Strong revenue likely won’t last
Wednesday, May 31st, 2006
By Chris Fitzsimon
State $2 billion ahead this year; future uncertain
By Mark Schreiner
Raleigh Bureau Chief
mark.schreiner@starnewsonline.com
Raleigh | The sun is shining on the state budget right now, but there could be dark clouds over the horizon.
"In my Merchant Marine days, when there was an approaching storm, you started checking your gear," said Rep. Danny McComas, R-New Hanover. "When bad stuff starts to happen, you’ve got to be able to react quickly."
The state government has more than $2 billion extra in its pocket this year. About half of that amount is money from the current budget that didn’t need to be spent.
The other half - more than $1 billion - is unexpected tax revenue.
Times are good.
But some projections show the state could run hundreds of millions short in just a few years.
It would mean a return to the kind of tough fiscal times the state faced between 2001 and 2004, when taxes were raised and programs cut to make the state budget balance.
But that, experts said, is by no means a certain scenario. (more…)
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