The Comparative States of States

April 27, 2025
The Comparative States of States

A Little 3:00 A.M. Analysis Project

Somewhere along the way in a flurry of graduate school work years ago, before earning an MBA, I received an MPA in Public Administration from The University of Rhode Island and while I do remember some of my professors in particular – Tim Hennessey, Fran Leazes, Victor Profughi – I remember less doing the rigorous analysis of comparative state budgets -but I do recall how then I was also struck by how wildly some states spend, while others are so fiscally conservative.

Recently my mind was wandering at about 3:00 a.m. – “the witching hour” – thinking about why Californians and Rhode Islanders for example, keep electing such ill prepared governors – in the case of the former, a vineyard operator playing with Getty money who destroyed San Francisco as mayor and was “promoted” to Governor where he vaporized tens of billions of surplus and keeps digging the hole deeper, and the latter where a typical Democrat politico (in Rhode Island you could elect Hitler and Mussolini on the same ticket if they ran as donkeys) is hung up on many problems, not the least of which is analysis paralysis/blame game over a 1700 foot long bridge crisis; then I watch the news and just watch in awe how at the same time in Florida, Governor Ron DeSantis just gets shit done.

I can’t imagine Rhode Island’s political leadership being responsible for cleaning up after back to back storms Helene and Milton or trying to manage any kind of meaningful economic development. Watch the news and witness how Hasbro – born and raised in Rhode Island, is about to exit stage left. That’s a state that couldn’t even keep the Pawtucket Red Sox. Sound familiar? Look at the pro sports teams that have fled Oakland, California. While debate always ensues about the economic development value of sports teams, major and minor league, they typically become political fodder among little league politicians.

“In politics, where you sit is where you stand. Public sector budgets are not only statements of priorities, they are indicators of stewardship.” –URI Professor of Public Administration Tim Hennessey, Ph. D. (1937-2015)

Management consulting and interim management is a lot of travel – when you do the kind of work we do, you wind up living and working in a wide variety of places. Just for curiosity, I did a little high level analysis to take a peek at comparing a few states.

Here’s a comprehensive comparison of California, Florida, Massachusetts, Oklahoma, North Carolina, and Rhode Island across the specified areas:

California

  • Governor: Gavin Newsom
  • Political Affiliation: Democratic
  • First Elected: 2018 (previously served as Lieutenant Governor from 2011 to 2019)
  • Prior Job: Mayor of San Francisco (2004-2011)

Florida

  • Governor: Ron DeSantis
  • Political Affiliation: Republican
  • First Elected: 2018
  • Prior Job: U.S. Representative (2013-2018); US Navy, 2004-2010, Lt. Commander; Reserve 2010-2019

Rhode Island

  • Governor: Daniel McKee
  • Political Affiliation: Democratic
  • First Elected: 2021 (succeeded Gina Raimondo, who became U.S. Secretary of Commerce)
  • Prior Job: Lieutenant Governor of Rhode Island (2015-2021)

Oklahoma

  • Governor: Kevin Stitt
  • Political Affiliation: Republican
  • First Elected: 2018
  • Prior Job: CEO of a mortgage company (Stitt Home Loans)

Massachusetts

  • Governor: Maura Healey
  • Political Affiliation: Democratic
  • First Elected: 2022
  • Prior Job: Attorney General of Massachusetts (2014-2022)

North Carolina

  • Governor: Roy Cooper
  • Political Affiliation: Democratic
  • First Elected: 2016
  • Prior Job: Attorney General of North Carolina (2001-2017)

Size

  • California: 163,696 square miles.
  • Florida: 65,758 square miles.
  • Massachusetts: 10,554 square miles.
  • Oklahoma: 69,899 square miles.
  • North Carolina: 53,819 square miles.
  • Rhode Island: 1,214 square miles.

Population (2023 Estimates)

  • California: Over 39 million.
  • Florida: Approximately 21 million.
  • Massachusetts: About 6.9 million.
  • Oklahoma: Around 4 million.
  • North Carolina: About 10.5 million.
  • Rhode Island: Approximately 1.1 million.

State Taxes

  • California:Income Tax: Progressive rates from 1% to 13.3%.Sales Tax: Base rate of 7.25%, plus local taxes.
  • Florida:Income Tax: No state income tax.Sales Tax: 6%, with additional local taxes.
  • Massachusetts:Income Tax: Flat rate of 5% on wages.Sales Tax: 6.25%.
  • Oklahoma:Income Tax: Progressive rates from 0.5% to 5%.Sales Tax: About 4.5%, with local taxes adding up to around 8.5% total.
  • North Carolina:Income Tax: Flat rate of 4.99%.Sales Tax: Approximately 4.75%, plus local taxes.
  • Rhode Island:Income Tax: Progressive rates from 3.75% to 5.99%.Sales Tax: 7%.

Tax Burden Per Resident

  • California: Approximately $4,000 to $5,000.
  • Florida: Around $2,500 to $3,500.
  • Massachusetts: About $4,500 to $5,500.
  • Oklahoma: Approximately $2,500 to $3,000.
  • North Carolina: About $3,000 to $4,000.
  • Rhode Island: Approximately $4,000 to $4,500.

Tax Burden Per Taxpayer

  • California: Approximately $10,000 to $11,000.
  • Florida: Around $5,000 to $6,000.
  • Massachusetts: About $10,000 to $12,000.
  • Oklahoma: Approximately $5,000 to $6,000.
  • North Carolina: About $7,000 to $8,000.
  • Rhode Island: Approximately $8,000 to $9,000.

Income Growth

  • California: Strong income growth driven by technology and innovation.
  • Florida: Moderate to strong income growth, particularly in tourism and tech.
  • Massachusetts: Steady income growth, bolstered by education, healthcare, and technology sectors.
  • Oklahoma: Moderate income growth; historically reliant on oil and agriculture.
  • North Carolina: Steady income growth, particularly in technology and finance.
  • Rhode Island: Slower income growth; focusing on diversification and innovation.

State Tax Deficits or Surpluses

  • California: Often runs budget surpluses but faces volatility.
  • Florida: Generally maintains budget surpluses.
  • Massachusetts: Typically runs surpluses, but may experience fluctuations.
  • Oklahoma: Has faced budget challenges and fluctuations in recent years.
  • North Carolina: Usually maintains surpluses due to effective management.
  • Rhode Island: Historically struggled with deficits but is improving.

Current State Budget Deficits

  • California: Currently facing budget deficits due to revenue fluctuations.
  • Florida: Generally avoids deficits.
  • Massachusetts: Often has balanced budgets but may face challenges.
  • Oklahoma: Faces budget deficits and volatility.
  • North Carolina: Does not have significant deficits currently.
  • Rhode Island: Has ongoing budget challenges but improving.

Public Sector Employment as a Percentage of All Employment

  • California: Approximately 14-16%.
  • Florida: Around 12-14%.
  • Massachusetts: Roughly 15-17%.
  • Oklahoma: Approximately 14-16%.
  • North Carolina: Roughly 13-15%.
  • Rhode Island: About 18-20%.

Number of State/County/Local/Municipal Employees as a Percentage of State Population

  • California: Approximately 7-9%.
  • Florida: Around 5-7%.
  • Massachusetts: About 8-10%.
  • Oklahoma: Approximately 6-8%.
  • North Carolina: Roughly 5-7%.
  • Rhode Island: About 10-12%.

Economic Development

  • California: Major global economy with strengths in tech, entertainment, agriculture, and tourism.
  • Florida: Diverse economy, strong in tourism, agriculture, and aerospace.
  • Massachusetts: High-tech, education, and healthcare-focused; a leader in innovation.
  • Oklahoma: Historically reliant on oil, but diversifying into other sectors.
  • North Carolina: Strong in technology, finance, and agriculture, particularly in the Research Triangle.
  • Rhode Island: Smaller economy focused on manufacturing and healthcare; working on diversification.

California

  • Current State Budget: Approximately $306 billion for the 2023-2024 fiscal year.
  • Budget Deficit: Estimated at somewhere between $42 and $83 billion.
  • State Operating Budget Per Taxpayer: Approximately $10,000 (based on around 30 million taxpayers).

Florida

  • Current State Budget: Approximately $117 billion for the 2023-2024 fiscal year.
  • Budget Deficit: Florida typically maintains a balanced budget and does not have a significant deficit.
  • State Operating Budget Per Taxpayer: Approximately $5,600 (based on around 21 million taxpayers).

Rhode Island

  • Current State Budget: Approximately $13.6 billion for the 2023-2024 fiscal year.
  • Budget Deficit: Rhode Island has been working to maintain a balanced budget with no significant deficit reported currently.
  • State Operating Budget Per Taxpayer: Approximately $12,300 (based on about 1.1 million taxpayers).

Oklahoma

  • Current State Budget: Approximately $10.7 billion for the 2023-2024 fiscal year.
  • Budget Deficit: Oklahoma is managing a balanced budget with no significant deficit.
  • State Operating Budget Per Taxpayer: Approximately $2,700 (based on around 4 million taxpayers).

Massachusetts

  • Current State Budget: Approximately $56.2 billion for the 2023-2024 fiscal year.
  • Budget Deficit: Massachusetts has a balanced budget with no significant deficit reported.
  • State Operating Budget Per Taxpayer: Approximately $8,100 (based on around 6.9 million taxpayers).

North Carolina

  • Current State Budget: Approximately $30 billion for the 2023-2024 fiscal year.
  • Budget Deficit: North Carolina has typically maintained a surplus and does not currently have a significant deficit.
  • State Operating Budget Per Taxpayer: Approximately $3,900 (based on around 10.5 million taxpayers)

As the late and great URI Professor of Public Administration Tim Hennessey famously said, “In politics, where you sit is where you stand. Public sector budgets are not only statements of priorities, they are indicators of stewardship.”

Amen, Tim.

 

Copyright 2024, Paul Fioravanti, MBA, MPA, CTP

Beretta

Need to grow, fix or exit your business?