Republican legislative leaders suggested Tuesday morning the Perdue administration was inappropriately borrowing nearly $500 million from various government funds to cover the state’s bills over the next few weeks.
Senate leader Phil Berger said he was also troubled that he did not hear about the maneuver directly from the governor.
Governor Bev Perdue sought to set the record straight this afternoon telling the media the money was being borrowed to ensure citizens get their tax refunds promptly, rather than face unreasonable delays that many faced last year.
Perdue said the interfund transfer was not only legal and prudent, it was an idea that dated back to Republican Governor Jim Martin when North Carolina did not have a rainy day fund.
To hear Governor Perdue explain the cash flow issue, click below: