Les Merritt, CPA

State Auditor of North Carolina

 

 

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The News & Observer

June 6, 2007


State Auditor Les Merritt Voices Concern over Possible Increase in State Borrowing

Gov. Mike Easley and other top officials expressed concern Tuesday over a borrowing plan.

The Council of State, made up of the state's 10 highest elected officials, is going to consider a resolution next month to solidify the reservations it has with using certificates of participation for borrowing instead of voter-approved bonds.

Easley said he wants the state to issue no more than $25 million without a public vote. "There's too much reliance on COPs," he said.

Easley's budget proposal would use COPs to borrow about $250 million, however.

Labor Commissioner Cherie Berry and State Auditor Les Merritt also voiced strong concerns about the possible increased borrowing. "It's like having a credit card," Merritt said.

The House wants to borrow $400 million with COPs in its budget plan. The Senate went further -- it proposes about $1.2 billion in COPs borrowing.

The governor, House and Senate are negotiating over the different proposals to assemble one budget that can pass muster with all three.

The discussion came after the council approved COPs borrowing of about $200 million for a variety of projects already under way, including a parking deck near the state museums in downtown Raleigh.

http://www.newsobserver.com/politics/story/593079.html

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