Election may bring changes to Florida and North Carolina finances

By: Robert Slavin

Excerpt from the article:

(October 1, 2026) Cumberland Advisors Chief Investment Officer John Mousseau said it isn't appropriate for the state government to set a single limit for the disparate localities underneath them. Local governments are better judges of what is appropriate, he said. 

North Carolina voters are also voting to reduce the constitutional cap on the individual tax rate to 3.5% from its current 7%. Currently, there is a flat 3.99% rate. Elon University found that 68% of voters favored the limit, compared to 18% who opposed it.

"The 3.5% tax rate cap amendment should not significantly impact North Carolina's ability to raise and spend revenue within the state's balanced budget requirement," Jackson said. "The state is already on schedule to reduce its tax rate to 3.49% in fiscal year 2027 and to further reduce it in steps to reach 2.49% in 2035. That would leave room to raise the rate by a percentage point to address potential revenue shortfalls."

North Carolina's 2027 and 2035 tax cuts are dependent on the state pulling in specified amounts of tax revenue. In recent years some state officials and outside observers have warned about looming state deficits. 

If passed, Florida's Amendment 3 would have a profound impact on local governments.

Click here to read the full article on the Bond Buyer website. 

John R. Mousseau, CFA
Chief Investment Officer
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