---
title: Hidden Reserves, Gated Communities - July 23, 2026
description: North Carolina’s off‑budget reserves are fueling a growing political slush fund, including $300,000 for a gated community.
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date: 2026-07-23T12:39:05Z
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![Gated Community](https://thewilmingtonstandard.com/images/daily_update/2026/July/july23/july232026-article.png)

A gated community is receiving $300,000 of our tax money – and we do not even know what it is for.

This is the Wilmington Standard Daily Update for Thursday July 23, 2026.

According to the [Carolina Journal](https://www.carolinajournal.com/gated-community-gets-300000-in-nc-budget/), the Carolina Lakes Property Association received two checks from the state budget: $160,000 for “emergency service needs” and $140,000 for “various needs including shelter replacement.” [Carolina Lakes](https://www.carolinalakesnc.info/default.php) is located in Sanford, NC. It is a gated community of approximately 1700 homes with a multitude of lakes, picnic pavilions and a marina. [Redfin](https://www.redfin.com/neighborhood/762493/NC/Spout-Springs/Carolina-Lakes/housing-market) reports the average price of a home in the association is around $394,000.

The association did nothing illegal, of course. On one hand, the members of this community pay state taxes and are just entitled to use those funds like everyone else. Going down the road of rich people in an exclusive community should not have access to these funds may get rage bait, but the Liberal Left has been arguing the same thing for school vouchers as well. The level of income of those who receive state funds is not the issue – and Conservatives must be careful with that argument.

The problem is two-fold. First, is the complete lack of transparency in what these funds were used for at Carolina Lakes. Emergency Services could be anything from a fire truck to fire hose to a life vac – but we just do not know. What does “shelter replacement” mean? These are legitimate questions the lack of transparency in these appropriations inspire.

But the larger problem is why these funds exist in the first place. The [John Lock Foundation](https://www.johnlocke.org/the-3-billion-in-hidden-spending-in-the-budget-proposal/) reported earlier this month about the increasing use of reserves outside of the budget. The practice involves setting aside money raised from state revenue sources into a special “reserve” fund and then making those set-asides not part of the “[General Fund Availability](https://webservices.ncleg.gov/ViewNewsFile/116/Final_Committee_Report_SB257_2026_06_30#page=7)” line item. Some of those reserves are for very good reasons, such as a substantial “rainy day” fund to meet emergencies.

Yet, the squishiness of these funds is readily apparent. The [highly loose reasons](https://webservices.ncleg.gov/ViewNewsFile/116/Final_Committee_Report_SB257_2026_06_30#page=461) for each of the hundreds of appropriations from these reserves can easily be interpreted only one way – it is a political slush fund used to “bring home the bacon” to constituents.

Republicans have correctly pointed out since they took over the governing of this state over two decades ago, we went from a budgetary shortfall to having funds in reserve with a surplus. We consistently rank as one of the top places to live and do business because of our financial discipline.

The North Carolina legislature goes back in session on July 27. They need to fix this.

For the Wilmington Standard, I’m Reuel Sample. Thanks for listening.