North Carolina In Better Financial Shape Than Anticipated

North Carolina is in a stronger financial position than budget analysts anticipated last year at the start of the pandemic. A group of economists at the Office of State Budget and Management and the General Assembly’s Fiscal Research Division now project the state to have $4.1 billion more in revenue this fiscal year than expected. The report notes that a small share of the population will remain unemployed or underemployed as long as the coronavirus is prevalent. The extra revenue primarily came from higher income and sales tax collections and strong business tax collections. The projections assume COVID-19 cases will decrease as more people get vaccinated and that Congress will pass another stimulus bill.