North Carolina in strong fiscal position to turn corner on pandemic
RALEIGH: State economists project North Carolina will have 17.6 percent more revenue this year than projected last year, an amount that can help rebuild the state as its economy emerges from the COVID-19 pandemic.
Today’s forecast was compiled by economists in the Office of State Budget and Management (OSBM) and the General Assembly’s Fiscal Research Division, who together released the 2021 Consensus General Fund Revenue Forecast. It anticipates that FY 2020-21 revenues will exceed the May 2020 consensus forecast by $4.1 billion (17.6%).
“While state revenue is strong, people across our state are still hurting and we must use these funds to help them recover from this pandemic,” said Governor Roy Cooper. “We must bring real help to our schools, to small businesses and to people who have lost income and lack health care to ensure our state and entire economy emerge from this pandemic stronger than ever.”
Among Gov. Cooper’s priorities are help for small businesses and other employers who have lost business during the pandemic, as well as better unemployment benefits and improved health care access. Extending high-speed internet access across the state and fortifying education in K-12 schools, universities and community colleges can provide critical economic development and equity, Cooper said.
The increase in state revenue projections is the result of stronger than expected individual income tax collections among other factors. OSBM credited the impact of federal stimulus funds in helping North Carolina businesses and tax revenue to quickly recover.
Last week, Gov. Cooper outlined a plan for allocating federal COVID-19 relief funds for immediate needs and investing state resources to help North Carolina communities build back as the state turns the corner on the pandemic.
The consensus forecast anticipates $27.4B in revenue in FY 2021-22, reflecting a slight decrease from the current year due to revenue shifts and timing issues, and $28.5B in FY 2022-23, which anticipates a return to normal growth conditions for the state.
Read more about the February 2021 Consensus General Fund Revenue Forecast.
