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.)