Local Politics

State: Tax revenue down $1.1B this year

Posted April 17, 2009

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— North Carolina collected $1.1 billion less in taxes through the end of March than it did during the first three months of 2008, the Office of the State Controller said Friday.

The difference in tax revenue amounted to an 8.5 percent decline this year, but the lower cash balances also shaved $85 million, or 45 percent, off the state's investment earnings during the first three months of this year, officials said.

During March, tax revenues were off by 19 percent, or $254 million, from a year ago.

The state's general operating fund was $1.3 billion in the red as of March 31, almost double the $681 million deficit it showed at the end of February. A year ago, the general fund had $213 million in reserve.

North Carolina traditionally faces low cash flow leading up to April 15. The state’s cash position was also dented this year because final corporate income tax payments are due April 15 instead of March 15, officials said.

The Department of Revenue has been slow in issuing individual tax refunds to ease the cash crunch, but officials said they expect to clear the refund backlog by the end of May.


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  • affirmativediversity Apr 17, 2009


    You better think twice before you automatically condemn the "Defense of Marriage Act". It is a fiscally (as well as morally) sound policy.

    If marriage is defined as between "one man and one woman" it will limit the social program benefits the government has to pay. In turn it ensures "separate but equal" status for people who have an alternate lifestyle.

    As it is now if, for example, two lesbians living together go and apply for food stamps they are entitled to choose if they are one household or two separate households. If one person is working and the other not, that choice can make all the difference. If, on the other hand, zealots insist on redefining "marriage" then be prepared for all the consequences including the loss of "definitional choice" (oh, and that will be extended to common law, too)

    Just some thoughts to stew on!

  • Raleigh Boys Apr 17, 2009

    I would be ashamed too, especially with NC Senate Bill 272 - Defense of Marriage, that was introduced by one of our elected Republicans, Senator Forrester. Welcome to NC. Set your watch back 40 years.

  • whatelseisnew Apr 17, 2009

    They need to get serious and cut the budget to 15 billion.

  • Mean Old Mom Apr 17, 2009

    Investment income is down. When our 401K's start earning 20-30% again, then NC will be in better shape. However, I don't believe that will happen in our lifetime. Better get used to investment income being down and plan spending accordingly. If programs need to be cut, better cut them now. It will be less painful in the long run when our trillions of dollars US budget catches up to everyone. Of course the only solution the states will be able to come up with is increase taxes and fees and the average joe or jill. Get ready for it. On a positive note, I heard an advertisement for a new lottery game. That ought to help fill in any budget gaps for education. (*laughs cynically*)

  • redapace Apr 17, 2009

    It is utterly amazing how many republicans are ashamed to say they are republicans. Then again I'd be ashamed to admit it too.

  • grenlyn1 Apr 17, 2009

    BooHoo..sorry to hear that..now where is my REFUND????

  • affirmativediversity Apr 17, 2009


    Sorry...but I belong to no political party...although I consider myself fiscally conservative

  • Raleigh Boys Apr 17, 2009

    affirmativediversity -

    You must be a republican.

  • PaulRevere Apr 17, 2009

    But spending is up!

  • affirmativediversity Apr 17, 2009


    I for one do not ever want convicted felons working in any capacity within the State Government...nor the local or federal!!

    I don't care if it was for stealing a chicken 15 years ago!