Unless lawmakers change course on personal and corporate tax cuts, $2.8B in spending cuts will be required in FY 2028 to balance the budget

Structural budget balance under projected current services baseline budget, Fiscal Year 2026 through Fiscal Year 2034 

OSBM baseline structural budget balance estimates based on the enacted budget for FY26, with growth for projected state and local government spending inflation and population growth starting in FY27, consensus revenue forecasts through FY27, and OSBM revenue projections for FY28 and after. Analysis models a personal income tax rate of 3.99% in 2026, 3.49% in 2027, and 2.99% thereafter. Analysis models a corporate income tax rate of 2% in 2026 and 2027, 1% in 2028 and 2029, and 0% thereafter.
Chart: NC Budget & Tax CenterSource: Office of State Budget and ManagementGet the data Download imageCreated with Datawrapper