State schools CEO William Harrison is providing some leadership where other key state officials are remaining quiet. In an interview with reporter Lynn Bonner of the News & Observer, Harrison called on state legislators to raise taxes and keep schools and other state agencies from the worst of contemplated budget cuts. Harrison called for a temporary sales tax increase as well as hikes on cigarettes and alcohol.
But Gov. Bev Perdue's staff says she's not pushing that particular line of thinking. "At this time, it is not something that the governor is pushing," said spokeswoman Chrissy Pearson. Perdue's proposed budget -- which was unveiled long before it became apparent that the budget shortfall would be in the range of $4 billion -- did call for cigarette and alcohol tax increases, but not the sales tax.
Harrison's willingness to speak out now is interesting because of its sharp contrast to other state leaders, including legislative leaders who have been cautious about significant tax hikes. The Senate budget had a $500 revenue hold it -- which might be filled by a Senate Finance co chairs plan to revise the state's tax structure, cutting some tax rates and applying the sales tax to more services. The House, on the other hand, has tried to develop a budget proposal without revenue increases. Word is that House members are now talking a little more about ways to raise revenue.
Perdue appointed Harrison to the State Board of Education earlier this year to run the state schools and bring about more accountability. Harrison is trying to avoid some budget cuts in a potential cut of up to $1 billion for state school support, but even if the legislature were to boost some taxes, significant budget cuts are on their way for state agencies.
