Money Problems Focus of Easley's First 12 Months

A year later, those same economic difficulties are still plaguing North Carolina's 67th governor.

In the first several months of his term, Easley had to contend with a budget deficit that reached $1 billion.

The state could be headed down the same path again this year as the nation's economy continues to struggle.

Just weeks after passing a state budget in September, fiscal analysts learned that revenue projections for the first quarter of the 2001-02 fiscal year would be lower than anticipated, forcing the governor to consider further budget cuts.

Already Easley has cut the UNC system's budget by 2.7 percent and has frozen $57 million in repair and renovations funding. Numerous other state agencies have had to contend with similar budget cuts.

But the financial picture could have been even more bleak if the N.C. General Assembly -- with prodding from Easley -- had not passed a $1 billion tax increase in September.

"(Easley's) biggest accomplishment over the course of the last year is that he nudged the state into accepting a tax increase," said Ferrel Guillory, director of UNC's Program on Southern Politics, Media and Public Life. "He stepped up and said, 'Look we need revenue.'"

Guillory added that Easley's willingness to raise taxes is especially significant because most Southern Democratic governors have resisted tax increase and have instead turned to alternate sources of funding -- such as lotteries.

"Southern Democrats have been spooked against advocating tax increases," Guillory said.

Easley pushed for a statewide lottery to fund educational improvements in the early part of his term, but lottery supporters in the state House were unable to gather enough votes to pass the legislation.

Easley repeatedly challenged lawmakers early in his term to pass a lottery or find an alternate source of revenue.

"He kept saying early on, 'If not a lottery, than what?'" Guillory said.

But UNC political science Professor Thad Beyle said the lottery could have distracted Easley from the rest of his agenda.

"He came in with the notion that North Carolina needs a lottery, and he stayed with that notion too long," Beyle said.

But while Easley could not pass a statewide lottery, he did manage to accomplish several of his campaign planks.

More at Four, a program for at-risk 4-year-olds, could start up in the next few months.

The legislature also approved funding for smaller class sizes and a character education program.

Guillory said that even beyond the current fiscal crisis, Easley's goals for the future would also involve economic and educational issues.

He added that the current economic difficulties have shown that North Carolina's economy is changing, and it will be Easley's responsibility to reshape the workforce.

"Our economy has been changing -- shifting from a more manufacturing base to a service economy," Guillory said. "One of the big challenges is how to help manage the transition for the old economy to the new economy."

The State & National Editor can be reached at stntdesk@unc.edu.