North Carolina
North Carolina budget gets tighter in latest economic forecast
As North Carolina legislative leaders begin to negotiate a spending plan for the next two years, they’ll have a little less money to work with than expected.
Economic forecasters who work in state government have revised their budget projections downward for the next two years.
Forecasters at the legislature and the Office of State Budget and Management come to what’s known as a consensus revenue forecast every year. Then they revise it after the April 15 tax deadline.
The forecasters tend to take a conservative approach, so revised budget projections often provide good news for the state in the form of more revenue coming in than initially anticipated.
But that wasn’t the case this year.
The budget forecast released in February projected the state would collect $544 million more in taxes than expected this fiscal year, but after tax season. Now they expect collections total to be about $364 million. The state’s budget is about $32.6 billion. Forecasters say business tax collections are down slightly because rising costs are cutting into taxable revenues.
The forecast for surplus tax collection in the 2025-26 fiscal year has also been revised downward slightly by $217.6 million or 0.6%. And the forecast for 2026-27 is down a bit more, by $222.4 million or 0.7%
The Office of State Budget and Management ascribed the revision in part to “a weakening outlook for wage and profit growth.”
“Recent business surveys show fewer businesses expect to raise workers’ wages, with many expressing renewed focus on cutting costs to support profitability amid higher prices for imports,” OSBM said in a statement.
Forecasters also predicted slower growth in sales taxes due to lagging wage growth, tariffs and heightened economic uncertainty.
Larger-than-expected tax collections in years past have helped North Carolina build a rainy-day fund — which in turn has helped the state quickly react to unexpected events such as Hurricane Helene, the September storm that caused about $60 billion in damage and left more than 100 North Carolinians dead.
Democratic Gov. Josh Stein seized the news of the budget revision to call on Republican state lawmakers to drop their plans for future tax cuts. His budget proposal called for freezing taxes at their current levels.
“This news comes in the midst of an uncertain economy and federal budget pressures that may put funding for critical resources including Medicaid and SNAP in jeopardy,” Stein said. “It also comes as we find ourselves on the hook for even more Hurricane Helene recovery expenses.”
“We need to balance our books, not bury our heads in the sand,” he concluded.
Demi Dowdy, a spokeswoman for Republican North Carolina House Speaker Destin Hall, provided WRAL News with a statement on Thursday.
“Joe Biden’s legacy of sky high inflation continues, but we’re confident President Trump’s policies will bring economic growth just as they did in his first term,” Dowdy wrote. “Meanwhile, the North Carolina House will continue to pursue fiscally conservative state budgets.”
Republican Senate leaders didn’t immediately respond to requests for comment.
North Carolina
NC Made: Durham’s Old Hillside Bourbon toasts Black heritage one bottle at a time
DURHAM, N.C. (WTVD) — Bourbon is more than a business for Jesse Carpenter — it’s a tribute to the city that shaped him.
“This is Durham. This is where I’m from. This is where I grew up,” said Carpenter, Chief Product Officer of Old Hillside Bourbon.
The company he co-founded with childhood friends takes its name and identity from one of Durham’s most iconic institutions-Hillside High School, one of the oldest historically Black high schools in the nation.
“We graduated Class of 1993 from Hillside High School,” Carpenter said. “Concord and Lawson Street. It’s the old Hillside.”
The idea took root during the pandemic when Carpenter proposed starting a bourbon company to those same friends.
“I had an idea to start a bourbon company, and they were on board,” he said. “Friends from 30 years ago, and now we’re doing this business together. It’s awesome.”
From 300 Cases to 10,000
What began as a pandemic-era idea has evolved into a rapidly growing business.
In its inaugural year, Old Hillside distributed 300 cases; this year, the company anticipates 10,000. The bourbon also earned Best in Show at the 2023 TAG Global Spirits Awards, impressing even the most discerning craft bourbon critics.
“Let me focus on the aroma — layers of oak, vanilla,” one reviewer commented on the Bourbon Banter YouTube channel, concluding with, “I think it’s a great taste.”
SEE MORE NC MADE STORIES
A Bottle Full of Stories
Beyond its flavor, Old Hillside stands out for the history embedded in its label. Each vintage pays homage to a chapter of Black American history that might otherwise remain overlooked.
The inaugural bottle features a photo of the old Hillside High building, symbolizing the school’s deep community ties. A second flavor pays tribute to the African American jockeys who dominated the Kentucky Derby before the Jim Crow era effectively pushed them out of the sport. The company’s latest release honors the Harlem Hellfighters, the renowned all-Black military unit that served with distinction in World War I.
It’s a storytelling approach that Carpenter and his team are actively working to spread across North Carolina. Brand ambassadors Corey Carpenter and Amire Schealey are on the front lines of that effort.
“More bars and restaurants — tackling different markets,” said Corey Carpenter. Schealey added that the team is “setting up tastings at different ABC boards to build up our brand and presence around the state of North Carolina.”
Like many acclaimed bourbons, Old Hillside is distilled and bottled in Kentucky. But its founders are quick to point out where its true spirit comes from.
“Old Hillside is a lifestyle,” Jesse Carpenter said. “Not just a school-friendship and camaraderie. That’s what we do.”
SEE ALSO | NC Made: Raleigh jewelry brand AnnaBanana grows from UNC dorm room to statewide success
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North Carolina
State and local leaders discuss ‘child-care crisis’ in NC
DURHAM, N.C. (WTVD) — State and local leaders gathered in Durham on Thursday to discuss how they say North Carolina’s ‘child-care crisis’ is taking a toll on our communities.
“We’re demanding recognition,” former childcare provider DeeDee Fields said. “We want fair compensation. We want health protections and a retirement pathway for the workforce that makes all the work possible.”
Childcare is one of the biggest expenses North Carolinians face, with infant care more costly than in-state college tuition per year, according to data. Childcare for a four-year-old costs nearly $8,000 a year.
Since 2020, North Carolina has seen a record loss of licensed childcare programs. Durham County, for example, experienced a 14% drop.
“I think a lot of people are making these tough choices about what makes the most sense for their family,” Nylah Jimerson said.
Jimerson used to work as a nanny before she became a parent. She’s one of more than a quarter of parents in North Carolina who left the workforce to stay home to care for children.
As North Carolina is the only state without a new budget, childcare is top of mind for State Sen. Sophia Chitlik, who co-authored a package of bills that aims to better support the industry, including making childcare more affordable.
“The ‘Child Care Omnibus’ is part of a series of bills that have budget requirements and budget asks in them,” Chitlik said. “But we’re not going to know until we get a state budget. The most urgent and important thing, in addition to those subsidies, is raising the subsidy floor … so I hope that there is bipartisan consensus that would be worked out in a state budget.”
North Carolina could remain without a budget until the legislature is back in session in April.
“We have got to do something about childcare,” Sen. Natalie Murdock said. “We shouldn’t be in this position … we have to have a sustainable model and program because it’s about our children.”
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Copyright © 2026 WTVD-TV. All Rights Reserved.
North Carolina
Lawmakers discuss solutions to solving a 'child care crisis' in NC
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