The Carolina Journal recently reported on the use of “reserve funds” in the state budget, highlighting how billions of taxpayer dollars are appropriated but not accounted for in the general fund’s headline numbers. This has allowed for significant inflation in the state budget while keeping the headline budget number at a more acceptable level. One of the reserve funds being examined is the Regional Economic Development Reserve Fund, which received $1.25 billion in the fiscal year 2024 budget.
Experts have criticized the use of reserve funds, such as the Regional Economic Development Reserve, as a form of corporate welfare and a way to fund localized projects that should be the responsibility of local governments. Many of the appropriations from these reserve funds have been labeled as “pet pork projects,” including funding for things like volunteer fire departments and athletic programs in schools.
The House has proposed setting aside an additional $550 million in the budget proposal for fiscal year 2025, which has led to contention between the House and the Senate. Senate President Pro Tempore Phil Berger expressed concerns about the use of these funds for lower priority projects, referring to them as a “faint oink.”
Overall, reserve funds in the state budget have raised questions about transparency and accountability in the appropriation of taxpayer dollars. Carolina Journal will continue to shine a spotlight on these reserve funds to protect North Carolina’s taxpayers.
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Photo credit www.carolinajournal.com
