North Carolina state budget (2012-2013)

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Governor Beverly Perdue vetoed the $20.2 billion FY 2013 state budget the North Carolina State Legislature passed. However, both chambers of the legislature overrode her veto.[1] At issue was funding for education and the state's reserves, with the governor wanting to use $100 million from the reserves on K-12 schools, probation officers and other items.[2]

The revised budget that became law when the legislature overrode the governor's veto can be found here.

Highlights of the budget for FY 2013 include:[1]

  • 1.2 percent raises for teachers and state employees and one percent cost-of-living increases for state retirees.
  • $212.5 million for growth in Medicaid program.
  • $39.7 million in monthly stipends to adult care homes for residents who did not qualify for personal care services paid by Medicaid, but whose community placements were not arranged.
  • Capping the state gas tax.
  • Reducing by $143.3 million the amount local school districts must return to the state. Schools would have $190 million less to spend.

Legislative Proposed Budget

The North Carolina House of Representatives the passed $20.3 billion budget with a vote of 73-46, which fell mostly along partisan lines.[3]

The North Carolina State Senate tentatively approved on June 13, 2012 the $20.1 billion budget that was drafted by Republicans.[4] It spent $127 million less than the spending plan approved by the House and $758 million less than what Gov. Perdue proposed. The biggest difference among the plans was Republicans would not raise the state sales tax by three-quarters of a cent, as Gov. Perdue wanted in order to generate more revenue. The Senate's proposed budget also changed funding for Medicaid and public education and would require two percent cuts elsewhere in state government. The Senate plan did not completely replace $259 million in federal funds that school districts would not receive the following school year.[5]

The Senate's proposed budget spent $466 million more than the state spent in FY 2012.[4]

Governor's Proposed Budget

Gov. Perdue unveiled her proposed adjustments to the $20.9 billion spending plan for FY 2013 on May 10, 2012. It can be found here.[6]

Gov. Perdue said her spending proposal for FY 2013 would include a temporary sales tax increase of three-quarters of a penny, the revenues from which would be dedicated to public education. That would raise the sales tax most counties pay from 6.75 percent to 7.5 percent.[7]

The governor's proposed budget spent $1.2 billion more than the state spent in FY 2012.[4]