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Friday, June 4, 2021
DROWNING IN CASH State leaders hold huge revenue surpluses but can't agree on budget priorities The legislature adjourned again this week with no state budget in sight. The House will begin formal Appropriations meetings next week with the goal of putting together its own budget, while the Senate has started chatter of mini budgets. With the state drowning in cash from both a $4 billion revenue surplus and federal COVID relief funds, we're looking for a real budget this session that includes meaningful pay increases for all state employees and retirees – especially those at the UNC System, community colleges, and public schools who haven’t seen a raise in three years. State leaders must also repay the State Health Plan more than $72 million it spent on COVID-related treatments and testing, which allowed the state to secure eligibility for $3.6 billion in federal relief funds. On Feb. 11, the State Treasurer wrote a letter to the Senate Appropriations Committee requesting reimbursement to the State Health Plan for the $72 million spent in 2020 on COVID-related expenses. He explained that the net impact of the fiscal year appropriation cut of $99 million becomes a $253 million negative impact to the Plan because the Plan operates on a calendar year.