RALEIGH
Gov. Bev Perdue said in an interview published yesterday that she didn't propose employee furloughs to manage the state budget gap because such a move would hurt the state's reputation as it recruits business.
Perdue told the Raleigh News & Observer that the money saved by forcing state employees to take unpaid time off wouldn't be worth the ultimate effect.
Her budget proposal, which was released this week, includes spending cuts aimed at closing an estimated $3.4 billion revenue gap.
Perdue said she had heard that businesses considering a move to a state think that furloughs indicate poor economic health. "I heard the financial institutions talk about what a signal it sent in terms of the health and vitality of the economy of the state," she said.
"As I watched the pushback ... in California and other states on furloughs, I began to ask myself quite frankly if the service is so unnecessary that you can do without it for a day; if the citizens can do without it, how many other days can they do without?" she said.
Perdue said she tells business executives that they should move to North Carolina and that the "state is going to look better in 2012 than 2009."
Perdue's nearly $21 billion budget for 2009-10 could put hundreds of state and university employees out of work through layoffs, and increase tobacco and alcohol taxes to help close the revenue gap. The proposed spending plan is $360 million less than this year's budget, even including $1.7 billion of federal stimulus money.
Despite Perdue's sentiment against furloughs, state House Speaker Joe Hackney, D-Orange, said he thinks that the state must consider layoffs or furloughs.
Republican leader Sen. Phil Berger of Eden said that North Carolina citizens "are prepared for government to curtail its spending."
During the interview, Perdue also said that the state has had close calls financially.
Perdue said Thursday that she receives a weekly report of the state's income and expenses. Sometimes, she said, cash flow has been tight.
"There were times in the last six weeks when I had a real concern about cash flow," Perdue said.
Lack of enough money is the reason the state is behind on issuing income- tax refunds, officials said.
Refunds typically take four to six weeks, but they have been delayed an additional two weeks because of delays in reporting income by corporations and cash flow.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement