Incompetence Defines Democratic Breakdown on Budget

Raleigh, N.C. – After Governor Perdue issued a veiled veto threat late yesterday, Senate Democrats left a closed door budget meeting vowing to start from scratch on state budget negotiations.

“Everything’s off the table. We were directed to start over.” said Sen. David Hoyle (D-Gaston), a key Democratic negotiator, after a meeting of the Senate Democratic Caucus. (“Gov. Perdue scuttles General Assembly’s tax deal,” Fayetteville Observer, 7/24/09)

A key House Democratic negotiator, Rep. Mickey Michaux (D-Durham) disagreed with Sen. Hoyle’s assessment, “It’s still on the table.” (“Perdue shreds income tax deal,” News & Observer, 7/24/09)

House Majority Leader Hugh Holliman blamed Governor Perdue for the breakdown in negotiations and expressed frustration that though the Governor’s staff had been privy to budget negotiations, she only raised her objection at this late hour. Holliman said, “We would certainly appreciate it, if she has any problems with that plan, that she’d let us know.” (“Perdue shreds income tax deal,” News & Observer, 7/24/09) Perdue is now calling for an even larger tax hike demanding $200 million more in new revenue.

Meanwhile, Governor Perdue blamed legislative Democrats for their ineptitude and inability to reach a budget compromise that protects core services while also not asking the poor and middle class to pay higher income taxes. “Who in the world thinks, in these trying times for families, you can raise income tax for working families and middle class families?” (“Perdue shreds income tax deal,” News & Observer, 7/24/09) Of course, Governor Perdue’s stated preference would be to raise sales taxes, taxes on cigarettes and alcohol, and create new taxes on a range of services all of which would directly affect working and middle class families.

Senate Republican Leader Phil Berger (R-Rockingham) made the following statement:

“Governor Perdue and the Democrats control every aspect of North Carolina’s budget process, yet the state finds itself more than three weeks into a new fiscal year without a budget. The inability of Governor Perdue and legislative Democrats to finish the work they were elected to do – adopt a budget – is unacceptable. Instead of heading home for a weekend vacation, Democrats should be working non-stop to adopt a budget. Should the Democrats reconsider their decision to shut Republicans out of the budget drafting process, we still stand ready to help draft and pass a compromise that balances the budget through spending cuts and avoids job-destroying tax increases.

“Governor Perdue’s insistence on adding an additional $215 million in tax hikes to the $982 million already proposed is one of the most misguided and foolish economic policies I’ve ever seen – you simply cannot raise taxes in the middle of a recession. Democratic incompetence is already causing problems for teachers and students and affecting our state’s most vulnerable citizens. More taxes will only lead to higher unemployment and a deeper recession in North Carolina. For once, Democrats must put egos and political calculations aside and do what’s right for North Carolina.”

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