Governor Mike Easley, in his final year in office, rolled out his last budget request yesterday. Never one to break with tradition, Easley included higher taxes and more spending.
Summary
The Governor’s recommended adjustments for the 2008-2009 budget:
- Increases spending to $21.5 billion, a 4.2 percent increase over the previous year, marking a 48 percent increase over FY 2001-02 spending, Easley’s first year
- Includes $1.2 billion in new programs and spending while cutting spending from the Highway Trust Fund by $65.6 million
- Adds 4,681 new state employees and teachers, bringing the total to 262,481
- Imposes an 80% tax increase on beer (4 cents per can)
- Enacts a 57% tax increase on cigarettes (20 cents per pack)
- Authorizes $553 million in new state debt, without voter approval
- Allocates $25 million from Highway Trust Fund transfer to the Turnpike Authority to build toll roads
- Provides for an average 7% pay increase for teachers
- Includes a 1.5% pay increase for state employees (with an additional $1,000 one-time bonus and 5 extra vacation days)
- Offers $396 million in spending reduction (mainly by reducing Medicaid spending forecasts and the automatic inflationary increase in reimbursement rates to physicians)
Ridiculous items
– $375,000 to establish an office of the State of North Carolina in Shanghai, China
– $15 million to renovate the Mattamuskeet Lodge
– $1 million for the “Freedom Monument”
– $2.7 million for a Polar Bear exhibit at the N.C. Zoo
– $97 million for the Jim Hunt Library at N.C. State
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