North Carolina state revenue will take $4B hit from pandemic, forecast says

Senate Leader Phil Berger speaks during a press conference at the Legislative Building in Raleigh Monday, May 18, 2020. Due to falling tax revenues spurred on by the coronavirus shutdown, state lawmakers expect to cut billions of dollars from the state budget. (Travis Long/The News & Observer via AP)

Top state government fiscal researchers predicted Friday that North Carolina will collect $4 billion less in revenues over a two-year period than previously forecast as the pandemic-related economic slowdown continues.

Researchers from the General Assembly's Fiscal Research Division and the executive branch Office of State Budget and Management jointly estimated that state collections for the current fiscal year will fall $1.6 billion short of a pre-pandemic forecast. And for the 2020-21 fiscal year, the group predicted that revenue will fall short of the previous forecast by nearly $2.6 billion.

The group did note that because the current pandemic is unprecedented, their forecast reflects more uncertainty than normal. They also noted that delays in state tax deadlines for individuals and businesses also clouded the picture.

“Public health measures undertaken in response to COVID-19 resulted in shuttered businesses and the temporary or permanent loss of hundreds of thousands of jobs,” the researchers wrote.

In a joint statement, Senate leader Phil Berger and House Speaker Tim Moore said they plan to “continue to work collaboratively with the Governor on fiscal responses to this crisis, just as we did earlier this month” when lawmakers approved a plan to distribute federal relief funds.

Berger said earlier this week that cash and other reserves in North Carolina’s coffers should help the state withstand the revenue drop-off this year and next. He also hopes the federal government will let lawmakers use some of the rest of the state’s share of federal relief funds — another $1.9 billion — to help fill additional gaps.

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.