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Analysts expect $445M NC shortfall

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A memo from the General Assembly and the state budget office obtained by The Associated Press says tax collections are expected to fall 2 percent below expectations, or $445 million. A memo from the General Assembly and the state budget office obtained by The Associated Press says tax collections are expected to fall 2 percent below expectations, or $445 million.

RALEIGH, N.C. (AP) - State budget analysts believe the state will face a roughly $450 million revenue shortfall when the fiscal year ends June 30. 

A memo from the General Assembly and the state budget office obtained by The Associated Press says tax collections are expected to fall 2 percent below expectations, or $445 million. The adjustment disclosed Friday is based in part on April 15 tax filings.

The revenue downgrade is attributed to slower than expected income tax withholdings, timing issues from last year's tax overhaul and the response of taxpayers to federal tax increases in 2013.

The news means it could be harder for legislators to approve raises for teachers and state employees next year beyond already proposed raises for early-career teachers. 

Copyright 2014 The Associated Press. All rights reserved.

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