NC Democrats Exaggerate State Budget Deficit

Comparing Apples to Apples and Oranges to Oranges

July 8, 2009

WAKE COUNTY NEWS -- Governor Perdue and Legislative Democrats continue to exaggerate the budget deficit, despite undeniable evidence to the contrary. Calculating with illusory budget numbers that have never in history been spent, they claim that the gap is $4 billion, $4.2 billion or $4.5 billion. The Office of the Republican Leader of the North Carolina House of Representatives, provides the following charts to illustrate the real numbers with apples to apples and oranges to oranges comparisons.

"The Gap" chart compares 2008-2009 state expenditures including Federal Stimulus money, with the 2009-2010 Federal Stimulus money and General Fund availability for spending (without raising taxes and fees). Calculated this way, the budget gap is $1,123,128,644.

But some in the press and at the legislature complained that federal stimulus money should not be included. So, "The Gap II" chart contrasts 2008-2009 state expenditures without Federal Stimulus money, with the 2009-2010 General Fund availability. This gives an even lower budget gap of $1,069,721,413.

No matter how you slice it, the state budget "deficit" for 2009-2010 below 2008-2009 is $1.1 billion - a 5.45% reduction.