Perdue says ‘hard, painful decisions’ ahead for NC

RALEIGH, N.C. (AP) — Facing what she calls North Carolina’s greatest challenges since the Great Depression, new Gov. Beverly Perdue told lawmakers Monday night they would have to make “hard, painful decisions” with state spending, but remain committed to public education.

“We all must have high expectations for ourselves and for North Carolina’s futures,“ Perdue said in her first State of the State address to a joint session of the General Assembly. “We all must exhibit extraordinary leadership and courage and determination, and make the tough, but right decisions.“

Already closing a projected $2.2 billion shortfall this fiscal year and preparing for an initial spending gap of $3.6 billion next year, Perdue said she would release a two-year spending plan next week that is the result of difficult choices.

“We will reduce and cut state government programs and services that many, including me, know have been effective but which, in these times, we simply cannot afford,“ the Democratic governor said in a 30-minute address.

She didn’t mention directly the option of raising taxes — some legislators have suggested raising alcohol and cigarette taxes, and others to tighten corporate tax reporting to generate new funds. She suggested she was open to change.

“Starting today, it is no longer business as usual for North Carolina’s budget. I want all our citizens to know it is a new day,“ Perdue said. “Everything is on the table. We don’t have time for talk-show political posturing or petty partisan games. Not on my watch.“

Perdue, who took office Jan. 10, continued to boost her profile as both a responsive and reform-minded governor. She tried to connect with her television audience by talking about how she had visited an unemployment office recently and talked with the jobless. The state’s 8.7 percent jobless rate is the highest since the early 1980s.

“Families all around the state are anxious. Many have lost their jobs. Many have lost their homes,“ Perdue said. “And as elected officials, it is our moral responsibility to work together and help our citizens restart their lives.“

Republicans, the minority in both House and Senate, said they were pleased to hear Perdue’s commitment to cutting government spending, and would support her efforts provided she didn’t raise taxes and protected core state functions.

“We can not allow the government budget to further stress already stretched families,“ Senate Minority Leader Phil Berger, R-Rockingham, said in a GOP statement after Perdue’s address. “The way to do that is to frankly and realistically appraise how much money the state has coming in, and spend that much and no more.“

House Speaker Joe Hackney took issue with Berger’s comment that the average North Carolina resident won’t feel the impact of expected spending cuts. Berger said Democratic leaders have passed budgets that have raised spending by nearly 50 percent over the past half-dozen years.

“There will be cuts that will affect every North Carolinian, and they will know it,“ said Hackney, D-Orange.

Perdue also mentioned her efforts to change how the Department of Transportation approves road projects and create methods for the public to access information online about how federal stimulus funds are spent and about state contracts and grants.

“We will be open, ethical, and put the public’s interest first,“ Perdue told lawmakers, adding that they must do their part “to stand up to the sweet seductions of special interests, the temptations of politically popular pork barrel spending, and end the practice of back-room dealing.“

Perdue, a former legislator and the lieutenant governor since 2001, has heard many State of the State addresses, but none like this one given the economy and history. She was elected the first female governor in November, a feat she mentioned in her speech. Also in attendance was her husband Bob Eaves, the first so-called “first gentleman.“

Perdue focused less on seeking significant programs and budget items, except that she vowed to increase per-pupil spending in the public schools. She also called on school testing reform and getting the business community involved in training workers.

The governor did say she wanted to expand a college-affordability program started by her predecessor, Gov. Mike Easley. She has said she ultimately wants to help children as early as fifth grade with the pledge of a debt-free college education.

“She certainly laid down the dominant need as she sees it for prioritizing education,“ said Senate leader Marc Basnight, D-Dare, who has been the most prominent voice to suggest raising some taxes. “You can’t do it with the present revenue you have. ... Tonight was a speech made to set the table.“

Among those attending Perdue’s speech was Donna Dent, one of the flight attendants aboard US Airways Flight 1549, which splashed down in the Hudson River in New York on Jan. 15. All 155 passengers onboard the aircraft survived.

A 1975 graduate of Winston-Salem’s Reynolds High School, Dent received standing ovations from an audience that included members of Perdue’s Cabinet, Council of State members and appellate court judges.

“She did her job,“ Perdue said. “She was willing to give her life to help others.“