May 18, 2013

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Perdue's State Budget Proposal Included Sales Tax Increase

Democratic Gov. Beverly Perdue's final budget proposal relies heavily on a higher sales tax she wants to restore public school funding cuts from recent years and to expand other initiatives.

Perdue on Thursday released a nearly $21 billion spending plan for the coming year that adjusts the second year of a two-year budget the Legislature approved last year over her veto. She is not running for re-election and leaves office in January.

The governor's proposal includes a three-quarter-cent sales tax increase that would generate $760 million in additional funds next year. A big chunk of that money would help eliminate mandated cuts for local school districts that are projected to reach $500 million.

Republican leaders at the General Assembly say they won't support a higher sales tax.

Copyright 2012 by The Associated Press. All Rights Reserved.


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