State Revenues Are Getting Hammered | Eastern North Carolina Now

Tax revenues are falling for states and local governments across the country.

ENCNow
Publisher's note: The author of this post is Joseph Coletti for the John Locke Foundation.

    Tax revenues are falling for states and local governments across the country. The Atlantic wonders, "Will the coronavirus bankrupt cities?" Pew provides numerous examples of how state taxes are getting slammed:

  • Hawaii officials have estimated a $225 million decline; in New York, it's a whopping $15 billion. West Virginia is losing $9 million a week from its closed casinos alone.
  • The governors of New Jersey, Ohio and Pennsylvania already have announced limited spending and hiring freezes. California Gov. Gavin Newsom, a Democrat, and Ohio Gov. Mike DeWine, a Republican, have warned state agencies to expect budget cuts.

    And Bloomberg documents the effects on both state and local budgets.

    Here in North Carolina, county and municipal governments have made their initial pitches to the General Assembly's "continuity of operations," and fiscal staff have explained the revenue impact of the federal CARES Act.

    The state's delay of income tax filing and payment deadlines to July means $2 billion in revenue will not be available this fiscal year. On the bright side, that is about how much the state had in unreserved fund balance at the end of February. But, the economic closure and massive unemployment will also put a bite on sales and income tax revenues through June and into the next fiscal year.

    To keep spending at or below available money, state agencies are likely already putting together plans for how they can save hundreds of millions of dollars over the next three months and more starting in July. Savings like these are necessary to preserve as much of the $1.2 billion in the Savings Reserve until we can have a better picture of the health, economic, and social impacts of the pandemic.

    Most of all it is hard to know what the lingering effects will be of the sudden stop of everything that once seemed normal.
Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )




N.C. Supreme Court Sides With Attorney General in Fight Over Hog Farm ‘Slush Fund’ John Locke Foundation Guest Editorial, Editorials, Op-Ed & Politics End Pistol Permit Requirements: A Solution to the Backlog


HbAD0

Latest Op-Ed & Politics

Cotton has been mentioned as a possible running mate for former President Donald Trump.
In order to let President Biden feel like he is still working, the White House has installed a "Touch-And-Learn" activity desk for Biden to play at while First Lady Jill Biden runs the country.
Former President Donald Trump said during a radio hit on Friday that he would be willing to take a cognitive test alongside President Joe Biden to let voters see the mental state of each presidential candidate.
wife of Washington Post's Max Boot indicted under Foreign Agents Registration Act

HbAD1

NBC News’ Chuck Todd said Tuesday that Biden’s declining cognitive health has been an “open secret” for years, revealing that a senior cabinet member from the Biden administration suggested in 2022 that the president cannot run for reelection.
https://townhall.com/tipsheet/mattvespa/2024/07/17/it-keeps-getting-worse-secret-service-was-aware-of-threat-to-trumps-life-before-he-took-the-stage
Democrats pushing offshore wind are a theat to NC beaches as well
Daily Wire Editor Emeritus Ben Shapiro is testifying to Congress on Wednesday for a House Judiciary Committee hearing on the alleged conspiracy to suppress conservative voices under the guise of “brand safety.”
that has caused the strife in this presidential campaign
Still to early to know all we need to know, but we now know much more than we did last Saturday

HbAD2

The existing School Board should vote to put this project on hold until new Board is seated
At least one person was shot and killed during an assassination attempt on former President Donald Trump on Saturday at a political rally in Pennsylvania in which the suspected gunman was also “neutralized,” according to the U.S. Secret Service.
As everyone now knows, the U.S. Supreme Court's ruling to grant presidents immunity for "official acts" has given Donald Trump unlimited power to do literally anything he wants with zero consequences whatsoever.
President Joe Biden formally rejected on Monday a bill in Congress that would require individuals to show proof of U.S. citizenship to register to vote in elections for federal office.

HbAD3

 
Back to Top