RALEIGH, N.C. (AP) - A report says the new North Carolina state budget could contribute to $1 billion annual shortfalls by 2020, but Republicans who drew up the tax and spending plans say either it won't happen or will be covered by careful spending.
The shortfalls were projected in the analysis requested by state Senate Democrats and received just after the legislature adjourned their annual work session and made public Monday.
For Democrats, the report reinforces their viewpoint that the tax changes they opposed would blow holes in future budgets, requiring spending cuts, higher taxes or a combination to balance them.
Republican leaders say they have no plans to increase spending at the levels the analysis envisions. And they say tax cuts have been contributing to economic growth, which in turn generates more revenues.
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