From Truth in Accounting:

North Carolina’s financial condition improved in 2022. Based upon the state’s latest audited financial
report for fiscal year 2022, it had a Taxpayer Surplus™ of $3,900, earning it a “B” grade from Truth in
Accounting.

North Carolina had more than enough resources, $13.2 billion, to pay all its bills. Like many states,
North Carolina’s economic condition improved due to federal funding for COVID relief and increased
tax collections attributed to taxpayers’ pent-up tourism and purchasing demands. However, these
increases may be transitory as federal COVID funds dissipate and tax collections return to more
stabilized levels. Additional market declines after the state’s fiscal year-end most likely caused
decreases in the value of pension systems’ assets, which could cause an increase in its unfunded
pension promises.

Even though North Carolina was in good fiscal health at the end of its 2022 fiscal year, uncertainty
surrounding the full economic recovery post-COVID makes it impossible to determine how much will
be needed to maintain government services and benefits in the coming years. With such uncertainty, it
is good that the state retains funds available to pay bills.

Download a PDF of the entire report (North Carolina can be found on page 92).