NCGA: State Budget Update-The April Numbers

Current State of the State Numbers-Update

As the General Assembly prepares to head back into session, the revenue forecast is a bit tighter than previously projected.

The overall downward adjustment to the 2010-2011 biennium budget is 788 million dollars.

Biennium Forecast    

(adjusted by S.L. 2009-451)    Revised Revenues Difference  

2009-10  $18,926.7 million       $18,535.7 million ($391.0 million) 

2010-11  $19,639.0 million       $18,936.0 million* ($702.9 million) 

 

*An additional $85 million reduction is likely because of the one-year expiration of the

Federal Estate Tax.  (NC Legislature Fiscal Research Memo)

This means the budget needs to be balanced at $18.9 billion dollars.

Current Budget Shortfall (FY 2009-2010): 391 million dollars.

Payroll withholding taxes: 4% under expectations

Sales tax: 5.8% under expectations

Corporate Income Tax: 25.6 percent increase over forecast. (A major reason for this increase was the extra $272 million collected through a resolution payment initative by the Department of Revenue.)

State Unemployment numbers: 11% (This is a reported number, it is most likely considerably higher due to the number of people who are not reporting that they are unemployed.)

Post April 15^th Tax Numbers: this information is still being compiled.