Local Politics

State still in red despite tax collections

Posted May 13, 2009

Map Marker  Find News Near Me

— North Carolina's general operating fund was almost $300 million in debt at the end of April, despite hefty tax collections during the month, the Office of the State Controller said Wednesday.

Tax revenue was off by $623 million, or 21 percent, from April 2008, and the lower cash balances trimmed investment earnings by $13.2 million when compared with the same month a year ago, officials said.

The declining revenue left the general fund with a negative balance of $284 million at the end of April, compared with a $1.2 billion surplus a year ago. At the end of March, the general fund was $1.3 billion in the red.

For the first four months of the year, tax revenues are down $1.7 billion, or 11 percent, from 2008. Investment earnings are down $98 million, or 47 percent, during that period.

Gov. Beverly Perdue last month signed an executive order freezing state spending and allowing her to tap various state trust funds to help pay North Carolina's day-to-day bills.

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

43 Comments

This story is closed for comments.

Oldest First
View all
  • demo7691 May 14, 2009

    well when the state is spending it faster than we pay it makes it worse. Obama is printing money with no backing (gold) to stand behind it and the dollar will just weaken as well. Old Bev is creating unneeded positions for her friends (Making a CEO of Education who Makes Over $200,000 a year) and cutting the working persons salary. Tax the illegals somehow or make them return home. They collect welfare/Health sevices and pay nothing. This is what you get when people are in office who are not qualified.

  • alphabaker May 14, 2009

    the Dems have ruined this state. I voted for McCrory. also having a ballot where one can vote straight Dem party (in line with not having to think) has also given us what we have to date !

  • this is my Screen Name May 14, 2009

    We filed our taxes early February and have not received our refund yet. They say that as of May 30 the state will have to pay interest on any money that has not yet been refunded. Betcha they'll tax us on that interest.

  • alx May 14, 2009

    To our esteemed lawmakers in Raleigh... here is a solution... Cut Spending!!!!!! DUH

  • tgw May 14, 2009

    TAX and SPEND. TAX AND SPEND. TAX-TAX-TAX-SPEND-SPEND-SPEND.
    Good job legislature. WE had billions in reserves-that they just pi.... it away.

    This is what you get when you have a one party state. The Republican Party does not challenge Dems in about 1/2 or the state races. Maybe, it's because some districts are gerrymandered so well that God could not beat a Dem, and it's all legal. Friends, we need to throw every Democrat out and start over. They're out for themselves and their re-election -AND NOTHING MORE!!

    Have a nice day, COMRADE!! COMRADE AND DEMOCRAT are about the same.

  • ThePunisher May 13, 2009

    I know! We can raise taxes on rich people!

  • affirmativediversity May 13, 2009

    whatelseisnew:

    Face it buddy, you are never getting your $97.00! Bev the Wonder Gov spent it on plants for her new Charlotte office.

  • gnew46 May 13, 2009

    DOR has been slow in sending refund checks. That is true, however, they would not be slow in collecting if a taxpayer was late. I filed my taxes in February. Its May and I am STILL WAITING for my refund.

  • smithr51 May 13, 2009

    TIME TO RAISE TAXES ON BEER AND CIGARETTES AGAIN. NOTE TO PERDUE- I DO "CHOOSE TO USE THESE PRODUCTS". I GUESS I WILL "SUCK IT UP" (REFERENCE TO HER NEWS CONFERENCE ABOUT A MONTH AGO)

  • Worland May 13, 2009

    Time to move to China. By the end of Obama's term, China will own the USA anyway. Why fight it? ARGH!

More...