West
North Carolina is charging ahead of California and the reason why is surprising
NEWYou can now listen to Fox News articles!
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.”
CLICK HERE FOR MORE FOX NEWS OPINION
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.
Read the full article from Here
West
California health officials issue urgent warning to mushroom foragers after deadly poisoning outbreak
NEWYou can now listen to Fox News articles!
Health officials in California this week warned the public about foraging for mushrooms after a deadly outbreak struck the middle of the state.
The California Poison Control System has identified at least 21 cases of amatoxin poisoning that left one adult dead and several others, including children, with severe liver damage.
One might even need a liver transplant.
The poisoning was likely caused by the death cap mushroom, which is easily confused with edible mushrooms. Officials warned to also watch out for the destroying angel mushroom, which also grows in California.
WOMAN FOUND GUILTY IN MUSHROOM MURDER MYSTERY THAT LEFT THREE FAMILY MEMBERS DEAD AFTER MEAL
This undated photo provided by the California Department of Health shows a death cap mushroom. (California Department of Health via AP)
Residents in California’s Monterey County became sick after eating mushrooms found at a local park and another outbreak happened in the San Francisco area.
Symptoms can range from mild to moderate, depending on how much of the mushroom was consumed, and include stomach cramping, diarrhea, nausea, organ failure and liver damage and, in rare cases, death, the poison center said.
Even if gastrointestinal symptoms improve, serious complications can still occur, including liver damage, the poison control center warned.
Health officials in California this week warned the public about foraging for mushrooms after a deadly outbreak struck the middle part of the state. (Philippe Huguen/AFP via Getty Images)
CHATGPT DIETARY ADVICE SENDS MAN TO HOSPITAL WITH DANGEROUS CHEMICAL POISONING
“Death cap mushrooms contain potentially deadly toxins that can lead to liver failure,” Erica Pan, director of the California Department of Public Health, said in a statement. “Because the death cap can easily be mistaken for edible safe mushrooms, we advise the public not to forage for wild mushrooms at all during this high-risk season.”
Mushrooms grow in abundance during California’s rainy season — October through March — but the poison control center warned that “eating the wrong wild mushrooms can cause serious illness or even death.”
A destroying angel mushroom (Dea/P. Puccinelli/De Agostini via Getty Images )
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Hundreds of poisonings are reported to the center each year, most causing severe illness and sometimes death.
Half of the roughly 4,500 mushroom poisonings reported across the U.S. in 2023 were in children, according to the National Poison Data System annual report, who may pick and eat them while playing outside.
The Associated Press contributed to this report.
Read the full article from Here
San Francisco, CA
San Francisco’s Santa Con expected to bring in large crowds, benefit local bars
For some businesses, Saturday is the most wonderful day of the year as thousands of Santas visit San Francisco watering holes for Santa Con.
But for others, the festive event is more trouble than it’s worth.
Kevin Sully Sullivan and his wife, Deb, met at the Marina Lounge in the 1980s. Sully then went on to work at the bar for 30 years and just two years ago, took over the business from the prior owners.
“We’ve loved this bar for such a long time and it’s a dream come true to actually have our names in it,” Sully said.
While Sully loves celebrating the holidays and supports Santa Con, he has posted this sign on the door of the Sully’s Marina Lounge, officially making it a Santa-free zone. For him, the extra customers aren’t worth the hassle.
“Some of these bars that encourage it, that participate, they do months of business in one day,” he said. “But many of them have to replace sinks in their restrooms. They get it torn off the wall and toilets that have all kinds of things go wrong.”
On the other hand, Westwood has beefed up its staff and is looking forward to all the Santas coming to town.
“It’s really good,” Kwame Wright said.
“It pumps in a lot of money into the economy,” Westwood said. “Local businesses, we benefit from it as well. So, we’re really happy and we’re excited that we get to host. Santa’s are welcome here.”
Aside from Halloween, Santa Con is one of the biggest events of the year for Westwood. This place normally has long lines to get in on weekends and it’s expecting an even bigger crowd Saturday. Westwood is taking steps to make sure all the Santas behave.
“Security does really hard work, and we have extra security to make sure everybody is safe,” said Wright.
But for those willing to wait until Christmas for a Santa sighting, Sully says his place will be the place to be.
“It actually ends up being a really nice day here because they know it’s a sanctuary haven from the Santa Con,” Sully said.
Denver, CO
Man found guilty of murder 9 years after girlfriend’s body was found in Denver-bound Amtrak train
DENVER — A Denver man was convicted Friday of murdering his girlfriend, nearly 10 years after her body was discovered inside a Denver-bound Amtrak train.
Angelo Valentino Mantych, 43, was convicted by a jury of his peers on one count of first-degree murder after deliberation for killing 28-year-old Marina Placensia while on-board an Amtrak overnight train that was headed to Denver from Wisconsin the morning of Sept. 1, 2016.
It took jurors about five hours of deliberation to reach the guilty verdict on Friday. Each was individually polled on their decision — and all of them confirmed their verdict.
Mantych, who was in court Friday for the reading of the verdict, hanged his head as it was read. He was scheduled to be sentenced on Jan. 9.
Meanwhile, Placensia’s family was overcome with emotion when they heard the guilty verdict. Outside of the courtroom, Placensia’s father told Denver7 the day felt like Christmas, New Years Eve, and his birthday rolled into one day.
Denver7 also spoke with a juror, who said the group was united in their decision and worked well together.
First-degree murder carries a mandatory sentence of life in prison without the possibility of parole, but the sentencing hearing will be an opportunity for those who loved Placensia to tell the judge how this loss has impacted their lives.
The two sides delivered their closing arguments on Friday morning.
Prosecutors said Placensia took the train that day with her four children, three of whom she shared with Mantych, to escape years of abuse and domestic violence. They argued that a “loss of control” served as motive for the killing. Prosecutors aimed to discredit the alternative explanations offered for Placensia’s death, pointing to what they said was clear evidence of a smothering.
Man found guilty of murder 9 years after girlfriend’s body was found in Denver-bound Amtrak train
The defense’s closing arguments centered around an apparent lack of commotion on the train on the night of Placensia’s death, saying it would be “almost impossible” for her to have been smothered for several minutes without their children noticing. Defense attorneys also called into question the integrity of an investigation that saw significant delays.
The case against Mantych is one Denver7 has been following since at least October 2023, when Mantych was charged with murder in connection with the crime.
An arrest affidavit obtained by Denver7 in the case showed the woman had several bruises on her body “consistent with an assault or struggle,” but investigators were not able to identify an obvious cause of death at the time. An autopsy later found blunt impacts to her head, trunk and extremities.
The investigation took several years to piece together, something the defense brought into question during closing arguments Friday.
“I think this case is such a great example of law enforcement just remaining committed to a case that they knew something happened, but we just had challenges with filing it, and so it’s a real testament to endurance and commitment by the entire team who’s worked on it since 2016,” said Assistant District Attorney Lara Mullin outside of the courtroom.
“It sends a very strong message to offenders who think that they can continue to perpetrate these types of crimes and violence on victims of domestic violence, that there will be justice sought and that we will not relent in our pursuit of that justice for victims of domestic violence,” said Amelia Sapp, the Chief Trial Deputy of Domestic Violence and Child Victims.
During the investigative process, one person told detectives that Mantych beat Placensia daily, and another said she had to go to a hospital multiple times for her injuries from the assaults, according to arresting documents. At least one of the reports obtained from the Racine Police Department and dated March 13, 2015, showed Mantych had punched Placensia’s ear several times, causing her to lose hearing in that ear. He was arrested and charged with assault after that incident.
On May 18, 2023, a doctor confirmed he believed Placensia’s cause of death was the result of asphyxia from suffocation and said her injuries were consistent with suffocation cases in both living and deceased patients, the affidavit stated. He said he believed her injuries were the result of an assault, including blunt force trauma and suffocation.
Mantych pleaded not guilty to the first-degree murder charge on June 21, 2024, according to court documents.
His trial began at the beginning of the month.
He did not testify in the trial and his defense team declined to comment on the verdict.
Editor’s note: If you or someone you know is experiencing domestic violence, help is available through Violence Free Colorado or the National Domestic Violence Hotline at 800-799-7233.
Coloradans making a difference | Denver7 featured videos
Denver7 is committed to making a difference in our community by standing up for what’s right, listening, lending a helping hand and following through on promises. See that work in action, in the videos above.
-
Alaska7 days agoHowling Mat-Su winds leave thousands without power
-
Texas7 days agoTexas Tech football vs BYU live updates, start time, TV channel for Big 12 title
-
Ohio1 week ago
Who do the Ohio State Buckeyes hire as the next offensive coordinator?
-
Washington4 days agoLIVE UPDATES: Mudslide, road closures across Western Washington
-
Iowa6 days agoMatt Campbell reportedly bringing longtime Iowa State staffer to Penn State as 1st hire
-
Miami, FL6 days agoUrban Meyer, Brady Quinn get in heated exchange during Alabama, Notre Dame, Miami CFP discussion
-
Cleveland, OH6 days agoMan shot, killed at downtown Cleveland nightclub: EMS
-
World6 days ago
Chiefs’ offensive line woes deepen as Wanya Morris exits with knee injury against Texans