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Morning Memo: Inside McCrory's budget; Foxx considered for Obama post

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."

***Good morning. Thanks for reading the Dome Morning Memo -the source for North Carolina political news and analysis. Send news and tips to dome@newsobserver.com. Click below for much more.***

McCrory offers modest budget, small pay raise for state workers

Gov. Pat McCrory proposed a modest $20.6 billion state budget Wednesday that includes a 1 percent pay hike for state employees but limits spending growth to 2 percent.

The Republican governor emphasized spending on education and economic development, two campaign priorities in the plan, by including money to hire 1,800 additional classroom teachers and $2.7 million to craft a new branding strategy to lure companies to the state. Another 5,000 at risk 4-year-olds would be able to get into pre-kindergarten programs, at a cost of $9 million a year. But it also cuts $117 million that now funds teacher assistants.

“We have a sound foundation but the foundation now has some cracks in it,” McCrory said in an announcement at the Capitol. “Our immediate goal is to fill in those cracks ... so we can have stronger foundation for future generations.”

McCrory included no major high-priced spending initiatives, reflecting the state’s still tenuous economic picture and his campaign promises to limit government programs. On average, state agencies will see their budgets cut 1 percent to 3 percent from the current year’s $20.2 billion spending plan, leading to some jobs cuts and the elimination of longtime state interests. The budget year starts July 1.

Morning Memo: 5 big questions for Pat McCrory's first budget plan

McCRORY'S BUDGET DEBUTS TODAY: Gov. Pat McCrory will unveil his first state budget proposal at 10:30 a.m. Tuesday -- a document that will help define his legislative agenda and vision for the state. Here are five questions he will face:

1. THE STATUS QUO OR BIG IDEAS? The state budget is as much a policy document as it is a line-item spending plan. Does McCrory offer big ideas to overhaul state government, such as a tax overhaul or major spending cuts, or put forward a status quo budget with few changes from the previous years?

2. WHO'S BUDGET IS THIS -- McCRORY'S OR POPE'S? State Budget Director Art Pope knows the innards of state government from his time as a lawmaker. But he is a polarizing figure in some political spheres and Democrats are looking for his fingerprints, ideological and otherwise, on the spending plan.

3. HOW DOES THE BUDGET ADDRESS UNDERPAID TEACHERS, OR STATE EMPLOYEES? McCrory's budget comes days after a new report showed the state's teachers ranked No. 48 in the nation in pay. Does the governor acknowledge this and offer them a raise? And likewise with state employees, who received a minimal 1.2 percent salary bump last year after years without pay increases -- do they get any love?

4. HOW DOES THIS BUDGET HELP CREATE JOBS?Following the GOP mantra that everything is about jobs this legislative session, what does the budget do in terms of economic development, incentives and job creation?

5. WILL LAWMAKERS TAKE IT SERIOUSLY? McCrory is the new governor with an approval rating higher than state lawmakers, but the lawmakers craft the budget. Will they stick closely to McCrory's draft or go their own direction?

***Thanks for reading the Dome Morning Memo, the source for North Carolina political analysis and news. Send tips to dome@newsobserver.com. And click below to read possible answers to the questions above.***

Lawmakers return to Capitol chambers with ceremonial flourish

The N.C. General Assembly met in its old chambers Monday evening at the State Capitol to commemorate the 10th anniversary of an FBI raid that eventually led to the return of the state's Bill of Rights.

On the House side, state lawmakers took turns reciting the history behind the event. The scene provided quiet a contrast to the more modern legislative chambers. House Speaker Thom Tillis stood on the small dais in front of a large painting of George Washington, a Thomas Sully copy of the Gilbert Stuart "Lansdowne" portrait. The lawmakers spoke at times without microphones, voices echoing in the softly lit chamber, giving the whole proceeding a Ken Burns affect.

The House members were crammed elbow-to-elbow in the tiny half-circle rows of old wooden desks. Rep. Roger West, a Marble Republican, sat in desk No. 106, the one formerly occupied by his father, Herman West, a two-term House member and one-term state senator. "I was just sitting here, thinking about what they were thinking about back then," he said. "It was probably a different agenda."

Morning Memo: Rare session at Capitol, more fallout from tainted donor

UPDATED: TODAY AT THE STATEHOUSE: The House and Senate convene this evening in the old legislative chambers at the Capitol to commemorate the 10th anniversary of the recovering of the N.C. Bill of Rights after a Union soldier took it during the Civil War. Gov. Pat McCrory will attend a reception for the event earlier in the day.

McCRORY DISTANCES HIMSELF FROM TAINTED BURNS MONEY:From AP: North Carolina's governor says he had no contact with a campaign contributor who faces racketeering charges in Florida over illegal gambling. Gov. Pat McCrory said Friday he had never heard of Chase Egan Burns, the Oklahoma man accused this week of owning gambling parlors operated by Allied Veterans of the World. Prosecutors say the purported charity earned about $300 million from illegal gambling, with only about 2 percent actually going to veterans. McCrory's campaign has purged itself Wednesday of $8,000 in contributions made in October by Burns and his wife, sending the money to a Durham charity. "I wouldn't know him if I saw him," said McCrory, a Republican. "I think we got it (the checks) through the mail."

***Thanks for reading the Dome Morning Memo -- a roundup of North Carolina political news and analysis. Send news and tips to dome@newsobserver.com. Click "Read More" for more.***

Morning Memo: McCrory budget may emerge soon, men oppose 'nipple bill'

McCRORY BUDGET RELEASE NEXT WEEK? Top GOP lawmakers say Gov. Pat McCrory is expected to release his state budget plan next week. The governor's office is remaining mum. But budget details are leaking to lawmakers, who say McCrory's spending plan isn't like to include details of a major tax overhaul, such as corporate or personal income tax cuts, and instead it will assume the tax plan being negotiated privately by Republicans will be revenue neutral.

MEN OPPOSE NIPPLE BILL: Public Policy Polling will release more from its statewide voter survey later Friday. But here's a peak: nearly half of men -- 45 percent -- oppose the bill to prohibit women from barring their breasts and 34 percent support. Women are deadlocked at 38 percent on what is called the "nipple bill." (Insert stereotypical joke about men here.)

***Thanks for reading the Dome Morning Memo -- a roundup of North Carolina political news and analysis. Send news and tips to dome@newsobserver.com. And read much more below.***

Morning Memo: Voter ID talk continues, McCrory job rating steady

TODAY AT THE STATEHOUSE: The voter ID talk continues today at 1 p.m. in a House committee after more than four hours of comments Tuesday about the topic -- but not an actual bill. (More on this below.) Other House committees will consider an immigration measure to restrict the use of Mexican consular documents and a bill to limit lottery advertising. The House convenes at 3 p.m. The Senate at 2 p.m. to take a final vote on the Charlotte aiport authority. A Senate committee will consider UNC Board of Governors nominations at a 4 p.m. meeting. Gov. Pat McCrory lists no public events on his schedule.

McCRORY JOB RATING HOLDS STEADY: The Republican governor's approval rating stabalized in the latest Public Policy Polling survey after a month in which his negatives spiked. The March poll from the Democratic firm put McCrory's approval rating at 49 percent with 35 percent disapproving. Another 16 percent remain unsure. Pollster Tom Jensen previewed the numbers Tuesday on News14's Capital Tonight program with Tim Boynum. Check Dome for more when the full poll is released later Wednesday.

***Thanks for reading the Dome Morning Memo -- the shot of caffeine that gets the North Carolina political crowd started. Send news and tips to dome@newsobserver.com. Read more news and analysis below.***

Environmental group launches radio ad against fracking

An environmental advocacy group is trying to generate grassroots opposition to the fracking bill moving with radio ads that target two lawmakers. (Listen here to a YouTube version.)

Clean Water for North Carolina, a nonprofit group, is running the minute-long radio spot in Raleigh and in the districts of Reps. James Boles and Mike Stone, both of whom live in the area in central North Carolina ripe for natural gas extraction.

"Some legislators want to go back on their promises and fast track fracking and get rid of a lot of important protections," a woman says, amid the clatter of what sounds like diner dishes. "And politicians wonder why we don't trust them," a man replies.

Morning Memo: Hagan hires campaign manager, GOP '14 field unsettled

HAGAN HIRES FORMER REID AIDE AS CAMPAIGN MANAGER: The 2014 U.S. Senate race is taking shape with Democratic incumbent Kay Hagan hiring Preston Elliott as her campaign manager. Elliott most recently served in the same role to help U.S. Sen. Jon Tester win re-election in Montana, one of the closely watched races of the 2012 campaign cycle. In 2010, Elliott worked as coordinated campaign director for U.S. Senate Majority Leader Harry Reid in his re-election effort, another high profile race. The big hire signals that Hagan expects a big fight in 2014. "He has a proven track record of success, and with his help and the help of North Carolinians of all walks of life, I expect to cross the finish line with a victory in November 2014," Hagan said in a statement.

WHO WILL HAGAN FACE?: A new Public Policy Polling survey -- set for release later Tuesday and obtained exclusively by Dome -- shows its a wide open race among Republican primary voters. Republican Lt. Gov. Dan Forest leads the field with 18 percent, according ot the Democratic polling firm. PPP added Forest's name to the potential field for the first time this month and he still managed to outpace Congresswoman Virginia Foxx (13 percent) and Labor Commissioner Cherie Berry (12 percent). The only announced candidate, tea partier Greg Brannon, gets 4 percent and at least a quarter of voters weren't decided on any of the nine names PPP tested. (More from the poll below.)

***Thanks for reading the Dome Morning Memo -- the source for North Carolina political news and analysis. Send news and tips to dome@newsobserver.com. Much more Memo below.***

Morning Memo: Questions mount on MetLife incentives deal

FIVE DAYS LATER, McCRORY STILL SILENT ON ROLE IN METLIFE DEAL: Five days after the MetLife jobs announcement, Gov. Pat McCrory and the governor's office remains quiet on what role he played in luring the company even as questions mount. Consider this lead sentence from AP story Friday: "Gov. Pat McCrory avoided questions Friday about the state offering MetLife Inc. $94 million in tax breaks and other incentives to move thousands of jobs to North Carolina and using his former employer to help broker the deal." The Friday announcement was the second time in two days that McCrory dodged reporters' questions. The governor appears at the Department of Environment and Natural Resources today for a 12:30 p.m. announcement. Will he break his silence?

QUESTIONS MOUNT ABOUT THE INCENTIVES: At the same time, Charlotte area officials are raising questions about whether the incentives were even necessary to lure the company to the city, where half the 2,600 jobs will be located. On Saturday, less than 24 hours after a press conference announcing the deal, county commissioners questioned whether MetLife knew it was coming to Charlotte before commissioners on Tuesday gave preliminary approval for the incentives.

Commissioners Chairwoman Pat Cotham said questions about the timing of the incentives vote started to enter her mind when news broke that the company had picked North Carolina and media events were arranged – only two days after the commissioners voted. Later, she learned that some MetLife executives had already been picking out schools and colleges for their children. “In my opinion, the deal was done when we first learned of it and voted for incentives,” Cotham, a Democrat, wrote in her first email to commissioners on Saturday.

***Good morning and thanks for reading the Dome Morning Memo -- the source for N.C. political news and analysis. Read much more below.***
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