Government surplus has grown even larger than expected
RALEIGH, NC (AP) – North Carolina’s fiscal windfall for the past fiscal year turned out to be even larger than the windfall state government economists predicted due to the economic recovery.
The state ended up collecting $ 29.7 billion in revenue in the year that ended June 30, according to the State Budget and Management Bureau. That’s $ 190 million more than the consensus forecast reached in mid-June by the budget office and General Assembly analysts.
That June forecast had already boosted planned collections by a whopping $ 1.9 billion – the result of a post-pandemic economy resurging after the end of closed businesses and closures.
The closing total means North Carolina recorded 24% more revenue last year over the previous year.
Separately, the OSBM said the amount of money unused by state agencies this year that was returned to the treasury was 31% more than expected, or $ 523 million in total.
Those flashbacks and late windfall revenue mean North Carolina will have an additional $ 285 million to spend in the future, according to OSBM. Some of the extra funds were needed to get into the state rainy day reserve fund.
Republicans in the House and Senate have yet to finalize the next two-year state budget. The extra money is unlikely to change the budget writers’ calculation much since they have already agreed on spending limits for the current year and the next.