NC Budget Shortfall Widens To $320M | Politics.MyNC.com

NC Budget Shortfall Widens To $320M

Posted on 21 November 2008 | Jennifer Wig

NC Budget Shortfall Widens To $320M From AP

A new report says the budget shortfall in North Carolina state government has widened.

General Assembly researchers said Friday state revenues are $320 million below what lawmakers had expected through October when they drew up this year’s budget. A month ago, the amount was about $230 million.

The numbers reflect tax collections that remain about five percent below expectations.

Report author Barry Boardman says North Carolina’s weakening employment market can be blamed in part for lower than expected sales and personal income taxes. Boardman said earlier this month that the fiscal year shortfall could range from $800 million to $1.6 billion.

Outgoing Gov. Mike Easley already has a package to hold back up to $1.2 billion to deal with the shortfall.

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