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.

“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.

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.

Copyright 2024 The Associated Press. All rights reserved.

A staff report

ELIZABETHTOWN, NC – North Carolina’s Southeast is basking in the limelight as several esteemed leaders, board members, and local developers receive well-deserved recognition on Business North Carolina’s 2023 Power List for their unwavering commitment to fostering economic development in the region.

Among those highlighted in the prestigious accolade is Steve Yost, the president of North Carolina’s Southeast (NCSE). With a tenure dating back to 2009, Yost’s leadership has been instrumental in championing the cause of economic progress across the sprawling 20-county region, stretching from the majestic Uwharrie Mountains to the serene Atlantic Coast.

In a statement by NCSE, the regional public-private partnership explained Yost’s pivotal role in steering the organization toward its mission. “Yost has led NCSE since 2009, working to promote our 20-country region stretching from the Uwharrie Mountains to the Atlantic Coast,” the press release proclaimed. Prior to his tenure at NCSE, Yost served in various capacities, including as a senior developer and regional manager for the esteemed N.C. Department of Commerce‘s southeast region.

Reflecting on his journey and offering sage advice to aspiring professionals, Yost emphasized the importance of strategic thinking and meticulous attention to detail. “Think and act strategically and pay attention to detail,” Yost advised, encapsulating the essence of his decades-long experience in economic development.

A seasoned veteran in the economic development industry, Yost’s illustrious career spans over two decades, during which he has spearheaded transformative initiatives at the local, state, and regional levels. From his tenure as the Executive Director of the Columbus County Economic Development Commission to his role as the Marketing Manager for North Carolina’s Southeast, Yost’s imprint on the economic landscape of the region is indelible.

With a Bachelor of Arts in Political Science from Appalachian State University and a Master of Public Administration from the University of North Carolina, Yost brings a wealth of academic prowess to his endeavors. His credentials include certification as an Economic and Community Developer, further solidifying his standing as a distinguished leader in the field.

In addition to his professional achievements, Yost’s commitment to community service is exemplified by his tenure as President of the North Carolina Economic Development Association in 2017 and his lifelong dedication to the Boy Scouts of America, where he attained the prestigious rank of Eagle Scout.

In response to his inclusion on the esteemed Power List, Yost humbly acknowledged the collective effort of the region’s dynamic professionals. “This list is only a fraction of the inspiring people that make southeastern North Carolina an incredible place to live and work,” Yost remarked, paying homage to the collaborative spirit that defines the region’s success.

As North Carolina’s Southeast continues its trajectory of growth and prosperity, leaders like Steve Yost serve as the region’s trailblazers. They are poised to write the next chapter in the story of economic development and progress in the Southeast.

Reference links:

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CHARLOTTE, N.C. (WBTV) – Music Midtown, a popular music festival in Atlanta, is going on hiatus this year, prompting North Carolina Gov. Roy Cooper to encourage organizers to move it to the Tar Heel State.

Music Midtown organizers announced Wednesday the festival has been canceled for 2024. Organizers haven’t released details on the reason for the cancelation, according to WBTV’s sister station Atlanta News First.

The festival had traditionally been in September at Piedmont Park in Atlanta.

“North Carolina has proven itself as a top tier entertainment center by hosting everything from the inaugural Lovin’ Life Music Festival in Charlotte to the NHL Stadium Series hockey game in Raleigh last year,” a spokesperson for Gov. Cooper told WBTV Thursday. “These events have significant economic impacts on our state’s economy and the Governor encourages Music Midtown to find its new home in North Carolina.”

According to Atlanta News First, it’s not the first time the festival has been canceled. Since it began in 1994, it went on hiatus from 2006 through 2010 due to a decline in attendance and rising costs. It was canceled in 2020 because of the COVID-19 pandemic.

Atlanta News First reports it returned in 2021, but it was canceled once again in 2022. It’s speculated that organizers made this decision over the Georgia gun laws — which would have prevented them from allowing firearms at the event.

In 2023, the festival returned with thousands of attendees over a 3-day period, according to Atlanta News First.

WBTV’s sister station Atlanta News First contributed to this report.

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