NC Just Ended Its Fiscal Year With $33.5 Billion in Revenue – Over $3 Billion Above Budget

North Carolina has just closed the books on its 22-23 Fiscal Year, reporting revenues totaling $33.535 billion – surpassing our annual budget by $3.026 billion or 9.9%.

Moreover, state departments returned $1.17 billion of unused budgeted funds, accounting for 4% of the year’s General Fund allocations. This amount is notably higher than usual. A significant portion of these fund reversions can be attributed to significant vacancies and turnover rates, as well as numerous budget oversights by various agencies.

Key factors to note are:

• Persistent vacancy rates exceeding 20% across state departments.
• Even with the high vacancy rates, state agencies adeptly managed their resources without compromising service delivery.
• The protraction of the federal COVID Public Health Emergency ensured that the state received an extended Federal Medical Assistance Percentage (FMAP), reducing the state’s Medicaid expenditure. However, this extension and the additional federal assistance concluded in April 2023.
• The Department of Public Instruction returned unused one-off reserves designated for fuel, student registration, and a deficit from FY 2021-22.

“Our state employees have demonstrated incredible stewardship and resilience in the face of changing budgetary pressures and unprecedented vacancies,” State Budget Director Kristin Walker said in a press release. “We look forward to working with state agencies in the new biennium to serve our growing state with the most effective state government we can.”