FOR IMMEDIATE RELEASE
RALEIGH, N.C. — The North Carolina Forward Party today voiced its support for the bipartisan momentum behind fiscally responsible budgeting in the state legislature, backing Governor Josh Stein’s position to pause scheduled income and corporate tax cuts and commending the spirit of collaboration displayed during last week’s budget votes.
With a recent report from the non-partisan, financial analysis firm Consensus Forecasting Group revising North Carolina’s revenue forecast downward—predicting general fund reserve shortfalls of $218 million in FY 2025-26 and $222 million in FY 2026-27, figures that underscore the potential risks of proceeding with previously planned tax reductions—all eyes were on the General Assembly ahead of last week’s House budget vote.
As members in the NC House and Senate have regularly clashed over competing tax plans, Wednesday’s vote on the House budget proposal ushered in a rare moment of bipartisan consensus among lawmakers from both parties, with the measure supported by most Democrats and all Republicans. The proposed budget institutes increased financial safeguards while putting forth modest tax relief measures such as increasing the standard deduction, restoring a sales tax holiday, and pausing future income tax cuts at 3.99%. By contrast, the Senate’s budget proposal maintains aggressive tax cut mechanisms that would potentially reduce the rate to 2.99% by 2028—sending the state toward a fiscal cliff if deeper tax cuts are allowed to proceed unchecked. The proposal passed in the House on a 93-20 vote, a rare and welcome display of broad bipartisan cooperation, led by Speaker Destin Hall (R-Caldwell) and supported by Governor Stein.
Governor Stein, commenting on the amended House budget, advocated for maintaining the individual income tax rate at 4.25% and the corporate tax rate at 2.25%, rather than allowing automatic reductions to continue as currently scheduled under prior legislation. He cited the urgent need for fiscal responsibility amid concerns over the projected revenue shortfalls that could jeopardize critical state services such as public education, public safety, food and nutrition assistance, Hurricane Helene recovery efforts, and infrastructure development.
The House vote and its subsequent praise from the Governor’s office represented not only a rare moment of bipartisanship in North Carolina, but also drew the support of top party officials from emerging organizations all across the state, including the Chair of the North Carolina Forward Party, Patrick Newton.
“This is exactly the kind of practical, cross-party problem-solving we want to see more of in North Carolina,” said Newton. “Speaker Hall and Governor Stein may come from different political traditions, but they’ve found common ground in protecting the long-term health of our state. That’s something we should all celebrate — and is precisely what the Forward Party seeks to promote on a state and national level.”
The Forward Party has for the last several years been at the forefront of a broader statewide and national effort to put people above politics and build consensus among diverging political interests and party machines. We support the recent budget developments not only because they reflect sound fiscal strategy, but also because they embody the kind of collaboration and common-sense policymaking that is part and parcel of our platform.
“In an increasingly polarized political environment, an event like this one signals a hopeful path forward—one in which state leaders and lawmakers on both sides of the aisle are aware of the growing dissatisfaction with the extremes in their own parties as well as the commonsense solutions that are available to best serve the residents of North Carolina,” Newton added. “North Carolinians deserve leadership that responds to reality, not ideology. And the Forward Party is always looking for and championing opportunities where leaders of all backgrounds can come together to craft durable, practical solutions to complex challenges. These budget developments signify one of those moments.”