(RALEIGH) -- Senate lawmakers took additional steps to reduce state spending in order to prepare for next year’s looming budget shortfall. The Senate Appropriations Committee approved a bill that gives Governor Bev Perdue the authority to cut an additional $400 million from the current state budget.

"These are dollars that are cash balances, changes the governor is already going to be making anyway," said bill co-sponsor Sen. Richard Stevens. "This is not about eliminating teacher positions.  This is not about eliminating faculty at the community college system, university system. This is not about changing our core mission.  Our cash balance is on the table."

Senate Republicans also backed a proposal to transfer some unspent money from several dedicated trust funds. This would include taking some money that has been designated for corporate incentives.

Commerce Secretary Keith Crisco said lawmakers should not siphon away millions of dollars designed to lure companies to the state. "The signal we sent today will be heard by our competition, by consultants, by economic developers and I do not want them to hear a message of, North Carolina is out of the business or not as aggressive as it has been," said Crisco.

Sen. Stevens said cuts to trust funds used for economic development will not cripple the state’s ability to compete for new jobs. He added that all of the proposed moves are part of a plan to find up to $1 billion to put toward next year's $3.7 billion budget gap.