VOTE HAUNTS: Nearly two weeks after U.S. Rep. Larry Kissell bucked his party and voted against health care legislation, Democrats in his district are seething. The talk is that Kissell may face a serious primary challenge. (Charlotte Observer)

PORTRAIT PLEASES: Rene Dickerson was nervous as he prepared to unveil his portrait of the late U.S. Sen. Jesse Helms. The cloth over the painting dropped, and the room gasped. The crowd broke into long applause. (N&O)

RESERVES AMPLE: North Carolina state government has at least $620 million at its disposal so far to close any budget hole this fiscal year, the state's budget director says. So far, revenue is down $95 million, a fraction of the multi-billion dollar shortfall faced last year. (AP)

Gov. Beverly Perdue said the early news on the April 15 tax returns is that the state revenue picture is better than expected.

After being briefed this morning by budget director Charles Perusse, Perdue said she was told that sales tax revenues for the last quarter are "fairly good" or "not as bad as it could have been," Rob Christensen reports.

But the governor said the tax returns have not yet been fully calculated so it is difficult to get the full picture.

"I believe by Friday I will have a handle on the numbers and by Tuesday or Wednesday we can give you the numbers," Perdue told reporters after speaking to a luncheon of the state chapter of the National Federation of Independent Businesses at the Raleigh Marriott City Center.

The state is facing a $2 billion budget shortfall for the fiscal year ending June 30th and a $3 billion to $4 billion shortfall for the year beginning July 1.

The governor said she was confident the state could pay its bills and meet its payroll.

Taxpayers who have to write a check to the state tend to wait until the very last day.

And the roster of procrastinating taxpayers includes folks who owe six figures or more, said state Budget Director Charlie Perusse.

"Folks who are required to pay final payments for the prior tax year, especially large income tax payers, hold onto their money as long as possible," Perusse said.

It's human nature to wait to write that check to the state. There's also a financial incentive — the money draws interest if a taxpayer hangs onto it.

All those checks getting mailed on the deadline is part of the reason why April numbers are a big deal for those writing the state budget. Perusse said the revenue department is still processing tax returns and it's too early to know whether the state's $3 billion budget deficit will grow or shrink.

In past years, the state has collected more than $1 billion in April. Officials have been pleasantly surprised in past years when the April numbers were even better than expected.

"Obviously the surprise could go either way," Perusse said.

Gov. Beverly Perdue will present her budget tomorrow.

Perdue will hold a press conference at 11:30 a.m. to discuss her plans for state spending over the next two years. 

After her remarks and a question-and-answer period, Budget Director Charlie Perusse will also answer questions from the press.

Dome will be following the budget unveiling on Twitter with the hash tag #ncbudget and live-blogging the event here.

Gov. Beverly Perdue will likely recommend huge cuts this week.

Her budget office has suggested scenarios that call for cutting from $1.3 billion to $2 billion from the state's $21 billion budget, or 10 to 15 percent at most state agencies.

Today, Perdue has scheduled a speech about her education initiatives. She has already pledged to increase per-pupil spending at public schools, which will likely be paid for with money from the federal stimulus package.

On Tuesday, Perdue will release her proposed budget. The state Senate will consider it first, then the House will make modifications.

"The decisions the governor is having to make are some of the toughest that have been made, really, in the last 80 years," Budget Director Charlie Perusse said. (N&O)