State tax revenues for the first quarter are $230 million below expectations. Fortunately, both Bev Perdue and Pat McCrory both say they won’t raise taxes.
The projected $2 billion hole just happens to be the same amount that our Freedom Budget 2007 would have saved the state this year compared to what actually became law.
Lower tax revenues are the proximate cause, but the real problem is spending. At the federal level, too.
