State government revenue is $188.6 million ahead of projections for the first half of the fiscal year 2018-19, according to a new report from the Fiscal Research Division.
The surplus is almost exclusively the result of higher-than-expected revenue for the final quarter of 2018 (Oct.-Dec.) The surplus is the result of wage and salary growth exceeding expectations, and the report concludes North Carolina’s economy “is growing at a steady, solid pace.”
The latest report is further evidence of the effectiveness of North Carolina’s steady diet of tax cuts over the past several years, along with some fiscal restraint on the spending side.
This continues to defy the predictions of critics of tax reforms, who claimed that tax cuts will result in massive budget shortfalls.
