http://www.wral.com/politics/9165264/detail.html

Quote :

"The new amount equals a 6.7 percent budget surplus, the highest recorded since the state started adjusting state budgets annually in the early 1970s. Combined with money unused by state agencies or unallocated by budget-writers, as well as unexpected revenue growth projected for next year, the General Assembly will have roughly $2 billion available to meet needs beyond the $17.3 billion budget that takes effect July 1, according to lawmakers. "I am very pleased that we're going to have an opportunity to get our house in order," said Sen. Linda Garrou, D-Forsyth, one of the chamber's three chief budget writers. "I'm very excited about that." Much of the surprising bump in revenue -- projected to be 12 percent higher than last year -- can be attributed to a strong jobs recovery that has generated tax withholdings for the state. Sales tax revenue growth also continued at a robust rate of about 8 percent, and homeowners who sold their homes at a large profit are filling up the state's income tax coffers, according to David Crotts, a General Assembly fiscal analyst. "The new kid on the block is the real estate situation," Crotts said. Budget-writers have said there will be enough money left over to pay for routine annual expenses not included in next year's annual spending plan. They also are discussing whether to give 5 percent raises to all state employees for the upcoming year and at least $100 million toward mental health programs. State law also requires them to set aside about one-quarter of any surplus in the state's rainy day reserve fund, and about as much may go toward repairing and renovating state buildings. Paying for expected enrollment increases in K-12 education, the University of North Carolina and the community colleges also will occur. "There are things that we are obligated to do," said Rep. Jim Crawford, D-Granville, a co-chairman of the House Appropriations Committee, who estimated there would be $250 million or so that hasn't been earmarked. "When you get down to the bottom line, there's not a whole lot left." Some lawmakers have argued that a portion of the surplus should be used for tax cuts. They include reducing the corporate income tax rate, lowering the highest marginal individual tax bracket, or eliminating a half-cent on the sales tax. Gov. Mike Easley will make his own budget recommendations next week, a spokesman said late Thursday. "The governor is still working on his budget and the numbers aren't finalized yet," spokesman Seth Effron said. Preliminary figures show that corporate income tax payments rose nearly 24 percent this April compared to a year ago. They are projected to rise 34 percent for the year. It will be the third consecutive year that the state ends the fiscal year with a surplus after four straight years of shortfall, bottoming out at $1.6 billion in 2002."

I guess the state really did need that 3 cent tax hike on gas from 6 months ago.

5/11/2006 7:54:54 AM

Yea, if they would just lower the gas tax we'd all be paying 70 cent a gallon again

Or, I don't know, we could let the people who use the roads pay for them.

5/11/2006 8:46:58 AM

I've got a new tax I'd like to impose on you, and some beach front property in Kansas also... if you're interested.

5/11/2006 8:49:26 AM

Still won't give State employees a decent raise... fucking teachers.

5/11/2006 8:55:29 AM

^The latest I've heard was that state employees are getting anywhere from 4-8%. That's a pretty good raise to receive for one year - but you have to consider that there was a good 4-5 year stretch where the state employees got a whopping one time 2% raise.

You have to start somewhere, and the current proposed raise does that.

5/11/2006 9:01:04 AM

The other day 680's afternoon guy was complaining about the fact that teachers will be getting an 8% raise.

"OMG they don't need a raise! They get three months off each year!!1"



[Edited on May 11, 2006 at 9:13 AM. Reason : Teacher salary is the one thing in this world that shouldn't be governed by supply and demand]

5/11/2006 9:11:40 AM

Quote :

"Some lawmakers have argued that a portion of the surplus should be used for tax cuts. They include reducing the corporate income tax rate, lowering the highest marginal individual tax bracket, or eliminating a half-cent on the sales tax."

We need to get some Republicans in our state house, I bet they could have managed to waste that surplus long before we had it.

5/11/2006 9:17:07 AM

Yea, South Carolina should be annexed

5/11/2006 11:22:50 AM

NC is the Taxachusetts of the south.

5/11/2006 12:57:34 PM