The federal government estimates the recovery act will create or save 105,000 jobs in North Carolina.

 But a new study by consulting firm Arduin, Laffer & Moore (ALM) Econometrics concludes the stimulus spending will actually cost North Carolina as many as 67,000 over the next two years.

Tax analyst Brian Balfour of the conservative think tank Civitas suggested the state slow down in spending the 3.55 billion already allocated for projects.

"Cut off stimulus funds and stop the massive accumulation of debt and overspending on behalf of government and allow the market to correct itself and grow jobs on its own," said Balfour.

 Balfour explained the study’s premise. “Government does not create wealth, it can not create jobs on its own because of the fact it must take money out of the private sector before it can spend money on anything.  The money being taken out of the private sector is no longer available for productive investment and it’s that productive investment in the private sector that’s necessary to spur job growth.”

Governor Bev Perdue says whether its government or private job growth, she’ll consider it for the state’s unemployed.

“If you were sitting around a kitchen table and couldn’t pay your light bill or give your kid a decent dinner because you are unemployed, you’d take whatever you could get and be greatful,”  said Perdue.  She continued, “I’m greatful for those jobs and we’ll deal with the hereafter…hereafter.”

The governor created an Office of Economic Recovery and tapped former Health and Human Services Secretary Dempsey Benton in charge.

Benton responded to the economics study forecasting job loss with this written statement, “We are dealing with exceptional times.

With the state’s unemployment rate at 11% and with a number of areas at more than 15%, we are in a difficult situation.

We have to use all resources available to enhance job opportunities now, and that’s what we’re doing. We have many contracts underway that will put North Carolinians to work.  Recovery efforts have begun to have a solid impact on North Carolina, and that will continue as projects continue to roll out.”

The awarded contracts are documented on the state website NCRecovery.gov., but there is no account of current job creation totals.

The state will report that data to the federal government for the first time on October 10th.

According to the Office of Economic Recovery, stimulus spending has had an immediate impact; 268 highway projects in 83 counties, 21 urban transportation upgrades, and 65 drinking water projects.

“I think it does no one any good to second guess the decisions that we’ve made,” said Governor Perdue.

Balfour disagrees and suggests taxpayers keep a close eye on how their tax dollars are being spent.

He recalled former Governor Mike Easley fast tracking $750 million in state capital improvement projects last January with the promise of creating 26,000 new jobs. 

“In contrast to such bold claims, North Carolina has since lost 17,000 construction jobs- a contraction of nearly 8%.  Whether it’s a promise from D.C. politicians or state lawmakers stimulus spending does more harm than good,” said Balfour.

Check out our NBC 17 News story in the video monitor above.