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NC has forecasted one-time $3.25 billion surplus in state revenues

Economists in the Office of State Budget and Management and the General Assembly’s Fiscal Research Division released an updated consensus revenue forecast today anticipating an additional $3.25 billion in state revenues for FY 2022-23, putting total state General Fund revenue collections at $33.76 billion.

“These increased funds are needed desperately to pay our teachers more, fund our schools, provide quality child care for parents in our workforce, and to pay for the tax cuts for working families that we put in place last year,” said Governor Roy Cooper. “I hope we can negotiate a bipartisan budget that makes these investments without more tax breaks for the wealthiest among us.”

The revised consensus forecast for FY 2022-23 anticipates overcollections of $3.25B (10.7%) relative to certified revenues of $30.51B, putting total state General Fund revenue collections at $33.76B. The revised forecast anticipates a total of $67.35 billion for the next biennium, with $33.71 billion in FY 202324 and $33.65 billion in FY 2024-45.

NC newborns now screened for two more disorders

Babies born in North Carolina will now be screened for two additional disorders, along with the other disorders screened for by the NC Department of Health and Human Services’ Newborn Screening Program. Newborns will now be screened for two Lysosomal Storage Disorders: — Mucopolysaccharidosis Type I (MPS I) and Pompe Disease.

“Newborn screening is critical for early detection and treatment of many genetic and biochemical disorders in the first few days and weeks after birth,” said Dr. Scott Shone, Director of the State Laboratory of Public Health at NCDHHS. “Before leaving the hospital, a few drops of the baby’s blood are collected on a special filter paper card and sent to the State Laboratory to help identify babies who may be at increased risk for certain health problems as early as possible.”

Each year, more than 200 babies in North Carolina are identified with genetic or biochemical disorders through newborn screening. Studies have shown the importance of early identification and treatment which can be lifesaving for the most severe cases. Expanding this public health service in North Carolina provides newborns and their families with an opportunity for better outcomes and an improved quality of life, and is one of several efforts to further the department’s priority to support child and family well-being.

“Newborn screening is America’s most successful public health program, offering babies with life-threatening and debilitating diseases the opportunity for therapeutic intervention at the earliest possible time,” said Sharon King, member of the North Carolina Advisory Council on Rare Diseases. “I applaud the NC New- born Screening Program for the addition of MPS I and Pompe disease to the state’s newborn screening panel ensuring a better quality of life for these babies and their families.”

MPS I affects many parts of the body including the brain, heart, liver, eyes and respiratory system. Like many newborn screening conditions, there are often no signs or symptoms of the condition at birth. Severe MPS I is found in approximately 1 in 100,000 individuals. If untreated, symptoms may include developmental delays, skeletal deformities, impacts to motor skills and respiratory tract infections.

Pompe disease also varies in severity and symptoms. Types of Pompe Disease include infantile-onset and late-onset. Babies affected with Infantile-onset Pompe Disease (IOPD) demonstrate poor muscle development, muscle weakness, impacts to liver development, heart defects and a failure to thrive. IOPD may be fatal if patients do not receive treatment.

The addition of MPS I and Pompe Disease screening is an expansion in newborn screening services provided in North Carolina. The Newborn Screening Program previously added Spinal Muscular Atrophy (SMA) in 2021 and X-Linked Adrenoleukodystrophy (X-ALD) in 2022. North Carolina joins a growing number of states now screening newborns for MPS I and Pompe Disease.

“The National MPS Society commends the NC Newborn Screening Program for the addition of MPS I and Pompe disease to the state’s newborn screening panel,” said Terri Klein, President and CEO of the National MPS Society. “The Society is located in Durham and now we can champion our own state with

The primary drivers of the anticipated surplus are smaller-than-expected decline in individual income tax collections, especially due to larger-than-expected tax payments from passthrough businesses electing to be taxed at the entity level; persistently high corporate profits, particularly among large multi-national corporations; resilient consumer spending despite longer-lasting inflation in goods and services subject to sales tax; and higher-than-expected investment returns on the General Fund balance.

Of the forecasted onetime $3.25 billion surplus, House Speaker Tim Moore said, "The surplus projected in today's consensus revenue forecast demonstrates the economic strength of our state, which has attracted both businesses and families to North Carolina." He continued, "I am confident that as we continue to address some of the state's most pressing needs, we will continue doing so in a fiscally responsible way that leads to even more growth for North Carolina. This is the approach we will take as we consider our budget priorities of targeted raises for law enforcement and other key personnel, greater investments in infrastructure, and workforce development initiatives."

Additional $7.7 million in mental health services for NC college students

Governor Roy Cooper announced $7.7 million in new funding to support North Carolina’s postsecondary institutions in providing additional mental health services to students.

GOV. COOPER

This investment in the University of North Carolina (UNC) System will support new mental health initiatives and provide funding to sustain initiatives created by Governor Cooper’s previous $5 million grant to the UNC System in May 2021.

“Identifying their mental distress and getting them access to quality treatment is more critical for our students than ever,” Governor Cooper said. “This investment will help our state’s colleges and universities better support their students so they can thrive.”

The UNC System will collaborate with the North Carolina Community College System and the state’s independent colleges and universities to offer suicide prevention training to faculty and staff across all three education systems. These trainings will provide faculty and staff with the tools they need to better identify and support students in crisis.

The UNC System will also use this funding to continue to provide students across all 17 UNC institutions access to an after-hours mental health hotline and develop a new resiliency training program for faculty, staff, and students.

With the initial $5 million investment in 2021, the UNC this essential decision. We are grateful for our legislators, NCDHHS and the tireless advocates who championed this outcome for the past five years.”

“This is such fantastic news for the rare disease community,” said Tara J. Britt, Founder and President of Rare Disease Innovations Institute Inc. “Newborn Screening saves lives and we are so thrilled that

System launched a Mental Health First Aid training initiative to help college and university faculty and staff identify, understand and respond to mental health and substance abuse disorders. As of November 2022, the UNC System had trained 274 Mental Health First Aid instructors across the UNC System, the NC Community College System, and the state’s independent colleges and universities. Those trained instructors have, in turn, trained nearly 2,500 faculty and staff across their campuses.

“There has been a troubling rise in mental health challenges for young people across our nation, and we’re seeing the impact here in North Carolina,” said UNC System President Peter Hans. “We need to meet that need with urgency and compassion, and these funds go a long way in helping us reach students who are struggling.”

In addition to these investments in mental health supports in postsecondary education, the Governor previously invested $5 million in GEER funds to the NC Department of Health and Human Services to support Youth Mental Health First Aid training for adults who work with youth ages 12-18, including teachers and school staff. Governor Cooper also invested $40 million in GEER funds in August 2020 to K-12 public schools to help schools address students’ physical and mental health needs during the pandemic.

Funding for these initiatives is from federal Emergency Assistance for Non-Public Schools (EANS) funds that have reverted to the Governor’s Emergency Education Relief (GEER) fund.

NBS is a priority in North Carolina.”

The NCDHHS Newborn Screening Follow-up Program in the Division of Child and Family Wellbeing and in partnership with the UNC Division of Genetics & Metabolism ensures babies identified with abnormal newborn screening results receive follow-up care and referrals to the appropriate medical specialists.