N.C. tax collections lagging by $70 million

RALEIGH, N.C. — Gov. Mike Easley's administration is warning legislative leaders there's going to be less tax money than previously believed to spend for next year.

Easley's office told lawmakers in a letter Thursday that state government likely will have collected $70 million less than projected when the fiscal year ends next week.

Easley budget adviser Dan Gerlach attributes the decline to lower-than-expected sales and income taxes.

“The national economy has gotten significantly worse, and, although North Carolina is only experiencing some of that weakness, it will make it more difficult for legislators to balance the budget this year,” Easley said in a news release. “We are working together in a spirit of cooperation.”

Budget negotiators might have to find additional spending reductions or take money out of savings to make up the difference.

Rep. Jim Crawford, D-Granville, one of the House's negotiators, downplayed the news Thursday. He said the dollar figure is a small percentage of a budget that will exceed $21 billion.

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NC is ranked 19th nationally in tax burden (2007 figures). We are #11 in population. I know I'm going to take a hit for saying this, but any dollar any gov't spends is always going to be wasteful to someone. And I'm really going to take a hit for this, but it's true. Given the level of expenditure, the tax burden, on the Federal side (repeat, Federal side) is way too low. This is going to come back and haunt us (or our kids) one day.

Garnerwolf1
June 27, 2008 10:52 a.m.

Never met a Tax he didn't hike!! Had enough yet, Noth Calina?

Pilot
June 27, 2008 10:33 a.m.

Hey, what about that lottery thing Easley assured us would fix all our state fiscal problems.

And Armondo de Cabana Boy, I could not agree with you more. When my husbad and I hit hard times, I took on a p/t job working around my children and my husband got a second job....I don't expect the government (i.e. my neighbors - rich or poor) to pick up the slack for my bad decisions/misfortune. We cut out all but necessary spending and prayed a lot!!

djnt369
June 27, 2008 10:18 a.m.

bs101fly- Liberals like you are what's wrong with this country. Always wanting a handout, a bailout, or something for nothing. I have a grand suggestion: Work harder. If your job doesn't pay enough, get another job. Buy your own gas!