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North Carolina budget gets tighter in latest economic forecast

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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.

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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.

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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.

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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.



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North Carolina

Bill Belichick fires former Alabama quarterback, NFL coordinator at North Carolina

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Bill Belichick fires former Alabama quarterback, NFL coordinator at North Carolina


North Carolina coach Bill Belichick has fired offensive coordinator Freddie Kitchens and special-teams coordinator Mike Priefer.

“We want to thank Coach Kitchens and Coach Priefer for their commitment and many contributions to our program and student-athletes,” Belichick said in a statement, per ESPN. “We wish them both nothing but the best in their future endeavors.”

Kitchens, the former Alabama quarterback and head coach of the Browns in 2019, was the Tar Heels’ interim coach in 2024.

Belichick brought Priefer to UNC after two decades in the NFL, and two years out of football.

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Under Kitchens, North Carolina’s offense ranked 119th in scoring (19.3 PPG) and 129th in total offense (288.8 YPG).

The Tar Heels finished 4-8 overall and 2-6 in the ACC.

Kitchens won Alabama’s Mr. Football honor in 1992 as the quarterback at Etowah High School.

Kitchens shared the quarterback duties at Alabama with Brian Burgdorf in 1995 before taking over full-time under center for the Crimson Tide in the 1996 and 1997 seasons.

After three more college stops, Kitchens entered the NFL as the Dallas Cowboys’ tight-ends coach in 2006 and stayed in the league for the next 17 seasons, including as Cleveland’s head coach in 2019, when the Browns went 6-10.

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Ex-senator’s wife, 75, found escaped inmate cowering in the backseat of her car: ‘I was shaking like a leaf’

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Ex-senator’s wife, 75, found escaped inmate cowering in the backseat of her car: ‘I was shaking like a leaf’


The 75-year-old wife of a former Republican North Carolina senator had a frightening start to her week when she discovered an escaped inmate hiding in the backseat of her car, according to local reports.

Marie Steinburg, married to ex-State Senator Bob Steinberg, left her Edenton home for work around 7:30 a.m. Monday when she unlocked her Honda Civic and found 23-year-old accused thief Charles Babb cowering in the backseat, with a blanket wrapped around his orange prison jumpsuit.

“I headed out the door, and I clicked the unlock, and it must have scared the guy, because the next thing I know, I saw something moving in my backseat,” the startled senior said, WTKR reported.

Charles Babb, 23, was found cowering in the back of Marie Steinburg’s Honda Civic after breaking out of the Chowan County Detention Center. WAVY 10

“I kept backing up little by little by little because I thought, I don’t know what this man is going to do.”

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Babb — who police said escaped from the Chowan County Detention Center Sunday night — then jumped out the car.

While residents were urged to lock their doors and windows, stay inside, and avoid interacting with the armed and dangerous fugitive, Steinburg said she remained calm and began talking to him.

Marie Steinburg, 75, made the startling discovery Monday morning when she left the house for work. WAVY 10

“I figured if I was nice to him, he’d be nice to me,” she said, WAVY reported.

“I just figured that was the thing to do because I didn’t know if he was really dangerous,” Steinburg explained, adding that “he kept saying, ‘I’m sorry, I’m sorry, I’m sorry. I’m so cold.’ And, you know, I was startled and I know he was too. And I said, “Well, hey, let me go in and get you a coat.’”

Steinburg said Babb then turned and raced down the driveway — reportedly leaving behind his prison sandals and a face mask — as she ran inside, called out to her husband, and dialed 911.

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Steinburg said Babb was cowering in her backseat with a blanket wrapped around his orange prison jumpsuit. WAVY 10

“I got in as fast as I could,” she recalled, according to WTKR.

“I was shaking like a leaf, and I could barely get the key in the lock, but I did.”

The Edenton Police Department apprehended the convict nearby shortly thereafter.

Police did not give details on how Babb escaped jail, other than to say he used a make-shift edged weapon. He was being held on felony breaking and entering and larceny charges before his breakout, according to the Daily Advance.

Babb raced down the driveway, leaving behind his prison sandals and a face mask. WAVY 10

Her husband, who advocated for prison reform during his 10 years in office, praised his wife for how she handled the terrifying situation, believing a higher power was looking out for them.

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The couple added that they will never forget to lock their car doors again.

“Oh let me tell you, if I don’t, [my husband] is gonna,” a relieved Steinberg said.

The Edenton Police Department apprehended the convict nearby shortly thereafter. WAVY 10

“It’s one of those things that we learned.”

The Chowan County Sheriff’s Office has since launched an investigation into Babb’s jailbreak.

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How Seth Trimble’s Injury Unlocked North Carolina’s Potential

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How Seth Trimble’s Injury Unlocked North Carolina’s Potential


Injuries are an unfortunate element in sports, and that has been relevant for the North Carolina Tar Heels this season. Now, most of the time, those injuries occur in games or practices. That was not the case for Seth Trimble, who suffered a broken arm in a workout accident.

The senior guard has not played since the second game of the season against the Kansas Jayhawks on Nov. 7.

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Nov 7, 2025; Chapel Hill, North Carolina, USA; North Carolina Tar Heels head coach Hubert Davis with guard Seth Trimble (7) in the second half at Dean E. Smith Center. Mandatory Credit: Bob Donnan-Imagn Images | Bob Donnan-Imagn Images

Although the injury forced the Tar Heels’ coaching staff and players into an uncomfortable situation, the team has responded, winning six of seven games in Trimble’s absence. You never want to see a player suffer a significant injury, but in this particular case, it has opened the door to possibilities that North Carolina may not have been aware of if this never transpired.

Here is why Trimble’s injury has not been doom and gloom for the Tar Heels in this early portion of the season.

Unlocking a Potential Star Off the Bench

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Dec 7, 2025; Chapel Hill, North Carolina, USA; North Carolina Tar Heels head coach Hubert Davis talks with guard Derek Dixon (3) in the second half at Dean E. Smith Center. Mandatory Credit: Bob Donnan-Imagn Images | Bob Donnan-Imagn Images

Before the last two games, North Carolina’s backcourt situation appeared to be a significant shortcoming for the Tar Heels. Because of that, Davis was forced to expand his bench with the hopes of unlocking the offense while supplying consistent production.

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That has elevated freshman guard Derek Dixon’s role in the rotation, which has proven to be pivotal in North Carolina’s wins in the last two games against Kentucky and Georgetown. During that span, the 6-foot-5 guard has averaged 11.5 points while shooting 53.3 percent from the field and 50 percent from three-point range.

With the rotation becoming solidified in recent weeks, head coach Hubert Davis explained how the backcourt has taken shape following the Tar Heels’ win over Georgetown on Sunday.

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Dec 7, 2025; Chapel Hill, North Carolina, USA; North Carolina Tar Heels head coach Hubert Davis talks with guard Kyan Evans (0) and guard Derek Dixon (3) in the second half at Dean E. Smith Center. Mandatory Credit: Bob Donnan-Imagn Images | Bob Donnan-Imagn Images

  • “I really like [Kyan] and Derek [Dixon] on the floor at the same time,” Davis continued. “I’ve always said that I love multiple ball handlers. You can’t take us out of our offense. And with those two, with the way that Georgetown was switching defenses, we always had somebody that can handle the basketball and get us into a set and get us organized.”

  • “So, it’s trying to figure out rotations,” Davis continued. “And then when Seth comes back, it’s finding it again. Different combinations is one of the things that I was excited about coming into the season. That is the versatility that we have, that we can throw out a number of different rotations out there that can be really effective on the floor.”

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