Local Politics

Looming N.C. deficit among nation's largest

Posted July 28, 2010

State budget
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— North Carolina will face one of the largest state deficits in the country next year, according to a new report.

The National Conference of State Legislatures surveyed 35 states to get a picture of their fiscal health heading into the 2011-12 budget year. Thirty of the states are projecting deficits that total $72 billion.

North Carolina's deficit is already expected to be $3.2 billion next year, or more than 16 percent of its $19 billion operating budget. Lawmakers struggled to cut about $1.3 billion from the budget they passed last month.

The majority of the 2011-12 shortfall comes from the end of federal economic stimulus spending and $1.4 billion in temporary taxes, including a penny increase to the state's sale tax rate, that are scheduled to expire next June.

Only California, Connecticut, Minnesota, New York and Texas are projecting deeper 2011-12 budget holes than North Carolina in terms of total dollars, according to the report. When looking at the deficit as a percentage of the state budget, California, Connecticut, Hawaii, Minnesota, New York, Oregon and South Carolina are in more trouble than North Carolina, the report states.


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  • hazyday Jul 29, 2010


    I think you need to verify your sources...you are sadly mistaken.

  • CarZin Jul 29, 2010

    What amazes me about most of these comments (well, not really because these are GOLO users) is that even if we would have kept a perfectly efficient government, cuts would need to have been made. In fact, the exact same percentage of cuts. All you whiners out there wouldnt allow them to keep a surplus, and would expect them to give it back in lower taxes (as would I). However, with no fat to cut (if everything were efficient), then the ONLY recourse would be to raise taxes significantly now. It is a lose lose.

    Think of it this way, for those who cant wrap their mind around this. Regardless of what tax rate would/could be charged, there would be a lot less of it now. We would be running deficits if we have economic gurus running the state.

  • Mugu Jul 29, 2010

    Hazyday, next thing you're gonna say is that Puerto Ricans are human too?

  • Plenty Coups Jul 29, 2010

    Freeamerica-"I am a teacher, and I can tell you things have never been as bad for the USA or NC since Obama and Perdue has taken office. Yet, most teachers will vote them right back in. So sad.Something must be done about illegals, and the enormous wasteful spending at all levels of government. Until teachers realize this, they will be lucky if they even have a job."

    What? Do you actually think you'd get a raise with a conservative governor? All you have to do is look at the average teacher salaries in the "red" states such as Missippi, North Dakota, and Alabama. What do illegals have to do with your job? If anything, they make more students which creates a need for teachers. Things are bad right now because of the recession. The recession was caused by poor lending practices of the banks. Obama and Perdue didn't cause this recession, it was already in full bloom when they took office.

  • Plenty Coups Jul 29, 2010

    You have to be a little honest here and admit that the "looming" deficit, (we don't quite have one yet) is caused largely by the recession as it has for states nationwide. The state has cut back the last two years. The state must submit a balanced budget by law so next year they'll have to address the situation. Hopefully the economy will be better.

  • WXYZ Jul 29, 2010

    As I have written many times before in this forum, the Easley + Perdue + Yellow-Dog-Rubber Stamp-Socialist Democrat regime had a budget SURPLUS for 7 of their 8 years in office. They also SPENT ALL OF THE SURPLUS EVERY YEAR and RAISED the state's annual budget EVERY YEAR; and, they created NEW taxes and fees and they RAISED old taxes and fees. The budget surplus for FY 05-06 was nearly $2 Billion. They also started a state run Lottery in a very backhanded way, which primarily takes money from people who can least afford to gamble. The Easley/Perdue/Democrat Legislature crippled the private sector of NC! Now, the private sector in NC is so burdened and hobbled by a parasitic socialist state government, that it has little chance of healing itself. This will continue until and unless we elect people who believe that "more government is not the solution...more government is the problem"; and who believe the ONLY WAY toward lasting prosperity is permanent cuts in taxes and fees.

  • littleriver69 Jul 29, 2010

    We in NC pay tax out the nose and still have a deficit?? Imagine that.

  • gunny462 Jul 29, 2010

    Is anyone really surprised by this?

  • jet2rdu Jul 29, 2010

    Below are two quotes about the Democrat legislature written NC budget published on this site a year ago, Aug 4,2009. One from each party. Now, one year later, who do you believe got it right about our NC state budget?

    "It has been hard work, seven months of solid work and we think we've got a pretty good budget in spite of the economic times,” said Rep. Mickey Michaux, D-Durham.

    Sen. Neal Hunt, R-Wake, said. "One day for a 300-page document with all the detail – it's virtually impossible. It's always a rush job. The fact that we're not included in the process is why it's a rush job for us."

  • delilahk2000 Jul 28, 2010