The House approved a bill that would give state Treasurer Janet Cowell greater flexibility in investing the state's pension fund.

The treasurer oversees the fund, a $55.9 billion pool of money, that pays retirement benefits for teachers and state and local government employees.

Cowell's office was pushing the bill. The target for return on investments in the fund is 7.25 percent. Without the bill, Cowell's office estimates a return of 6.92 percent, which would translate to a $1.3 billion annual shortfall.

Opponents said the bill would allow risky speculation.

"We need to reduce the risk," said Rep. Bill McGee, a Clemmons Republican.

Rep. Pryor Gibson, a Wadesboro Democrat who fended off multiple amendments meant to limit investment options, said the legislature should trust the Treasurer's office to make the right decisions.

"We hire professionals to do a job over there," Gibson said.

The bill must now return to the Senate before it would go to the governor.

The House membership was antsy Thursday as they plowed through a series of routine bills.

For the legislature, Thursday is their Friday and as soon as the session ended, members could go home for the Easter weekend.

But Thursday was also a big day for Rep. David Guice, a freshman Republican from Brevard, who was pitching a bill to benefit Transylvania County. As Guice explained methodically to his colleagues, the bill would authorize the county to utilize high school students in a trade program to help construct affordable housing for public employees who are being priced out of the market.

House members rustled and murmured as Guice continued to pitch his bill. Finally, Rep. Bill Faison, an Orange County Democrat asked a question.

"Are you aware of any opposition to this bill?" Faison asked, prompting laughter from the floor.

"You know, when you're a freshman and you stand up for the first time," Guice began, prompting more laughter and a little applause.

Guice continued on selling his bill. Eventually Faison asked another question.

"What do you think the odds might be if you stop now you'll get a unanimous vote?"

After more explanation from Guice, the House finally did vote. The bill passed 111 to 1.

Rep. Bill McGee, a Clemmons Republican voted against it. Maybe Guice should have explained his bill more.

N.C. House and Senate Republicans will select their leadership at caucus meetings Sunday afternoon in the law offices of Crumley and Associates in Greensboro.

Rep. Dale Folwell, a Forsyth County Republican who is wrapping up his two-year term as the leader of the joint legislative Republican caucus, will convene the meeting and then the House and Senate Republicans will split into separate groups to vote on their leaders, Dan Kane reports.

The meetings will be closed to the public, but Folwell said he will report the results immediately after.

On the Senate side, two are challenging Sen. Phil Berger, an Eden Republican seeking a third term, to be minority leader. They are Sens. Bob Rucho of Charlotte and Pete Brunstetter of Forsyth County.

On the House side, Folwell said so far there are no challengers to House Minority Leader Paul Stam of Apex, who is seeking his second two-year term. Rep. Thom Tillis of Mecklenburg County is the sole announced candidate for Republican whip. The current holder of that job, Rep. Bill McGee of Forsyth County, is not seeking a second term, Folwell said.

A new joint caucus leader will also be selected from the Senate Republicans. Folwell said he is only aware of one candidate, state Sen. Eddie Goodall from Union County.

A state bill urging Congress to consider offshore drilling in North Carolina has been sent to committee.

The House resolution had been sponsored by Republican leader Paul Stam and Reps. Bill McGee and Dale Folwell of Forsyth County and Carolyn Justice of New Hanover County. It had 41 cosponsors, all Republicans, including state Treasurer candidate Bill Daughtridge.

The bill was mostly symbolic and would not have allowed drilling in North Carolina.

After a series of clauses saying that offshore drilling would reduce gas prices and "promote economic growth and prosperity," the bill calls for the Congressional delegation to support a bill that would end the moratorium on drilling.

The bill had its first reading today, but Speaker Joe Hackney sent it to the Rules Committee.

The move gives Hackney the latitude to revive the bill at any time or let it die in committee before the session ends.

Clarification: An earlier version of this post misused the word "tabled." Hackney's spokesman Bill Holmes says the bill has just been sent to committee and may yet be heard on the House floor.

"To say it's been tabled at this point is premature," he said.

But he would not say that the bill will definitely make it out of committee and be voted on by House members as a whole.

House budget writers saved a tax break in the proposed $21.4 billion state budget for fully disabled military veterans, but it will cost the counties.

The property tax homestead exemption for the veterans has an $8.6 million price tag. House leaders wanted to pay for it in the state budget, but Rep. Paul Luebke, a Durham Democrat, said Senate leaders did not go along, reports Dan Kane.

"The only way we could get that program is if we spread it around to the various counties," Luebke said.

House Minority Whip Bill McGee, a Forsyth County Republican, noticed the cost shift in the budget proposal. He pointed it out on the House floor during Monday's budget debate, but he did not criticize the move.

Mary Fant Donnan is no stranger to newspapers.

In recent years, the candidate for the Democratic nomination for labor commissioner had two letters to the editor published in the Winston-Salem Journal, her hometown newspaper.

(In Dome's experience, that means she's probably written a few more that didn't make the cut.) 

The first letter ran on Oct. 29, 2002. It praised her neighbor Becky Johnson, then running for state House District 93. 

"She would work tirelessly to use the best of her experience to give Winston-Salem a statewide presence," she wrote. "She can work across party lines and represent the interests of Winston-Salem."

The second letter ran on Nov. 29, 2006. It questioned the need for a state prison in Grayson County, Va., where Donnan grew up.

"The stretch where the new prison is proposed, by Molly Osborne Shoals, is one of the most beautiful," she wrote. "Locating a prison there does not make sense."

Both letters show Donnan trumpeting a lost cause. Johnson lost to Republican Rep. Bill McGee by nearly a 2-1 margin, while construction went ahead on the state prison in Grayson County.

State Rep. Bill McGee said an increase in funding for transportation is needed.

"I don't think it's any doubt that if more funding were available it would be put to good and immediate use," McGee said.

McGee is a member of the 21st Century Transportation Committee. The committee is studying the infrastructure needs of the state.

Projects in Forsyth County, the district McGee represents, have been delayed year after year because of low funds, he said.

The Department of Transportation also needs to finish the major roads across the state, which would relieve traffic congestion and tie-ups, he added.

"I think that's something that needs immediate attention," McGee said.

House Speaker Joe Hackney has appointed the six-member committee that will look into allegations against Rep. Thomas Wright.

According to an announcement from Hackney's office, the committee will have the same House members as the Joint Legislative Ethics Committee, which is also looking into Wright.

The two committees are needed because of the nature of the allegations and the relevant laws in place at the time. (For more on that, visit the Tavern.)

Rep. Rick Glazier will chair the committee and House Minority Leader Paul Stam will be vice chair.

The other members are: Reps. Marvin Lucas, Bill McGee, Edith Warren and Laura Wiley.

Glazier, Lucas and Warren are Democrats; Stam, McGee, and Wiley are Republicans.

Joe Hackney is concerned about how long legislative assistants are working.

The House speaker, an Orange County Democrat, has created the "Ad Hoc Advisory Committee on the Working Hours of House Legislative Assistants" to see if the rules governing the 106 legislative assistants' work schedules need to be updated, Dan Kane reports.

"In an institution this size there's always rumors and I'm just trying to get ahead and anticipate and find out if there are any problems," Hackney said. "And if there are some, how we ought to handle it."

Hackney said he was not aware of any confirmed allegations that legislative assistants were skipping out on work, but he also said the rules were unclear as to who authorizes their work schedules or whether they could accrue compensatory time.

The committee holds its second meeting at 8:30 a.m. Wednesday.

More after the jump.

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The House passed a second reading of its two-year budget on a 68-51 party-line vote tonight. Here's a quick summary of the arguments for and against the bill. (Not direct quotes.)

Rep. Bill McGee: I don't like the certificates of participation. We have too much debt. What'll happen in the future? Rep. Deborah Ross: That's not a big deal. We have an excellent credit rating. Rep. Bill Owens: Don't vote against the budget just because you don't like two percent of it. Rep. Paul Stam: Yeah, but that two percent caused us to break our word on the "temporary taxes." Rep. Leo Daughtry: We didn't even get a chance to vote on them. Rep. William Wainwright: That money will be well spent on worthwhile programs. And the budget also provides a tax credit for adoption, an Earned Income Tax Credit and tax cuts for small businesses. Rep. Pricey Harrison: And lots of good conservation stuff too. Rep. John Blust: Come on. We would throw a CEO in jail for signing a financial statement this dishonest. Rep. Annie Mobley: Can't we all just get along?