North Carolina Senate Leader Phil Berger (R-Rockingham) and House Speaker Tim Moore (R-Cleveland) today announced an agreement on next year’s budget total.
General Fund spending for the fiscal year 2021-22 will not exceed $25.7 billion, a 3.45% increase in spending. The fiscal year 2022-23 expenditures will increase by 3.65%, to not exceed $26.7 billion.
In a joint statement, Sen. Berger and Speaker Moore said, “This agreement builds on the last decade of responsible Republican-led budgets resulting in a boom decade that put North Carolina on a strong trajectory to recover from the recession. As we work out the details of the budget, we intend to fulfill our commitment to balance the budget while saving for future needs and cutting taxes for the vast majority of residents.
“The agreement dedicates at least $4.2 billion in new capital spending funded through the State Capital and Infrastructure Fund to support critical needs across the state, including several transformational projects.”
Along with the topline budget figure, budget writers have agreed to terms that replenish the state’s “Rainy Day Fund,” significantly reduce taxes, and fund the State Capital and Infrastructure Fund. House and Senate budget writers have also agreed that their budgets will not include a bond or Medicaid expansion.
The latest projections from the nonpartisan Fiscal Research Division estimate revenues will total $27.4 billion next year.
The $25.7 billion figure does not include payments for the state’s debt service, which will come from the State Capital and Infrastructure Fund.