the VIPER system which ensures that first responders on the ground are adequately equipped to communicate with one another during emergency situations.

- Funding to begin to establish statewide capacity for law enforcement to collect DNA at the time of the arrest.

- Restoration of the $40 million community mental health reduction which occurred in 2009.

Gov. Perdue signed the budget prior to the July 1 deadline -- the first on-time budget in seven years. Since taking office, Perdue has approved cuts to the state budget by more than 12 percent and the elimination of more than 3,500 positions in state government.

Source