Governor Perdue's Proposed Budget


  • $50 million to maximize federal resources for infrastructure projects
  • $7 million to revitalize downtown areas through Main Street Solutions
  • $2 million to the Small Business Innovation Research matching grant program
  • $2 million to promote North Carolina as a business and tourist destination and to better market agricultural products
  • $5 million to encourage growth of green technology through the Green Business Fund
  • $36 million in tax relief for small businesses
  • $10 million for the UNC-Chapel Hill Biomedical Imaging Center
  • $18 million to Jobs Now initiative:
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  • $5 million to hire additional faculty to help reduce the backlog for nurses
  • $3 million to support technical education programs in transportation, industrial, military and green technology sectors
  • $5 million to address equipment and technology needs throughout community colleges
  • $5 million in federal recovery funds to support displaced workers with child care, tuition and transportation costs while they pursue job training services
  • 1.5 percent increase in earned income tax credit to provide tax relief


  • Increase in K-12 per-student spending, from $5,597 to $5,736
  • $4.7 million to implement diagnostic testing, saving $2 million by ending duplicate testing
  • $64 million to experience-based salary step increase for teachers
  • $118 million overall increase in spending, including federal recovery dollars
  • $7 million in recurring funds for innovative dropout prevention programs
  • $3.5 million to support underperforming schools
  • $3 million reserve for community colleges that see spike in enrollment
  • $2.6 million to create 12 early college high schools
  • $23 million increase to need-based financial aid
  • No reductions, redirections or transfers of any lottery or corporate income tax receipts from the Public School Building Capital Fund


  • $4.3 million increase to S-CHIP, which will be able to cover 8,000 more children for the next two years
  • $12 million to add 111 local inpatient mental health beds
  • $3 million to retain 36 beds at Dorothea Dix Hospital
  • Limit reductions in direct services and does not displace persons currently served by Medicaid.  Many provider reimbursement rates have been frozen, but base service rates have not been reduced


  • $12 million increase to probation system for 29 supervisor and 117 officer positions
  • $10 million in federal recovery funds to invest in gang-related programs