He and other economists "see a clash between two parts of the state budget. On the one hand, everyone knows that education is becoming more and more important, and we have been spending relatively more, particularly on higher education. And we will probably want to expand that in the future," says Dr. Walden, a professor at N.C. State University and a Cooperative Extension economist.

"We also know that we have a backlog of spending needs on highway projects. So you have those two components of the state budget that are really needing and requiring more money in the future," he adds.

"On the other hand you have another part of the state budget -- we call [them] transfers -- where we are transferring resources to particular people, usually lower income people. That part has been growing very, very fast, particularly that part related to Medicaid or medical spending, and there is no slowdown in sight there.

"So what you have ... is a case where you have education spending, highway spending, Medicaid spending -- those three account for 75 percent of the state general fund. All of them are on track to need more," Walden concludes. "And I think that's going to be the clash: How are our decision makers at the public level going to decide what programs get what?"