Washington Bureau

NC Gov. Lobbies Congress to Patch State Budget Hole

By Staff
January 14 2009 | text size: small medium large
Email a FriendEmail to a Friend
Printer Friendly
Stumble It!
Digg!
Most Popular Stories
WASHINGTON -- North Carolina Gov. Bev Perdue lobbied Congress and advisers to President-elect Barack Obama Wednesday to help patch the state's $2.2 billion budget hole.

In Washington to discuss the economic stimulus package Obama and Congress are preparing to pass, the new Democratic governor also requested $18 billion for road construction and other projects aimed at creating jobs in North Carolina as unemployment levels rise.

The worsening recession has taken a bite from revenues in states across the country. This week, Perdue said North Carolina faces a shortfall this year of $2 billion or more - about 10 percent of the state budget.

She said Wednesday she has identified about $1 billion in cuts her office could make and pitched members of Obama's transition team and North Carolina's congressional delegation to make up the other billion by increasing federal funding for Medicaid, education and other programs.

"I can't find another billion dollars," to cut, she said, adding that because the state's current economic woes are the result of a global financial meltdown, "We need a national partner."

"I don't believe it's a handout. I really don't believe it's just someone coming up here saying `bail me out.' I believe it's really an economic recovery package," she said.

Obama is negotiating a $775 billion economic stimulus package that he and congressional leaders say must pass by mid-February. Economists debate whether the package will be effective in ending the recession.

A big part of the incoming president's proposal banks on creation of new jobs by providing funding to repair highways, fix crumbling schools, develop new green technologies and other projects.

After meeting with House members from North Carolina, Perdue said her office has developed an $18 billion list of projects that could begin within two months.

The wish list includes $5.1 billion for roads, $1.1 billion for public schools and just under $1 billion for airport, rail and other transit projects.

All but one member of North Carolina's delegation in the House attended the meeting. Republican Rep. Patrick McHenry had a scheduling conflict.

She also discussed the state's financial needs with Sen. Richard Burr, R-N.C., and Sen. Kay Hagan, D-N.C., in separate meetings.

North Carolina lawmakers are divided about the stimulus package.

Rep. Virginia Foxx, R-N.C., said she plans to vote against it because she is "philosophically opposed to the federal government operating this way." But, she said, "if money is going to be doled out, certainly I hope some of it will go to North Carolina."

Some fiscally conservative Democrats have also criticized the proposed stimulus package because it would expand the federal deficit, which is projected to hit $1.2 trillion this year.

Rep. Mike McIntyre, D-N.C., a member of the fiscally conservative "Blue Dog" Democratic coalition, opposed the Wall Street bailout and bailout of the automotive industry. But he said he was encouraged by the stimulus package and many of the projects Perdue proposed funding.

"It's not targeted to one sector or one industry. This gives you maximum benefit to the maximum number of taxpaying citizens," McIntyre said.

Sean Mussenden can be reached at smussenden@mediageneral.com or 202-662-7668.
-- Advertisement --