Perdue Pulls Fast One on N.C. with Accounting Gimmick

Gov. Beverly Perdue today threatened to jeopardize North Carolina’s future financial stability by attempting to use tax over-collections and other one-time funds on recurring priorities. The unexpected increase in collections is largely the result of taxpayers failing to make adjustments to their estimated payments after the General Assembly passed a tax credit for job-creating businesses last year.

Below is a joint statement from Senate President Pro Tempore Phil Berger (R-Rockingham) and House Speaker Thom Tillis (R-Mecklenburg).

“Gov. Perdue is pulling a fast one on North Carolina.  The truth is our state does not have an additional $117 million to spend now.  The governor is using an accounting gimmick to spend next year’s money this year, which would create a massive revenue shortfall for the next governor and General Assembly to address. This is the equivalent of going on a spending spree with your credit card – it creates the illusion of prosperity in the short run, but you’re left with a huge bill when the interest payment comes due. This stunt may seem acceptable to a lame duck governor who won’t have to deal with the consequences of her actions, but we are committed to creating long-term solutions.”

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