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Despite revenue downgrade, North Carolina anticipates nearly $1B more in cash

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Despite revenue downgrade, North Carolina anticipates nearly B more in cash


RALEIGH, N.C. (AP) – North Carolina officials downgraded a projected state revenue surplus through mid-2025 by $430 million on Friday, citing lower than anticipated April 15 individual income tax payments due to recent business tax changes. Still, the state expects nearly $1 billion more to enter its coffers.

Last month, economists working for Democratic Gov. Roy Cooper’s administration and at the Republican-controlled legislature predicted formally that collections would exceed revenue budgeted for the year ending June 30 by $413 million. And that jump, they determined, would lead to another $1 billion more received in the fiscal year starting July 1 than projected in the current two-year state budget.

Now the consensus forecast indicates that the overage for this fiscal year will now be $188 million, with another $799 million expected next year, the Office of State Budget and Management and the legislature’s Fiscal Research Division said.

The economists had warned that a forecast revision might be necessary if April collections, which are usually the most volatile, deviated significantly from estimates. That’s what happened, according to the agencies. Personal income tax refunds were higher than anticipated and final payments were lower than expected, as a 2022 tax change that let certain corporations and partnerships pay state taxes, rather than owners or shareholders, for favored tax treatment led to some duplicate payments.

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“Fortunately, this adjustment is a one-time event,” a state budget office memo said, adding that “despite this downward revision, the economic outlook for North Carolina remains unchanged, with no effect on the state’s long-term growth.”

It’s unclear if the lower overcollections will make legislators more cautious about additional spending or a potential income tax rebate as the General Assembly now meets to adjust the budget’s second year. The additional monies are a small percentage compared with the nearly $31 billion that the state currently plans to spend next year.

The April forecast served as the basis for Cooper to present his budget adjustment proposal last month. It also gave Republicans confidence that there were funds to advance a measure that would set aside another $463 million to help children seeking scholarships to attend private schools and to eliminate the waitlist.

That bill needs only one House vote to send the measure to Cooper, who is strongly opposed to the larger Opportunity Scholarship program. The legislature agreed last year to remove family income limits on receiving the scholarships, resulting in a massive increase in applications. Cooper has called for a moratorium on Opportunity Scholarships while expanding public school funding.

Republican budget-writers also are considering requests from the business community and advocates for children to address the upcoming loss of federal money for grants designed to help child care centers remain open during the COVID-19 pandemic.

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Senate leader Phil Berger told reporters Thursday that GOP leaders were considering whether it makes sense to provide widespread tax rebates this year. Giving even $500 to every household, for example, could cost billions.

“We’re looking at it, but I don’t think there’d be an interest in doing it unless the amount we could send out would be an amount that would make a difference,” he said.



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North Carolina

Registered sex offender facing new charges after escaping in North Carolina, officials say

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Registered sex offender facing new charges after escaping in North Carolina, officials say


NEWPORT, N.C. (WBTV) – A registered sex offender is facing more charges after he allegedly escaped while on a work release assignment in North Carolina on Thursday.

State prison officials said 44-year-old Kevin Leonard Worsham Jr. was on work release when he left his assignment in the small town of Teachey in Duplin County.

He returned on his own to the work release location early Friday morning and was arrested, according to officials.

Worsham has a criminal history dating back to 2004, including a past conviction that required him to register as a sex offender.

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His current sentence came after he – being a registered sex offender – failed to properly report an address change. Prison records show he was convicted of the offense in Gaston County, and was expected to be released in December 2025.

Now that he is back in custody, Worsham is facing new felony escape charges.

He was being held in the minimum-security Carteret Correctional Center in Newport, but after his escape, he will be housed at Central Prison in Raleigh.

Kevin Leonard Worsham Jr.(North Carolina Department of Adult Correction)

Charlotte man accused of killing teen given bond after it was initially denied, records show

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Lexi Donarski, Alyssa Ustby lead No. 14 North Carolina women to 64-33 romp over SMU

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Lexi Donarski, Alyssa Ustby lead No. 14 North Carolina women to 64-33 romp over SMU


DALLAS — Lexi Donarski had 15 points, Alyssa Ustby scored 12 and matched her career-high with 18 rebounds and No. 14 North Carolina rolled to a 64-33 victory over SMU on Thursday night.

Donarski did her damage from 3-point range, sinking 5 of 6 attempts for the Tar Heels (16-3, 3-2 Atlantic Coast Conference). Ustby collected her seventh double-double of the season with five of them coming in the last six games.

Indya Nivar had 11 points and Maria Gakdeng totaled 10 points and seven rebounds for North Carolina, which has won three in a row and 6 of 7.

Kaysia Woods scored 12 to lead the Mustangs (10-8, 2-4).

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Nivar had nine points in the first half as North Carolina turned a 13-6 first-quarter lead into a 31-14 advantage at halftime. The Tar Heels shot just 39.4% from the floor before the break, but that looked red-hot compared to SMU, which shot 13.8% overall (4 for 29).

Donarski hit her only two shots of the third quarter — both from beyond the arc — and the Tar Heels led 44-22 heading to the fourth.

Woods had five points in the final period to help SMU top the 10-point mark in a quarter for the first time in the game.

North Carolina guard Alyssa Ustby dribbles during the second half of an NCAA college basketball game against SMU, Thursday, Jan. 16, 2025, in Dallas. Credit: AP/LM Otero

SMU allowed the biggest comeback in NCAA women’s basketball history its last time out when the Mustangs saw a 32-point lead with 1:37 left in the first half turn into a 72-59 loss to Pittsburgh. SMU was outscored 28-0 in the third quarter and 26-10 in the fourth.

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North Carolina travels to play Pittsburgh on Sunday. SMU travels to play No. 3 Notre Dame on Sunday.



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Fact Check: California, North Carolina get same recovery cost coverage from federal gov’t

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Fact Check: California, North Carolina get same recovery cost coverage from federal gov’t


CHARLOTTE, N.C. (WBTV) – As wildfires ravage parts of Los Angeles and Southern California this month, federal, state, and local authorities have mobilized resources to combat the flames and assist affected communities.

Their response echoes the efforts made in North Carolina just months ago, when Hurricane Helene left widespread devastation in its wake.

A viewer named Dina asked the following question: “Why is the federal government covering 100% of the recovery costs for the California wildfires, but not doing the same for Hurricane Helene recovery efforts in North Carolina?”

Her question relates to a claim being spread around social media that the government is allegedly paying for 100% of the damage in California, but not in North Carolina.

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WBTV’s Fact Check team investigated the claims and found them to be false.

Here’s what we found.

Federal funding for wildfire recovery

On Tuesday, Jan. 14, President Joe Biden announced that the federal government would cover 100% of certain wildfire recovery costs in California for the next 180 days.

“The federal government is going to cover 100% of the cost for the next 180 days for things like firefighter overtime pay, debris removal, temporary shelters … It’s going to cost tens of billions of dollars to get Los Angeles back to where it was,” Biden said during a press conference.

Typically, the Federal Emergency Management Agency, aka FEMA, covers 75% of disaster recovery costs, with the remaining 25% funded by state and local governments. However, under federal law, the U.S. president has the authority to increase the federal cost-share for recovery efforts.

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Beach front homes are destroyed by the Palisades Fire Wednesday, Jan. 8, 2025 in Malibu, Calif. (AP Photo/Mark J. Terrill)(Mark J. Terrill | AP)

What about North Carolina?

Turns out, less than a week after Hurricane Helene hit North Carolina in September 2024, President Biden and FEMA announced that the same adjustment was made for Helene recovery in North Carolina.

Put another way: North Carolina has also had 100% of public recovery funds covered by the federal government since Oct. 2, 2024.

A release from the North Carolina governor’s office and FEMA explained how the president raised the federal contribution from 75% to 100% for the first 180 days of recovery. (The same time period that was just established in California).

After the six-month period, the cost-share for public assistance projects was increased from 75% to 90%. Click here to read the official FEMA release about this.

—> North Carolina Red Cross volunteers deploy to support wildfire victims in California

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The verdict

President Biden’s decision to increase the federal cost-share for California wildfires is consistent with the aid provided to North Carolina following Hurricane Helene.

Claims that the federal government is covering a higher percentage of recovery costs in California compared to in North Carolina are false. Both states received identical cost-share adjustments.

If you have further questions or claims you’d like us to investigate, feel free to reach out to us at factcheck@wbtv.com.

—> State releases names of 104 Helene victims in North Carolina for 1st time: See list here

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