Updated 12/17/2010 05:02 PM

Perdue looks ahead, says tax increase is off the table

By: Loretta Boniti

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RALEIGH – Governor Bev Perdue is not sugar coating the state of things in North Carolina. While speaking with reporters this week, she said finding jobs and protecting education remain her top two priorities. She admits, however, finding the money to do those things isn't going to be easy.

“But if I don't have money, if the state doesn't have money, and you have to prioritize” says Perdue. “You have to do some bad things, I guess. Some things that are difficult.”

Perdue says she is not taking anything off the table right now that will potentially bring in additional dollars-- except for taxes.

“At this point in time, I don't know how to spell tax increase. It is off my plate now,” said Perdue.

However, some perennial deal breakers are not facing certain defeat in Perdue's eyes this year. That's internet sweepstakes. She says clearly she is not philosophically opposed to gambling, having cast the tie breaking vote to allow the North Carolina Education Lottery. She says since this industry continues to work around legislation to outlaw it, maybe it needs more examination.

“I know both sides,” she says. “I don't know where I am on that. But if you do it. It's got to be regulated. It's got to be controlled. It's got to have some kind of oversight.”

Perdue is also trying to determine if the state should sell the Alcoholic Beverage Control system for a what is likely a big profit and then let it be run privately.

“I need to know what its worth,” said Perdue. “I need to know what it's worth to the taxpayer. I need to know what kind of damage it would do to local governments and how you protect them and at the end of the day that's why I haven't been able to tell you how I really feel.”

Perdue says she also needs help luring businesses here. The governor says it is difficult without additional incentive opportunities being approved by the general assembly.

“Its a battle. Alabama, Virginia, Georgia have better tools than we do,” she says.

North Carolina is expected to have a up to a $4 billion deficit next year. Perdue will be writing the spending plan proposal, lawmakers will work from that to fill that hole.

Watch Perdue's entire conversation with reporters below.

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