Courtesy of this report from WRAL
North Carolina will face one of the largest state deficits in the country next year, according to a new report.
The National Conference of State Legislatures surveyed 35 states to get a picture of their fiscal health heading into the 2011-12 budget year.
Only California, Connecticut, Minnesota, New York and Texas are projecting deeper 2011-12 budget holes than North Carolina in terms of total dollars, according to the report. When looking at the deficit as a percentage of the state budget, California, Connecticut, Hawaii, Minnesota, New York, Oregon and South Carolina are in more trouble than North Carolina, the report states.
The primary culprit in NC’s startling budget gap for next year is the structural deficit built in due to our budget writers’ short-sighted reliance on temporary taxes and federal stimulus dollars that are slated to run dry after this year – something I’ve been warning about for well over a year.