RALEIGH, NC (WBTV & AP) - No deal between Governor Bev Perdue and Republican lawmakers who backed legislation to keep jobless benefits flowing for the chronically unemployed.
The extension would have helped about 37,000 long-term jobless workers, but would have also forced Perdue to accept a double-digit budget cut.
Perdue's office said Saturday she will veto the bill. Legislation extending the federally funded benefits for workers out of work for up to 99 weeks included language forcing the Democratic governor to also accept a 13-percent cut as a starting point for negotiations over the next budget year.
Republican legislative leaders said they were ensuring schools and state agencies can count on funding if negotiations drag into the new budget year starting in July.
Perdue's office said the bill would have opened the door to teacher layoffs and hurt healthcare for children.