Govenor Pat McCrory talked to FOX8 about the budget, possible changes to the SBI and the state's tax reform plan.
Republicans in the state Senate have proposed a plan that would lower-income tax rates, but add a sales tax to more than 100 different services.
The three-year plan would also lower the state and local sales tax rate in most counties from 6.75% down to 6.5%.
The plan claims to cut taxes by more than $1 billion.
McCrory says one way to rebuild the economy is to make changes to the tax system.