NC state budget shortfall projected to be $445 million

Gov. Pat McCrory

Gov. Pat McCrory

 Proposed pay raises for North Carolina teachers and state employees could be threatened by a state budget shortfall.

WTVD-TV reported that a newly released analysis revealed a $445 million gap in state revenue. The outcome was based in part on this year’s tax filings.

The General Assembly makes a budget for two years based on expected revenues. Those revenues were cut when state leaders cut state taxes last year.

Then, when leaders come back the second year of a budget, they have to make adjustments. That is what’s happening now.

All of this comes at a time when teachers and state workers are expecting the state to pony up and offer pay raises.

Friday night, Gov. Pat McCrory called the outcome disappointing — saying there’s still almost $600 million in reserves to fill the hole, and to pay those raises.

McCrory is still weighing several options, according to the state budget office. A good bit of it all goes back to how much money the state can collect in taxes.

State economists are weighing on that overhaul of the state tax code last year.

“I think the jury is out over the long-run effects of what the General assembly did last year with the tax code,” said N.C. State Economics professor Mike Walden. “In the long-run, we may see that it will pump up economic growth. We just don’t know, but I’m not surprised to see the initial effects are going to be in terms of lowering tax revenue.”

The idea Republicans had in mind with adjusting the state taxes was to put more money into citizens’ pockets, which would stimulate the state economy, and, in the process, become more attractive to business which might want to move to North Carolina to create jobs.

18 comments

  • Kennith Thomas

    The answer is so clear. Lower taxes more for the rich and raise them for the working poor. That will solve the problem.

    • dewey

      they already pay taxes….every time they purchase, new, a bike or scooter….then there’s taxes paid on parts for maintenance…gas taxes for those on scooters….what other taxes would you like to impose on those who already seem to be having a bit of a tough time?

      • stinger90

        How about the tough time for people who drive an auto. They are taxed each year on that auto. Do they do that on the moped’s and bicycle? If not, they need to start.

        dewey, do you have a license? Just wondering..? Most people who ride scooter’s on the road that I see have lost their license for some reasons or another.

        For bikes, I wish they would do they Colorado where they have a lane for bicycles only.

      • dewey

        having an auto is a choice….not a requirement…and yes I do have a valid drivers license….your car does more road damage than a scooter or bike…and yes, it would be an undue burden on a group of people who are already having a tough time, be it a DUI or the inability to afford a car and all the maintenance that comes with it, i. e. insurance, property taxes or just the general cost of repair…BTW, just how did you conduct your poll of scooter users, just wondering if it was a “project in motion” or are you making a general assumption based on the people that you know personally?

      • stinger90

        Having a scooter is a choice as well. If you are that cheap, walk or take a transit.

        Lol, I don’t know anyone personally that rides one nor a poll taken. Do you want put your money where your mouth is on the ppl who drive scooter’s?

        People with auto’s are paying more to fix the roads. You (cheap) are somewhat getting a free ride.

    • ThePear

      Great idea. While we’re at it, let’s start requiring a yearly tax on shoes, or even bare feet, for damaging sidewalks and roads.

      You really want to tax bicycles and scooters? Let’s break it down. For my $18,000 car, I pay about $160 in taxes a year for it. Percentage-wise, for a $500 bike, an equal percentage would mean about $4.40 in collected taxes. It would cost the state MORE than $4.40 for the time it took to process that tax payment, which means we would actually LOSE money as a state trying to enforce such a ridiculous tax.

  • Dominick

    Until the budget is satifactory, I would not encourage the governor to provide pay raises unless the state want to be further in debt. Trim the fat first.

  • Eagle275

    I guess the teachers, their union and state employees want to raise taxes on us,eh. How about a pay freeze,eh. I like that better. Learn to use a budget, just as the state should. How about teachers teaching the kids how to use a budget and not teaching how to use a checkbook, credit card, or debit card without having money to pay for it,eh.

    • news2me

      The parents need to teach them that…..Evey single time any conflict arises, the public is spewing that the teachers should have taught the children better etc.
      PARENTS first…Teachers only teach a test anyway and pay Big $$$$ for all of the supplies they use…
      Their pay…if figured by the hour amounts to a dollar over minimum wage…

  • Pig

    BTW us teachers have had our pay frozen for the past 6 years! And what we teach our students is based on a curriculum provided by our state.

  • Joust

    And yet in another story, the Hollywood film industry are complaining about the possibility of ending incentives for filming here. Why don’t they want to pay “their fair share”? Isn’t paying taxes “patritotic”??? That’s what our idiot V.P. said.

  • Joust

    McCrory is still having to clean up the mess that idiot Perdue left with a long legacy of democrat incompetence.

    Hell, you’re still letting Obama off the hook 6 years later, but trashing McCrory after 1 year.

    Pure hypocrites…..

    • ThePear

      Actually, I blame our Republican congresses (state and federal) for far-more ineptitude than McCrory, Perdue, Obama, and Bush combined.

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