North Carolina ends 2024 with a surplus

Although North Carolina had less money available in 2024 than the year before, it still ended the year with $17 billion more than needed to pay its bills. This resulted in a Taxpayer Surplus™ of $4,700 and earned the state a “B” grade from Truth in Accounting.

This analysis is part of Truth in Accounting’s annual Financial State of the States report, which combs through lengthy government financial reports to uncover the true fiscal health of each state.

The full analysis found that 25 states did not have enough money to pay their bills at the end of fiscal year 2024. Every state, except Vermont, has a balanced budget requirement. Yet the states needed more than $765 billion to cover their expenses at the end of fiscal year 2024. This means that to balance their budgets—as is required by law in 49 states—elected officials have shifted current costs onto future taxpayers.

Temporary pandemic-related programs increased North Carolina’s federal funding starting in 2020, helping provide money to pay its bills. As these programs end and national fiscal pressures rise, federal grants and contributions may return to 2019 levels adjusted for inflation. If that happens, North Carolina could lose $11.5 billion in federal funding, which is nearly 14 percent of estimated expenses for the state’s primary government. This shortfall could strain the state’s ability to maintain services, meet obligations, and balance its budget.

Truth in Accounting’s report provides a roadmap for states to improve fiscal transparency, empowering citizens with the information needed to understand how public money is managed. You can explore the full report and see how North Carolina compares to others at truthinaccounting.org.