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Reviewing the 2003 Budget Battle

RALEIGH—Gov. Mike Easley signed a $14.8 billion budget Monday that will fund state government through June 2005. Approved just before the deadline, the measure has been hailed by some as a compromise that protects public services and adequately funds the ever-increasing cost of public education. Other lawmakers contended it continues the state’s pattern of fiscal irresponsibility. A 3 percent increase in General Fund expenditures is scheduled for the fiscal year, which began Tuesday, and the rate of spending will increase to 5 percent by 2005. Higher sales and income taxes, by $427 million and $124 million respectively, are also on the horizon.

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