North Carolina sees slight surplus this year, $1B more next year
RALEIGH, N.C. (AP) — North Carolina’s government should collect higher revenues during this fiscal year and next than what is projected in the current two-year state budget, according to a new forecast released Wednesday.
Economists for the General Assembly and Gov. Roy Cooper’s state budget office now predict collections will exceed revenue budgeted for the year ending June 30 by $413 million, or a 1.2% increase. And state coffers will bring in $1 billion more in the fiscal year starting July 1 than what was anticipated, or a 3% increase.
The budget law enacted by the Republican-controlled General Assembly had planned for a slight decline in revenue from this fiscal year to the next, in part due to tax cuts.
A legislative staff economist’s email to lawmakers attributes the upgrade to stronger than anticipated individual income tax collections and modestly higher sales tax collections. The memo cites low unemployment, wage growth, additional consumer spending and rising prices.