How could a $500 million current fiscal year miscalculation by the state of North Carolina affect local municipalities?

N.C. faces $500 million shortfall: The final figure might be much higher as income and sales tax collections trail legislative projections.

Top lawmakers say North Carolina will come up $500 million short of its $19 billion budget by the end of June.

"It would not surprise me if it hit $600(million) or $700million," said Sen. David Hoyle, a Gaston County Democrat and co-chairman of the Senate Finance Committee. "But $500million seems like a given."

Revenue at the end of January was $35 million behind estimates.

…But income and sales tax collections continue to trail what the legislature's fiscal staff projected.

Barry Boardman, chief economist on the staff, said the state could face a $500 million gap when the budget year ends June 30.

…Boardman highlighted a couple of troubling trends:

Estimated tax payments are below estimates by about 5 percent.

…Also, sales tax revenue is behind estimates by about 4 percent.

…The state has shed 24,000 jobs since July.

…The biggest impact on state revenue, in either direction, will come in April with the payment of individual and corporate income taxes.

[…the state has returned 590,000 refund checks worth $406 million compared with 279,000 refund checks worth $263.9 million this time last year. North Carolina Tax Refund Delays?]

Mark Johnson
Charlotte Observer via Guarino via Civitas