This chart has three lines showing numbers from fiscal year 2023-2024 through fiscal year 2030-2031 for North Carolina under the NC Senate's proposed tax plan: the expenditure forecast, the revenue forecast, and the estimate expenditure forecast that includes the Leandro plan investment required by court. The chart shows that spending would exceed revenue in Fiscal Year 2026-2027 without additional legislative action. By the year when the full Senate tax plan is fully implemented, the state would have an estimated $7.1 billion revenue gap, assuming that current service and spending levels are maintained. Adding the requirement to fund Leandro Plan increases NC’s revenue gap to $12.8 billion.
*As the NC Supreme Court ruled in November 2022, the Leandro Plan sets forth the additional new programs, policy changes , and investments necessary to meet every student’s constitutional right to a sound basic education by the 2027-2028 school year.