Tuesday, March 16, 2010

NCGA: State of the State-The New Numbers

Today the members of the Government Operations committee received and update on the current state of revenue collections for North Carolina. 

Here are the current numbers that will drive our state’s upcoming budget discussions.

Medicaid: The hole in Medicaid has grown to between 250 and 260 million dollars. Part of the growth is due to the double-digit unemployment numbers in our state.

Revenue collection: State revenue collections are $45 million bellow the $12.1 billion target through February.

Income tax withholding: Currently the state is seeing income tax withholding down 4.1% through February. $145 million bellow target.

Sales tax collections: Sales tax collections are down 11.0% and net collections are up 12.2% however the current budget expected a 15.9% increase. We are currently $125 million below target.

Budget Deficit for 2010: Last week Governor Bev Perdue stated that her economic team forecasts a $1 billion dollar deficit for the coming budget year and a possible $3 billion dollar deficit for the 2011-2013 budget.

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