State boasts $400 million surplus at Raleigh meeting.
While addressing hundreds of North Carolina county leaders for the North Carolina Association of County Commissioners County Assembly Day, Governor Pat McCrory announced that this fiscal year, the state government expects to tally $400 million surplus. Previous consensus budget forecasts predicted a revenue shortfall of $271 million for the fiscal year.
According to Gov. McCrory, the surplus can be attributed to a 2013 tax law change that lowered income tax rates, narrowed deductions, and slightly expanded the sales tax base. Sales tax revenue has increased this year as well. Earlier this month, it was announced that the state has paid off a $2.8 billion unemployment insurance debt to the federal government.