Former N.C. Chief Justice I. Beverly Lake Jr. told business leaders today that while state government is in a budget crisis now, the state judicial system has been in a severe financial crisis for decades.

"This is due entirely to a protracted, gross, and yes, unconstitutional underfunding of our Judicial System by our Legislature," Lake told the Triangle Business Leader Associates at the Sheraton Hotel.

He said the judicial branch's share of government spending has declined from 2.8 percent to 2.1 percent of overall state spending since he stepped down as chief justice in 2006. The signs of the system fraying are everywhere, he said, reports Rob Christensen.

Lake voiced support for a new law, that would give the judicial branch new authority to set its own priority in how it spends the available funds.

"A national survey recently conducted reveals no other state in which the court system’s budget is restricted the way it is in North Carolina," said Lake.

Lawmakers are in hot pursuit of a tax plan, which may come through tonight. Or not.

Today, the Senate side proposed a new option to close a gaping budget hole — a three-quarter cent sales tax hike, unspecified sin taxes and a 2 percent surcharge on income tax for everyone, reports Ben Niolet.

Budget negotiators were in and out of closed door meetings all afternoon. House Speaker Joe Hackney, an Orange County Democrat, said there is appetite to close the finance deal this evening.

But at one point, Sen. Dan Clodfelter, a Charlotte Democrat, left the room in a huff, saying, "No deal. There is no deal coming out."

Rosa Gill, the soon-to-be newest member of the General Assembly, says she'll be a strong advocate for education.

Gill doesn't expect she'll be seated in time for next week's budget discussions in the state House. But she plans to make her voice heard when the final votes are taken later this session on the budget.

"Maybe I can persuade them not to cut as much from schools," said Gill, who is currently chairwoman of the Wake County school board. "I'm going to be an advocate for education when I get there."

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While the House was still  looking at cutting the schools budget by more than 11 percent, public schools CEO Bill Harrison asked members raise taxes to raise more money.

He thanked the House on Thursday night for actions that would save jobs and prevent class-size increases in the lower grades, Lynn Bonner reports.

After the jump, the statement. 

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* Liberal blogger Doug Gibson outlines 10 things North Carolinians should know about the state's budget problems.

* Conservative blogger Justin Thibault says proposals to require loyalty oaths and close state Republican primaries are bad ideas.

* Washington Post blogger Chris Cillizza is still convinced that either U.S. Rep. Mike McIntyre or Rep. Bob Etheridge will run for Senate. 

* Meantime, Rep. Heath Shuler's got troubles of his own, receiving criticism for the appearance of preferential treatment on water access. 

APPLE BITES: This week it was all about Jobs — with a lower-case and upper-case J. The same day that Gov. Beverly Perdue signed into law changes to the state's corporate taxes designed to lure Apple, the company founded by Steve Jobs announced it would build a $1 billion data center. Opponents of corporate incentives, meantime, felt more like the biblical Job, suffering yet again.

BURR'S CRUSADE: U.S. Sen. Richard Burr stood up for tobacco in the Senate. The Winston-Salem Republican spent more than four hours on the floor arguing against a bill to allow the U.S. Food and Drug Administration to regulate tobacco. He said it would stifle innovation in nicotine delivery systems and hurt the "gold standard" of food and drug oversight. He and Democratic Sen. Kay Hagan proposed an alternate bill.

EMPTYING HOUSE? Another state representative is leaving. Rep. Bonner Stiller, a Brunswick County Republican, will step down this month to spend more time with his family. He joins four other legislators this term who've stepped down to accept a gubernatorial appointment (Rep. Linda Coleman) or move to the state Senate (now Sen. Dan Blue) or because they died (Sen. Vernon Malone) or were under investigation (Rep. Cary Allred).

IN OTHER NEWS: An East Carolina University professor will discuss his studies of the vice presidency with Joe Biden. ... Elizabeth Edwards is not interested in running for U.S. Senate, but she will open a furniture store in Chapel Hill. ... Former U.S. Sen. Elizabeth Dole will make her first political appearance since losing in November when she introduces one-time GOP presidential candidate Mike Huckabee in Charlotte next week. ... Hagan ran into Supreme Court nominee Sonia Sotomayor in the ladies' room at the Capitol.

Residents of adult care homes are taking to YouTube to lobby the legislature.

The industry group Friends of Adult Care Homes has filmed a three-minute video featuring residents and their family members speaking about the benefits.

The video notes that state budget proposals would cut $25 million from adult care homes, arguing they are already "consistently underfunded" and some would fail. 

"I would live with my family, but they all go to work," says one woman in the video. "I'd be all by myself. I don't know if I could handle myself any more, so I do need somebody."

Friends of Adult Care Homes is e-mailing a link to the video to legislators and other people in Raleigh.

"Since the frail and elderly residents who live in North Carolina's adult care homes can't all come to Raleigh, we're bringing their voices directly to you," says executive director Lou Wilson in the e-mail. 

The video had been seen 236 times this morning. 

For now, Democrats plan to attack Sen. Richard Burr on the economy.

Eric Schultz, a spokesman for the Democratic Senatorial Campaign Committee, took issue with the headline of a previous post on Burr's chances in 2010.

He rattled off several criticisms of Burr: The controversial ATM statement and his votes against President Obama's stimulus package, the Senate budget resolution, and the Lilly Ledbetter Fair Pay Act.

"North Carolinians deserve two senators who will work to get this economy working again," he said. "Not one who stands in the way at every turn."

Several things were notable about the criticisms. They focused on contrasts between Burr and Obama, they centered on the economy and they were recent.

Of course, things change. At this point in the 2008 election cycle everyone thought the race would be about illegal immigration. 

* U.S. Rep. Howard Coble received an award from the American Conservative Union; his lifetime rating is 89.21 over 24 years.

* Democratic pollster Tom Jensen thinks state Sens. John Snow or Joe Sam Queen would make good candidates for Rep. Heath Shuler's seat.

* Greensboro News-Record reporter Mark Binker says Gov. Beverly Perdue quashed a rumor that she would submit a do-over on the budget.

* Charlotte Observer columnist Jack Betts gives state schools CEO Bill Harrison props for speaking out for a tax hike for education.