North Carolina Gov. Beverly Perdue announced a biennial budget plan on Tuesday that would not authorize any new debt issuance in fiscal 2010 as the state seeks to close a $3.4 billion budget shortfall.
The budget proposal cuts spending by $1.3 billion in fiscal 2010 and utilizes $2.9 billion in federal stimulus aid for education and other “mission-critical” services, Perdue said in the budget’s cover letter to state lawmakers.
The budget does not change any of the debt service payments in fiscal years 2010 or 2011.
“Our willingness to make difficult decisions has not gone unnoticed,” Perdue said of the issuance freeze. “We continue to be one of only seven states with a triple-A rating from each of the major bond rating agencies.”
The budget allows for bonds to be issued in fiscal 2011 for a research center at the University of North Carolina.