RALEIGH, N.C. -- Weak tax collections and double-digit unemployment rates mean more spending cuts are looming for North Carolina's public agencies and nonprofit groups that depend on state funds.

Although the state's fiscal picture isn't as bleak as last year, Democratic budget-writers will likely confront a gap of several hundred million dollars between projected revenues and expenses for the fiscal year that begins July 1.

That's much smaller than the $3 billion-plus gap calculated by Democrats last year, excluding federal stimulus funds, but it won't allow lawmakers to avoid tough spending choices.

The gap must be closed to craft a balanced budget required by law.

(Copyright 2010 by The Associated Press. All Rights Reserved.)