Monday, December 22, 2014

Follow us:
News 14 Carolina is on Facebook Follow us on Twitter! RSS 


Perdue's last budget relies on sales tax increase to boost education

  • Text size: + -
TWC News: Perdue to release budget proposal with big boost for education
Play now

Time Warner Cable video customers:
Sign in with your TWC ID to access our video clips.

out of 10

Free Video Views Remaining

To get you to the stories you care about, we are offering everyone 10 video views per month.

Access to our video is always free for Time Warner Cable video customers who login with their TWC ID.

  To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.

RALEIGH -- Democratic Gov. Bev Perdue's final budget proposal relies heavily on a higher sales tax she wants to restore public school funding cuts from recent years and to expand other initiatives.

Perdue on Thursday released a $20.9 billion budget proposal for 2012-13 that adjusts the second year of a two-year budget the Legislature approved last year over her veto. As with all her budget proposals, education was her number one priority.

“Good schools are the foundation for a strong economy. You all understand that,” said Perdue in a press conference.

The governor's proposal includes a three-quarter-cent sales tax increase that would generate $760 million in additional funds next year. A big chunk of that money would help eliminate mandated cuts for local school districts that are projected to reach $500 million.

Republican leaders at the General Assembly say they would not support a higher sales tax, tossing aside the proposal on Wednesday before it was even presented.

“It is not the solution that this General Assembly will look to,” said Sen. President Pro-tem Phil Berger on Wednesday.

“Dead on arrival when it gets there. I was surprised by that comment quite frankly. That says to me that they had an opinion of a budget before they even saw it,” said Perdue on Thursday.

Perdue said she believes she has some important proposals in her plan beyond sales tax; including proposals to create jobs through tax incentives for small businesses and help military families with tuition assistance programs and hiring programs for post 9/11 vets.

For their part, Republicans aren't budging. Speaker Thom Tillis said Perdue is not thinking long term on how to fix some of North Carolina's problems. In a statement he said: It appears that Gov. Perdue is making fiscal decisions based on political expediency rather than a desire to work together to solve North Carolina’s financial problems.

Republican lawmakers will get a chance to present their proposals when they return to Raleigh next week. ClientIP: UserAgent: CCBot/2.0 ( Profile: TWCSAMLSP