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.

To watch CarolinaJournal.tv’s full report on the state’s $28 billion shortfall, click on the video.