State Budget Crunch

Perdue says slash more

Agency heads told to cut 9 percent

Rob Christensen - Staff Writer

Published: Thu, Feb. 26, 2009 12:30AM

Modified Thu, Feb. 26, 2009 05:34AM

Gov. Beverly Perdue on Wednesday ordered deeper cuts in state government, a move that could potentially jeopardize such North Carolina icons as "The Lost Colony" outdoor drama in Manteo and the High Point Furniture Market.

Taking steps to manage North Carolina's growing budget crisis, Perdue asked state agencies to reduce their budgets this year by as much as 9 percent. Last month, Perdue had asked for 7 percent cuts.

To help keep the state out of the red, Perdue also said she would dip into various special funds for $300 million that had been reserved for school construction, textbooks purchases and water and sewer projects.

"The state constitution requires that I balance the state budget," Perdue, a Democrat, said in a statement, "and I will do that while protecting public education as much as possible."

The move was described as necessary by other state leaders.

"It's going to get worse," said Senate leader Marc Basnight, a Manteo Democrat. "She is moving to 9 percent. She will have to go higher. We are in a major, major economic crisis. It's affecting the vast majority of North Carolinians. The government needs to respond and do so quickly."

In asking for deeper cuts, Perdue did not specify which programs are on the chopping block.

But her office released a list of some of the programs that her budget office is considering for cuts.

Those include seven smaller and older state prisons, eliminating inmate road crews, cutting out the Capitol Police investigative unit, ending state funding for "The Lost Colony" and the Shakespeare Festival, ending state funding for the High Point Furniture Market, eliminating the Labor Department's apprenticeship program and ending state meat and poultry inspection programs.

The Lost Colony is one of the cultural jewels in the district represented by Basnight. But he said it was fair to consider "The Lost Colony" along with other state programs.

"It definitely says the situation is getting worse," said Elaine Mejia, a budget analyst with the N.C. Budget and Tax Center. "A 9 percent cut is really significant. You're approaching the point where you will see real reductions in services and layoffs of employees."

As a precautionary step, Perdue said she would transfer up to $300 million from several special accounts into the state's General Fund. Those are $100 million from the Clean Water Management Trust Fund, $100 million from the Public School Building Capital Fund, $50 million from the Public School Text Book Fund and $50 million from the lottery reserve fund.

June Atkinson, the state superintendent of public instruction, said she agreed with the steps.

"I think the action she took today illustrates what a dire place we are in," Atkinson said. "It is more important to pay the salaries of teachers and others. With textbooks and constructions, those purchases can be deferred to another time."

Congressional Vote 3/9

Congressional Vote Alert

Helping Families Save Their Homes Act of 2009 - Intended to prevent mortgage foreclosures and enhance mortgage credit availability
Price - Y
Etheridge - Y
Foxx - N
Coble - N
McIntyre - Y
Kissell - N
Jones - Y
Butterfield - Y
McHenry - N
Watt - Y
Miller - Y
Shuler - Y
Myrick - N
(Passed 234-191, 7 not voting)

Grange: now more than ever.

Within the past week, I have heard the same thing multiple times. "The federal government can't rescue us." "It's up to us." "Character is built in times like these." "We have to dig ourselves out of the hole - even if we haven't dug it ourselves." No matter how many ways it's said, the basic message is that no one can "save" us. Proactive movement on behalf of our NC General Assembly & US Congress will surely move things along and help alleviate some of the pain that we're all feeling right now, but I'm convinced that it will be a drop in the bucket compared to the ability that we, as everyday citizens, have to make significant changes in our communities.

Let's look back at the history of the Grange. After the Civil War, the USDA sent Oliver Hudson Kelley to the South to assess the devastation of its farmland. The Grange was organized and was an advocate in rebuilding the agricultural industry. In North Carolina, the Grange was re-organized in 1929... at the point of an economic downturn which turned into the Great Depression. What better time to re-energize, increase membership, become more active in legislative activities than now? We have the perfect opportunity to make a difference in our communities - whether it's mobilizing volunteers at a Soup Kitchen, mentoring students after school, hosting a resume writing & interview skills class, donating canned food or meeting with our elected officials about issues - we have the potential to be great leaders! With all of the uncertainties that present themselves to us, families are going to want to find comfort and stability in something - the Grange is that place. The Grange is an organization which fosters family and friendship, promotes advocacy for rural North Carolina, agriculture, education and health policy, develops strong community leaders and gives back to the community in an effort to make it a better place.

The Grange, a unique and significant organization, is needed now more than ever.

Lance crackers are gifts from God...

...or so George Washington Carver might argue if he were alive today. Carver discovered hundreds of uses for peanuts in the 1880's and considered food products gifts from God. With the most recent peanut scare in Georgia, consumer confidence in the food supply has declined. Unfortunately, one bad peanut can ruin the bunch. Many agribusinesses that work directly with the food that we eat everyday are incredibly meticulous about the foods they manufacture and distribute to the American people. Lance (you know, the ones who make "nabs") was featured on the news for their safety inspections and careful practices within the plant. The following video, called "Guilt by Association" is a snippet of the serious effort that is made by the North Carolina plant to ensure quality foods for its people.

CEO says "no" to the dough.

Bill Cooper, CEO of TCF Bank in Minnesota, has spoken up. He said "No thanks." to the bailout money that the federal government offered his bank. TCF Bank wants to return the $361 million it received about 4 months ago. Cooper stated that TCF hadn't engaged in subprime lending and many other practices that caused so many institutions to fail. They have enough funds to sustain their operations and don't need the money that they were offered. Not to mention, the strings that are attached to taking TARP (Troubled Asset Relief Program) funds. He stated that Congress did bit of a bait & switch - placing restrictions on dividends, employee bonuses and executive compensation. Compensation cannot exceed $400,000 which causes a problem, he says, for executives who work on commission. Accepting these funds simply wasn't good business for TCF.

This morning, on the news, Cooper summed up his thoughts on such funds by stating that taking money from the federal government is like borrowing money from your mother-in-law. Eventually, she's going to want to paint your bedroom.

A Common Case of Rope Burn

No matter how far back you look in politics, there have been divisions. Looking back, America has seen political parties such as the Federalists, Democratic-Republicans, Whigs, Free Soilers, Populists and more. We're fresh out of an election year and some are busy changing bandages on political wounds while others are still wiping off the celebratory confetti. Many of Americans are continuing to look at the political landscape as a matter of left and right. As if we're digging our heels into the dirt and clenching onto a tattered piece of rope on the elementary school playground, we can't seem to end the tug-of-war. Why can't we just count to 3 and let go? We've got to re-evaluate how we look at the political landscape, push our ideologies to the side, and find common ground. More times than not, we all agree on the basic principles that make our country the best country that Planet Earth has ever seen. Think I'm envisioning a political utopia? John F. Kennedy said it best: "I'm an idealist without illusions." I don't, by any means, envision Howard Dean and Michael Steele calling "truce" and singing Kumbaya in the near future. I do, however, envision the American people saying "Enough is enough!" (If the US Treasury was only given a nickel everytime I've heard this, our economic problems would be solved.) Just like playing tug-of-war as a child, the constant pulling will only cause our rope-burned hands to tire, our muscles to weaken, our knees will buckle and our faces to flush from exertion. In the end, the winners can't even "high-5" their teammates due to shear exhaustion. In the end, we all lose in some way. Americans see the dire need for coming together, facing our problems head on, and solving the serious issues before us. So, I say: Let's do something about it. It won't be an easy task, but the first step is being one of those players to simply let go.