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Associated Press

RALEIGH, NC (AP) — Republican legislators say Democratic Gov. Bev Perdue is threatening the prompt return of income tax refunds to North Carolina residents by borrowing money in a way that violates the state constitution.

Senate leader Phil Berger and House Speaker Thom Tillis said Wednesday that Perdue’s plan to take $491 million from pots of money and state agencies is flawed. They point specifically to the $100 million collected from unemployment taxes and sitting in reserve. The General Assembly’s bill drafting director says in a memo she can’t take the unemployment money without legislative permission.

Perdue defended the plan and calls it a cash management tool.

Berger said the Senate will try later Wednesday to override a budget savings bill she vetoed to give her another option to find money.

(Copyright 2011 by The Associated Press. All Rights Reserved.)


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