Statement on the Consensus Revenue Forecast from Alexandra Sirota, NC Budget & Tax Center Executive Director
North Carolina’s Consensus Revenue Forecast was released today by the Office of State Budget and Management and the Fiscal Research Division. The forecast is a sobering indicator that by committing to steep, long-term income tax cuts for corporations and the wealthy far into the future, legislative leaders have jeopardized the state’s ability to meet the needs of North Carolina’s communities.
The forecast projects flat General Fund Revenue growth for the 2026 fiscal year — rising just 0.5% — and a startling revenue decline in the 2027 fiscal year.
This alarming projection comes in the context of huge unmet needs in our state, including a chronically underfunded K-12 public education system, a child-care system and workforce in urgent need of support, and Western and Eastern NC residents still struggling to recover from disasters.
At the same time, looming federal budget shifts could lead to additional costs to our state for critical services like the health care, food and housing supports, and more that make people’s lives better every day.
The forecast makes it clear: this revenue stagnation isn’t due to a weak economy but to previously enacted reductions in the personal and corporate income tax rates.
This situation was entirely preventable. Instead of prioritizing tax cuts for corporations, state leaders could have chosen to fund our communities. They still can choose our communities over corporations.
North Carolina’s legislative leaders must change course. Pausing further tax cuts for corporations and the super-rich is essential to ensuring that North Carolina can fund opportunity for a strong future and well-being that NC people deserve.
