UNC President Erskine Bowles:

This is the toughest economic climate we have faced in North Carolina in my 63 years. For that reason, I was not surprised that Governor Perdue had to make some very difficult decisions in order to balance her proposed state budget. North Carolina is fortunate to have a governor who is willing to do her homework and make the tough calls—even the ones I may not like.

All of us in the University appreciate the magnitude of this economic crisis and the impact it is having on North Carolina’s ability to support vital public services such as education. Keeping that in mind, when I met with the Governor in February, I only asked that she do three
things:

   1. Provide us funding for _enrollment_ growth for the 220,000 students we will have responsibility for next year. She did that.

   2. Provide us with adequate funding for _need-based financial aid_ so that every North Carolinian who is eligible to attend a UNC campus can do so. She did that.

   3. Hold our budget cuts to 5%, make them non-recurring, and give us full _flexibility_ in determining where and how to make them. We asked for full flexibility in managing necessary cuts because I have always found in the business world that those closest to the customer make the best decisions about how to use limited resources. I asked that the cuts be non-recurring—rather than permanent—because I know that no one would cut education substantially if not for this economic crisis. The people of North Carolina know that an educated workforce is critical to our economic future. Therefore, I asked that the duration of any unavoidable cuts match the length of the economic crisis—so that when we come out of this economic crisis, the University and the Community Colleges will have the resources we need to ensure that our citizens have the training, knowledge, and skills to compete successfully in today’s knowledge-based global economy. Because of the magnitude of the economic challenges we face, Governor Perdue felt she had no choice but to cut our base budget appropriations by a net amount of $167.9 million—and she proposes that we be given flexibility to determine how only half of those cuts would be managed. Most importantly, 92% of the proposed cuts would be permanent cuts. This, I think, may be the biggest problem in the proposed education budget, and if enacted, could result in the loss of hundreds of jobs across the University.

Clearly, we will work with the Governor and the legislature as the budget process moves forward. We will continue to be team players because we understand that in these times no one will have all the resources they need. I will also do all I can in this process to protect the _academic core_ of the University, since our state’s and our people’s ability to compete successfully with the world’s best and brightest depend on our doing just that.

Dr. R. Scott Ralls, President, NC Community College System:

“Governor Perdue’s budget clearly demonstrates her understanding of the value and the role of community colleges in North Carolina’s economic recovery.  We appreciate her support in funding our record enrollment growth, training requests for the critical career areas of healthcare and technical education as well as a portion of our dire equipment and technology needs. The Governor’s strong leadership and the General Assembly’s continued support will allow community colleges to help more North Carolinians get back to work faster.

Do community colleges still face significant needs and challenges?

Absolutely, but that is to be expected in these tough budget times. We appreciate the Governor’s hard work and the exceptional leadership of our university partners exemplified by President Erskine Bowles’
outspoken recognition of the needs of community colleges. We will continue to work with the Governor, the General Assembly and all our education allies to position North Carolina for a strong recovery.”

Distilled Spirits Council of the United States:  

A proposal in North Carolina Governor Beverly Perdue’s Budget to include a 5 percent sales tax on all alcohol purchased will punish small businesses and devastate North Carolina’s considerable hospitality industry by destroying more than 1,500 jobs, according to the Distilled Spirits Council of the United States.  

“In the depths of one of the worst recessions in history, I can’t think of a worse time for North Carolina politicians to punish the hospitality industry – the cornerstone of the economy – with higher alcohol taxes,” said Council Vice President David Wojnar, who noted that more than half the price of a typical bottle of spirits purchased in North Carolina already goes toward taxes. 

“Policymakers need to understand that a tax on alcohol is a tax on the entire hospitality industry – negatively impacting restaurants, hotels, bars, nightclubs and liquor stores, and the thousands of men and women they employ.  When the state hospitality industry is already struggling, this is the wrong time, the wrong tax and the wrong people to punish with increased alcohol taxes,” he added.

Wojnar pointed to an economic analysis which showed that the proposed tax increase would reduce gross state product by $145 million and destroy 1,500 hospitality sector jobs as a result.

“North Carolina has already seen 11,000 hospitality jobs lost due to the recession,” Wojnar said.  “Legislators should be working to protect North Carolina jobs, not forcing hundreds of people out of work with misguided tax hikes.”

U.S. Senator Kay R. Hagan (D-N.C.) issued the following statement after attending President Obama’s speech today at Camp Lejeune in North Carolina:

“I am pleased that President Obama chose to come to Camp Lejeune in North Carolina to outline his plan for withdrawal from Iraq. I am proud of all the men and women who selflessly serve our country, and the Marines based at Camp Lejeune, who will be deploying shortly for Afghanistan, deserve our support while they are away from their home and their loved ones protecting our nation and our way of life.

“I have repeatedly said that it is past time that we begin a responsible withdrawal from Iraq in order to devote resources and manpower to Afghanistan and elsewhere in the world to defeat the terrorists who wish us harm. Keeping our troops in Iraq – at the expense of fighting terrorism elsewhere – is not making us any safer or more secure. While we all wish that our troops could come home as soon as possible, the most important concern is that our withdrawal from Iraq be safe, responsible, and with the least risk to our troops on the ground. President Obama consulted with his National Security Team and the generals on the ground, and if Generals Petraeus, Odierno and General Austin, a top commander in Iraq based out of Fort Bragg, are comfortable with this, then I believe we should proceed in this way.”

Rep. Brad Miller:

What Wall Street wanted to hear tonight is that we’re going to hand them the nation’s wallet and say “just take what you need.” That’s not what the American people wanted to hear, and that’s not what I wanted to hear. President Obama understands the severity and urgency of our economic crisis, and that by itself is an important change. Our nation has come through tough times before, and we will again, but we can’t flinch from what needs to be done.Gov. Bev Perdue:

President Obama was very clear tonight about his plans to rebuild America’s economy and to put our financial house in order.  He spoke forcefully about the challenges we face, as a country and a people, on the pathway to recovery,” Gov. Perdue said.

I applaud the president’s leadership and willingness to make tough decisions while also focusing on progress in the 21st century – investment in energy technology and education – the seed-corn of the new century.U.S. Rep. Bob Etheridge (D-Lillington):

“Tonight the President laid out a comprehensive plan to address the economic and fiscal crises we face, and to rebuild and recover the nation.  The President was frank in assessing the tough challenges we face, but he reminded us that as Americans we always overcome our difficulties.  Our challenges are interrelated – we cannot just address one, we must address them all if we are to return to a path of sustained growth.

“I was pleased to see the President speak about the role that education will play in our economic recovery.  If we are going to emerge from the economic crisis a stronger nation, we must invest in our future workforce, our students.  Education is an investment, not an expenditure – what we spend on investment now will bring us great dividends in the future.

“We face serious economic problems.  We must confront the long-term challenges we face, and take steps to provide fiscal stability and to grow our economy over the long term.  We must invest in our priorities, like reforming the health care system, making our country energy independent and strengthening our education system.  While we must make investments, we must also make hard choices.  Responsibility means spending wisely.  The President will send his budget to Congress on Thursday, which calls for cutting the deficit in half.  I look forward to working with the President to return our country to a course of budget discipline.”

U.S. Senator Kay Hagan:

“We are facing the most serious economic crisis in a generation. North Carolinians need action now to put people back to work, free up credit for consumers and businesses, help stabilize our housing market, and reform our financial system.  President Obama recognizes that these challenges are interrelated and I agree that we cannot return to a steady course without addressing them all. But President Obama also acknowledges that our fiscal problems are not happening in a vacuum, and other issues such as health care, education reform, and green energy sustainability cannot fall by the wayside.

“I was struck by President Obama’s tone. No one, least of all our President, disagrees that the issues we face are great. But collectively, our ability to tackle these issues and move our country forward only serves to strengthen our resolve and our nation. At a time like this, when there is much to be concerned about, President Obama’s hopeful and confident tone is greatly appreciated.”

“I was also pleased to hear President Obama speak forcefully about the need for increased accountability and transparency. Yes, we have inherited this financial mess, but that fact alone does not justify denying the American public the accountability they deserve. It is high time that members of government remember that they are here to serve the people of this country, not their own devices.  I am looking forward to receiving President Obama’s budget proposal, which will be released later this week.  As a former state budget writer myself, I am pleased that he has decided to do away with the common budget gimmicks that often mask actual federal spending including the use of supplemental, “off-the-books” spending which costs taxpayers billions of dollars.  I know that a budget that includes transparency, fiscal restraint, and investments in priorities that will move America forward is possible and I look forward to working with the Administration to ensure its passage.”

U.S. Senator Richard Burr (R-North Carolina):

“From the economic crisis we are facing to the continued threats from those who wish us harm, our nation is confronted with many tough challenges. President Obama rightly noted many of these challenges tonight. I agree with the President that our nation can best overcome these challenges by working together.  I believe the best way to turn around our economy and create good paying, long-term jobs is to let Americans keep more of what they earn in the first place. By empowering individuals, families and small businesses–not expanding the government–we can more quickly and more effectively strengthen our economy.

“Finally, I was pleased to see that the president spoke about the growing epidemic of the declining high school graduation rates.  Currently, only 70% of our nation’s high school students graduate on time.  This is simply unacceptable, and we must address it.  That is why I introduced the Graduate for a Better Future Act earlier this year to help public high schools across the country improve their graduation rates.

NBC17 traveled along with some Triangle residents to Washington. Check out their reactions to Tuesday’s event here.

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