North Carolina is now one of the five fastest growing states, and its numeric population growth last year was behind only Texas and Florida, even though it is a much smaller state.

The Tar Heel state is a supply-side success story.

Tax rates have fallen rapidly. The latest budget gives North Carolina a flat tax of 3.5% next year – down from 7.75%  just a few years ago. Even with the rate cuts, the state has a healthy budget surplus.

Even better: The rate is scheduled over the next few years to fall to 2.49%.

We were also pleased to learn that the budget fully funds Opportunity Scholarships, which allow thousands more Carolina kids to choose private school alternatives.