Fiscal Responsibility Paramount in North Carolina Thanks to Republican Governance
Republican lawmakers in the General Assembly have long prioritized taking a measured approach to spending tax dollars. Rollercoaster budgeting by Democrats in the years preceding Republican majorities led to catastrophic budget shortfalls and economic uncertainty that threatened the good fiscal standing of North Carolina.
That’s not the case today thanks to good governance ushered in by the Republican majority.
While the Great Recession impacted every corner of the country, the Democratic-led legislature and Democratic Gov. Bev Purdue did not adequately prepare for such turmoil. That resulted in a $2 billion budget deficit, state employees being furloughed, and politicians raiding state trusts.
Republicans had a different approach in mind.
After taking over the financial mess left behind by Democrats, the GOP majority began turning deficits into surpluses. Good governance became the expectation rather than a surprise benefit. From 2014 to 2021, North Carolina recorded seven consecutive budget surpluses each over $400 million. Those surpluses have helped the state increase its savings reserve to $4.25 billion as of 2021.
Having this financial flexibility allowed Republicans to prepare for economic uncertainty and return tax dollars to North Carolinians.
Republican-led tax cuts will save taxpayers more than $13 billion over the next five years. As the country heads toward a potential recession — largely due to incompetence from President Joe Biden and the Democratic-controlled Congress — Republicans in North Carolina have instilled confidence among residents and creditors that tax dollars will be spent responsibly.
The most recent GOP budget included a new “inflationary reserve” that set aside $1 billion to provide a necessary cushion as prices increase and the economy worsens, and North Carolina currently holds a AAA rating according to the latest S&P Global Ratings.
“We’ve shown over the past decade that North Carolinians can count on Republicans to be prudent with their tax dollars,” Senate Appropriations Chairman Sen. Brent Jackson (R-Sampson) said. “Setting aside money when necessary and returning it when possible has been a core focus of our group, and we are proud of the results we’ve seen thus far.”