The consensus revenue forecast released yesterday provides further evidence that North Carolina leaders—Governor and General Assembly alike—can make the transformational and necessary investments to deliver a just recovery.
In the latest forecast, the Office of State Budget & Management and the Fiscal Research Division concluded in their analysis that federal stimulus and resurging economic activity have resulted in a rosier revenue outlook than previously projected.
The February 2021 Consensus Revenue Forecast estimates that total revenue collections for fiscal year 2020-21, “will exceed the May 2020 revised consensus forecast by $4.1B (17.6%).”
North Carolina’s state revenue rebound can largely be attributed to a boost in individual income collections (bolstered by federal unemployment insurance benefits and stimulus payments), robust sales tax collections (fueled by requirements to collect sales taxes for online purchases), and soaring corporate profits.
Many of North Carolina’s wealthiest people never missed a paycheck, and global corporations have enjoyed record profits during the pandemic. These factors contribute to state revenues that can be put to work protecting the people bearing the brunt of this crisis.
Although North Carolina’s current revenue outlook is better than expected, revenue for FY 2021-22 is projected to decline by 0.9% before returning to historic levels of growth. Read more