North Carolina’s newly approved tax amendments have school advocates concerned about future Charlotte-Mecklenburg Schools funding, according to WFAE.
Voters approved the income and property tax amendments Tuesday, Nov. 3. Lauren Fox of the Public School Forum of North Carolina told WFAE that limiting both revenue streams could make school funding gaps harder to close.
What changes
The income tax amendment lowers the constitutional ceiling from 7% to 3.5% beginning Jan. 1, 2027, according to an analysis by N.C. State University accounting professor Nathan Goldman.
That ceiling differs from the tax rate people pay. The personal income tax rate is 3.99% in 2026 and was already scheduled to fall to 3.49% in 2027. The amendment itself does not immediately lower tax bills, Goldman writes.
The property tax amendment directs lawmakers to limit growth in local property tax collections. It does not set a numerical cap or specify the formula and exceptions. Those details require implementing legislation, according to Goldman’s analysis.
Why CMS funding is part of the debate
Mecklenburg County’s adopted fiscal 2027 budget includes $730 million in total support for CMS. It fully funded the district’s requested $25 million increase in ongoing operating funding.
Donald Bryson, CEO of the John Locke Foundation, told WFAE that neither amendment automatically cuts school funding. His organization favors allowing property tax revenue to grow with inflation and population.
Alexandra Sirota of the N.C. Budget & Tax Center told WFAE that local governments could turn to sales taxes to meet spending needs, shifting more of the burden to consumers.
The effect on future CMS budgets will depend in part on the property tax rules lawmakers adopt and subsequent state and county budget decisions.
