South By North Strategies, Ltd.

The newest economic and revenue report prepared by the staff of the NC General Assembly suggests that joblessness and budget shortfalls continue to trouble North Carolina.

Among the report’s findings are the following:

• As of December, state tax collections are running $30 million above target. This is due to a corporate resolution payment initiative that collected more revenue than the Department of Revenue anticipated.
• Absent that windfall collection, revenue collections would be $240 million (2.6 percent) below target.
• Sales tax collections continue to plunge but have been offset by higher rates authorized by the assembly. Net collections are running $120 million below target.
• Net withholding tax collections also are declining and are running 2 percent below target.
• An employment rebound is essential to any long-term economic and revenue recovery; unfortunately, few signs point to such growth.