July 2, 2009

Budgets may need a second look

Posted at 9:31 AM by Jonathan Palmer

Yesterday marked the first day of the fiscal year for most states. While North Carolina is among the states that have not yet passed a budget, the Center on Budget and Policy Priorities reports that 12 states with adopted budgets are already out of balance. The total deficit for those 12 states already totals 23 billion dollars, and in the coming weeks more states will be forced to make unusual budget adjustments with the fiscal year barely underway. While there may not be many states without a budget, many will be forced back to the drawing board.

Legislators in North Carolina would do well to consider what other states have done to close budget gaps. A majority have enacted or are examining tax measures to fill a portion of their budget gap. At least three states have added top income tax brackets, and several states have even enacted legislation taxing previously untaxed services and goods. Both Republican and Democratic legislators all over the country have made tough decisions to raise taxes to preserve important public programs. By deciding to raise revenue now, legislators can help offset a more severe crises in the future.

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