Raleigh, N.C. – A $150 million revenue surplus and “solid employment as well as individual wage growth” represent the consensus revenue forecast of North Carolina’s Fiscal Research Division and Office of Budget and Management for the 2019-2020 biennium released on Wednesday.
The forecast had more good news for working North Carolinians, reporting the “employment is expected to experience steady gains.”
General Fund revenues are expected to increase $1.7 billion to reach $25.8 billion by 2020-2021, a 4.5% gain in total baseline revenue amid “steady economic growth,” according to the report by North Carolina’s legislative and administrative budget agencies.
The Republican economic plan of providing tax relief and writing responsible budgets that prioritize education has produced consistent revenue surpluses and “75,000 to 95,000 jobs per year.”
“Employment gains should improve the prospects for better income growth,” the biannual report predicts, while “the forecast envisions economy to remain stable throughout the forecast period.”
State House Speaker Tim Moore (R-Cleveland) said it is critical North Carolina stay on the right economic track after paying down billions of dollars in debt, collecting revenue surpluses and a record rainy day reserve prior to Hurricane Florence:
“Results for the public and private sector are what really matter,” Moore said. “People are paying lower taxes in North Carolina and benefitting from a smart approach to state government and economic growth.”
“Those calling for drastic change in our economic approach are calling for a change in these positive economic outlooks and budget surpluses. It is essential our state maintain financial flexibility and not return to days of higher taxes and wasteful spending and deficits.”
“The General Assembly has paid down billions in debt and fixed the finances of broken public programs like Medicaid and unemployment insurance. I’m proud of my colleagues for building a brighter future in the years ahead for all North Carolinians.”