Looming N.C. deficit among nation's largest

Raleigh, N.C. — 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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Latest Comments

Delilahk2000,

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

hazyday
July 29, 2010 4:38 p.m.

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.

CarZin
July 29, 2010 4:21 p.m.

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

Mugu
July 29, 2010 12:41 p.m.

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
July 29, 2010 11:51 a.m.

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.

Plenty Coups
July 29, 2010 11:44 a.m.