Having already come home to roost, the pigeon that is the NC GOP tax "reform" has now settled in and is coating the state with pigeon poop. In particular, the revenue shortfall resulting from Art Pope's tax cut continues to grow to nearly $200 million for the first half of this fiscal year.
The gap between predicted and actual North Carolina state revenues is widening because of continued tepid personal income tax collections.
The legislature's top economist confirmed this week that revenues are about $190 million below expectations for the first five months of the fiscal year ending Nov. 30. Two months ago, the first-quarter gap was $62 million.
The legislative wing nuts refuse to acknowledge what is now a chronic deficit, instead continuing to spin their yarns about "economic prosperity" and "jobs" being the result of their "tax cuts", all of which are lies, of course. Eventually they will acknowledge that revenues are much lower than they originally claimed, at which point they will start slashing government programs like we've never seen before. Listen for lies such as "we've got to live within our means, just like you folks do with your own personal budgets" and "we're cutting out all this government waste".
Indeed, the legislature's top economist seems to be thinking inside that box.
Such a gap could be closed with unspent funds or reserves if it remains entering the spring. Budget adjustments and scaling back of expansion programs may be needed if the shortfall keeps widening.
Hey, Barry Boardman: the gap could also be closed by rescinding the stupid tax giveaways to the wealthy and out-of-state corporations. We can always look to Kansas for direction.