NC Tax Collections Still Weak Along With Economy

North Carolina continues to collect less tax money than lawmakers expected when they crafted this year's budget.

But agencies and services don't yet face cuts because of money set aside by Gov. Beverly Perdue.

The Legislature's top staff economist said this week the state has taken in $110 million less than expected over the first five months of the fiscal year, through Nov. 30.

That's 1.5 percent below expectations, or the same proportion as in October.

Perdue has withheld up to 5 percent of funds in some agencies to handle shortfalls.

Economist Barry Boardman wrote the state's coffers are still feeling the prolonged recession, as unemployment stays high and people spend less.

If the economy worsens, budget cuts are a possibility.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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  • by voter Location: nc on Dec 16, 2009 at 11:05 PM
    tax the welfare rolls.
  • by Don Location: Martin County on Dec 16, 2009 at 05:46 PM
    Look out now, their(our govt) answer will be, "Let's raise more money by increasing taxes." In my house, if we dont have the money, we decrease spending. Seems to me that would be a good start for our state government as well.
  • by Tim Location: Kitty Hawk on Dec 16, 2009 at 04:58 PM
    Look out for another 1% sales tax increase. The answer is always more taxes.
  • by Robert Location: Hubert on Dec 16, 2009 at 04:21 PM
    Where do I start with this one? First this has to be the news story that nobody cares about. People are to busy trying to keep a roof over their heads. And so what if the state isn't taking in as much money as they planned? Who's fault is that? Also, the state is NEVER taking in more money than it spends. All we hear about are budget government deficits! Then miraculously Gov. Perdue say there won't be any cuts because of money that was set aside. Set aside from what? And When? Then I want everyone to read what is written in this article. Fisrst it says, "agencies and services don't yet face cuts" Then 3 sentences later it says,"Perdue has withheld up to 5 percent of funds in some agencies to handle shortfalls"! ISN'T THAT A "CUT"? What does "WITHHELD" mean?? Then it says, "If the economy worsens, budget cuts are a possibility." NO DUH ?! Really? I think it means MORE TAXES!!! I don't know which is worse, the state for saying it, or the media for reporting it like that?

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