Perdue: State finances better, but joblessness likely to rise

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Education gains in budget

Education will make out best in a recession-era budget proposal Gov. Beverly Perdue will present today. It looks bad for everything else.

Perdue said Monday she wants a 2.5 percent increase in the education budget paid for with money from the federal stimulus and from state funds. The increase would amount to $350 million more spread across all education levels, from kindergarten through college.

The early preview of proposed education spending gave Perdue the chance to highlight some good news the day before her budget plan, which is expected to include dramatic reductions throughout state government.

Perdue wants more money for schools

Gov. Beverly Perdue said Monday night that despite the deepening recession, she would propose higher per-student spending for public schools.

In her first State of the State address, Perdue delivered a sobering message that painful budget cuts are ahead for most state agencies.

But she said that when she reveals her budget proposal next week, she would find a way to get more money into the classrooms of secondary and elementary schools "even in these tough times."

Perdue says state needs $1.5 billion in new taxes

Gov. Beverly Perdue on Wednesday began a campaign for as much as $1.5 billion in tax increases to stave off what she said would be crippling budget cuts for public schools.

At a rally in the Capitol, Perdue, a Democrat, urged the legislature to raise taxes higher than the $780 million proposed in the House budget. Although she declined to say publicly what she would support, the governor privately told lawmakers that between $1 billion and $1.5 billion in new revenues should be generated -- as much as twice the amount of the House plan.

"In North Carolina we have to act boldly to protect our classrooms," Perdue said in the first of a series of six rallies she plans across the state. "I don't believe we can cripple education in this state."

State workers get unpaid time off

North Carolina state employees, who have traditionally enjoyed job security during economic storms, are learning they are vulnerable, too.

On Tuesday, Gov. Beverly Perdue ordered unpaid furloughs for all workers, public school teachers and higher education employees, in an effort to balance the budget in a struggling economy. The furloughs are expected to save the state between $65 million and $70 million, which will close a widening budget gap estimated at $3.2 billion in the current year, according to Charles Perusse, the state budget director.

Workers will see May and June paychecks reduced by a total of one half of 1 percent of their annual salary. An employee making $50,000 per year would see pay reduced a total of $250 during the next two months. An employee making $30,000 would see a salary cut of $150.

Furloughs, pay cuts ordered for state workers

RALEIGH — Gov. Beverly Perdue today ordered unpaid furloughs for all state workers, public school teachers and higher education employees, in an effort to balance the state budget in a struggling economy.

All state employees will see their paychecks in May and June reduced by a total of one half of one percent of their annual salary. An employee making $50,000 per year would see his or her pay reduced a total of $250 during the next two months. An employee making $30,000 would see a salary cut of $150.

In return, state employees will be given 10 hours of flexible time off, which they may take between June 1 and Dec. 31.