When we discuss the NC state budget, many times we focus solely on the General Fund and tax revenue.  This is not the whole picture and leaves out very pertinent information.  North Carolina receives a certain percentage of their annual funding from the Federal government, amounting to approximately 35% of North Carolina’s total budget in recent years.

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North Carolina did a good thing by changing unemployment benefits and also by rejecting Medicaid expansion.  Relying on the federal government for money is not a safe or reliable method for state’s to use when funding government programs.  The less federal government involvement in North Carolina’s state government, the better off North Carolina will be when these problems arise in the future.  The Tax Foundation has looked into this issue across the country and has published a map showing all 50 states and their ranking of federal involvement in each respective state budget.  North Carolina was ranked 29th in 2011, hopefully with some of the most recent legislation we can see our ranking increase with less involvement of federal funds in state government.

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