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NC governor directs belt-tightening

The governor says North Carolina is in a better financial picture compared to a year ago, but he's concerned about a projected Medicaid shortfall. The governor says North Carolina is in a better financial picture compared to a year ago, but he's concerned about a projected Medicaid shortfall.

RALEIGH, N.C. (AP) - Gov. Pat McCrory has directed more belt-tightening within North Carolina government as pre-emptive actions to protect the state from a Medicaid shortfall and a fuzzy revenue picture.

McCrory wrote agency heads and Council of State members on Thursday with the news. The memo says agencies will receive money in April that's more in line with what they're spending monthly. He's also directed them to discontinue most salary increases, limit purchases and reduce travel expenses.

The governor says North Carolina is in a better financial picture compared to a year ago. But he's concerned about a projected Medicaid shortfall of up to $140 million and uncertainty with tax collections.

Agencies led by Council of State members like the attorney general and state treasurer aren't obligated to follow the spending restrictions.

Copyright 2014 The Associated Press. All rights reserved.

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