Last Monday (3/26), North Carolina League of Municipalities’ Director of Research and Policy Analysis, Karl Knapp, released his annual revenue guidance report for the upcoming 2012-2013 fiscal year.
This annual report serves as background for cities and towns in the Tar Heel State to use when developing projections of state-collected and administered revenues, such as sales tax, Powell Bill distributions, Electric utility franchise tax and more.
In addition to the report, Karl included some additional material on the NCLM website, along with a spreadsheet that can be used for calculating municipal shares of local sales tax that are distributed between municipalities and counties.
While the report provides an important synopsis of statewide economic and revenue trends, Karl urges caution when applying his recommendations and guidance at the municipal level:
The estimates included in this document should be used only as a rough guide in preparing your FY 12-13 proposed budget. The revenue change figures should be modified as necessary to fit your local situation, its actual trends, and your own assumptions about the effects of economic and political factors. Revenue estimates are always subject to error. Our goal is to provide municipalities with a reasonable projection of where State-collected revenues are heading. Please read the entire document because any caveats about the estimates are as important as the estimates themselves.
These estimates assume that the General Assembly will make no changes in 2012 to the formulae that govern municipal shares of State-collected revenues. If our revenue estimates change materially prior to July 1 due to economic circumstances or legislative action, we will advise you of the changes.