How will the stimulus help North Carolina?

Overall, the White House estimates that the plan will create or save 105,000 jobs in North Carolina.

However, the stimulus bill will not save the state from a drastic downturn in revenues.  The FY 08-09 Revenue shortfall will be $1.8 - $2.2 billion below May 2008 projections.  Funding the state health plan, non-recurring items from the 08-09 budget, and other one-time costs could add $1 billion to the shortfall.  While it is too soon to estimate the impact of the stimulus on existing obligations, it is likely to cover less than half next year’s projected deficit.

But the stimulus can help prepare North Carolina for long-term recovery.  This was the focus of a presentation made by IEI to a joint meeting of the Senate and House Finance committees on Wednesday, February 25.  It is crucial that the General Assembly and the Governor think strategically in the areas of finance, energy and infrastructure even as they wrestle with the details governing this infusion of money.  The right leadership, and the right policy choices can help prepare our state’s economy for long-term growth.