Key Findings

• The combination of a weak economy, the end of federal stimulus funds and the expiration of the temporary tax package will leave North Carolina with a $3.3 billion revenue shortfall for the next fiscal year.
• A “cuts-only” approach—or even a majority-cuts approach—to the $3.3 billion revenue shortfall would drive state spending to the lowest level, as a share of state personal income, since 1972.