RALEIGH — Budget gimmicks help Gov. Bev Perdue avoid the tough decisions that would improve North Carolina state government’s finances and operations. That’s the assessment the John Locke Foundation’s top budget expert offers in a new Spotlight report.

“Gimmicks are at the core of the governor’s budget proposal for the new fiscal year that starts in July,” said Joseph Coletti, JLF Director of Health and Fiscal Policy Studies. “These gimmicks leave the state fundamentally unprepared for recovery. The governor’s budget proposal represents a missed opportunity.”

The primary gimmick is Perdue’s claim that her budget cuts $1 billion in state spending, Coletti said. “The press release tied to this budget plan crowed about $1 billion in cuts, but it ignored a key point,” he said. “More than half of the so-called cut — $578 million — is new federal stimulus money that replaces state dollars.”

“Once you add that money back into the mix, there’s no reduction in actual spending on those items,” Coletti added. “That’s in addition to more than $1 billion in federal stimulus money already budgeted for the new fiscal year. Lawmakers approved that $1 billion during last year’s state budget debate.”

Taking account of the gimmicks, Perdue’s budget plan would spend $400 million more than the proposal for the current budget year, which ends in June, Coletti said. “The governor’s plan would spend $1 billion more than actual state government spending for 2008-09.”

News FeaturesCJ: Reform delayed as schools counter budget gap
RALEIGH — State economists do not expect the revenue outlook to improve any earlier than late 2011, blaming persistent economic weakness for suppressing growth in employment and consumer spending. While lawmakers raised taxes by nearly $1 billion last year, personal income tax and sales tax collections continue to fall far short of expectations. Instead of a projected growth rate of 2.4 percent in personal income for fiscal year 2010-11, economists have cut the forecast rate by nearly half to 1.3 percent.

CJ VIDEO: ABC bill would give state more control
RALEIGH — The bill being debated in a study committee of North Carolina’s General Assembly would give the state more control over local Alcoholic Beverage Control boards. Earlier this year it was rumored that the state would privatize some or all of its ABC system. Privatization is unlikely under draft legislation.

CJ: Eco-farm project appears dead after publicity
FRANKLIN — The self-sufficient organic farm’s developer, Kelley L. Bradbury, a Macon County woman, claimed to be seeking $15 million in public funds to develop what she called “North Carolina’s first all Green Eco-Community.”
 Bradbury’s contract to purchase the farm from the current owner has been terminated.

CJ: WWII vet could lose farm to eminent domain
CHARLOTTE — Matthews resident Neubert Purser, 87, has suffered two major blows in his life. The first came while serving his country on combat duty in the U.S. Army, on the front line of the Battle of the Bulge in Germany during World War II, when fragments from an exploding shell ripped a 4-by-8 inch gash in his body.

NC insurance nixes spot-checks of sneaking smokers
RALEIGH — Thousands of North Carolina state employees admitted they were smokers and signed up for higher-priced health coverage under the threat of random testing to see if they were sneaking butts. But so many workers opted to acknowledge their vice and stay in the higher-priced plan that administrators doubt they’ll find many cheaters. So legislators and plan administrators this week dropped unpopular plans to test for smokers trying to beat the system.

Upcoming EventsMonday, May 10, 2010 at 12:00 p.m.
Shaftesbury Society Luncheon
with our special guest Jacob Vigdor
“From Immigrants to Americans: Bringing Assimilation into the Immigration Policy Debate”

Wednesday, May 19, 2010 at Noon
North Carolina History Project Lecture
with our special guest Douglas C. Minson
What’s Rome Got to Do With North Carolina?: Affinities and Tensions Between Catholicism and Southern Conservatism

“We gutted it.”
— Sen. Daniel Clodfelter, D-Mecklenburg, as quoted by the Wilmington Star-News, describing changes made by a study panel to its recommendations to the General Assembly on ethics standards for local ABC boards. Clodfelter was the only member of the 28-person panel who voted to require that local ABC boards comply with the State Government Ethics Act.

“That’s less serious than having drug paraphernalia in your pocket.”
— New Hanover County Assistant District Attorney Tom Old, as quoted by the Wilmington Star-News, talking about the penalty for making illegal campaign contributions. Wilmington businessman and Democratic fundraiser Rusty Carter was fined $5,000 and placed on probation for funneling $176,000 in contributions through employees of a company he owned to the campaigns of Gov. Beverly Perdue, Senate leader Marc Basnight, and Sen. Julia Boseman, D-New Hanover.

“We might need to call it something other than a charter.”
— Ed Dunlap, executive director of the N.C. School Boards Association, commenting to the Raleigh News & Observer, about the possibility, which the state is studying, of allowing local school boards to convert failing schools into charter schools. The state currently has a limit of 100 charter schools.

“I would hope that the government can kick in and give everyone free lunch.”
— Patricia Cuda, cafeteria manager at Wake County’s Wakefield High School, expressing her hope that healthier lunches can be provided at no cost to all of the Wake County high school’s students, and by extension, all students statewide.


On The Air This Week…

This week on C J Radio…
JLF’s Daren Bakst discusses the push for public financing of campaigns; JLF’s Joe Coletti reacts to budget comments from Gov. Perdue, as do Sen. Linda Garrou and House Minority Leader Paul Stam; lawmakers discuss the impact of dipping heavily into the state’s unclaimed property fund; John Hubisz assesses the quality of middle-school science textbooks; and JLF’s Terry Stoops reacts to the state’s failed effort to win a federal education grant.

This week on NC Spin…
Join moderator Tom Campbell for another week of political discussion and debate on the most intelligent television talk show in the state. Topics this week: What happened in Tuesday’s primary elections; a big fine on lobbyists that nobody can tell us anything about; and about what should happen to an extremely drunk trooper. This week’s panelists: John Hood, president of the John Locke Foundation; Chris Fitzsimon of NC Policy Watch; Democratic consultant Brad Crone; and former House Speaker Joe Mavretic.