Morgan's budget presentation is just one step in a long line of meetings leading up to the aldermen officially adopting a budget June 25.
Due to a statewide budget shortfall of $900 million, the state government probably will withhold about $300,000 from funding traditionally reserved for Carrboro.
On top of the $300,000, Carrboro also experienced a $185,000 shortfall in both interest and sales tax revenues.
"We didn't expect a double whammy this year," Morgan said. "There was no way of anticipating it."
At Tuesday night's meeting, Morgan emphasized several possible solutions to the upcoming budget shortfall including increasing the tax rate by 7 cents, charging for services typically offered to the community for free and unofficially freezing hiring within the town.
But Morgan added that the town can only generate revenues the state approves, and the end result of the town's budget is under state control.
"We are like the government's children, and they're not taking very good care of us," Morgan said.
"It's not like they're really cutting our allowance, it's more like they're taking away our meal money."
Alderman Joal Broun said she also is frustrated with the state government.
