State Debt Nearly One-Third Lower Than in 2013 | Beaufort County Now | This nearly one-third reduction of state debt frees up the General Funds budget for other priorities, as annual debt service payments become less burdensome.

Coronavirus Disease 2019 (COVID-19)

State Debt Nearly One-Third Lower Than in 2013

Publisher's Note: This post appears here courtesy of the John Locke Foundation. The author of this post is Brian Balfour.

    The State Treasurer's office released today its latest debt affordability study, which showed that not only did North Carolina maintain its AAA credit rating, it reminded us once again of the stark contrast between the fiscally conservative approach of the last decade compared to the irresponsible spend and tax legislatures of the past.

    As the report notes:

    "After showing substantial growth in the early 2000s, the State's outstanding net tax-supported debt peaked in FY 2013 at approximately $6.2 billion and has since declined to $4.1 billion by June 30, 2020."

    This nearly one-third reduction of state debt frees up the General Funds budget for other priorities, as annual debt service payments become less burdensome.

    Issues still remain, however, as the state still maintains unfunded obligations of roughly $40 billion, comprised of promised healthcare benefits for state retirees along with their pension obligations. Without "meaningful action" to address these liabilities, according to the report, the state's credit rating could be jeopardized. The report recommends a contribution of $100 million to the Solvency Fund to begin to more proactively funds these liabilities.

    Conservative leadership in Raleigh should be lauded for responsibly allowing state debt to decrease significantly these last several years. Even with the 2016 passage of the Connect NC Bonds, state General Fund debt levels will level off for a couple years then continue its downward trend.

    There is, however, more work that needs to be done to address the state's unfunded liabilities.


Latest Op-Ed & Politics

Lawmakers in the North Carolina House fast-tracked a bill today that would allow businesses that received Payroll Protection Program loans from the federal government to have any expenses the funds were used for deducted from state tax.
On Wednesday, former Vice-President Mike Pence, 61, had a pacemaker implanted after doctors determined his heart rate was too slow.
Joy Pullmann of the Federalist sees a clear motive for Big Tech companies to censor scientific evidence that contradicts the prevailing public narrative.
Leaders of the North Carolina High School Athletics Association are scheduled to testify before the newly created, Joint Legislative Commission on Governmental Operations Subcommittee on Interscholastic Athletic
Dems should have seen this coming. The right of self defense inalienable


Epidemiologists and infectious disease experts have consistently maintained that the risk of spread of the COVID-19 virus among young children is low.
Voters in North Carolina could decide next year to limit the governor’s emergency powers, under a proposed constitutional amendment filed Wednesday, April 14, in the N.C. House.
Pfizer CEO Albert Bourla says people will “likely” need to take a third dose of a COVID-19 vaccine within 12 months of getting fully vaccinated and that many may need annual vaccinations against the virus.
A bill to expand the Opportunity Scholarship Program passed the N.C. House, 69-49, on Tuesday, April 13, following a floor debate that focused on accountability.
An unfolding case at Smith College shows how the obsession with race can blind administrators to facts and lead them to act in ways that harm innocent people.


James Antle of the Washington Examiner highlights potential political damage linked to Biden administration border policy.
Judicial Watch announced today that it filed a Illinois Freedom of Information Act (FOIA) lawsuit against the city of Evanston, Illinois for records about its controversial, taxpayer-funded “reparations” program
Casey Mulligan explains at National Review Online why some left-wing health care ideas would have serious negative consequences.
Everybody in America has had an opinion about the censorship of Big Tech, crossing all political boundaries.
The Biden administration’s decision to call for a pause to the Johnson & Johnson’s COVID-19 vaccine has caused confidence in the vaccine to plummet, according to a new poll.


Back to Top