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Published Sun, Apr 17, 2011 06:03 AM
Modified Sun, Apr 17, 2011 12:31 PM

Perdue vetoes GOP spending bill that extended jobless benefits

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- Staff writers

Late Saturday night, Gov. Bev Perdue vetoed a bill that would have extended benefits to the long-term unemployed that Republicans had tied to budget negotiations.

The e-mail announcing the governor's veto was sent out after midnight. Perdue's staff had announced Saturday morning that she would veto the bill, but the veto was delayed by the day's severe weather and deadly tornadoes.

In her veto message to the legislature, Perdue, a Democrat, wrote: "House Bill 383 irresponsibly took the financial lifelines for 37,000 North Carolina citizens and families and hitched them to a budget ploy that will wreck the lives of millions more.

"The General Assembly's leadership needs to quickly send me a bill that will aid our fellow North Carolinians, free of these antics, and I will sign it."

The unemployment benefits can be extended and paid retroactively at any time the legislature and the governor agree on a bill.

The Republican-authored bill that Perdue vetoed would have forced a 13 percent cut in her suggested budget if there is no spending agreement by the end of June.

On Saturday, Robin Hayes, the state Republican Party chairman criticized Perdue for her impending veto, saying "It is a shame that Gov. Perdue would cut off the jobless benefits to 37,000 families to avoid cutting one cent from her big spending, big government budget proposal."

The Senate has enough Republican votes to override Perdue's vetoes, as it has twice. House Republicans do not have a veto-proof majority, and they failed in their one attempt.

Democrats bashed Republican legislators for dragging the jobless and their families into the middle of a fight that has nothing to do with their benefits. None of the money for extended benefits would come from state funds, and money would not be added to the state's $2.6 billion debt to the federal government for unemployment insurance claims.

"If the Republican Party chooses to impoverish 37,000 of their neighbors, that reflects their inability to understand the magnitude of this economic slowdown," Democratic Party Chairman David Parker said in an interview.

This would be Perdue's fifth veto this year and third in less than a week. On Wednesday, she vetoed changes to the state employee health plan and another bill that would have allowed community colleges to opt out of a federal scholarship program.

The Republican-controlled legislature and Perdue could be headed for contentious budget negotiations. Republicans are writing an austere budget that allows a temporary sales tax to expire, while Perdue's proposal would keep a part of that tax, which would raise $827 million.

Republicans last week said they worried Perdue could force them to a standstill during budget negotiations, and needed to set an automatic budget cut triggered by a June 30 deadline.

Senate Democrats mounted two failed efforts last week to separate the benefits from the budget provision. A House Democrat tried to attach the benefits extension to a different bill, but Republicans blocked the move.

After approving the measure Thursday, Republicans called for a rare Saturday session attended by a few members from each chamber to send it to Perdue.

Unemployed residents who have maxed out their benefits could still get 20 additional weeks, to be paid retroactively, if Perdue and the legislature agree to it sometime before year's end.

Late last week, Sen. Richard Stevens, a Cary Republican and a chief budget writer, said he did not know how the Senate would respond to a Perdue veto.

Perdue is spending today traveling around the state to assess damage.

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