Refusing to Cut

Today's N&O ran the story below about state agency's not offering cuts. UNC is not playing the game this way. The requested 10% will be identified, but so will some new budget requests.

It is a delicate balance between letting the state know what we assess that we need to operate and to continue to serve the citizens of North Carolina and knowing that we will have to do our part to close the budget gap. Figuring out creative, long-term solutions to this issue is something we at the Faculty Assembly have been talking about for a good while now. All state agencies will have to do the same.

Of course, cutting positions will mean the need for unemployment and other forms of support of the people who lose their positions. The state is on the line either way.

Leadership, from the governor and the General Assembly, is going to have to work closely with state agencies to make it happen. Posturing is the first thing that should go. Unfortunately, it is the only way most know how to play the game.

Masthead



Published Sun, Nov 14, 2010 04:19 AM
Modified Sat, Nov 13, 2010 11:28 PM
Agencies offer little for budget
Gov. Bev Perdue's office hasn't gotten many solid suggestions from state agencies on how to fill a $3.5 billion budget hole.

The agencies were asked to cut their budgets by 5 percent, 10 percent or 15 percent by either dumping or consolidating programs and cutting management, and given an Oct.29 deadline. So far, it appears that most are ignoring the guidelines.

Perdue's budget office has gotten few suggestions for cuts. Taken together, those that have heeded the call don't come close to chopping $3.5 billion from this year's nearly $19 billion budget.

Perdue has said she would announce her plan for government consolidation after the election, offering a partial preview of her budget proposal.

The Democratic governor will be working next year with a Republican-dominated legislature looking to shake up budgeting.

"The agencies should very clearly understand the governor is looking for programs that can be eliminated," said Chrissy Pearson, Perdue's spokeswoman.

Instead, many are looking to raise revenue.

John W. Smith, the chief state courts administrator, suggested the court system could make up nearly 5 percent by increasing fees and making unspecified reductions but told Perdue's budget director the judicial branch couldn't take deeper cuts.

The Department of Insurance didn't come up with any cuts, either. Instead, the department, which lives on fees, suggested collecting more from insurers, agents, adjusters and others licensed to do business in North Carolina.

Agriculture Commissioner Steve Troxler flat-out refused to make any suggestions, saying his department has lost 180 jobs in the past 10 years. It doesn't make sense for the department to offer ideas ahead of the government consolidations that Perdue says she will make and a budget review by lawmakers, Troxler said. "This is putting the cart before the horse," he said.

The full slate of proposals is unknown. Pearson said that state budget director Charles Perusse was not able Friday afternoon to retrieve the budget cut information agencies provided electronically. "His new system has some bugs in it," Pearson said.

The UNC system said last week that a $270 million, 10 percent budget cut would cost about 1,700 jobs that likely would include faculty members. The universities, community colleges and K-12 public schools - which spend about 60 percent of the state budget - don't have to dig as deep as the other agencies. The budget office has asked them to offer cuts up to only 10 percent.

The community college office did not respond to a request for its proposal, and the state Department of Public Instruction said its suggestions for cutting K-12 education won't be ready until Monday.

A handful of smaller agencies provided copies of their suggested cuts last week.

The state Labor Department suggested cutting vacant jobs and operating expenses to help get to the 15 percent mark, and the Secretary of State's office said it could pay salaries and benefits for about 40 workers from agency receipts rather than the state budget.

State departments aren't good at coming up with their own cuts, said Rep. Jim Crawford, a Henderson Democrat who has been a chief budget writer for years.

"Agencies have traditionally picked their programs that are the most popular and put them on the chopping block," he said. The resulting public outcry usually helps spare popular programs.

It would be better if agencies made practical suggestions, especially this year, Crawford said. "If I were the agencies, I'd really look at the programs and see what they can live without and what they can't," he said.

'Revolutionary things'

Any potential savings the departments suggest will help, Pearson said.

Changes by a Republican-dominated legislature may turn budgeting on its ear, making next year's discussions about spending different from any in recent history. Legislators may start working on their own budget before Perdue submits hers, said David Lewis, a Harnett County Republican. Traditionally, legislators use the governor's budget as a template.

Rather than relying on agency suggestions, he said, legislators are going to review the functions of every department as if they'd never received money before.

Lawmakers will ask the public their budget-cut suggestions, Lewis said, and may set up a system to reward people who come up with workable ideas.

"We're going to try to do some revolutionary things," he said.

Staff writer Alan Wolf contributed to this report.

lynn.bonner@newsobserver.com or 919-829-4821