Yesterday, the Wall Street Journal reported on many states unpreparedness for an economic downturn…
That challenge exists across the country: Low unemployment has led to a recovery in state unemployment funds, but the recovery is mixed and incomplete. State unemployment trust fund reserves hit $55.2 billion last year, up substantially from $9.5 billion in 2010. Despite the rebound, more than half of U.S. states lack enough unemployment funding to be prepared for another recession, Labor Department data show.
Economists and policy experts say many states—including powerhouses like New York, California and Texas—are missing an opportunity to rebuild their funding during good economic times. Complicating their outlook, the federal government may not be in a strong position to help the next time the U.S. economy goes south, because federal budget deficits are approaching $1 trillion. WSJ
Luckily, once again, the Republicans have put North Carolina on amazing fiscal footing to deal with a problem most other states would not be ready for. The WSJ references North Carolina as a state who had to borrow almost three billion after the downturn and still hasn’t fully recovered (I’m shocked that John Kasich has once again failed on a fiscal problem. Really, I’m shocked!). North Carolina is in the complete opposite situation. In five years North Carolina went from a 2.5 billion dollar deficit to a 3 billion dollar surplus. We might not be in the best position but we are definitely most improved and former Governor Pat McCrory and the Republican legislature should be very proud of this.