Perdue to propose restoring sales-tax increase

Gov. Bev Perdue will propose restoring a three-quarter cent sales tax increase in the next budget to stop "deep and unnecessary cuts" to schools.

Perdue announced her proposal Tuesday afternoon, when she was scheduled to speak at a Greensboro elementary school.

Revenue from the increase would be dedicated to schools, Perdue said.

"I have cut spending to eliminate waste and make government more efficient. But we cannot allow the legislature’s extreme education cuts to continue," she said in a statement. "As the North Carolina Association of School Administrators pointed out, North Carolina has fallen to 49th in the nation in per-pupil funding. The legislature’s budget has hurt education at all levels – from pre-k all the way through higher education – and has led to higher class sizes and the loss of thousands of teacher and teaching assistant positions. And their budget forces even more teacher layoffs next year -- we must act to prevent these additional cuts."

The proposal is likely to receive a cold reception from the Republican-controlled legislature and could signal another budget showdown this year.

Perdue proposed extending three-quarters of the temporary sales tax increase in her proposal last year. The legislature rejected the idea. 

Perdue vetoed the legislature's budget, but was overruled when the legislature canceled her veto.