NC Policy Watch: State budget situation worsening
Thursday, November 12th, 2009
STATEWIDE–Elaine Mejia at NC Policy Watch reports today on state Senate majority leader Tony Rand’s remarks yesterday at the Budget & Tax Center’s legislative briefing in Fayetteville.
An excerpt:
… state tax revenues are behind projections by $90 million through the end of October. In the grand scheme of things that is not too much money. What is troubling about this is that the state’s revenue forecast assumes that the worst months would be at the beginning of the fiscal year and after that things would begin to head slowly upward. Moreover, the budget for fiscal year 2010-11 assumes that revenues will grow at a rate of 2.8%. If revenues continue to fall behind the forecast the Governor will be forced to take painful mid-year actions to address this year’s gap and the General Assembly will be forced to make another round of budget cuts sooner rather than later.
