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Six N.C. counties and several municipalities filed the lawsuit this week because they did not receive reimbursement for $334 million that Gov. Mike Easley withheld in February to contend with the state's $1 billion budget shortfall. Roughly $3.1 million was witheld from Orange County.

Easley's press office declined to comment on pending legislation.

Dan Boyce, a lawyer for the municipalities, said that although the lawsuit was filed against N.C. Revenue Secretary Norris Tolson, who is in charge of distributing reimbursement funds, the group is trying to send a message to Easley.

"(Easley) unbalanced the budget of the towns and counties in order to balance the state budget," Boyce said.

Boyce said more municipalities like Orange County could join the lawsuit soon. "If they don't do anything, they risk losing the money," he said.

But some Orange County officials say that regardless of the litigation's effects on the county, they will not become involved in the litigation unless it is sanctioned by the N.C. Association of County Commissioners, which serves as an advocate to state government branches for individual counties.

The NCACC hired an attorney in the spring to investigate the viability of the case but decided not to push ahead with the complaint, said Todd McGee, NCACC director of communications.

Orange County Commissioner Moses Carey said the county will be affected by the lawsuit whether or not it gets involved, although he said he thinks the county should not take part in it.

In Orange County funds will be cut for capital improvements, schools, affordable housing and land protection.

Assistant Orange County Manager Rod Visser said that if the NCACC gets involved, the board might reconsider its stance as well. McGee said that if more counties join the complaint, the NCACC might sanction the case. The counties involved in the lawsuit are doing so without the sanction of the association.

Alamance, Cabarrus, Caldwell, Davie, New Hanover and Stokes counties and the municipalities of Garner, Valdese and Yanceyville are involved in the lawsuit.

Cabarrus County Manager Frank Clifton, said the lawsuit was filed because county officials wanted to ensure that the state keeps its pledge to allot a certain amount of money to local governments. "(We wanted an) equitable and responsible action by the state for commitments that it has made in the past," he said.

Michael Crowell, the attorney commissioned by the NCACC, said the more important debate is whether Easley, through withholding the money, abused the power given to him by the state constitution.

He said, "(The issue is whether) the constitutional provision gives the governor the authority to withhold money."

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

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