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NC Governor vetos Balanced Budget Act, Senators file new plan

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February 23, 2011

RALEIGH, North Carolina: On Tuesday Governor Beverly Perdue (D) vetoed the Balanced Budget Act of 2011. The bill was the first major piece of legislation that the GOP-led legislature had sent to the governor since the session began on January 26. It would not have actually balanced the budget, but instead was a measure intended to shrink the budget gap projected for Fiscal Year 2012, which begins on July 1. The bill aimed to save around $540 million from the current budget and reserves.

Perdue's major criticism of the bill was that it took funds taken from successful economic development programs. Upon using her veto, Perdue stated, "The bill in its current form forces a one-time cash grab from funds that are intended to create jobs and spur economic development. That's not the right move for North Carolina, where jobs simply must be our No. 1 priority."[1]

The bill returned to the legislature, but there was no effort to override the veto. Instead, Republicans filed a bill which would require Perdue to cut $538 million while giving her the discretion to do so however she sees fit. Richard Stevens, Neal Hunt, and Peter Brunstetter are primary sponsors of the new bill.[2]


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