A Brief History of North Carolina State Government Spending | Eastern North Carolina Now

    Education spending climbed 64 percent in real terms but fell as a share of General Fund appropriations from 66 to 57 percent between FY 1988-89 and FY 2007-08, the last budget before the recession. Public safety spending grew 155 percent, and Medicaid led 274 percent growth in health and human services spending, which expanded from 12 percent of appropriations to 23 percent. Overall spending, after inflation, grew 58 percent.


    Through the fiscal year that ended June 30, 2019, inflation-adjusted education spending was flat, health and human services spending was down 32 percent, and public safety spending was up 21 percent. Overall, inflation-adjusted appropriations were down 4 percent. As a result, education was again back to 60 percent of General Fund appropriations, public safety had reached 9 percent, and health and human services had fallen back to 17 percent of appropriations. (see chart below titled Real General Fund Appropriations).




    These trends call into question the standard stories about the General Assembly starving education and the fiscal wisdom of expanding Medicaid, with or without work requirements. Even with restrained spending, North Carolina is improving as a destination for teachers as the General Assembly has targeted spending on education and public safety.