Governor Stein Reacts to Nonpartisan Consensus Revenue Forecast Projections of $360 Million Less Revenue Next Year

Today the Office of State Budget and Management and the Fiscal Research Division released their nonpartisan consensus revenue forecast, which projects that North Carolina will have $360 million less in revenue next year to keep the state running. The forecast indicates that revenues stand likely to trigger two back-to-back personal income tax reductions, yielding a $3.4 billion revenue loss by fiscal year 2028. Furthermore, these reductions will cause revenues to fall below the amount needed to maintain current levels of services by $2.8 billion, taking into account inflation and population growth. Governor Stein released the following statement:

"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government becomes a less reliable partner, I urge this General Assembly to study these new realities, hit pause on outdated, irresponsible tax triggers, and invest in our most important resource: our people."