Reckless Tax Reform Leads To $313 Million Revenue Decrease In 3 Months
The latest monthly review by the State Comptroller shows tax revenue down $313 million. This is just the latest sign that the reckless tax reform plan passed last year is well on its way to bankrupting the state. One only needs to look to Kansas to see where North Carolina is headed. From the News and Observer article,
RALEIGH — North Carolina in September – three months into the new fiscal year – saw tax revenue down by nearly $313 million in comparison with the first three months of fiscal 2013-14, according to the latest monthly review by the Office of the State Controller.
That 6.5 percent difference in receipts is in addition to nontax revenue falling $8.7 million, or 3.4 percent, compared with the first three months of fiscal 2014.
But State Budget Director Lee Roberts is keeping with the perspective he gave last month – that it’s too early to sound alarms – after an August report that showed state revenue down more than $200 million for the first two months of the fiscal year when compared with the same period in last year.
“The revenues were always going to be significantly different than last year given the comprehensive tax reform, both at the federal level and the state level, that’s been put in place,” said Roberts, who entered his role in September. “What matters from a balanced budget point of view is, ‘Are they different from what we thought they would be?’ ”
From that angle, three months into the year, the state is at 98 percent of budget – about $61 million behind, out of $21 billion programmed.
“It’s like being 10 minutes into a basketball game and being down by a point,” Roberts said, adding he’s constantly monitoring numbers. He cautioned not to confuse his words as saying North Carolina is in the clear, but that data aren’t voluminous enough to say confidently either way.