Governor Josh Stein responded on Mar. 24 to a new nonpartisan consensus revenue forecast that projects North Carolina will face $360 million less in revenue next year. The forecast, released by the Office of State Budget and Management and the Fiscal Research Division, also indicates that back-to-back personal income tax reductions could result in a total revenue loss of $3.4 billion by fiscal year 2028.
The projected shortfall raises concerns about maintaining current levels of state services, with estimates showing revenues may fall below what is needed by $2.8 billion when considering inflation and population growth. This situation could lead to cuts in areas such as public safety, education, and health care.
Stein said, “North Carolina has found a recipe for success, but if we fail to act now, we’re going to be several ingredients short. Today’s forecast means that we will soon fall into a budget gap of at least $2.8 billion, causing the state to have to make painful cuts to critical services like public safety, education, and health care. There is still time to act to keep up North Carolina’s positive momentum. As our population rapidly grows and the federal government becomes a less reliable partner, I urge this General Assembly to study these new realities, hit pause on outdated, irresponsible tax triggers, and invest in our most important resource: our people.”
The Office of the Governor of North Carolina serves the entire state according to its official website. As chief executive officer for North Carolina’s government branch responsible for executing state laws and leading the Council of State according to its official website, Stein has been serving as the state’s 76th governor according to its official website.
The governor’s office also directs policy through budgeting decisions and can grant pardons according to its official website. In addition, it serves as commander in chief of the North Carolina National Guard with authority over executive appointments according to its official website.
Looking ahead, Governor Stein called on lawmakers for immediate action regarding tax policy adjustments as well as increased investment in residents amid changing economic conditions.
