NC facing $445M revenue shortfall

[WorseBeforeBetter]

By GARY D. ROBERTSON
Associated Press
May 2, 2014 Updated 21 hours ago

RALEIGH, N.C. — North Carolina government now faces a $445 million revenue shortfall when the fiscal year ends June 30, state budget analysts estimated Friday, raising more hurdles to Republicans' efforts to give pay raises to all teachers and state employees.

Revenues are now predicted to fall 2.1 percent short of the $20.6 billion the legislature said it needed to carry out this year's budget, according to a memo written by the General Assembly's top economist and a state budget official and obtained by The Associated Press.

The adjustment is based in part on April 15 tax filings and other trends related to last year's tax overhaul and the federal budget agreement in late 2012 that led to higher tax rates from Washington, the memo said. Before April 15, analysts had reported that overall revenues for the first nine months of the year were on track with projections.

....


Senate Minority Whip Josh Stein, D-Wake, blamed the tax overhaul approved last year for the shortfall, saying Democrats knew it would allow the very wealthy to keep more money instead of providing revenues for things like teacher pay raises.

"Now it turns out the tax (plan) doesn't provide enough to pay our bills," Stein said.

....

http://www.newsobserver.com/2014/05/02/3829579/apnewsbreak-analysts-expect-445m.html?sp=/99/100/&ihp=1#storylink=cpy

[Moliere]

1. That's a feature, not a bug

[WorseBeforeBetter]

2. PS: Moral Mondays start back up May 19th

http://www.newsobserver.com/2014/04/30/3824097/more-moral-monday-protests-planned.html

[Triana]

3. By design. "We dont have the money"....

(truth: we gave it all to the rich in the form of tax breaks).

This means:

No teacher salary increases
No public services
No UI
No Medicaid expansion
Nothing.

Because we gave it all to the rich in the form of tax breaks. Now we can whine about how "taxes from Washington" are to blame and how poor, old and sick people just use up too much money and take up too much space and air in North Carolina. Let them drop dead or move out. This is Koch/ALEC/TeaParty country now.

NC has been Koch'd. Just like Washington.

Stupid people continue to vote for these criminals. I know Rove/Koch/ALEC contingent is spending billions here - but really. How dumb can people be? (don't answer that).

[WorseBeforeBetter]

4. Dumb, greedy, spiteful, easily manipulated...

I'm beyond disgusted with so many voters in this state.

Hagan v. Tillis is gonna be brutal.

[blkmusclmachine]

5. Is all that $$$ parked offshore? The "solution," of course, will always be AUSTERITY for the 99%, &

tax breaks for the 1%.

[WorseBeforeBetter]

7. A new loophole for businesses will cost state $336 million a year

So the break will go to roughly 460,000 business owners of all sorts, including equity partners in law firms, doctors and dentists with thriving practices, even lobbyists who patrol the legislature. It also includes some state lawmakers who are business owners.

....

For example, lawyers who are equity partners at Womble Carlyle Sandridge & Rice, the state’s largest law firm, will each receive that tax break for income they earned in North Carolina. The Winston-Salem based firm brought in $279 million in 2011, and generated profits equal to $590,000 per partner, according to The American Lawyer, a trade publication.

....

Partners at Moore & Van Allen, another major North Carolina law firm based in Charlotte, listed profits per partner at $855,000 in 2011, according to The American Lawyer. One of those partners is a state senator who argued against the tax break.

Annual revenue from that $336 million tax break would roughly equal the salaries and benefits of the 6,400 employees who lost their jobs last year to help balance the $20 billion state budget. Roughly 900 of those employees are teachers who were let go as the statewide school population increased by approximately 10,750 students.

http://www.newsobserver.com/2012/06/03/2105416/a-new-loophole-for-businesses.html#storylink=cpy

There's $336 MILLION...

[eppur_se_muova]

6. Only one way out : more tax cuts ! nt

[WorseBeforeBetter]

8. I'm looking at a stack of *patriotic* political mailings right now...

True conservative! Jobs are up! Flags! Eagles! Voter integrity at the polls! Senseless big government! And yes, more tax cuts!

And to any NC voters out there: Vote May 6th!