Economists predict $6.2 billion increase in available N.C. revenue through June 2023 | Beaufort County Now | State revenue forecasts jump from $28.4 billion to $32.6 billion in fiscal year 2021-2022.

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the Carolina Journal. The author of this post is Brayden Marsh.

    A revised forecast from state government economists indicates an additional $6.2 billion in revenue through the end of the next budget year. That includes a $4.2 billion dollar jump, from $28.4 billion to $32.6 billion forecasted in fiscal year 2021-22. The report comes from the Fiscal Research Division of the N.C. General Assembly and Gov. Roy Cooper's Office of State Budget and Management.

    "Today's forecast highlights the General Assembly's winning formula of low taxes, reasonable regulations, and responsible spending," Senate leader Phil Berger, R-Rockingham, and House Speaker Tim Moore, R-Cleveland, wrote in a joint statement. "Our state continues to experience growth and record-breaking economic development coupled with regular revenue surpluses."

    In the report, economists point to employment data released by the federal Bureau of Labor Statistics in March 2022 that indicate the "State's economy has recovered from the depths of the pandemic-induced recession more quickly than anticipated."

    "State employment had returned to pre-pandemic levels by the summer of 2021 and, by March 2022, already exceeded our pre-pandemic forecast," the revised forecast reads.

    Strong consumer spending and inflation also mean sales and use tax may finish well ahead of economists' forecast. Plus, corporate income tax collections are expected to be higher than estimated due to stronger corporate profits. This year's "April surprise" revenue boost leads economists to believe that final and extension payments will exceed expectations by $1.4 billion.

    Still, inflation surged in March to its highest level since January 1982, at 8.5%.

    "Nevertheless, consumer demand outpaced inflation, as consumers continued to spend down savings accumulated during the pandemic," the forecast states.

    Economists expect slower economic growth in the upcoming year as the risk of recession increases due to geopolitical unrest and monetary policy dedicated to handling inflation. However, the revised consensus still projects an increase of $1.9 billion beyond the certified budget, citing this fiscal year's performance as driving continued growth, even as inflation drags on the economy.

    "We must be cognizant of the national economy and the precarious position the Biden administration has put the American people in thanks to rising costs and runaway inflation," Moore and Berger said. "It is crucial that we continue on this track of responsible and disciplined spending in light of the potential for a recession as we begin the short session budget process."

    Lawmakers return to Raleigh on May 18 to discuss the budget and other issues.

    Brayden Marsh is an intern at Carolina Journal and a student at N.C. State University.
Go Back

HbAD0

Latest Op-Ed & Politics

Have you heard the latest? Uncle Joe is attempting to appropriate billions of dollars to a program designed to mandate that CRT is taught across the nation in OUR public schools.
Saule Omarova, Democrat President Joe Biden’s nominee for comptroller of the currency, has withdrawn her name from consideration for the position after facing increasing opposition to nomination over allegations that she was a Marxist.
The Federal Reserve announced an increase in interest rates Wednesday afternoon, boosting the cost of borrowing money by 0.75%, the largest increase in a single meeting in nearly 30 years.
Clarence Thomas tells us what we need to be working toward
Politicians in Washington are growing increasingly nervous, as the CDC has announced they have discovered the first case of Lizardpox on American shores.
Treasury Secretary Janet Yellen said on Sunday that suspending gas taxes is “certainly worth considering” amid rising energy prices.
Australia reportedly will not send officials to the 2022 Winter Olympics in Beijing, China, in response to the communist nation’s genocide against religious minorities.
To what extent can a selective educational institution advantage certain racial groups in admissions decisions without discriminating against other groups simultaneously?
Treasury Secretary Janet Yellen on Sunday blamed global factors for Americans’ spiraling purchasing power and declared a recession is “not at all inevitable,” despite a growing consensus the U.S. could soon find out one is already underway.

HbAD1

With the price of food skyrocketing and the value of Bitcoin plummeting, McDonald's restaurants across the world have rolled out a new value menu in which all items cost only 1 Bitcoin.
Sen. Ted Cruz (R-TX) slammed President Joe Biden during a speech on the Senate floor Tuesday over the unfolding crisis in Ukraine. Tens of thousands of Russian soldiers have been amassing near its border in what experts warn might be a prelude to an invasion.
The North Carolina State Health Plan and the National Academy for State Health Policy Find that North Carolina's Dominant Hospital Systems Recorded Billions of Dollars in Profits After Taking Taxpayer-Funded COVID Relief
Governor Ron DeSantis (R-FL) got some unexpected praise late this week from media personality Bill Maher, who insisted that DeSantis would be better than former President Donald Trump.
Milestone Air Quality Legislation Paved Way for Significant Environmental and Clean Energy Efforts
White House Press Secretary Jen Psaki took a shot at Rep. Alexandria Ocasio-Cortez (D-NY) during Tuesday’s press briefing over remarks that Ocasio-Cortez made about organized retail theft incidents that have plagued several major Democrat-controlled cities in recent weeks.
The United States of America has edged closer and closer to the Leftist maxim of "Abortion on Demand" whenever it is demanded, by whomever demands it, but now that ease of operation to alleviate oneself of that nagging little problem has come to a screeching halt.

HbAD2

 
Back to Top