Budget & Taxes (Government Spending)

HB 996 reduces North Carolina's state budget spending limit by lowering the cap on the General Fund operating budget from 7% to 6% of projected total state personal income each year. This directly affects the state government's annual budget planning, requiring it to spend less relative to the state's economic output. The bill maintains the existing process for exceeding the cap, which still requires a two-thirds vote in both legislative chambers. It takes effect July 1, 2025, for budgets adopted on or after that date.