NC State Ag Economist Dr. Mike Walden – “State Budgets”


Mary:  This is Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program looks at state budgets. Mike, recently it was announced that the state budget is running a surplus of over $300 million.  This is good news because it gives state public leaders flexibility in their upcoming deliberations about state spending and taxes.  But are all states in the country in this enviable position?

 Mike:  Summary Answer

  1. A big reason for NC’s good situation is that state revenues have been coming in about projections
  2. However, this is the situation for only half of the states
  3. For the other half of the states revenues have been collected below forecasts
  4. For example, this is the case for our northern neighbor Virginia as well as Florida
  5. Part of the reason is the slow pace of economic growth and the tilt in job growth to lower-wage jobs
  6. Also helping NC, our state has a tradition of being frugal in its budget projections – helping it to be “surprised” when growth is faster
  7. I’m MW

Mary:  And I’m Mary Walden for the North Carolina Cooperative Extension Service