State Budget Leaves $28 Billion Hole

Raleigh, N.C. - It's possible the state is violating North Carolina's constitutional requirement for a balanced budget.

The discrepancy boils down to accounting. State budget writers work on a cash basis, but accounting rules encourage budget writers to work on an accrual basis.

Accrual accounting would require budget writers to account for the promises they've made to state workers. A change would immediately highlight a $28 billion shortfall in the retiree health benefits promised to state workers.