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'To Stand Up:' Perdue promises help for schools, belt-tightening for North Carolina

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Gov. Bev Perdue's first State of the State Address focused on economic problems facing North Carolina.

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Published: March 10, 2009

RALEIGH

Facing severe economic turmoil, Gov. Bev Perdue promised last night to increase education spending at the same time that she's slashing billions of dollars from a state budget that is experiencing a vast shortfall.

She also repeated her promise to bring more transparency and accountability to the operations of state government.

"This is the time to stand up to the sweet seductions of special interests, to the temptations of politically popular pork-barrel spending, and end the practice of backroom dealing," Perdue told a joint session of the N.C. General Assembly. "Those days are gone, because we simply cannot afford them in these perilous times."

Perdue, a Democrat who has been governor for two months, made her remarks in her first State of the State Address, a biennial speech from the governor to the legislature.

She struck a frank but optimistic tone, saying that it is not enough to simply survive the economic recession. Through job creation and technological advancement, North Carolina's economy must become stronger than it was before the recession began, she said.

Legislative observers were listening for clues to how Perdue plans to deal with the state's growing budget crisis, but her speech was light on specifics.

She has already ordered that spending be cut by 9 percent in most state agencies as a way to balance the 2008-09 budget, which will end June 30.

Sometime next week, Perdue is expected to release a budget plan for the next two years, when the state's shortfall could grow to more than $3 billion out of a $20 billion budget. She gave little indication last night what her budget plan will look like, other than to say that she and the legislature will have to make difficult spending cuts -- even in state programs that are known to be effective.

Perdue did not say in her 35-minute speech whether she is considering pay cuts or layoffs for state employees, nor did she talk about the potential for tax increases.

Republicans have called on Perdue to veto any budget that includes tax increases, and responding to her speech last night, they repeated that call.

"As we look at the state budget, we must remember that our state is full of families making great sacrifices. Leadership means a commitment that government shoulders its share of the pain and sacrifice," said state Sen. Phil Berger, R-Rockingham, the Senate Republican leader.

Perdue did make it clear that she would not support cuts in one area: public education. In fact, she promised to increase per-student spending on public education.

"Education is the engine that propels North Carolina's future. It cannot -- and will not -- be sacrificed," she said.

She also promised to fight for every dollar available to North Carolina in the federal stimulus package.

Among the guests at Perdue's speech was Donna Dent, the flight attendant from Winston-Salem who was working on US Airways Flight 1549 when it landed in the Hudson River in January. Perdue praised Dent in her speech, calling her a model for North Carolinians.

"She calls herself just a ‘little Winston-Salem girl' who did her job. What a job this 1975 Reynolds High grad did!" Perdue said, as Dent received a standing ovation.

"She made sure every passenger on that plane got out of the Airbus 320 alive. She was the last to leave the plane with the pilot and the co-pilot that day. And then she took off her sweater and gave it to a freezing passenger in a life boat."

■ James Romoser can be reached at 919-210-6794 or at jromoser@wsjournal.com.

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