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McCRORY TO ANNOUNCE MEDICAID SYSTEM OVERHAUL: Gov. Pat McCrory rejected a Medicaid expansion earlier this year saying the system was broken and Wednesday morning he is expected to describe how he plans to fix it. The Republican has talked frequently about the rising costs of the healthcare system for select low-income and disabled residents and issued a video preview Tuesday saying he would create a "partnership" that will help keep costs low. Check Dome later today for more details from the 10 a.m. press conference.

***It's a jam-packed day in North Carolina politics. Get the full scoop on all the big stories from the Dome Morning Memo below. Send tips and news to dome@newsobserver.com.***

GOODWIN ADVERTISES ACCESS FOR CAMPAIGN CASH: Democratic Insurance Commissioner Wayne Goodwin is soliciting campaign donors to join his "Commissioner's Club," promising private dinners to high-level contributors and emailed "personal updates" on his agency's work. "Be ahead of your friends and colleagues with exclusive updates -- join the Commissioner's Club TODAY," a campaign email states. (Click below for more.)

TODAY IN POLITICS:The Council of State meets this morning at 9 a.m. to handle a number of property matters. Gov. Pat McCrory's office said he won't take questions, as is customary, after the meeting. House and Senate committees are full of action now that the deadline for the majority of bills has passed and the machinations begin. (See more below). The Legislative Black Caucus will hold a press conference at 11 a.m. to criticize "tea party Republicans" who want to change election laws. McCrory will meet privately with Canadian Ambassador Gary Doer later this morning.

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FLAG FLAP PROMPTS McCRORY ABOUT-FACE: A Confederate battle flag hung inside the old North Carolina State Capitol last week to mark the sesquicentennial of the Civil War is being taken down after civil rights leaders raised concerns. The decision was announced Friday evening, hours after the Associated Press published a story about the flag, which officials said was part of an historical display intended to replicate how the antebellum building appeared in 1863. The flag had been planned to hang in the House chamber until April 2015, the 150th anniversary of the arrival of federal troops in Raleigh.

"This is a temporary exhibit in an historic site, but I've learned the governor's administration is going to use the old House chamber as working space," Cultural Resources Secretary Susan Kluttz said Friday night. "Given that information, this display will end this weekend rather than April of 2015." The decision was a quick about-face for the McCrory administration, which initially defended the display. More from AP here.

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Two new bills filed Thursday would change the way North Carolinians vote.

The state's early voting period would be shortened and Sunday voting eliminated under one bill. The bill from House Majority Leader Edgar Starnes of Caldwell County also would eliminate straight-ticket voting and same-day registration. And it would make non-partisan judicial elections partisan.

The bill could help Republicans.

It would lop a week off the early voting period, which Democrats have used more successfully than Republicans. It would also stop straight-ticket voting. Democrats cast 300,000 more straight tickets than Republicans in 2012. And by ending Sunday voting, it would stop the heavily Democratic "Souls to the Polls" efforts to get voters out after Sunday church services.

A bill introduced by Senate Rules Chairman Tom Apodaca of Hendersonville would eliminate public financing of judicial and other statewide races now eligible for it. --Jim Morrill, Observer staff writer

TODAY AT THE STATEHOUSE: Another big day at the legislature as the legislative session nears the half-way mark and the bill filing deadline. 10 a.m.: The Senate Education Committee considers a bill to take charter school oversight authority away from the state's Department of Public Instruction and loosen requirements on the schools. Noon: House Public Utilities considers bill to stifle the state's consumer advocacy group. 1 p.m.: House Elections Committee will discuss repeal of campaign finance matching money for candidates, a measure included in the governor's budget. The committee sent a notice that the voter ID measure is on hold temporarily so it can consider other legislation, a reversal from what lawmakers planned. At the same time, the Senate Finance Committee will begin talk about taxes with discussion of a bill to reduce the burden on businesses but no votes are expected. 2 p.m.: The Carolina Panthers bill is on the House calendar. The Senate convenes simultaneously with no major bills on the desk.

Today, Gov. Pat McCrory sticks to his comfort zone for another address to another business group, this one is the N.C. Chamber's annual conference in Greensboro. Later in the day, he'll meet privately with the N.C. Sheriff's Association.

GAMBING MONEY PURGE CONTINUES: As the Morning Memo reported Tuesday, McCrory forfeited campaign contributions from a second sweepstakes company executive charged in an gambling ring. And as AP found, the purge is likely to continue: McCrory received another $8,000 in October from John Patrick Fannin and his wife, who live in Little River, South Carolina, according to records reviewed by The Associated Press. Fannin is also among the sweepstakes operators indicted by Florida prosecutors in the Allied Veteran's case. (A McCrory spokeswoman) said McCrory's campaign will review those donations, too.

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The creation of a Charlotte airport authority would raise thorny legal issues involving airport debt and could even affect the cost of state borrowing, the N.C. Treasurer’s office said Monday.

Deputy Treasurer T. Vance Holloman said legal uncertainty over the airport’s $860 million debt “could result in potential prolonged litigation.” He said transfer of airport control from the city of Charlotte to a new authority “could affect the cost of borrowing and desirability of North Carolina revenue bonds.” He urged lawmakers to “proceed cautiously.”

Holloman made the comments in a letter to Sen. Bob Rucho, a Matthews Republican and a main sponsor of legislation that would create an independent, 13-member authority to run Charlotte Douglas International Airport. Full story here.

UPDATED: BLOOMBERG TO TARGET N.C. IN GUN DEBATE: New York City Mayor Michael Bloomberg is preparing to launch a major TV ad campaign aimed at U.S. senators in swing states -- including Democrat Kay Hagan. From the NYT: "Determined to persuade Congress to act in response to that shooting, Mr. Bloomberg on Monday will begin bankrolling a $12 million national advertising campaign that focuses on senators who he believes might be persuaded to support a pending package of federal regulations to curb gun violence. The ads, in 13 states, will blanket those senators’ districts during an Easter Congressional recess that is to be followed by debate over the legislation."

TODAY AT THE STATEHOUSE: The Dix lease to the city of Raleigh hits the chopping block. The Senate convenes at 7 p.m. but won't consider the bill until Tuesday. The House convenes at 4 p.m. but no votes are expected. The Wake County delegation at 4 p.m. in room 643 of the legislative office building. (More on the meeting below.) Gov. Pat McCrory lists no public events on his schedule today.

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UPDATED: DEMOCRAT FILES FIRST MAJOR TAX BILL: With a bipartisan list of sponsors, Charlotte Democratic Sen. Dan Clodfelter beat Republicans to the punch on tax overhaul legislation. Clodfelter filed a bill Thursday to lower personal and corporate income taxes, as well as the state sales tax with a more modest expansion of taxable services. One big proposed change: a flat income tax rate at 6 percent, instead of three-tiered structure now, as well as exempting the first $11,000 in income from taxation. Clodfelter said it would help all taxpayers but especially low- and middle-income residents.

McCRORY SAYS NO INCOME TAX ELIMINATION: Gov. Pat McCrory, who campaigned on a plan to significantly lower personal and corporate income taxes and possibly eliminate them, is now conceding ground. McCrory took his budget tour on the road Thursday to Wilmington. The Star-News reported: "Even though McCrory cited the state’s tax system as a disadvantage in competition with South Carolina and Virginia, he said it was not possible now to eliminate the personal or corporate income taxes as part of his upcoming tax reform proposals."

***It's March Madness -- in basketball and state politics. Read more Dome Morning Memo below. Send news and tips to dome@newsobserver.com. ***

Republican lawmakers are giving Gov. Pat McCrory's budget a favorable rating -- particularly compared to his Democratic predecessor -- but Democrats are raising concerns about taking money from outside entities, particularly those focused on economic development and minority programs.

State Budget Director Art Pope presented the plan to lawmakers Thursday, a day after it was submitted to the legislature for consideration.

"If this was the budget bracket battle, this would go to the next round," Republican state Rep. Tom Murry said, playing office the start of March Madness. The previous governor's budget would have been eliminated in the first round.

But Democrats are concerned about gutting once-sacred cows, such as the Golden LEAF Foundation, N.C. Rural Economic Development Center and other programs that received money from the state commerce department.

UPDATED: WHAT THE BUDGET SAYS ABOUT McCRORY: Columnist Rob Christensen -- "It suggested that McCrory is a pragmatic, moderate conservative – not a tea party Republican. The budget colored him an incrementalist with a modest vision of what government can or should accomplish. A governor’s first budget is particularly important because the governor is at the height of his or her power to push an agenda through the legislature. McCrory will never has as much leverage as he has today. So what did he do with his leverage?

"McCrory’s budget offered no sweeping vision of what he wants his governorship to be about. ... This may be sound management, but it is not the stuff of which legacies are made."

REPUBLICANS STACK THE DECK: The UNC Board of Governors elections in the House on Wednesday opened a chasm between Republicans and Democrats. The GOP elected mostly its own kin to the board, sweeping out all incumbents. Democrats voiceferously objected. But House GOP leader Edgar Starnes' response crystalized the debate: "I would just remind you of one thing. The Republicans won the election. We are in control. We intend to elect Republicans and appoint Republicans and we make no apology for it."

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