N.C. General Assembly Legislative Update, 051115 | Eastern North Carolina Now

$2.5+ Billion Debt Paid Off

    A little more than two years ago, North Carolina had an albatross strangling our economy. Following years of mismanagement by previous leaders, our state was weighed down by more than $2.5 billion in debt to the federal government. It was a debt borne in large part by our job creators - and one that would have continued to grow, threatening existing jobs and making it harder to create and recruit new ones.

    That's why in 2013 the General Assembly passed legislation that reformed our system - and provided certainty for businesses to create jobs - in a way that was workable and fair to everyone involved. We brought our benefits more in line with other Southeastern states, and we rebuilt a surplus in the unemployment insurance fund to prepare for the next economic downturn. But most impressively - thanks to the efforts of legislators, Governor McCrory and Secretary Folwell, we helped free North Carolina from debt four years sooner than if we hadn't taken action - and a full year sooner than we anticipated when we passed these reforms into law.

    Make no mistake - it wasn't an easy process. But I am proud to say that we can now celebrate the removal of one of our biggest impediments to job creation and economic growth - and one of many changes we have implemented to make our state a better place to build a business. I want to thank my colleagues Sen. Bob Rucho and Rep. Julia Howard, who deserve special recognition for their leadership in bringing stakeholders together to find a solution to this job-killing debt. This is a huge burden lifted from our business community and great news for our state. I'm happy to say that North Carolina can now cut up our credit card.
I'm shown with the Colington Volunteer Fire Department Chief Glenn Rainey (right) and the Colington Volunteer Fire Department Deputy Chief David Phillips (left) in my Raleigh office last week.

    $400M State Budget Surplus

    The General Assembly's Fiscal Research Division and the Office of State Budget and Management released a consensus revenue forecast last week showing North Carolina is expected to have a $400 million surplus in this year's state budget. Two years ago, when the Republican legislature passed the largest tax cut in state history, Chicken Little's on the left loudly cried North Carolina would lose so much tax revenue that students wouldn't have teachers, roads wouldn't be built and our universities might have to close.

    But far from starving state government, tax cuts and tax reform have spurred economic growth and job creation. North Carolina has not only outpaced many of our neighboring states, but also much of the nation in job growth in recent months.This turnaround has provided our state with a surplus that will allow us to continue cutting taxes while investing in core priorities like education, infrastructure and public safety.

Contact: Jordan Hennessy
     jordan.hennessy@ncleg.net, •  (252) 619-3606


     300 N. Salisbury Street
     Room 525 • Raleigh, NC 27603

    Phone: (919) 715-8293  •  Fax: (919) 754-3296  •  bill.cook@ncleg.net