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.

The benefits of requiring paid sick days for workers would offset the costs by improving public health and employee retention, supporters of state legislation that would require such time said this morning.

A House bill would make employers provide up to seven days of paid sick time per year so that workers can tend to illness without fear of losing income, Jonathan Cox reports.

Forty-two percent of workers in North Carolina, or 1.6 million people, lack such a benefit, according to numbers provided by the N.C. Justice Center, which advocates for the poor and is pushing for passage of the legislation.

"Everyone gets sick," said Rep. Alma Adams, a Guilford County Democrat and primary sponsor of the legislation. "Unfortunately, not everyone has a fair chance to get better."

Employers, though, say that imposing such a mandate would cause an onerous burden, especially during the grips of severe recession.

"Small businesses are struggling so much right now," said Gregg Thompson, state director for the National Federation of Independent Business. "That additional expense could be very damaging."

A small business group is honoring nine North Carolina politicians.

The National Federation of Independent Business is giving the Guardian of Small Business award to U.S. Sens. Richard Burr and Elizabeth Dole and U.S. Reps. Sue Myrick, Patrick McHenry, Howard Coble, Walter Jones, Virginia Foxx and Heath Shuler.

Except for Shuler, all of the recipients are Republicans. 

The award is given to members of Congress who voted with the group at least 70 percent of the time. This past session, the NFIB opposed bills that would allow "card check" unionization and make it easier to file claims of pay discrimination and supported bills to aid small businesses.

The highest score went to Myrick, who voted with the NFIB 90 percent of the time, or all but one of 11 votes. The lowest went to Rep. G.K. Butterfield, who voted with the group 50 percent of the time or five out of 11 votes.

Fifty-eight senators and 194 representatives will receive the Guardian award this year.

GREENSBORO — With North Carolina's Senate race closing up, business is beginning to use its clout to help Republican Sen. Elizabeth Dole.

Dole accepted the endorsement Wednesday of the National Federation of Independent Businesses, which counts 7,200 businesses in the state. That comes just days after the U.S. Chamber of Commerce began an independent TV advertising effort on behalf of Dole, Rob Christensen reports.

Gregg Thompson, the state director of NFIB, said his organization would do multiple mailings to its members on behalf of Dole in her campaign against Democrat Kay Hagan.

Dole, a member of the Senate Small Business Committee, said she would continue to work to keep taxes low for small businesses, fight efforts to make it easier for unions to organize, and oppose both more regulation on small business and "frivolous" lawsuits brought against business.

"I stand for the same principles and values," said Dole, at a new conference at Advanced Direct, a direct mail firm located in a an industrial park.

Don Frantz helped Pat McCrory in more ways than one today.

The owner of Frantz Automotive Shop in Cary and town council member gave a short speech for McCrory at the announcement of the endorsement of the National Federation of Independent Business.

At the same time, he also had his employees change the oil in McCrory's car.

The Republican gubernatorial candidate said he was driving to the event after spending the night at his sister's house in Raleigh when he realized he needed an oil change before returning to Charlotte.

"This endorsement comes just at the right time because my oil light just came on," he said.

Correction: An earlier version misstated Frantz's position. 

How can a candidate shift positions without drawing attention?

One answer: Create a private paper trail.

Both Republican gubernatorial candidate Pat McCrory and Democratic rival Beverly Perdue recently modified their positions on a controversial issue by giving a document to an ally that could remain offstage until needed.

After taking a hard line against raising the minimum wage, McCrory filled out a survey for the National Federation of Independent Business saying that he would support it if coupled with tax breaks for small businesses.

The NFIB's candidate questionnaires are confidential, but McCrory's campaign released the survey after a TV ad attacked him on the minimum wage.

Meantime, Perdue said she was "100 percent opposed" to offshore drilling off the coast of North Carolina, then later wrote a letter to U.S. Rep. David Price saying she would make a decision as governor after convening a panel of experts.

Although a letter from the lieutenant governor to a Congressman is a public record, reporters and environmental groups would not know to ask for it.

She later cited the letter in response to an ad from McCrory. 

The National Federation of Independent Businesses endorsed Pat McCrory today.

At a press conference at the Frantz Automotive Shop in Cary, the small-business group announced that its Save America Free Enterprise political action committee was backing the Republican gubernatorial candidate. 

Before 60 onlookers, McCrory spoke about his father's small business. Though Mr. Mac's Concrete Fix eventually was sold at hardware stores such as Lowe's, McCrory said his father struggled to provide health insurance for workers and dealing with regulations. 

"He had a very difficult time," he said. "Our house was mortgaged to the hilt." 

As governor, McCrory said he would expand a tax credit for small businesses providing insurance coverage and work with the NFIB and other groups to create insurance consortiums.

He also said he would make it easier to dismiss lawsuits, saying they represent "almost a blackmail situation" that can "paralyze" a small business owner.

"It's time that state government treated small businesses as a customer, not just another taxpayer," he said.  

The Alliance for North Carolina, a Democratic group funded by the National Education Association and the Democratic Governors Association, is airing a TV ad attacking Republican gubernatorial nominee Pat McCrory's economic policies.

What it says: Images of blue-collar workers, foreclosures signs and students flash on a black background beside photos of McCrory. Narrator: "Will Pat McCrory's economic policies move North Carolina forward? Pat McCrory opposes raising the minimum wage for North Carolina workers. But McCrory supports pay raises for politicians, including himself. And Pat McCrory opposes free community college tuition for high-school graduates. Call Pat McCrory at 704-336-2241 and tell him North Carolina needs higher wages, free tuition at community colleges and no more perks for politicians."

The background: The ad raises three different issues.

The minimum wage:

McCrory's campaign says he does not completely oppose the minimum wage, but there is evidence that he's not a big fan, either.

According to campaign manager Richard Hudson, McCrory supports raising the state's minimum wage, but only if it is coupled with tax breaks for small businesses or tied to increases in the cost of living.

That is supported by a candidate questionnaire McCrory filled out for the National Federation of Independent Business, a small-business group.

On the other hand, McCrory told the Asheville Citizen-Times shortly before the Republican primary that he would "probably oppose" a minimum wage increase because it could cause jobs to be cut.

And he made several provocative statements during a fight over a proposed $9-an-hour minimum salary for city of Charlotte workers in 2001, comparing it to "socialism" in East Germany and stating his opposition to the concept of minimum wages.

"I don't believe politicians should be setting wages in either the private and public sector," he said.

His campaign Web site makes no mention of the minimum wage.

Pay raises:

As mayor of Charlotte since 1996, McCrory's salary and expenses have risen from $24,800 to $39,900. That's about a 60-percent increase.

Adjusted for inflation, however, it's more like a 20 percent raise.

The Charlotte mayor does not typically vote on the city budget, which includes pay raises, but he can veto it. If he does, it takes seven out of 11 votes from the City Council to override his veto.

In 1998, McCrory broke a tie, voting with the City Council's Republicans to overturn a pay raise for city leaders that would have boosted his own salary by several thousand dollars.

This year, the City Council narrowly approved a pay raise for members and the mayor. McCrory did not make any public statements on the raise and did not veto the budget, but his campaign staff said Thursday that he opposed it.

Community college tuition:

McCrory has said on several occasions that he opposes Democratic nominee Beverly Perdue's proposal to make community college tuition free for North Carolina high-school graduates.

Is the ad accurate? Yes and no.

On the minimum wage, the ad overstates the case. McCrory has expressed strong skepticism and said he would probably oppose a raise, but he has not ruled it out entirely either.

On pay raises, the ad also overstates the case. McCrory has voted against at least one pay raise and has not taken a public stand on others.

On community college tuition, the ad is accurate.

Pat McCrory told a small-business group he supports raising the minimum wage.

In a candidate survey for the National Federation of Independent Business this year, the Republican gubernatorial nominee said he would back an increase, but he added an explanatory note:

"Any one-time minimum wage increase should be coupled with tax cuts to small businesses to help offset the additional cost. I would also look at alternatives such as adjusting the minimum wage to the cost of living."

The NFIB generally opposes increases in state and federal minimum wages, arguing that they hurt small businesses and do not help the poor. 

A recent ad by a Democratic group said that McCrory opposed raising the minimum wage.