Budget bits

State Sen. Linda Garrou, a chief budget writer and Winston-Salem Democrat, told her colleagues today that they may have a joint House-Senate budget bill to review Monday

But the stumbling block to a deal — a lack of agreement on whether to include a land transfer tax option for counties — has yet to be removed, reports Dan Kane.

House and Senate budget writers have been meeting regularly to resolve differences between their $20 billion spending plans. Both sides say they have much of the budget in place, save for how much to borrow and on what projects.

Senate Majority Leader Tony Rand, a Fayetteville Democrat, said both sides have talked about a target of roughly $500 million in borrowing.

Read more after the jump.

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Lawmakers and Gov. Mike Easley missed the July 1 deadline for a new state budget. State government is currently operating under a stopgap spending law that expires Aug. 1.

House leaders have paired the land transfer tax with legislation to have the state take over the counties' rising Medicaid costs, and want both placed within the budget. Rural counties are struggling with the Medicaid bills.

But urban counties are struggling with costs associated with growth, and Democrat lawmakers want to offer them the option of a land transfer tax to help pay for new schools and other infrastructure. The House proposal would only allow a .4 percent tax to be adopted if voters agree in a referendum.

Two weeks ago, Senate leaders had agreed to include the land transfer tax along with a Medicaid takeover in the budget, but Senate Democrats balked. Rand said he's not seen any change among his colleagues since then. House Speaker Joe Hackney, an Orange County Democrat, said the House Democrats' position has not changed either.