posted January 13, 2001 by Jon Sanders, John Hood
North Carolina's 1999-2001 budget cycle presents state lawmakers and the Hunt administration with a fiscal challenge — planned spending increases exceed predicted revenues by hundreds of millions of dollars. Some lawmakers and the news media have blamed four years of tax cuts and recent court decisions. This is misleading. By far the biggest cause of the problem was excessive spending growth during much of the 1990s. If state leaders had exercised even modest spending restraint, there would be no fiscal challenge awaiting the state this year.