Current Flag:
This flag is way too similar to Texas’, and it has way too much text. It also probably has some underlying Confederate symbolism, as it was designed by a veteran of the Confederate Army.
My Redesign:
I used the same color scheme, but made the rectangle thing a triangle that goes the full length of the fly. The stars represent North Carolina as the 12th state (the big one is specifically for the state). Similar symbolism to the Hospitality Flag for Mississippi.