NC budget shortfall could reach $1.6B

RALEIGH -- Legislative fiscal analysts say North Carolina's state budget could face a shortfall of as much as $1.6 billion. State economist Barry Boardman told lawmakers Thursday the budget shortfall could be anywhere from $800 million to $1.6 billion dollars for the fiscal year. That's a dramatic increase from last month's General Assembly report that showed at least a $230 million gap between projected and actual tax collections in the first quarter. State budget officials said they're reacting by holding back more money from state agencies. State budget officer Charlie Perusse said agencies will receive up to 5 percent less than the Legislature budgeted last summer. That's an increase from the 2 percent reductions announced last month. (Copyright 2008 by The Associated Press. All Rights Reserved.)