West
North Carolina is charging ahead of California and the reason why is surprising

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Earlier in May, two starkly different fiscal news items highlighted the divergent paths taken by North Carolina and California. While North Carolina celebrated news of projected revenue surpluses in 2024 and 2025, California is grappling with a $44.9 billion budget deficit. How did these two states end up in wildly different places?
The contrast is emblematic of the philosophies governing these states. North Carolina’s conservative fiscal policies, emphasizing low taxes and restrained spending, widely differ from California’s high tax rates and expansive spending programs. The recent outcomes suggest that North Carolina’s approach offers a model of responsible governance from which other states, including California, could learn.
North Carolina’s success results from deliberate and sustained conservative fiscal policies. The state embarked on a series of tax reforms, which started in 2013 and were the largest in its history. These reforms included reducing the personal income tax rate from a progressive structure topping out at 7.75% to a flat rate of 4.75%, scheduled to drop further to 3.99% by 2026. Corporate tax rates were also slashed from 6.9% to 2.5% — the lowest in the nation for states that levy such a tax — with plans to phase it out entirely by 2030.
CALIFORNIA HAS YET TO PROVIDE 1,200 TINY HOMES FOR STATE’S HOMELESS THAT WERE PROMISED IN MARCH 2023
These tax cuts were not merely superficial adjustments but were coupled with prudent spending measures. North Carolina’s general fund spending has been managed to ensure essential services are funded without resorting to excessive borrowing.
The massively slow and expensive construction of the California bullet train project is photographed in Corcoran, California, left, and Hanford, California, right. (Robert Gauthier/Los Angeles Times via Getty Images | George Rose/Getty Images)
Fiscally conservative policies retired 40% of state debt within a decade, reducing general fund-supported debt from $6.5 billion in 2012 to $3.9 billion by 2021. Moreover, the state has avoided budgetary gimmicks and one-time fixes, focusing instead on long-term fiscal sustainability.
Spending restraint has been a hallmark of North Carolina’s approach. State legislators have maintained strict controls on spending growth, ensuring expenditures do not outpace revenue. This disciplined approach has allowed North Carolina to build substantial reserves, including a savings reserve (or “Rainy Day Fund”) that currently stands at $4.75 billion, equivalent to just over 15% of the 2023-24 state general fund budget.
This fiscal prudence has positioned North Carolina to weather economic downturns without resorting to drastic cuts or tax hikes, avoiding volatility in the lives of state workers.
The result? North Carolina has seen robust economic growth. According to the John Locke Foundation’s 2024 North Carolina Budget, Tax, and Economic Highlights, from 2016 to 2022, North Carolina’s per capita income grew at an average annual rate of 5.3%, higher than the national average and highest among its neighbors. North Carolina’s real GDP increased by a total of 11.4% from 2017 to 2022, which is also higher than the national average.
In contrast, California has pursued a high-tax, high-spending approach. The state imposes some of the highest tax rates in the country, including a top personal income tax rate of 13.3% and a corporate tax rate of 8.84%. According to the California Policy Center, “In just the last ten years, the General Fund budget has grown by 84 percent after adjusting for inflation and for population growth.”
California ranked No. 49 in the Fraser Institute’s 2023 economic freedom report, which evaluates states and provinces based on variables such as government spending, taxes, labor market freedom, and more. North Carolina ranked No. 13.
A significant portion of California’s tax revenue comes from capital gains taxes, making the state highly dependent on the stock market’s performance. In boom times, this can lead to substantial windfalls; however, it also means that revenue is highly volatile and can plummet during market downturns, leading to substantial budget deficits.
Its expansive spending on social programs, education and healthcare exacerbated California’s fiscal woes. While these programs initially aimed to provide a high level of public service, they have also led to fiscal instability.

Democratic California Gov. Gavin Newsom leads a state that has gone from surplus to a huge deficit. (Justin Sullivan/Getty Images)
A key issue is that high tax rates have not translated into stable revenue streams. The Golden State’s reliance on high-income earners and capital gains means that its revenue is highly volatile, fluctuating significantly with economic cycles. The New York Times said, “When the rich do well, the state government reaps a bonanza. But when the stock market slumps or initial public offerings dwindle, revenue plummets.”
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This volatility makes budgeting challenging and often results in substantial deficits during economic downturns.
California’s budget process is further complicated by the state’s commitment to numerous unfunded mandates and pension liabilities. The state’s pension system is underfunded by billions of dollars, putting additional strain on the budget. Despite high tax revenues, the state frequently finds itself in a fiscal crisis, forced to make painful cuts or propose tax increases to balance the budget.
When a state’s budget is volatile, the effects on state workers such as teachers, state park employees and correctional officers can be profound and destabilizing. Budget unpredictability often leads to cycles of boom and bust, where periods of fiscal surplus may result in temporary increases in salaries, hiring and program funding, only to be followed by sharp cutbacks, layoffs and pay freezes during downturns.
California ranked No. 49 in the Fraser Institute’s 2023 economic freedom report, which evaluates states and provinces based on variables such as government spending, taxes, labor market freedom, and more. North Carolina ranked No. 13.
This instability can create a climate of uncertainty and low morale among state employees, who may face the constant threat of job insecurity and reduced benefits.
North Carolina’s fiscal discipline offers a blueprint for other states, demonstrating that conservative fiscal policies can lead to economic stability and growth. By maintaining low taxes and controlling spending, North Carolina has created an environment conducive to business and investment, fostering economic resilience even during challenging times.
California, on the other hand, illustrates the pitfalls of high taxes and expansive spending without adequate fiscal controls. As the nation observes these contrasting outcomes, it becomes clear that responsible budget management, as exemplified by North Carolina, is essential for economic prosperity. States should adopt similar conservative fiscal policies to achieve stable and sustainable economic growth.
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San Francisco, CA
Berkeley passes EMBER proposal, creating strict fire safety regulations

While there was heavy opposition, the Berkeley City Council voted unanimously to implement one of the strictest fire safety regulations in the state.
The EMBER proposal would force residents to clear any vegetation within 5 feet of a home, and it would go into effect at the end of this year.
But a group of Berkeley hills residents said they are contemplating pursuing legal action.
The talk high above Grizzly Peak in the Berkeley Hills is all about the EMBER proposal. George Perez Velez with the Alliance for Practical Fire Solutions was disappointed with the council’s vote.
“I was not surprised,” said Perez Velez. “I was heartbroken. I knew that the city had already made its mind up.”
Perez Velez feels the proposal is overreaching and puts a financial burden on homeowners who can’t afford to comply with the new regulations. He said the alliance is talking about what the next steps should be.
“I think that some members within the alliance are exploring the possibility of taking legal action in certain aspects of the proposal,” he said.
The public comment on the EMBER agenda item took hours. Some commend the council for taking action before the state announces its regulations in 2029.
“We cannot wait for the state because fires don’t wait,” said resident Dara Schur.
The council promised to review and make changes to EMBER as it gets ready to roll out the ordinance in the next year. Some residents said the tougher regulations couldn’t come soon enough.
“This ordinance may not be perfect,” said Schur. “It might need some tweaking, but it is better to act now to protect our homes and preserve insurance than it is to wait.”
Some fellow neighbors disagree. They feel like there’s too much ambiguity with EMBER, making it difficult to comply with all the rules.
“I think it’s a flawed, ineffectual, incomplete action,” said resident Fred Bamber.
The Alliance for Practical Fire Solutions has 30 days to decide whether to take legal action. Perez Velez said the entire community is committed to keeping the area safe from the next big fire. The question is, what’s the best way to make that happen.
“Is this really necessary,” said Perez Velez. “Is this proposal going to accomplish what they say it is going to accomplish.”
Denver, CO
Developer transforms historic Evans School in Denver's Golden Triangle into beer garden

DENVER — The historic Evans School in Denver’s Golden Triangle has a new lease on life as Schoolyard Beer Garden.
City Street Investors, which purchased the property in 2019, listened to requests from people in the neighborhood about what to do next with the space.
“So within those focus groups, they found out they really wanted a place to gather, food, beverage options, so that’s why our beer garden and this cafe is a perfect fit for it,” said Casey Kirk, director of operations for City Streets’ beer gardens. “So, through that kind of crowdsourcing that we had a good idea of what the neighborhood was looking for.”
Not only are there plenty of seats outside, but there is also a full indoor area where people can look out on the boiler room and see flags designed by a local artist who used theatre curtains to symbolize the building, along with our state’s flora and fauna.
Maggy Wolanske
“It’s awesome just to see it in action, to see the beer garden operating as intended, to all the people on a nice sunny afternoon coming in and ordering food and then going out to the beautiful gardens space,” Kirk said. “It’s operating great and the response is really positive from the neighborhood. They’re all really happy we’re here.”
The building was designed in 1904 by Denver architect David Dryden and was one of the few schools to teach deaf, blind, or physically handicapped students. Laurie Adams attended the school in 1971 before it was shut down, but still has memories of the halls.
“I loved the architecture of the school. Even then, I came from a small town in Texas and a lot of old antebellum homes and big mansions and things, and I didn’t live in one of those, of course, but I always thought they were really cool,” Adams said. “I’m an artist now, so I can really appreciate architecture. I’ve always loved architecture, and I remember the two-foot-thick walls and being really amazed about that.”
Maggy Wolanske
Adams attended school with her two sisters. They moved from a small town in Texas and were put into a small classroom with other students who were not deaf or blind. While she only spent fifth grade in this building, she learned a greater lesson that she’s carried through life.
“I learned empathy for people from all walks of life and different abilities. At age 11, I learned not to judge people because everyone — the majority of the people going to school here — had challenges,” said Adams. “So, I learned acceptance and tolerance and empathy, and that’s always had a big impact on me.”
Maggy Wolanske
Work is still being done at the Evans School. Kirk said they are currently building out an event center in the auditorium and are introducing some third-party tenants on the first and second floors.
Schoolyard Beer Garden is located at 1115 Acoma Street. Experts with the Denver Public Library will be there from 6 p.m. to 7 p.m. on June 23 to discuss their top book picks heading into the summer reading season.

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Denver7’s Maggy Wolanske is a multimedia journalist who covers topics that have an impact across Colorado, but specializes in reporting on climate and environment, as well as stories impacting animals and wildlife. If you’d like to get in touch with Maggy, fill out the form below to send her an email.
Seattle, WA
What ex-WR likes about the Seattle Seahawks' 2025 schedule

The second season of the Mike Macdonald era starts with a chance for the Seattle Seahawks to make a statement.
The Seahawks open 2025 at home Sept. 7 against the division-rival San Francisco 49ers with a chance to gain the upper hand in the NFC West right away. The Seahawks won’t face the 49ers again until they travel to Levi’s Stadium for their final game of the season.
Wyman: How Seattle Seahawks practices differ under Macdonald
That scheduling quirk is something that caught the attention of Seahawks Radio Network analyst and former NFL wide receiver Michael Bumpus for a good reason.
“I love that you get the Niners early and you get them late, because the last few years it felt like we played them like back-to-back weeks,” Bumpus said during his Four Down Territory segment on Seattle Sports’ Bump and Stacy.
Last season the Seahawks and 49ers had five weeks (three games and a bye week) between their matchups, and in 2023 it was just two weeks (one game).
“The reason why I like this (year’s schedule) is because you get a shot at a contender,” Bumpus said. “You guys get to match up early, see what you’re made of, go through the full season, people (get) hurt, you got to adjust, you got film on those guys, and then you end the season with the 49ers as well.”
Seattle also had just two weeks between games with the Arizona Cardinals last year. This year the Seahawks’ closest matchups with the same divisional foe is five weeks apart (at the Rams on Nov. 16 and home against the Rams on Dec. 18).
“Just spread the divisional opponents out a little bit,” Bumpus said. “Let us go through some other divisions and play those guys, and let’s be able to adjust and get better and work that way. I hate it when this so close. I’m like, ‘Come on. We’re playing the same team.’ There’s been no change. There’s been no real development going on.
“So I like that you got the Niners early, you got them late. It gives you a chance to grow and kind of see what they’re doing.”
Hear the full conversation at this link or in the audio player near the top of this story. Listen to Bump and Stacy weekdays from 10 a.m.-2 p.m. or find the podcast on the Seattle Sports app.
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• The next step for Seattle Seahawks DT Byron Murphy II in Year 2
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