The North Carolina Office of the State Auditor (OSA) today released a comprehensive, data-driven performance audit examining long-term vacancies across state agencies and the significant impact of the lapsed salary generated when these positions remain unfilled.
According to information submitted to OSA’s Division of Accountability, Value, and Efficiency (DAVE), along with data accessed by the OSA team, there were 8,846 long-term vacancies across 46 of North Carolina’s state agencies as of August 6, 2025. These positions have generated $1.04 billion in lapsed salary.
Lapsed salary is defined by the Office of State Budget and Management, part of the Governor's administration, as the amount not expended for salary during the entire period in which the position was vacant. The long-term vacant positions are funded by state appropriations, specific agency-generated receipts, and federal funding and grants. While state agencies do expend generated lapsed salary, the total $1.04 billion generated does not necessarily represent actual dollars that were available and/or used by state agencies for other purposes, or total funds available in the future if long-term vacancies were eliminated. However, the total raises real questions about the transparency of state agency spending.
The state agencies with the highest number of long-term vacancies, defined as six months or longer, were:
- The Department of Health and Human Services with 3,074 vacancies generating $375 million in lapsed salary;
- The Department of Adult Corrections with 2,817 vacancies generating $228.6 million in lapsed salary.
- The Department of Transportation with 838 vacancies generating $78.6 million in lapsed salary;
- The Department of Commerce with 684 vacancies, generating $226.1 million in lapsed salary.
Explanations for vacancies from state agencies were most commonly attributed to low compensation or unqualified applicants, positions recently filled or about to be filled, no response or unsure, and administrative lag.
“Long-term vacancies muddy the waters of government expenditures. In some agencies, you have tax dollars meant to go to a person serving a valuable state need, but instead that spot sits empty for years and the money goes elsewhere,” said State Auditor Dave Boliek. “This first government efficiency report provides lawmakers and the public with needed transparency, and valuable data to make strategic, fiscally responsible decisions for North Carolina’s future. It includes several different options to improve government efficiency, from cuts to job vacancies, to increases in areas where additional resources may be necessary.”
The audit outlines several cost-saving measures that can be taken. For example, elimination of positions vacant for five years or more that do not include federally funded or unfunded placeholder positions would cut 140 job vacancies, and result in an estimated $1.9 million in direct state appropriations savings and allow for the potential reallocation of $4.5 million in receipts. In another scenario, eliminating positions vacant for one year or more would cut 4,514 job vacancies, and create an estimated $138 million in state appropriations savings and allow for the potential reallocation of $79 million in receipts.
Additionally, the report notes uncompetitive pay for correctional officers, nursing assistants, registered nurses, licensed practical nurses, and youth counselors. It was also found that the State Highway Patrol keeps positions vacant so they can make fuel purchases and respond to other vehicle needs.
In his transmittal letter, State Auditor Boliek noted an approach of eliminating positions vacant for three or more years, but preserving long-term vacant correctional officers, nursing assistants, registered nurses, licensed practical nurses, youth counselors, and State Highway Patrol positions. This would produce an estimated $11.2 million in state appropriations savings and allow for optional redistribution of savings back to those positions, taxpayers, or wherever deemed appropriate by policymakers.
Other key recommendations include improving vacancy-tracking accuracy and aligning agency budgets with actual operational needs. Prior to release of the public report, DAVE published an online dashboard – made in-house – displaying long-term state vacancies within different state agencies and the amount of funding generated in lapsed salary.