The N.C. Senate just voted 32-17 to approve a state budget plan for 2010-11. Joe Coletti says the Senate has followed the governor’s lead in putting off major decisions:
The Senate budget relies on more than $1.6 billion in federal funds, $1.2 billion in temporary tax hikes, and $300 million in other one-time savings. These gimmicks may get the state through the current year, but they set up a potential $3 billion shortfall in the 2011-12 budget year.
The Senate also relies on gimmicks to try to revive the economy with $50 million in targeted business incentives and a tax cut to be named later. Businesses would have to clear a number of hurdles to qualify for these benefits paid by every other individual and business taxpayer in the state.
“Some small bright spots do exist in the budget. These include consolidation of state air fleet operations, expansion of a mental health pilot that actually works, and defunding of dropout grants that don’t work.
Click play below for more of Joe Coletti’s thoughts about the Senate budget:
