Orange County NC Website
Browse       Search
Senator Ellie Kinnaird said that the problem is that the tax base fluctuates wildly and <br /> this last year the State was $4.5 billion short in revenues coming into the State. The problem is <br /> finding a stable revenue source that will leave the State with the same amount of money to <br /> spend each year. She said that the proposal in the legislature now is one that will affect <br /> everyone, including counties. She and Meg Gray Wiehe made a PowerPoint presentation. <br /> The Opportunity for Tax Modernization <br /> Meg Gray Wiehe <br /> North Carolina Budget& Tax Center <br /> The "Great Recession" <br /> •North Carolina Unemployment <br /> -October 2008= 7% <br /> -October 2009= 11% <br /> -Historic high of 11.1% in May 2009 <br /> •Orange County Unemployment <br /> -October 2008= 4% <br /> -October 2009= 6.2% <br /> •240,000 NC jobs lost since start of the recession <br /> •Orange County Food Stamp Participation <br /> -25% increase in enrollment over past year <br /> •State and local revenues plummeted <br /> What's Wrong with NC's Tax System? <br /> •Narrow <br /> •Unfair (the tax system, adding State and local taxes together, asks more of those at the <br /> bottom 20% in terms of percentage of income than is does from those at the top 20%) <br /> *Outdated <br /> North Carolina's Budget Drama <br /> •FY 08-09 Shortfall= $3.2 Billion based on a $20.8 billion budget (15% of budget) <br /> •FY 2009-2010 Shortfall = $4.46 billion (22% of budget) <br /> •FY 2010-2011 Shortfall= $4.43 billion <br /> How Did Our State Leaders Balance the FY09-10 Budget? <br /> Moving Forward- Challenges <br /> •More cuts to come? <br /> *Local governments strapped, too <br /> *Temporary Tax Package expires after FY10-11 <br />