Forecasters Expect 2% State Revenue Shortfall

Tax forecasters estimate North Carolina will collect about 2 percent less revenue than first predicted this year.

The Legislature and budget office experts say the state will take in $391 million less than expected to pay for the $19 billion budget for the year ending June 30. Gov. Beverly Perdue has held back money to narrow the shortfall.

A memo dated Monday also says the state will receive $788 million less than expected for the budget for the new year starting July 1.

The estimates could change after April 15 collections are counted.

Legislative leaders say they may have to find up to $1.2 billion in spending cuts, additional revenues or both when new Medicaid expenses and other needs are included.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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  • by Kay on Apr 13, 2010 at 09:29 AM
    Teacher- I wouldn't complain to much. At least you have a good job. Many don't. I appreciate what you do and to that I say thank you. Do remember though that sometimes people ask for to much. I agree that salaries should be look at for all state employess and be brought under control. Some make exorbitant wages and do little work. Teachers are not in this group.
  • by Wayne Location: Havelock on Apr 13, 2010 at 08:27 AM
    Becareful what you ask for Jo. They will give you vacation time alright. Just like last year..... Time off without pay.
  • by Raider Location: Winterville on Apr 13, 2010 at 08:09 AM
    Don't worry they'll get their money. They'll either raise the tax on gas, sales tax, or just create new ways to tax us altogether. It would lead me to believe that they would try to tax ANYTHING THEY feel isn't a necessity in ones day to day life. No need to cut spending, just continue to grow government and make more people more dependent on them. It's the Socialist way!!
  • by Jo Location: Greenville on Apr 13, 2010 at 07:55 AM
    Wish they could do something to give us state employees a raise. This is our second year with no raise, no nothing. They could at least give us some vacation time. I guess we can be thankful to have a job. But not much incentive to try to do better at your job.
  • by cell phones a necessity? Location: greenville on Apr 13, 2010 at 07:18 AM
    How about cutting funding for free cell phones for indigent (assurance wireless) and using that money towards the state budget?
  • by Teacher Location: eastern North Carolina on Apr 13, 2010 at 07:07 AM
    Just what I was expecting. I will be asked to give up over $250 dollars of my salary for 10 hours of flexible time. The state already decides which 10 days that I can take for vacation; they decide which workdays I must work and honestly I must work them in order to keep up with my work. All of this is done before December 31st. Honestly, I was unable to take 10 hours anywhere which many people say "Oh well, that is just your lost." But I want to be a GOOD teacher to my students so I felt I HAD to work in order to do right by them. Why must my paid be cut when judges, etc. didn't have to take the flexible time. These people have more flexible time options than I do. TEachers are already not respected by the community so I must also endure their contempt for me when they cut my salary and I don't take my flexible time. I am a 23yr veteran that makes $45,000 a year. In the state of VA, that is the beginning salary for teachers. I guess I am stupid.

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