Analysis Projects Possible $1B Gap; GOP Says It Won't Happen

A report says the new North Carolina state budget could contribute to $1 billion in annual shortfalls by 2020. But Republican legislators who drew up the tax and spending plans remain confident that won't happen.

The shortfalls were projected in the analysis requested by state Senate Democrats and received just after the legislature adjourned their annual work session. The report by nonpartisan legislative staff was made public on Monday.

For Democrats, the analysis reinforces their viewpoint that the tax changes they opposed would blow holes in future budgets, requiring spending cuts, higher taxes or a combination to balance them.

Republican leaders say they have no plans to increase spending at the levels the analysis envisions. And they say tax cuts have been contributing to economic growth, which in turn generates more revenue.