MORGANTON (April 16, 2026) – At a time when enrollment is shrinking at colleges across the country due to demographic trends, the UNC System has an extraordinary story to tell – it’s growing.
Yet North Carolina’s state legislature – particularly the state Senate – hasn’t recognized that growth.
The state’s public universities increased enrollment by 1.6% in 2024 and 3.7% in 2025, to more than 256,000 students.
Yet because North Carolina remains the only state in the nation that hasn’t adopted a 2025-26 budget, its universities haven’t yet been reimbursed for the classes they’ve already delivered to those additional students.
University officials note that 92% of that growth has been in science, technology, engineering and mathematics (STEM) fields – notably engineering, biology and nursing – as well as business.
THAT AMOUNTS to nearly $159 million. And it’s at the top of the UNC System’s list of priorities when the NC General Assembly reconvenes next week.
The UNC Board of Governors adopted the legislative priorities today with no discussion – a blown opportunity to make the case to the public to fund the state’s public universities.
At a committee meeting Wednesday, Chief Financial Officer Jennifer Haygood outlined the dispute between the state Senate, which wants to proceed with scheduled income-tax cuts, and the House, which wants to pause the tax cuts, given the many financial uncertainties the state faces.
Due to the scheduled tax cuts, recently updated revenue estimates from the governor’s office and the General Assembly’s Fiscal Research Division project a state revenue shortfall of $359.5 million in 2026-27.1
Even the conservative Tax Foundation warned recently that under the planned tax cuts, state officials “risk an avoidable budget shortfall.2
North Carolina legislators – especially the state Senate – need to recognize that reality, fall in line with the rest of the civilized world and adopt a budget for 2025-27.
1 https://www.northcarolina.edu/apps/bog/doc.php?id=68687&code=bog, pp. 4-12.
2 https://carolinaleader.com/north-carolinas-current-tax-triggers-endanger-future-reform/; https://www.newsobserver.com/opinion/article315425202.html.
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