Easley asks agencies to cut spending

December 10, 2008 8:15:00 PM PST
Governor Mike Easley is asking North Carolina agencies to develop more options for spending cuts.Wednesday, Easley asked all state agencies to develop 3, 5 and 7 percent options to reduce state spending.

The request came as an effort on how to deal with the national economy slowdown's impact on North Carolina.

"The nation lost more than 530,000 jobs in November and that has to mean the unemployment rate in North Carolina will increase significantly," said Easley. "We are not immune from the national economy and we have to continue adjusting the budget as we have done since early this summer."

The governor offered several reduction strategies in memorandum he sent out Wednesday to all state departments, institutions and agencies.

    Easley specifically said the agencies should address the following:
  • Funding priority should be given to statutorily mandated government services.
  • Elimination of duplicative and underperforming programs.
  • Streamlining and operating funds due to service efficiencies.
  • Reduction in layers of management and administration.
  • Budgeting receipts where appropriate to offset appropriation requirements.
    • The governor also added agencies may suggest alternatives to recovering costs.

      The state budget shortfall could be as high as $1.6 billion.

      Easley says North Carolina is not immune from the national crisis and we have to adjust accordingly.

      The plans are due a few days after Governor-elect Beverly Perdue takes office next month.


Load Comments