A new report out by Pew Charitable Trusts examines several factors impacting the fiscal health of states.
Among the findings include NC’s high ranking in income growth and strength of its Rainy Day Fund. As highlighted by the NC Insider:
Using third-quarter 2017 numbers to compare year-over-year income growth among North Carolina residents, incomes grew by 2 percent – the fourth highest figure among the 50 states.
Buoyed in no small part by tax cuts over the last few years, NC continues to see income growth among the highest in the nation.
North Carolina’s “rainy day” fund ranks 14th in the country for the number of days it could sustain state government operations, according to data released Thursday by The Pew Charitable Trusts. Republican legislators have beefed up the fund in recent budget cycles despite some objections from Democrats who say the money could be better used for other needs. According to Pew, the current reserve fund balance is $1.8 billion, or 8.3 percent of annual spending.
Creating a robust savings reserve fund is crucial to weather the inevitable next economic downturn. Because of short-sighted policies in the past, NC has been caught woefully unprepared for the last two recessions – which lead to major budget crises and ‘temporary taxes’ which prolonged NC’s recovery efforts. Kudos to NC lawmakers for responsibly setting aside money to avoid such panic and bad policies when the next recession hits.