Prospects dim for balanced state budget by June 30

Raleigh, N.C. — The likely loss of about $500 million in federal stimulus funds lawmakers had counted on to balance the 2010-11 state budget means agreeing on a spending plan will be more difficult, they said Tuesday.

The U.S. House passed a jobs bill last week that deleted $24 billion in support for cash-strapped states. North Carolina lawmakers had planned to use the money to plug holes in the Department of Health and Human Services after taking money from programs there to spend elsewhere.

"It could be really devastating. No question about that," said Rep. Mickey Michaux, D-Durham, a senior budget writer in the state House.

U.S. Sen. Richard Burr dismissed any notion that the Senate would add the funding for the states back into the bill.

"I don't suspect there will be any money for states," Burr said, adding that he and his colleagues are focused on balancing the needs of the country against reining in the soaring national deficit.

House leaders said they are moving forward with their budget recommendations and plan to include a back-up plan should the federal stimulus money not materialize.

"We need to move ahead with what we have, put our contingency measures in place before we leave and then see what happens," Michaux said. "We can last for a while, at least until September or October."

Sen. Linda Garrou, D-Forsyth, said the House's back-up plan just adds to questions she and other budget writers in the Senate have with the House's proposed budget.

"We've got lots of concerns about what we're hearing about the House budget," Garrou said, citing proposed cuts to the University of North Carolina system and a possible cap on university enrollment.

"We may have to scrap the whole budget and start over. That's what I'd rather do and do it well," she said.

Senate leaders said they won't pass a budget that includes the stimulus funds if Congress doesn't approve the money by the end of the month.

Gov. Beverly Perdue is working with the General Assembly to formulate the best course of action, a spokeswoman said.

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Latest Comments

Actually, FAIR did the 1.2 spend, UNC Chapel Hill Kenan Institute study did the 9.2 generated.

MakoII
June 2, 2010 2:36 p.m.

Garnerwolf1,

FAIR comes up with estimates like that. They generated the 1.2 Billion that goes to paying for illegals.

What people think is that it's adults, but it's the children. 1 Billion of the state's cost to illegals is solely in K-6 Grade education. Of course, most of the funding for that comes from local sales and property taxes, so technically, illegals pay via rent and ownership a bulk of that, so it's not entirely unfunded from Citizens, as you might think from just seeing the number.

But, if you think about it, Hispanics in general are involved with very expensive Housing development, that's "generating wealth" from their labor. Of course, there is Agriculture wealth generation, lawn care business, etc, etc.

That 9.2 Billion isn't to taxes, it's to general wealth of the state per year.

It's expected that more will be actually generated in taxes than spent within the next 10 years as the borders close and the children grow up, work, start earning, paying taxes, etc

MakoII
June 2, 2010 2:25 p.m.

"It's estimated that Latino's generate 9.2 Billion in wealth for NC where half are estimated to be illegal." How do you define wealth? Certainly not in the form of taxes (other than some sales)

Garnerwolf1
June 2, 2010 2:16 p.m.

I'm about as conservative as they come, but I've seen some ridiculous responses on here. i.e. "any department that can be closed for a week can be permanently cut!!". We could not have school for a week and it would not be the end of the world, but do we need to cut out education permanently?? I hope not.

Cut the legislative pay?? I hope not. That is the problem now, they are not paid enough!! Only the rich can afford to leave their jobs and go to Raleigh. If the pay was decent enough, the average Joe could leave his/her job and spend 6 months in Raleigh!! Yeah, cut their pay out completely and you will have only the ultra-rich making all the decisions!! Don't think we need that!

sammy
June 2, 2010 1:39 p.m.

asdfg,

Not for nothing, I've heard similar statements many times from people and keep wondering, WHERE are all these people shopping?

I could imagine seeing that in Siler City, but even in Pittsboro I don't see it.

How is it people are shopping where poor people are shopping with these cards? Illegal Hispanics tend to keep to their communities where they feel safe.

Most illegal Hispanics that I know, have their own markets and vendors and buy there, where produce is often 1/5 the cost of Food Lion, etc. And most white people I know NEVER even know where these markets are, much less frequent them.

I'm wondering if this isn't made up.

As for me, I'm not nosy and looking at what other people are buying. I've got enough things to do than stare at other peoples purchases.

MakoII
June 2, 2010 12:50 p.m.