North Carolinians' stability threatened by declining revenues, fed budget cuts
Published 5:41 p.m. Thursday
(Editor's note: This colum first appeared on WRAL.com February 17, 2025)
Federal funding cuts threaten services that keep people healthy and provide opportunities for children and families to get ahead. These cuts will make it harder for people to make ends meet and are likely to lead to job losses as research, infrastructure, and service delivery grinds to a halt.
Senate and House Republicans, along with President Donald Trump, are proposing a budget that rewards the wealthy and well-connected while leaving working families to pick up the tab. Their plan slashes taxes for the rich while cutting essentials like health care and food assistance for everyone else. It will drive up costs, increase hardship, and narrow the pathway for us all to thrive, while further consolidating power with the already powerful.
The push for these cuts come from out-of-state groups like Americans for Prosperity, the conservative organization founded by the billionaire Koch brothers who have begun buying up TV ads in North Carolina to convince you that this upside-down plan will deliver economic well-being.
Recent federal funding freezes are already beginning to show the ripple effects. The initial announcements left state and local government agencies scrambling for answers, portals for major public systems went down, non-profit and businesses engaged with government contracts assessed the risk to their operations, and families were uncertain if they could go to the doctor or pick up food.
Now we are hearing about hiring freezes, stalled progress on major research efforts to cure diseases, new barriers to sell the food and goods produced here and modern infrastructure advancements grinding to a halt.
Disruptions and divisions will only continue if President Trump and congressional Republicans get their way.
Last year, North Carolina received an estimated $35.4 billion in federal funding for infrastructure development, health care services, food assistance, and child care. If federal policymakers continue this reckless agenda, our state will pay the price.
Will state lawmakers make up the difference? Or will everyday North Carolinians be left behind — again?
The federal costs that will shift to states is just one reason why it’s time for responsible leaders in North Carolina to pause the deep state income and corporate tax cuts scheduled through 2030.
The latest revenue forecast — which shows our state revenue flatlining next year and a steep decline in 2027 — also highlights the unsustainable march to zero income taxes that our legislative leaders have our state on.
When our policymakers ensure the wealthy and corporations pay their share of taxes, we can be sure that everyone can afford to see a doctor, put food on the table and keep a roof over their head.
That’s not just good policy — it’s what voters demanded in the last election. North Carolina voters are frustrated about the rising costs they face, shrinking opportunities to get ahead, and the broken promise of the American Dream.
North Carolinians know that our policymakers are rigging the rules to the benefit of those who already have it quite well. Some 77% oppose the current law that will cut the tax on corporate profits to zero, and 80% say they have seen no personal benefit from a decade of state tax cuts.
North Carolinians are still waiting on the promised benefits after state policymakers began tax cutting with the support of out-of-state groups like Americans for Prosperity. Child care remains out of reach and unaffordable for too many working families, and housing is scarce and expensive, pushing people further away from good jobs and the neighborhoods where they have always lived. Meanwhile, wages aren’t keeping up with the cost of food, gas, and housing.
North Carolina ranks in the bottom half of states for quality of life, economic opportunity, and child well-being. And our state has become increasingly reliant on federal funding for our communities’ priorities because tax cuts for the wealthy have diverted our public money away from public investments proven to make lives better.
Our public institutions and services can provide us all with stability — ensuring help in hard times and during disasters, access to affordable quality early education, and opportunity for career training that leads to good jobs.
Federal and state policymakers must make sure that billionaires and big corporations pay their share so North Carolinians can access health care, affordable healthy food, and stable homes and communities, secure and confident that we have the freedom to thrive.
So when you see the TV ads promoting “tax cuts” and urging you to call Congress, do it. Call Congress and say: Not one more penny for the wealthy at our expense.
Capitol Broadcasting Company's Opinion Section seeks a broad range of comments and letters to the editor.
