Gov. Pat McCrory is asking state agencies and leaders to tighten their fiscal belts in the final three months of the budget year.
The Republican blamed $140 million in unanticipated Medicaid costs and uncertain tax revenue collections through June 30 for the move.
“North Carolina’s balance sheet is in pretty good shape,” McCrory said in a statement. “I want to keep it that way, so I am requesting the Council of State, cabinet secretaries, agency heads and the judiciary to keep a tight hand on the taxpayer’s purse.”
The memorandum sent to state leaders Thursday requests reduced travel costs and limited salary costs. McCrory also asked that purchases be limited to essential goods and services.
McCrory acknowledged that revenue collections are ahead of the previous year and the state’s unreserved fund has $770.7 million as of March 26.
McCrory can make such moves in his own administration but the Council of State agencies are independently managed by elected officials.