Budget From Governor Relies on Gimmicks, Misses Opportunities

JLF fiscal expert analyzes Perdue’s 2010-11 spending plan

RALEIGH (Carolina Journal Online) — Budget gimmicks help Gov. Bev Perdue avoid the tough decisions that would improve North Carolina state government's finances and operations. That's the assessment the John Locke Foundation's top budget expert offers in a new Spotlight report.

"Gimmicks are at the core of the governor's budget proposal for the new fiscal year that starts in July," said Joseph Coletti, JLF Director of Health and Fiscal Policy Studies. "These gimmicks leave the state fundamentally unprepared for recovery. The governor's budget proposal represents a missed opportunity."

The primary gimmick is Perdue's claim that her budget cuts $1 billion in state spending, Coletti said. "The press release tied to this budget plan crowed about $1 billion in cuts, but it ignored a key point," he said. "More than half of the so-called cut -- $578 million -- is new federal stimulus money that replaces state dollars."