Governor Bev Perdue announced today via YouTube that the state's budget situation is less dire than expected - about 30% less dire, actually.
Perdue says revised revenue estimates now put next year's budget shortfall at $2.7 billion, down $1 billion from earlier projections. She credited the rosier numbers to her administration's success in recruiting new jobs and controlling health care costs.
Perdue's office says the numbers come from the Office of State Budget Management:
- $700 million in better than expected revenue (no actual breakdown yet of income, corporate, sales taxes)
- $200 million less in projected Medicaid costs
- $50 million less in projected State Health Plan costs
- $50 million in "a hodgepodge of savings, such as controlling debt costs."
Perdue notes it's still a "very steep budget hole." Watch the video at the link at left.
You can find more detail and GOP reactions here, in our web story.
The new state budget projection report is here.