Final Spending Numbers

State government spent $724 million less in the 2008-09 fiscal year than in the
previous fiscal year and $1.7 billion less than budgeted, according to figures from
the Office of the State Controller. An unaudited monthly report for the final month of the fiscal year, recently posted by the agency, shows total state spending of $19.65 billion for the year, compared to a budget of $21.35 billion. The report reflects a state struggling with declining tax revenues as a result of the recession and provides more details about how Gov. Beverly Perdue plugged a $3.2 billion shortfall. It shows personal income tax collections taking a huge hit during the year, declining $1.4 billion year-over-year and coming in nearly $2 billion less than forecast. Corporate tax collections were down $276 million from the previous year, while sales tax collections declined by $304 million. The Perdue administration made up nearly half the budget gap with $680 million in federal stimulus money and $802 million gained by raiding state reserves and trusts, including the state's Rainy Day reserves.

The figures reveal that many state agencies faced real year-over-year spending reductions, cuts that went beyond continuation increases. University spending fell $140 million, while community college spending declined $56 million. Public school spending increased by $165 million. Overall, tax collection came in 15.4 percent less than projected and spending was 8 percent less than budgeted. The report also show the state's Rainy Day reserves standing at $150 million to close the fiscal year.(THE INSIDER, 9/23/09).