• 2010 State Budget Alert for North Carolina
  • June 24, 2010 | Authors: Douglas Grandt Heron; Charles B. Neely
  • Law Firm: Williams Mullen - Raleigh Office
  • A shortfall of approximately $800 million in the upcoming fiscal year continues to be the major issue facing legislators and budget negotiators. Revenues have been significantly short of forecast, and the continuing weakness in the economy is affecting state revenue collections. Governor Perdue’s proposed budget, which was released in April, cut state spending by $957 million in a sweep that would affect, both negatively and positively, Medicaid, teacher’s pay, state jobs and small businesses. Under her plan, most state agencies would experience another 5 to 7 percent cut on top of the 10 percent cut they endured last year.