RALEIGH, N.C. (AP) — North Carolina government’s top fiscal analysts have officially set a goal for the state’s rainy-day reserve fund that once met should help fill large shortfalls encountered during most recessions.
A law approved last year requires a set percentage of annual revenue growth be transferred to the reserve, which already has more than $1.8 billion. The law directs the state budget office and the legislature’s Fiscal Research Division to come up with an annual target.
That target is a percentage of the previous year’s revenues — meaning for now reaching the goal would require increasing the fund by roughly $700 million over time.
State Budget Director Charlie Perusse told legislators in a memo the target percentage may change over time as revenue data increase.
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