Spotlight Report

Budget Crisis Is Opportunity: Bigger budget for FY’11 shows need for policy reform

posted on in Economic Growth & Development, Government Reform, Law & Regulation, Spending & Taxes
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Key facts:

• The final budget for fiscal year 2011 spends $20.56 billion, $153 million more than the budget for fiscal year 2010.

• General fund availability in fiscal year 2011 excluding federal funds is $17 million less than was available in fiscal year 2010.

• Federal bailout funds for the state total $1.6 billion, up from $1.4 billion in fiscal year 2010.

• Congress may not pass an extension of more than $500 million in bailout funds for the state.

• Contingency plans include breaking a 69-year tradition in the state of meeting the needed contribution to state employee pensions.

• Temporary taxes, one-time changes, and other federal funds add $1.7 billion to the hole for fiscal year 2012.

• Funding pension and retiree health benefits will add as much as $4 billion more to the pending shortfall.

• A $7 billion shortfall in a $20 billion General Fund requires fundamental reform of state government.

Spotlight 395 Budget Crisis Is Opportunity: Bigger budget for FY’11 shows need for policy reform

As Senior Fellow, Joe examines fiscal and tax policy. He previously headed the North Carolina Government Efficiency and Reform initiative within the Office of State Budget and Management, which led to changes in automotive fleet management, natural and… ...

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