Log in to WRAL.com with one click using your favorite social network:
OR
Log in using your WRAL.com account:



Wrong email/password combination.

Forgot password?

Register with WRAL.com using your favorite social network:
OR
Register for a WRAL.com account using our web form.

Login Options

9:05 a.m. • 2-11-12

Weather Forecast for Raleigh

  • Today: Mostly Cloudy.
    • Hi: 50° F
  • Sun: Clear.
    • Hi: 41° F
  • Mon: Mostly Cloudy.
    • Hi: 50° F

Other Locations

> 7 Day Forecast

Doppler Image

Marketplace Links

Social Links

Main Menu

N.C. budget picture rosier than other states'


e-mail print friendly
State Budget graphic
State Budget graphic

The slowdown in the national economy is trickling down to state budgets, and lawmakers from coast to coast are struggling to plug holes in their spending plans.

California's $22 billion budget gap, for example, is bigger than North Carolina's entire state budget. With housing woes and no income tax, Florida is working to fill a hole in its budget of more than $4 billion.

Likewise, Tennessee has no income tax and is looking to eliminate 2,000 state jobs through buyouts to balance its budget. Virginia and South Carolina also face shortfalls.

Meanwhile, North Carolina is finishing its fiscal year with revenue millions of dollars ahead of projections.

"We rank very well in there. A lot of states are not giving anything. A lot of people are laid off. They're not being able to give anybody raises now," Senate Majority Leader Tony Rand said.

Dan Gerlach, the top economic adviser to Gov. Mike Easley, said the state tries to keep its budget and tax forecasts conservative.

"We've had stronger job growth than other places. We're not immune to national issues, but certainly, our conservative budgeting has led us. We'll probably end with a surplus with other states deep, deep in debt," Gerlach said.

Still, Easley's critics said they don't see such a conservative stance in the way North Carolina spends tax money.

"I think the problem with that is that we continue to take more money out of the private economy than other states generally do," Senate Minority Leader Phil Berger said. "I think that hurts our overall economy. It may be good for state government, but I don't think it's good for the private economy."

Lawmakers said they don't plan on raising taxes this year.

If the state's economy falters, lawmakers also can tap an $800 million reserve fund as needed.

RELATED TOPICS: Florida Keys Oil Spill

e-mail print friendly

14 Comments


WRAL.com welcomes your comments on this story. All comments are moderated prior to publication based on our posting guidelines. Please review them prior to posting and if your message is not approved.

View Comments VIEW ALL 14 COMMENTS

This story is closed for comments. Comments on WRAL.com news stories are accepted and moderated between the hours of 8 a.m. and 8 p.m. Monday through Friday.

Latest Comments
They did not say anything about lowering income tax now did they? Just think what they could do with all the revenue that off shore drilling would bring to NC. That way the governer could tax the rich oil companys. Its time for a tea party people to get our so called elected leaders back on track

whatelseisnew:

If there's a surplus in the general fund, then either that money should be saved for lean years, or income taxes should be reduced. That extra money should NOT be used to build or maintain roads. That what gas taxes are for. Things get messy when you start mixing the general funds and the road funds.

I'll repeat. Money for building and maintaining roads should ONLY be paid for through gas taxes, and gas taxes should ONLY go towards roads. Don't start moving money back and forth between funds. That's what happened in 2001 when money was diverted from the highway trust fund to the general fund, and it was a horrible idea.

whatelseisnew: It is sad that people like you accept the crafty lies of people like Bill Graham that money is being diverted from roads into the general fund. This only happened once in 2001, and has not happened since. What is happening is that gas tax money is being diverted from the 'new highway' fund into the 'existing road maintenance' fund. Sure, we could have spent money on existing highways, but it would have been at the expense of existing roads falling apart. But when Bill Graham talks about it, he purposefully talks vaguely about the 'diversion of money from the highway trust fund', which is technically true but purposefully misleading. He's trying to get elected after all.

I don't understand people like you, whatelseisnew. I've told you this fact over and over, yet you never seem to investigate it to find out that I'm correct. Instead of doing a little investigation, you just keep spewing "the govmint is diversioning my's money, dagnabit!!!".

Who cares about other states, we live in NC! The folks managing the our money here are very bad at it. We need to keep voting them out and hold them accountable.

Garnerwolf1

I wish I knew where that fella worked. Being in the private sector does not mean that you get a raise every year. With any given business there are lean times, and good times. Plus, nowadays many companies do not hand out raises just because they had a good year or several good years. Typically, they establish a pay range, much as the State does. If you are near the top of that pay range, it is not likely you will get a raise. At that point you have to move up or perhaps change the field you are working in to go to one that pays more money. I have not seen a pay raise in over five years. The company I work for has been making record revenue and profits during that time frame. (and no I do not work for any oil companies). In the meantime, my tax burden has increased substantially. Perhaps you deserve a raise. Clearly, there has not been equity in the percentage of increases for all state employees.

View Comments VIEW ALL 14 COMMENTS

Multimedia

Click Here