Gov. Bev Perdue’s relationship with the newly-elected North Carolina legislature is off to a rocky start.
Perdue gave her first veto of legislation proposed by the new GOP-dominated General Assembly Tuesday, arguing that it would stifle job creation. The Republican-sponsored bill—”The Balanced Budget Act of 2011”—was intended to help close an estimated $2.4 billion budget deficit, but Perdue says it would substantially reduce the state’s ability to create more jobs by reducing the amount of money dedicated toward attracting industry.
“The bill in its current form forces a one-time cash grab from funds that are intended to create jobs and spur economic development,” Perdue said in a statement. “That’s not the right move for North Carolina, where jobs simply must be our No. 1 priority.”
The governor stressed during her “State of the State” address Feb. 14 that job creation must remain a priority. As a result, her exercise of veto power did not come as a surprise to Republicans, who insist that raising taxes in order to reduce the deficit—a solution Perdue has previously discussed—will harm the private sector.
“[Perdue’s] solution [to the budget crisis] is to raise taxes that destroy private sector jobs,” Republican state Sen. Phil Berger, who represents Guilford and Rockingham counties, wrote in an e-mail. “Senate Republicans refuse to reach further into North Carolinians’ pockets.”
Berger, the Senate’s president pro tempore, confirmed Tuesday that the legislature would not attempt to override the veto, which would prove difficult as they would need three-fifths of the votes in both the House and the Senate. And because the initial vote was split along party lines, it is unlikely that Republicans would be able to reach across the aisle to garner support. Instead, the legislature pushed for a new bill giving Perdue greater power to determine what cuts should be made.
Democrats have already made it clear that they will continue to support Perdue’s decision to veto the bill.
“I voted against [the bill] and will vote to sustain [Perdue’s] veto if given the opportunity because our state needs to continue to actively recruit new businesses,” state Rep. Joe Hackney, D-Chatham, Moore and Orange and the House minority leader, wrote in an e-mail. “[The proposal of] this bill shut down economic development in the state because of the uncertainty it added to the process, and the governor was right to veto it.”
Hackney, who served as the Speaker of the House when the Democrats were in power, said Republican lawmakers are out of touch with North Carolinians.
“North Carolina continues to grow and prosper relative to other states because we have taken a moderate approach that supports business and education,” he said. “We are veering away from this model under our new leadership, which appears to be more interested in social policies than sound budgeting.”
Berger noted that the GOP is responsible for balancing the budget as the party in power and questioned Perdue’s intentions in a statement released Tuesday.
“If Gov. Perdue’s veto is truly about jobs as she says, then why would she keep unused extra tax money in these special funds she controls instead of using it to protect teachers’ jobs or to avoid a job destroying tax increase on the private sector?” he asked.
Although the veto drew outrage from some Republicans, its use is not unprecedented. Perdue’s predecessor, Democrat Mike Easley, vetoed nine bills during his governorship and in 2009, Perdue blocked a bill that would have expanded the list of documents General Assembly members could keep confidential.
Get The Chronicle straight to your inbox
Signup for our weekly newsletter. Cancel at any time.