Raleigh, N.C. – North Carolina’s nonpartisan budget agencies released a revised revenue forecast last week projecting state tax collections would exceed predictions by $277 million over the 2019-2021 fiscal biennium.
North Carolina collected an $896.6 million revenue surplus in FY 2018-19 that was 3.75% over budget after the state approved historic tax reforms and responsible spending to helps grow its economy and create jobs.
Now, the Fiscal Research Division and Office of State Budget and Management are projecting the state will collect $167 million more in revenue than projected in 2019-2020 and $110 million more in 2020-2021.
“The North Carolina House remains committed to growing our economy with smart fiscal policies that provide tax relief, responsible spending , and revenue surpluses to grow our rainy day day reserves and fund critical needs like pay raises and disaster relief,” said state House Speaker Tim Moore (R-Cleveland).
“It is essential that North Carolina stay on the right track and not return to the old days of rising tax rates, budget deficits, and debt. Our state is poised for unique success in the next decade if we maintain policies that work for the workforce, families, and businesses.”
The nearly $900 million budget surplus in 2018-19 resulted from better than expected growth in Individual Income and Sales taxes, indicating both strong wage and job growth in North Carolina. Collections from other state revenue sources are in line with previous forecasts.
“No state’s economy is on more solid ground than the Tar Heel state,” according to CNBC rankings released this year that ranked North Carolina the #1 economy in the United States and the #3 state for business.
North Carolina has been named the ‘Best State for Business’ two years in a row by Forbes Magazine,repeatedly placed in the top-5 of theProsperity Cuprankings by Site Selection Magazine, and received numerous other economic accolades following pro-growth reforms approved by its Republican-led General Assembly since 2011.