• 57°

Deadline delay, downturn mean big hit to North Carolina revenues

North Carolina revenue collections fell dramatically in April, the state’s chief bookkeeper says, as tax filing deadlines were delayed and commercial transactions slowed due to the COVID-19 outbreak.

The State Controller’s Office reported this week that overall revenues for the month totaled $2.67 billion, which is one-third less than what was collected in April 2019. April is usually a big collection month for individual and corporate income taxes, but April 15 deadlines were pushed to July 15, after the new fiscal year begins.

The revenue decrease means North Carolina has collected $731 million less during the first 10 months of the fiscal year compared to the same period a year ago, according to the controller’s report.

The April drop also turned upside down the state revenue picture when compared to what state government economists had forecast months ago would enter the coffers this fiscal year. Collections that had been $185 million above the revenue predictions through March are now about $1 billion below the forecast.

These reductions compound challenges that legislative budget-writers and Gov. Roy Cooper face in operating state government during the outbreak. The legislature’s top economist wrote in late March that overall revenue could fall $1.5 billion to $2.5 billion below forecasts through June 2021 due to the downturn. House Speaker Tim Moore suggested last week the revenue shortfall could reach $4 billion.

North Carolina government does have at least $3.6 billion in reserves and other cash at their disposal to close any gaps.

The General Assembly recently approved a COVID-19 package that distributed almost half of the $3.5 billion it received from Congress from a coronavirus relief law. Legislative leaders, particularly Senate leader Phil Berger, wanted to hold back some federal funds in the hope they could be used to fill budget shortfalls if Washington allows.

READ ABOUT MORE NEWS HERE

RECENT HEADLINES:

Audit: North Carolina transportation agency overspent by $740M

Golden LEAF receives $125M in funding to support NC COVID-19 Rapid Recovery Loan Program

Lifestyles

High school seniors honored with NCCF Coastal Stewardship Awards announced

News

Mega Millions ticket sold online in North Carolina wins $1 million prize

News

NC State researchers predict 2021 hurricane season will be active

Crime

FBI increases reward for information on deaths of three women in North Carolina

Crime

Former Ft. Bragg private sentenced to over 12 years in prison after taking minor across state lines in fake kidnapping

News

Construction accident at old Bonner Bridge demolition site results in death

News

Former North Carolina Gov. McCrory enters US Senate race

News

Nags Head commissioners approve text amendments to UDO

News

State and local COVID-19 update

News

Coast Guard Air Station Elizabeth City hoists two people stranded in marsh near Mockhorn Island, Virginia

News

Interstate 85 Welcome Center, rest area near Virginia state line closed for renovations

Crime

Driver faces multiple charges after child struck, killed in North Carolina

News

Dare commissioners take next step in Home Health and Hospice process

Crime

North Carolina man sentenced to 18 years in prison for drug, firearm charges

Hyde

Ferry routes between Swan Quarter, Cedar Island and Ocracoke resume service, dredging continues

News

NCDOT to install temporary zipper merge in Carteret County

News

Court rules Duck beach access is private

News

Wake County won’t pursue criminal complaint of Louis DeJoy

Lifestyles

Lineman Appreciation Day recognizes critical role

News

Halifax County man becomes latest Millionaire Maker top prize winner

Crime

North Carolina sheriff’s office identifies two found dead; foul play suspected

Crime

North Carolina man sentenced to prison, ordered to pay over $6 million in restitution for wire fraud

News

Corridor in place to access Cape Point due to oystercatcher breeding

Lifestyles

Outer Banks Community Foundation accepting applications for Focus grants