East Lake Norman News

East Lake Norman News

Thursday, April 2, 2020

North Carolina budget impasse reveals hundreds of millions of dollars in surplus

Taxes

By Carrie Bradon | Mar 2, 2020

Money
Courtesy of Unsplash

A North Carolina budget impasse has left hundreds of millions of dollars without a purpose to spend them on. 

According to WFAE, state revenues were $290 million ahead of projection on Dec. 31, which was only halfway through the state's fiscal year. State Budget Director Charlie Perusse told WFAE that $224 million of this amount has been linked to individual income tax collections being higher than they were thought to have been.

The collections are 2.5% beyond formal expectations. WFAE reports that last year's revenue surplus hit $900 million.

Additionally, financial accounts in North Carolina are higher due to the two-year state budget that was not finalized. Among issues that were not able to be agreed upon – which have resulted in surplus money in the budget – were school construction, teachers' salaries and revamping Medicaid.

Currently, the state's total cash that is not being used or reserved for anything is $2.15 billion, which is twice what it was 12 months ago.

It is anticipated that the vast amount of overcollections will be valuable ammunition for Republican leaders who want to enact tax cuts for the state.

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