RALEIGH, N.C. — Personal income tax cuts proposed by the North Carolina Senate are broader than previous tax cuts and put at risk the government’s future ability to provide services for a growing population by a few billion dollars, Gov. Roy Cooper’s office said Friday.
Revenue losses could impact education the hardest; school leaders report staffing shortages and the need for more money to attract applicants and expand services.
The biggest line item in the state’s budget each year is public K-12 education, which accounts for more than $11 billion. Combined with the state’s university and community college system, education spending makes up most of the budget. The biggest revenue source for the state is personal income taxes.
Cooper’s office predicts an annual revenue loss of $13 billion for the state by the 2030-31 fiscal year, about 19% of the state’s current general fund, State Budget Director Kristin Walker said. That would result in a $2 billion annual loss to public schools and a $680 million annual loss for higher education.
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