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.
The North Carolina Tar Heels will be a young program across the board next season, with well over two dozen freshmen and numerous additions from the transfer portal this offseason. Expectations for the 2026 season are lowered dramatically after a disastrous first season for head coach Bill Belichick, though those expectations could help the Tar Heels fly under the radar.
As the Tar Heels approach the end of spring ball, it is time to look at the veterans of the team—the ones who have the experience to lead, especially on the defensive side of the ball. Let’s look at three underrated seniors for the 2026 football season.
Ade Willie, Cornerback
Willie joins the Tar Heels program after four years with Michigan State, as the former 4-star player in the 2022 recruiting class gets an opportunity to not only provide depth to the secondary, but potentially start Week 0 against TCU.
Willie played in over 30 games with the Spartans and brings experience in the secondary at cornerback and safety, along with quality length and closing speed to the football. For a defense that needs players to step up, the redshirt senior from IMG Academy will be asked to do so.
Isaiah Johnson, Defensive Lineman
The defensive line is beginning to look like one of the Tar Heels’ strengths for the 2026 season. Johnson, a former transfer from Arizona, enters his redshirt senior year looking to add another year of production after 40 tackles and two sacks this past season.
North Carolina has an impressive group of starters with Malkart Abou-Jaoude, Leroy Jackson, and incoming transfer Jaylen Harvey. Johnson adds value to the group as a run defender with the ability to penetrate the pocket. While not discussed as a key player, Johnson’s name will be used plenty during the regular season as a potential standout for the program’s defensive front.
Coleman Bryson, Safety
Bryson was a reserve player for the Tar Heels’ secondary last season as a big nickel defender in the rotation. Heading into his redshirt senior year, the former Minnesota Gopher is looking to become a full-time starter in the secondary.
It wasn’t long ago when Bryson was making plays as the 2022 Pinstripe Bowl Defensive MVP. His special teams abilities were valuable for North Carolina last season, and he flashed at times in coverage against tight ends, including a pass breakup in the season-opener against TCU. The Waynesville, North Carolina, native could be a key defender on the back-seven in 2026.
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Friends and family members gathered in Washington state on Saturday, remembering former Miss North Carolina Carrie Everett, who died on Easter Sunday. Another memorial service is planned in North Carolina next month.
Web Editor : Sydney Ross
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Virginia 3, North Carolina 0 | First Quarter
Virginia 3, North Carolina 0 | Q1 8:19
After a faceoff win by Henry Metz, Brendan Millon finds Truitt Sunderland to give the Hoos a 3-0 lead. Timeout North Carolina.
Virginia 2, North Carolina 0 | Q1 9:00
Brendan Millon gets the scoring started for the Cavaliers with a question mark style goal. On the defensive end, Jake Marek opens the game with three early saves with his third save setting up a transition goal by Tommy Snyder.
Virginia vs North Carolina pregame notes
UVA owns a 59-33 advantage since the series began in 1938.
The 59 wins are UVA’s most against any opponent in program history (followed by 51 against Duke).
In Chapel Hill last year, the Tar Heels defeated the Cavaliers 18-9, snapping UVA’s six-game series win streak.
UVA has won nine of the last 11 meetings, dating back to 2018.
The Hoos have won the last two meetings with Carolina at Klöckner Stadium, 11-4 in 2022 and 14-6 in 2024.
The Tar Heels’ four goals in 2022 marked the fewest goals in a game under Joe Breschi, who was named UNC’s head coach in 2006.
The last time the Tar Heels knocked off the Cavaliers at Klöckner was a 16-13 decision during the first of three games between the two teams in 2021.
Later that year, UVA claimed back-to-back meetings against the Heels, including in the NCAA semifinals on the way to capturing the 2021 national title over Maryland.
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