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Perdue Eases But Keeps Spending Restrictions

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RALEIGH, N.C.) – 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 utilities.

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

Official: Obama Wants Agency Spending Cut By $100M

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WASHINGTON (AP) – President Barack Obama convenes his first formal Cabinet meeting Monday and will ask department and agency chiefs to look for ways over the next 90 days to cut $100 million out of the federal budget, a senior administration official said.

Back from his fence-mending trip to Latin America and the Caribbean, Obama will be reminding the panel that American families are having to make tough financial decisions and need to know the government is spending their money wisely, too. The official discussed Topic A for the session on grounds of anonymity because it will be behind closed doors.

A second senior official, also speaking anonymously, said Obama will point to cuts already being proposed.

The Veterans Affairs Department has canceled or delayed 26 conferences, saving nearly $17.8 million, he noted, and will be using less expensive alternatives, like video conferencing. The Agriculture Department is working to combine 1,500 employees from seven office locations into a single facility in 2011 – saving $62 million over a 15-year lease term. And the Homeland Security Department has estimated it can save up to $52 million over five years by purchasing office supplies in bulk.

The federal deficit for March alone was $192.3 billion, and $100 million would represent about one-twentieth of 1 percent of that. Obama has brought forward a $3.6 trillion budget for the 2010 fiscal year, beginning Oct. 1, a proposal that would produce $9.3 trillion in deficits over the next decade.

Earlier this month, both the House and Senate passed companion budget plans giving Obama and his Capitol Hill allies a key victory, but 20 House Democrats from GOP-leaning areas abandoned him on the final vote because of unhappiness over deficits.

The Cabinet meeting is being held just days after a series of “Tea Party” demonstrations across the country in which protesters challenged the administration over it’s massive spending to help pull the country and its financial system out of an economic nose dive unseen in decades.

Obama’s nominee to be health secretary, Democratic Gov. Kathleen Sebelius of Kansas, still has not been confirmed by the Senate and will not be present, nor will there be a designee.

Later in the day, the president will visit CIA headquarters in Langley, Va. The White House says the president will be holding private meetings with CIA employees and delivering a public message on the agency’s importance to national security.

Obama’s visit to the spy agency was clearly timed to buck up officials and workers there after his authorization last week of the release of a series of memos on interrogation methods approved under President George W. Bush. In an accompanying statement, he said “it is our intention to assure those who carried out their duties relying in good faith upon legal advice from the Department of Justice, that they will not be subject to prosecution.” He did not specifically address the policymakers.

White House chief of staff Rahm Emanuel said in a Sunday television interview that Obama does not intend to seek prosecution of Bush administration officials who devised the policies that led to the harsh interrogation of suspected terrorists.

Emanuel said that the president believes they “should not be prosecuted either and that’s not the place that we go.”

The decision not to seek charges against the interrogators has been criticized by the American Civil Liberties Union and called a violation of international law by the U.N.’s top torture investigator.

Republican lawmakers and others contend that national security was undermined by the release of the memos. On Sunday, Obama administration officials pushed back vigorously against that claim.

“We are absolutely confident that we have the tools necessary to get the information we need to keep this country safe,” senior presidential adviser David Axelrod said Sunday. “And we don’t believe and the president of the United States does not believe that this is a contest between our values and our security. He thinks we can honor both and execute both. And that’s what he’s going to do.”

Michael Hayden, who led the CIA under Bush, said the public release of the memos will make it harder to get useful information from suspected terrorists being detained by the United States.

NC Agencies Outline Some Of $930M Spending Cuts

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RALEIGH, N.C.  – North Carolina’s correction secretary has to sign off on a big purchase of cheese as part of the state’s belt-tightening efforts.

Correction Secretary Alvin Keller must personally approve all spending of more than $25,000. Waiting for his approval Thursday was a $68,000 requisition for a delivery of sliced cheese to feed some of the prison system’s 40,000 inmates.

That’s one example of the cost-cutting steps state government agencies are taking to control spending and save $930 million by the end of the budget year in June.

Gov. Beverly Perdue’s office on Thursday released a partial list of steps some state agencies are taking. Most are unlikely to be noticed by North Carolina taxpayers, like Keller approving big purchases.

Perdue’s Priority On Education Spending Crucial In Budget Outcome

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From Salisbury Post, March 11

Amid the gloom of a global recession, Gov. Bev Perdue brightened the outlook for North Carolina public education during her first State of the State address March 9. Perdue set the right tone by looking forward and pledging more investment in the state’s best economic development tool, its schools.

“For North Carolina, education is the priority,” Perdue said, and she hit two high notes for the schools.

First, Perdue said she did not want to reduce spending for education, even though lawmakers are looking at a $3 billion hole in the state budget. In fact, she set the goal of increasing the amount the state budgets per pupil, a statement that brought a standing ovation from the lawmakers and government officials who were her audience.

Second, Perdue proposed the state end the “testing mania” in public schools by “eliminating unnecessary tests,” a pledge that should cheer teachers and many parents and children. She was short on details on that and every other subject she touched, but the fact that the topic earned a mention in an important speech could say a lot.

Many people wish Perdue had said more. County officials want more information about her plans for use of $88 million in state lottery money. Rowan commissioners have been using the county’s share of that fund to pay off school bonds.

And in a speech touting education, Perdue said barely a word about community colleges, except to mention them as part of the state’s “seamless learning” from pre-K to college. A vow not to cut community college funding – in fact, to bring that funding up to date instead of lagging enrollment by a year – would strengthen the state’s learning continuum.

Those details and others will come out when Perdue unveils her budget next week. Already some people are skeptical that she can find the funds to boost education spending. She gave a few clues, saying the state must pursue federal recovery funds, “stand up to the sweet seductions of special interests” (could that mean higher taxes?), call for “truth in budgeting” and make painful decisions.

And she threw down the gauntlet. “Our business leaders put a lot of energy into making sure North Carolina’s tax rate is competitive,” Perdue said. “These leaders need to put the same effort into helping North Carolina be the home of the nation’s best educated workforce.” Again, there were no details on how to do that, but the line will resonate with many citizens.

Perdue peppered her speech with determination and pledged a new way of budgeting the state’s money – “no longer business as usual.” Of North Carolina’s place in the global economic crisis, she said, “To come through it, and we will, we must make tough decisions – choices I will make and you will make. That is our job and our responsibility.”

Bev Perdue is no Pollyanna. She knows a nearly impossible challenge lies ahead. Balancing the state budget without cutting into the muscle of important services or hitting everyone with higher taxes will take some doing. She may have been short on details about how to do that, but she was long on commitment to education. Perdue has her priorities straight.

Obama OKs ‘Imperfect’ Spending Bill, With Earmarks

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WASHINGTON – Calling it an “imperfect” bill, President Barack Obama signed a $410 billion spending package Wednesday that includes billions in earmarks like those he promised to curb in last year’s campaign. He insisted the bill must signal an “end to the old way of doing business.”

The massive measure supporting federal agencies through the fall contains nearly 8,000 pet projects, earmarked by sponsors though denounced by critics.

Obama defended earmarks when they’re “done right,” allowing lawmakers to direct money to worthy projects in their districts. But he said they’ve been abused, and he promised to work with Congress to curb them.

“I am signing an imperfect omnibus bill because it’s necessary for the ongoing functions of government,” Obama declared. “But I also view this as a departure point for more far-reaching change.”

In a sign of his discomfort with the bill, Obama signed it in private. He declined to answer a shouted reporter’s question about why.
 
Obama also released a “signing statement” in which he said several of the bill’s provisions raised constitutional concerns. This week, Obama criticized his predecessor, George W. Bush, for frequently issuing such statements upon signing bills into law. Bush attached the statements to legislation he viewed as placing unconstitutional limits on executive power.

Running for president, Obama denounced the many pet projects as wasteful and open to abuse – and vowed reform.

He said Wednesday that future earmarks must have a “legitimate and worthy public purpose” and that any earmark for a private company should be subject to competitive bidding rules. He said he would “work with Congress” to eliminate any the administration objects to.

He acknowledged that the system of influential lawmakers inserting earmarked projects has bred cynicism, and he declared, “This piece of legislation must mark an end to the old way of doing business.”

White House officials in recent weeks have dismissed criticism of the earmarks in the bill, saying the legislation was a remnant of last year and that the president planned to turn his attention to future spending instead of looking backward.
 
Obama’s modest reform proposals build upon changes initiated by Republicans in 2006 and strengthened by Democrats two years ago. Most importantly, every earmark and its sponsor would have to be made public.
 
In new steps – outlined in concert with House Democratic leaders Wednesday morning – the House Appropriations Committee will submit every earmark to the appropriate executive branch agency for a review. And any earmark designed to go to for-profit companies would have to be awarded through competitive bidding.

Obama promised to resurrect a long-defunct process by which the president proposes to cut spending from bills that he has signed into law.
 
Under this “rescissions” process, the White House sends Congress a roster of cuts for its consideration. Congress is free to ignore the cuts, but both Obama and senior members including Appropriations Committee Chairman David Obey, D-Wis., say they want to use it to clean out bad earmarks that make it through the process.

Obama declined to endorse a stronger process advocated by Sen. John McCain, R-Ariz., and others that would require Congress to vote on a presidential rescission earmark package. Senior Democrats dislike the idea even though many of them backed it in the early- to mid-1990s.

During his presidential campaign, Obama promised to force Congress to curb its pork-barrel-spending ways. Yet the bill sent from the Democratic-controlled Congress to the White House on Tuesday contained 7,991 earmarks totaling $5.5 billion, according to calculations by the Republican staff of the House Appropriations Committee.

The 1,132-page bill has an extraordinary reach, wrapping together nine spending bills to fund the annual operating budgets of every Cabinet department except Defense, Homeland Security and Veterans Affairs. Among the many earmarks are $485,000 for a boarding school for at-risk native students in western Alaska and $1.2 million for Helen Keller International so the nonprofit can provide eyeglasses to students with poor vision.

Most of the government has been running on a stopgap funding bill set to expire at midnight Wednesday. Refusing to sign the newly completed spending bill would have forced Congress to pass another bill to keep the lights on Thursday or else shut down the massive federal government. That was an unlikely possibility for a president who has spent just seven weeks in office.

The $410 billion bill includes significant increases in food aid for the poor, energy research and other programs. It was supposed to have been completed last fall, but Democrats opted against election-year battles with Republicans and former President George W. Bush.

Obama To Sign Spending Bill, Push For New Rules

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WASHINGTON  – Acknowledging it’s an “imperfect” bill, President Barack Obama said he will accept a $410 billion spending package but insisted it must signal an “end to the old way ofdoing business.”

The massive measure funding federal agencies through the fall contains nearly 8,000 pet projects, known as “earmarks” and denounced by critics as pork.

Obama defended earmarks when they’re “done right,” allowing lawmakers to direct money to worthy projects in their districts – but added they’ve been abused, and he’ll work with Congress to curb them.

“I am signing an imperfect omnibus bill because it’s necessary for the ongoing functions of government,” Obama declared. “But I also view this as a departure point for more far-reaching change.”

Obama said future earmarks must have a “legitimate and worthy public purpose”, and the contracts involved should be subject to competitive bidding rules. Plus he said he’ll “work with Congress” to eliminate any the administration objects to.

But he acknowledged that earmarks have bred “cynicism”, and he declared, “This piece of legislation must mark an end to the old way of doing business.”

Obama did not sign the bill in the presence of cameras and reporters, however.

Senate Roll Call: Vote On The Spending Bill

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The 62-35 roll call by which the Senate on Tuesday cleared a 60-vote hurdle for the passage of a $410 billion measure to fund the government. This vote set up a voice vote to pass the bill, sending the measure to President Barack Obama for his signature.

On this vote, a “yes” vote was a vote to advance the bill and a “no” vote was a vote against it.

Voting “yes” were 52 Democrats and 8 Republicans and 2 independents.

Voting “no” were 3 Democrats and 32 Republicans. Alabama

Sessions (R) No; Shelby (R) Yes.

Alaska

Begich (D) Yes; Murkowski (R) Yes.

Arizona

Kyl (R) No; McCain (R) No.

Arkansas

Lincoln (D) Yes; Pryor (D) Yes.

California

Boxer (D) Yes; Feinstein (D) Yes.

Colorado

Bennet (D) Yes; Udall (D) Yes.

Connecticut

Dodd (D) Yes; Lieberman (I) Yes.

Delaware

Carper (D) Yes; Kaufman (D) Yes.

Florida

Martinez (R) No; Nelson (D) Yes.

Georgia

Chambliss (R) No; Isakson (R) No.

Hawaii

Akaka (D) Yes; Inouye (D) Yes.

Idaho

Crapo (R) No; Risch (R) No.

Illinois

Burris (D) Yes; Durbin (D) Yes.

Indiana

Bayh (D) No; Lugar (R) No.

Iowa

Grassley (R) No; Harkin (D) Yes.

Kansas

Brownback (R) No; Roberts (R) No.

Kentucky

Bunning (R) No; McConnell (R) No.

Louisiana

Landrieu (D) Yes; Vitter (R) No.

Maine

Collins (R) No; Snowe (R) Yes.

Maryland

Cardin (D) Yes; Mikulski (D) Yes.

Massachusetts

Kennedy (D) Not Voting; Kerry (D) Yes.

Michigan

Levin (D) Yes; Stabenow (D) Yes.

Minnesota

Klobuchar (D) Yes.

Mississippi

Cochran (R) Yes; Wicker (R) Yes.

Missouri

Bond (R) Yes; McCaskill (D) No.

Montana

Baucus (D) Yes; Tester (D) Yes.

Nebraska

Johanns (R) Not Voting; Nelson (D) Yes.

Nevada

Ensign (R) No; Reid (D) Yes.

New Hampshire

Gregg (R) No; Shaheen (D) Yes.

New Jersey

Lautenberg (D) Yes; Menendez (D) Yes.

New Mexico

Bingaman (D) Yes; Udall (D) Yes.

New York

Gillibrand (D) Yes; Schumer (D) Yes.

North Carolina

Burr (R) No; Hagan (D) Yes.

North Dakota

Conrad (D) Yes; Dorgan (D) Yes.

Ohio

Brown (D) Yes; Voinovich (R) No.

Oklahoma

Coburn (R) No; Inhofe (R) No.

Oregon

Merkley (D) Yes; Wyden (D) Yes.

Pennsylvania

Casey (D) Yes; Specter (R) Yes.

Rhode Island

Reed (D) Yes; Whitehouse (D) Yes.

South Carolina

DeMint (R) No; Graham (R) No.

South Dakota

Johnson (D) Yes; Thune (R) No.

Tennessee

Alexander (R) Yes; Corker (R) No.

Texas

Cornyn (R) No; Hutchison (R) No.

Utah

Bennett (R) No; Hatch (R) No.

Vermont

Leahy (D) Yes; Sanders (I) Yes.

Virginia

Warner (D) Yes; Webb (D) Yes.

Washington

Cantwell (D) Yes; Murray (D) Yes.

West Virginia

Byrd (D) Yes; Rockefeller (D) Yes.

Wisconsin

Feingold (D) No; Kohl (D) Yes.

Wyoming

Barrasso (R) No; Enzi (R) No.

NC Governor’s Call On K-12 Spending Surprises Some

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RALEIGH, N.C. – Gov. Beverly Perdue wants to increase per-pupil spending in public schools even though North Carolina faces a projected $3 billion budget gap for next year.

She gave few details during her State of the State speech Monday, and some legislators suggest it could require tax increases or deep cuts elsewhere. But a combination of federal stimulus cash and a one-year quirk in the state kindergarten cut-off date could make the pronouncement doable.

Perdue’s office said Tuesday it would provide more information when her budget proposal is released next week.

She has access to at least $1.4 billion in federal stimulus funds for public education. Plus, school enrollment is expected to drop under a state law that moves up the birthday cut-off for incoming kindergartners. Perdue also reduced some public school spending this year.

House Moves To Pass $410 Billion Spending Bill

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WASHINGTON – House Democrats pushed for passage Wednesday of $410 billion legislation that boosted domestic programs, bristled with earmarks and chipped away at several controversial policies left behind by the Bush administration.

Republicans assailed the measure as too costly – particularly on the heels of a $787 billion stimulus bill that President Barack Obama signed last week. But lawmakers of both parties shared in the earmarks in the measure, and passage seemed assured.

“The same people who drove the economy into the ditch are now complaining about the size of the tow truck,” Rep. James McGovern, D-Mass., jabbed at Republicans, pointing out the large increase in deficits that President George W. Bush and GOP-controlled Congresses amassed.

But Rep. Jeb Hensarling, R-Texas, said the legislation was “going to grow the government 8.3 percent … but the family budget which has to pay for the federal budget only grew at 1.3 percent last year.”

The debate occurred one day after Obama told Congress in a prime time television address that he intends to cut deficits in half over the next four years, and one day before he submits tax and spending plans for the coming year. Given the extraordinary costs of the financial industry bailout and the stimulus, the White House projects this year’s budget shortfall will be $1.5 trillion, triple the previous record of $455 billion in 2008.

In a symbolic bow to the recession, Democrats included a prohibition on a cost-of-living increase for members of Congress for the year.

Overall, the measure provided increases of roughly 8 percent for the federal agencies it covered, about $32 billion more than last year.

The legislation is intended to allow smooth functioning of the government through the Sept. 30 end of the fiscal year. The Senate has yet to vote on its version of the bill.

After persuading lawmakers to keep earmarks off the stimulus bill, Obama made no such attempt on the first non-emergency spending measure of his presidency. The result was that lawmakers claimed billions in federal funds for pet projects – a total of 8,570 earmarks at a cost of $7.7 billion, according to Taxpayers for Common Sense. Majority Democrats declined to provide a number of earmarks, but said the cost was far smaller, $3.8 billion, 5 percent less than a year ago.

Among the earmarks was one sponsored by Rep. Howard Berman, D-Calif., who secured $200,000 for a “tattoo removal violence outreach program” in Los Angeles. Aides said the money would pay for a tattoo removal machine that could help gang members or others shed visible signs of their past, and anyone benefiting would be required to perform community service.

Rep. Mark Kirk, R-Ill., said the bill included at least a dozen earmarks for clients of PMA Group, a lobbying company now at the center of a federal corruption investigation.

“It’s simply not responsible to allow a soon-to-be-criminally indicted lobbying firm to win funding, all borrowed, in this bill,” he said. No charges have been filed against the firm or its principals, although the company’s offices were raided earlier this month, and it has announced plans to disband by the end of the month.

Federal prosecutors are investigating PMA Group’s founder and president, Paul Magliochetti, who is a former top aide to Rep. John Murtha, D-Pa., chairman of the House Appropriations subcommittee that funds defense programs.

In remarks on the House floor, Republican leader John Boehner urged Obama to veto the legislation, citing earmarks.

At the White House, press secretary Robert Gibbs responded only in general terms whether that was possible.

“There is great concern in this building and by the president about earmarks,” Gibbs said. “Without having looked specifically at a piece of legislation, I’m hesitant to throw out that four-letter word, `Veto.”‘

After eight years without control of the White House, congressional Democrats also used the legislation to target several policies of former President Bush.

Under the bill, Mexican-licensed trucks are banned from operating outside commercial zones along the border with the United States. The Teamsters union, which supported Obama’s election last year, had sought the move. The Bush administration backed a pilot program to permit up to 500 trucks from 100 Mexican motor carriers access to U.S. roads.

Bush administration restrictions on travel to Cuba were loosened in the legislation, to permit more frequent visits and expand the list of family members permitted to make trips to see relatives on the Communist nation-island.

Rep. Doc Hastings, R-Wash., took aim at a provision that he said would vastly broaden the government’s ability to invoke the threat of climate change to halt economic development. “Most all of the shovel-ready projects on the trillion-dollar stimulus bill would in fact be at risk,” he said.

Nominally, the provision halts implementation of a Bush-era regulation that lists the polar bear as a threatened species, and Rep. David Obey, D-Wis., and chairman of the House Appropriations Committee, said it would merely give the new administration 60 days to decide its fate.

Democrats also inserted a provision into the bill to end a program that allows students in the District of Columbia to use federal funds to attend private schools of their choice. Boehner, who helped establish the program as part of a political bargain several years ago, called the move “hideous.”

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