A slowdown on state tax revenues

The state's tax collections are decreasing, a sign that an economic slowdown is hitting North Carolina.

Revenues are running slightly — about 1.25 percent — ahead of projections, according to a Feb. 13 report from the Fiscal Research Division, a nonpartisan staff for the legislature. But tax revenues are slowing. The state has $140 million more than it anticipated at this point, the report states, because officials expected a slowdown and were conservative with projections.

State Rep. Jim Crawford, a chairman of the House Appropriations Committee said that what little "extra" money there is won't go far in a state budget that exceeds $20 billion.

"It can go in a heartbeat if the economy turns down," Crawford said. "We're absolutely dependent on the economy from here on in."

For example, the state must still come up with $100 million to pay for teacher bonuses at the end of the school year, said Crawford, a Granville County Democrat. Crawford said the state budget can likely withstand the economic slowdown, but legislators may have some work to do when the session begins in May.

"I don't think we're going to be in trouble, but I think we're going to have to tighten our belts a little bit," Crawford said.