Governor Tapping Special Reserves For General Fund Support

Governor Beverly Perdue’s office has announced the state is transferring up to $300 million from several special accounts into a reserve to support the General Fund.

According to a release on Governor Perdue’s website, she is taking the steps to manage the current fiscal year budget shortfall.

One of the reserve funds tapped for money for the general fund support is the “Education Lottery Reserve Fund.”

The Charlotte Observer reported this weekend that Perdue has said she may use up to $88 million in lottery money to “shore up the state’s coffers.”

According to the Governor's new release, she is asking "Most state agencies for further reduction amounts from 7 percent to 9 percent. Governor Perdue will continue to protect public education as much as possible while managing the shortfall."

Below is information from the release on the Governor’s website as well as the breakdown of transfers. You can also click on the related link below to go to the news release on the Governor's website.

From Governor Perdue’s website:
"As a precautionary step to manage cash flow, the state will transfer up to $300 million dollars from several special accounts into the General Fund. The money will be put into a reserve and may be used to support General Fund obligations if necessary. These transfers will be managed so that existing activities supported by these special funds aren't impacted. The state annually faces cash flow issues between mid-February and April 15. The state's cash position is more heavily impacted this year because final corporate payments are now due by April 15, 2009, rather than March 15, 2009."

“'The state constitution requires that I balance the state budget, and I will do that while protecting public education as much as possible,' said Gov. Perdue."

Transfers, as listed on Governor's website:

From the Education Lottery reserve (current cash balance $50 million): $50 million

From the Clean Water Management Trust Fund reserve (current cash balance $251 million): $100 million

From the Public School Building Capital Fund reserve (current cash balance $316 million): $100 million

From the Public School Textbook Fund reserve (current cash balance $65 million): $50 million

Total reserve funds transferred $300 million out of current cash balance of $682 million

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  • by Anonymous on Mar 3, 2009 at 04:39 PM
    Is anyone really surprised? Politicians lying. The lottery is a cash cow for them.
  • by Claudia Location: Plymouth on Mar 3, 2009 at 03:31 PM
    Before the lottery came to NC, all the media ever talked about was how this was going to help our schools. Now, instead, the money is going into the General Fund. So why is it that the money that was INTENDED for the schools is not being used for the schools and the schools are being asked to return money BACK TO THE STATE. This makes NO SENSE at all!!!
  • by Steve Location: Maysville on Mar 3, 2009 at 10:42 AM
    I have a feeling that the Gov. has not looked at the budgets the way that the citizens do their own budgets. You must find the NEEDS and cut out the WANTS for these tough times, not "borrow" funds from such things as education. "Credit" is not the answer!!
  • by Brian Location: Greenville on Mar 3, 2009 at 06:53 AM
    That's a politician for ya. While they are kissing a cute little baby they are stealing his lollypop.
  • by Anonymous on Mar 3, 2009 at 04:45 AM
    This is wrong no matter how you look at it. They need to post a sign at every place that sells "education" lottery tickets and tell people the money is not being used for the schools that it is all a lie that the people have been supporting. The Govt. does not care about the schools and the children.
  • by mom Location: pitt co on Mar 3, 2009 at 02:56 AM
    I told you so. When we authorized the lottery we gave the state government money that they could slush around any way they needed. We did NOT support the schools. Purchasing lottery tickets is not a 'civic duty.' Stop buying and they won't have any slush fund. It's so hard to break an addiction, isn't it? The governments' is to spending money. What's yours?
  • by Anonymous on Mar 2, 2009 at 07:22 PM
    This is such a dump in our "Tax Payers Face". We have paid taxes, lotto tickets we are supposedly supporting, and we even have sales at the schools. Computers are given to the schools not bought out of money most of the time. We are getting lied too, and its sick. The money is there, but it’s being used on luxury things for the government, nothing for the common person who supports them. When did we get back to Queen and King Times? I am horrified for the world with people like this in our governments.
  • by Anonymous on Mar 2, 2009 at 06:25 PM
    ANOTHER EASLEY! Take all the schools have--I mean the kids are already struggling enough in our messed up society! Nice on Bev, come back from a VACATION and strip the schools!
  • by Gator Location: NC on Mar 2, 2009 at 05:58 PM
    Didn't Governor Easley just make the Counties give back some money last year? I don't remember the figures, but you actually see where this governing bodies priorities are.
  • by Gator Location: NC on Mar 2, 2009 at 05:49 PM
    Hey Democrats, you think this is bad, wait a year to see what President Obama does.
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