Budget Squeeze
Friday, May 16 2008
by Laura Leslie
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(Photo: Go Downtown Raleigh)
Statehouse budget writers are making progress on next year’s spending plan, but they are working with a much smaller surplus this time than in the past few years. That’s still good news – a lot of other states are facing deficits this year. But revenues are down. And budget writers are worried next year could be even tougher.
"While North Carolina’s not been hit as hard as many states, we are being hit," says House Finance Co-chair Paul Luebke. " We expect that the recession will hit harder and therefore have an impact both on state income tax collections and state sales tax collections."
House leaders want to increase funding for the probation system and mental health reform. But they say there’s little political support for the governor’s proposed tax hikes on alcohol and cigarettes. Lawmakers say they’ll find the money through cuts in other areas instead.
