North Carolina had a record high budget surplus of $896 million for the fiscal year 2018 – 2019. The revenue collections were announced yesterday by the General Assembly’s non-partisan Fiscal Research Division.
The surplus is further evidence of North Carolina’s top ranked economy. The $896 million surplus is considerably higher than the $643 million surplus that the division projected in May. The jump comes in part from personal income tax payments for 2018 – which were due from taxpayers on April 15 – exceeded expectations by more than $150 million. Personal income tax revenues make up more than 50% of the state’s $24 billion budget.
“I am proud to have supported, including voting to override the governor’s veto, the 2018 – 19 budget that produced a dynamic economy resulting in a record surplus of almost $900 million,” said Rep. Scott Stone. “The FY2018 budget, that the governor opposed provided the 5th consecutive increase raise for teachers, record pay increase for all state employees, increased investment in transportation, and a continuation of middle-class tax relief. We now have documented results that when taxpayers and businesses have more of their money to spend and invest it leads to higher tax revenues. Taxpayers always spend money more efficiently than government.”
As another indicator of North Carolina’s economic strength, sales tax revenues for May and June also exceeded forecasts by almost $74 million.
“As North Carolina’s next lieutenant governor, I will work to ensure we continue the fiscally sound policies of the Republican-led legislature.”
All of the Democratic legislators who are candidates for lieutenant governor, Reps. Chaz Beasley and Yvonne Holley, and Sen. Terry Van Duyn, voted against the 2018 budget that helped set the stage for this record budget surplus.