South By North Strategies, Ltd.

The N.C. Budget & Tax Center clears the fog of budgeting.

At no point in the next biennium are state revenues expected to exceed the revenue levels of 2006‐07. These revenue levels will fail to provide the state with adequate revenues to meet its responsibilities today and far into the future. Furthermore, with one‐time funds expended, the shortfall from pre‐recession service levels would remain above $4.5 billion into the second year of the next biennium, with shortfalls expected to continue for years to come…
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Thus, while the improved revenue estimates mean a less dire budget and revenue outlook in the next year, state policymakers must still tackle the challenges in the immediate‐term of meeting the increased demand for state services that result when economic hardship abounds and the state’s population grows and ages. Playing a numbers game with one‐time funds and mid‐year budget cuts does not solve the state’s structural revenue shortfall; it merely pushes off the reforms necessary to put the state’s finances and the economy on a sustainable path.