colorful waving flag of north carolina state on a american dollar money background. finance concept
colorful waving flag of north carolina state on a american dollar money background. finance concept
Press Release

NC Budget & Tax Center Statement on 2023-2025 House Budget Proposal

The budget proposal released yesterday shows that House budget writers would limit spending to prove an ideological point rather than fulfill their responsibility to fund the public schools, public health, and public parks that can deliver well-being to everyone in NC and propel our economy and communities forward.

The House budget, in fact, falls far short of what the state has the capacity to do today, even with our public dollars being diverted to the wealthy and profitable corporations. The House budget would leave over $2 billion dollars unappropriated in the first year, an amount that could go far in funding the Leandro comprehensive remedial plan that would get North Carolina to a better position in providing a sound, basic education for every child.

Legislative leaders doubled down on the elimination of the corporate income tax by phasing down the franchise tax paid by businesses.

Notably and positively on the tax side, they recognize that a refundable tax credit is a powerful policy design by reinstating the adoption tax credit. However, the credit will only be made available to a very narrow subset of North Carolinians and thus miss the opportunity to provide every family with children with the boost to support children’s healthy development and the rising cost of care.

It is no wonder that legislative leaders can only put together a spending plan full of half measures. There has been no opportunity for public input, no clear review or assessment of needs in communities.

Instead, House budget writers once again are leaning into tax cuts for the rich and corporations and ignoring the priority investments that could move us toward greater well-being for more people in our state. The time is now to start putting forward a comprehensive plan based on more than one tool to get us to a better future as a state where people have what they need to thrive.