Highlights Of Perdue's 2011-12 Budget Proposal

Highlights of Gov. Beverly Perdue's $19.9 billion budget released Tuesday for the 2011-12 fiscal year. For tax changes, figures are for the amount of revenue generated or lost. For spending changes, figures are for amount spent or saved compared to what was projected to maintain current services.

Taxes, reserves or salaries

extend 0.75 cents of the temporary penny sales tax for another two years: $827 million.
reduce corporate income tax rate from 6.9 percent to 4.9 percent: -$115 million.
repeal law giving portion of corporate income tax for public school construction: $72 million.
provide unemployment insurance tax credit for 135,000 small businesses: -$65 million.
no salary increases for state employees, teachers.
cover expected 7.1 percent premium increase for state employee health insurance plan: $117.1 million.
require state employees on more generous health insurance plan to pay $21.50-per-month premium for individual coverage: -$89 million.
provide $10,000-$20,000 incentive bonus for eligible workers to retire, allocated in limited amounts throughout state government.
set aside $75 million from year-end credit balance for repairs, renovations of government buildings.
contribute more to state retirement system: $115 million.
severance reserve for laid-off state workers: $30 million.
rainy-day reserve fund: $150 million.
set aside $25 million from year-end credit balance to help local governments and nonprofits interested in consolidating or regionalizing services.

K-12 education

require local school district to pay for workers' compensation claims: -$34.7 million.
make payments of tort claims a local responsibility: -$4.6 million.
reduce allotment for local central office staff by 10 percent, potentially eliminating 140 positions: -$10.8 million.
reduce instructional support allotment by 5 percent, potentially eliminating 290 positions: -$23 million.
reduce school building administration funds by 7.5 percent, potentially eliminating 380 positions: -$24.6 million.
35 percent allotment reduction for textbooks: -$40 million.
reduce allotment to districts for custodial and clerical positions by 15 percent, or 1,700 positions: -$59.6 million.
reduce school bus transportation allotment by 10 percent, or potentially 1,900 positions: -$40.3 million.
make school bus replacement a local responsibility: -$56.9 million.
direct 10 percent reduction in Department of Public Instruction, or 40 positions: -$4.4 million.
eliminate dropout prevention grants: -$13 million.
pay for instruction supplies and positions to teach an extra 5,323 students in 2011-12 school year: $38.3 million.

University of North Carolina system

direct University of North Carolina system to reduce combined spending in operating budget by 9.5 percent, with 1,900 positions to be eliminated, partially offset by tuition increases: -$252.6 million.
reduce legislative aid to residents who attend private college by 6.5 percent: -$12.2 million.
reduce 25 percent charity care subsidy to UNC Hospitals: -$11 million.
operation and maintenance of new system building coming online next year, including 283 positions: $18.5 million.
pay for instruction of additional 2,337 students in 2011-12 school year: $23.3 million.
consolidate research stations and farms at N.C. State University: $8.7 million.
use N.C. Education Lottery Funds to help pay for need-based financial aid: $34.9 million.

Community colleges

eliminate eight specialized centers and programs: -$3.8 million.
raise tuition by $5.50 per credit hour, or $176 per year: -$25.3 million.
direct 3 percent reduction in state aid budget to community college system, with as many as 620 position eliminated: -$32.3 million.
pay for instruction of additional 9,712 full-time equivalent students in 2011-12 school year: $17.9 million.

Health and Human Services

find efficiencies in department budget to reduce 25 positions: -$1 million.
reduce Smart Start early childhood initiative by 10 percent: -$9.4 million.
create up to 5.5 percent assessment on hospital and other Medicaid providers as a way to draw down more federal funds: -$60.2 million.
adjusting Medicaid provide reimbursement rates, for private duty nursing, imaging and ultrasounds: -$8.4 million.
modify Medicaid pharmacy services to find efficiencies: -$15.9 million.
modify optional and mandatory Medicaid services: -$16.5 million.
set aside $75 million in year-end credit balance for mental health trust fund.
reduce administrative funds to operate local mental health management offices: -$3.3 million.

Justice and Public Safety

consolidate Departments of Juvenile Justice, Correction and Crime Control and Public Safety into one Department of Public Safety. Sixty positions would be eliminated.
reduce administrative functions in judicial branch by 16 percent, or 54 positions: -$9.1 million.
reduce funds for family and drug treatment courts, dispute resolution and other programs: -$1.9 million.
reduce courthouse operations expenses by 1 percent, or 71 positions: -$3.3 million.
shift requirement that sheriffs check whereabouts of registered sex offenders by first-class mail, not certified mail: -$93,000.
close Woodson Wilderness Camp for juvenile offenders, eliminate 20 positions: -$970,000.
close Swannanoa Youth Development Center, affecting 26 positions: -$1.4 million.
eliminate 77 correction positions: -$2.9 million.
find $12.4 million in savings, eliminate 237 positions from Justice Reinvestment recommendations.
fund operations and staffing for four new prisons, including 280 positions: $10 million.

Natural and Economic Resources

merge Employment Security Commission into Department of Commerce, resulting in 53 position eliminations.
close welcome centers two days a week, privatize them in 2012-13 fiscal year: -$600,000
One North Carolina Fund economic incentives initiative: $10 million.
Job Maintenance and Capital Development Program: $8.5 million.
direct reductions at Department of Agriculture at agency's discretion: -$5.2 million.
reduce Department of Environment and Natural Resources by 68 positions, largely in permitting offices: -$418,000.
close Rendezvous and Turnbull Creek educational state forests due to low attendance: -$131,000.
reduce Division of Parks and Recreation budget by 10 percent, requiring most parks to close two days a week: -$3.1 million.
matching money for clean and drinking water revolving funds: $14.5 million.
Clean Water Management Trust Fund: -$50 million.