State Agencies Told To Hold Back 5-Percent

Gov. Beverly Perdue is easing up on spending restrictions following approval of a state budget, but limits on purchases, travel and hiring for North Carolina's government will continue.

Perdue's budget director on Friday sent a memo telling state agencies to hold back five percent of what the budget authorized.

Public schools are exempted. Agency heads must continue approving
travel and pay raises, but now have flexibility to decide how to
manage spending.

Since April, state agencies have been authorized to spend only
for mandatory obligations such as salaries, debt service and

Perdue spokesman David Kochman said the governor is being
cautious since tax increases used to balance the budget won't be
available for months.

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