Just months after analysts projected a multi-million dollar budget shortage, Gov. Pat McCrory this week announced a projected budget surplus of $400 million.

McCrory on Wednesday announced the surplus, which was attributed to a growing economy and tax revenue numbers.

“With this revised budget forecast, I’m calling for fiscally responsible investments in savings and reserves, and a new round of investments that will provide services to the people of North Carolina and easing the tax burden on senior citizens and job creators,” McCrory said.

In a news release, McCrory said the extra money would be placed into the state’s savings reserve and the repair and renovations reserve. He also proposed reinstating the medical expense tax deduction for seniors, “targeted salary investments in employees” and covering debt service payments of the $3 million Connect NC bond package, which includes $15 million for Rowan County.

Soon after McCrory announced the surplus, State Senate Democratic Leader Dan Blue, who represents a portion of Wake County, released a statement criticizing Republican actions.

“According to the Governor’s report, by 2020, giant, mostly out of state corporations will get $550 million in tax breaks, while wages remain stagnant,” Blue said in an emailed statement. “Thanks to this Republican tax code, people are making less money, giant corporations are keeping more, and middle class families are paying an enormous price. It is time to put the middle class first. We need to focus on job creation, improving our schools and preparing our children for the workforce – and grow our economy from the middle class out.”

The North Carolina Republican Party also immediately responded, firing back at Democrats.

“As a part of tax reform, paycheck withholdings were adjusted so they are more accurate throughout the year,” a North Carolina Republican Party statement said. “That may mean less of a refund at the end of the year for some, but that’s because people no longer paid too much to the government and got more money in their paychecks instead.”

Tillis issues statement on nuclear agreement’s passage

U.S. Sen. Thom Tillis this week was one of 98 other senators who voted in favor of a measure to give Congress more control over a nuclear deal with Iran.

The United States and five other nations are currently trying to finalize an agreement with Iran that would require a diminishment of the middle eastern country’s nuclear program in exchange for relief from economic sanctions.

Shortly after his vote, Tillis issued a statement saying: “While far from perfect, I voted for the Corker-Cardin bill because it is absolutely imperative that Congress has a final say in any deal the Obama Administration reaches with Iran, the same regime that has never backed away from its desire to destroy Israel and wage a proxy war against the United States around the world. The current nuclear framework agreement clears the path for Iran to become a nuclear state and continue to fund their global terror network, and I will do everything I can to stop a bad deal that threatens the safety and security of the United States and our allies.”

State’s unemployment insurance debt paid off

McCrory this week also announced the state’s unemployment insurance debt was paid off.

At one point the debt was $2.8 billion and was $2.5 billion when McCrory took office in Jan. 2013, he said.

The debt was incurred when the state’s unemployment trust fund ran out of funds in February 2009. North Carolina had to borrow from the federal government to pay for regular unemployment benefits and racked up the debt.

“Getting more North Carolinians jobs and fixing our broken unemployment system was a top priority when I entered office,” McCrory said. “Thanks to quick action and tough decisions, North Carolina’s unemployment system is more efficient, more customer friendly and the time needed to settle appeals has been dramatically reduced. These steps, along with paying off this debt, are helping get more people back to work.”

Contact reporter Josh Bergeron at 704-797-4246.