State lawmakers may have $70 million less to spend in the upcoming fiscal year after they learned today that sales and income tax collections are not meeting previous estimates.

Fiscal experts for the legislature and the governor's office had estimated that they would have $151 million in sales and tax collections from the current year that could be made available for next year's budget.

But since then revenues have slowed, causing them to lower the estimate to roughly $80 million, reports Dan Kane.

It's not a lot in a budget expected to exceed $21 billion, but House and Senate budget writers were already struggling to reach an agreement on a spending plan, and the possible loss of $70 million doesn't make the negotiations easier.

House and Senate budget negotiators heard the report on the projected revenue decline in a closed door meeting this morning. Senate leaders did not allow a News & Observer reporter to attend, and afterward, Senate Majority Leader Tony Rand said the meeting wasn't open because it did not involve budget negotiations.

Immigration, energy efficiency, and soccer.

These are just a few of the topics taken up by state Sen. Kay Hagan in the current legislative short session. The Democratic nominee for U.S. Senate sponsored one and cosponsored 10 non-budget bills so far in 2008.

Two bills seem most likely to come up in her race against U.S. Sen. Elizabeth Dole. The first, which she cosponsored, would require employers use the federal E-Verify program to check that employees can legally work in the United States.

That program, you may recall, was touted by former Republican gubernatorial candidate Fred Smith, who used it at his road- and home-building businesses.

Another bill she cosponsored would create a state sales tax holiday for a week each April on energy-efficient light bulbs, home appliances, electronics and insulation. It would be similar to the popular back-to-school holiday already in effect.

On a lighter note, the bill she sponsored could also be used to remind political commentators of a popular swing vote constituency: Soccer moms. The bill would create a special "Support Soccer" license plate.

Other bills she cosponsored: Change the local requirements for recall petitions in the city of Greensboro. Increase the monthly pension for retired firefighters and paramedics. Limit or exempt baked goods from the state sales tax. Increase benefits from the State Health Plan. Allow the legislature to meet in Greensboro one day for its centennial. Honor Korean War Veterans. Commemorate Israel's 60th anniversary.

The state's tax collections are decreasing, a sign that an economic slowdown is hitting North Carolina.

Revenues are running slightly — about 1.25 percent — ahead of projections, according to a Feb. 13 report from the Fiscal Research Division, a nonpartisan staff for the legislature. But tax revenues are slowing. The state has $140 million more than it anticipated at this point, the report states, because officials expected a slowdown and were conservative with projections.

State Rep. Jim Crawford, a chairman of the House Appropriations Committee said that what little "extra" money there is won't go far in a state budget that exceeds $20 billion.

"It can go in a heartbeat if the economy turns down," Crawford said. "We're absolutely dependent on the economy from here on in."

For example, the state must still come up with $100 million to pay for teacher bonuses at the end of the school year, said Crawford, a Granville County Democrat. Crawford said the state budget can likely withstand the economic slowdown, but legislators may have some work to do when the session begins in May.

"I don't think we're going to be in trouble, but I think we're going to have to tighten our belts a little bit," Crawford said.

U.S. Sen. Richard Burr will offer a plan today for a nationwide, 10-day sales tax holiday to goose the ailing economy.

The holiday would come in April, right around tax time, and would encourage residents to spend money, Barb Barrett reports.

The Winston-Salem Republican says the U.S. Treasury would work with individual states on the sales tax holiday. Local sales taxes wouldn’t be affected. Such economic events are popular in several states, including North Carolina, which has a one-day back-to-school shopping day each August.

Burr’s proposal comes as part of the discussion going on in Congress this week about an economic stimulus package. President Bush and House leaders agreed on a package of rebate checks and tax incentives, and that bill passed the full House earlier today.

But senators have complained they weren't involved in discussions, and many are pitching their own ideas. Burr would like his plan to be an alternative to the rebates.

Sen. Elizabeth Dole, a Salisbury Republican, has signed onto a plan to offer tax incentives to companies using clean energy such as wind and solar power.

A delegation of Raleigh officials rode Pat McCrory's pet project this week.

Sixty civic leaders and politicians traveled to Charlotte to ride the Lynx Blue Line, the 9.6-mile transit line a decade in the making that launched in November.

The $472 million trains have been packed with 12,000 riders a day so far, well above forecasts, Bruce Siceloff reports. It's already spurred new development expected to increase city property tax revenue by $8.5 million per year by 2011.

The project was applauded by leaders as diverse as state Rep. Deborah Ross, a Democrat, and Tony Gurley, a Republican on the Wake County board of commissioners. They also saluted the city—and McCrory's—efforts to defeat a repeal of the half-cent sales tax that funds the project.

"It was beautifully done—and, frankly, Wake County struggles with that," said Ross.

Still, McCrory rarely talks about the train—not to mention the tax—on the campaign trail in the Republican primary, perhaps because of fear of criticism from fiscal conservatives.

Would Pat McCrory's advocacy for mass transit hurt him in the Republican gubernatorial primary?

Already, conservative libertarian blogger Max Borders has questioned whether the Charlotte mayor's support for a sales tax for transit and a light rail line means he is a "big government Republican."

If money fell like manna from heaven and central planning worked, it might be a ok. But Charlotte's light rail is a massive error IMHO, where that shiny new toy obscures the tremendous costs spread out over the state and even the rest of the country (onto people who will likely never see it or ride it).

Borders also questions McCrory's involvement in the Charlotte Bobcats arena, arguing that the mayor is going to have to "prove his credentials" as a fiscal conservative.

Of course, this is all assuming that McCrory is actually going to run.

One of Pat McCrory's biggest accomplishments in office has been a transit tax.

In 1997, the longtime Charlotte mayor lobbied the legislature to allow Mecklenburg County to charge an additional half cent.

That August, the legislature approved a bill to allow a referendum on the sales tax, but only after adding a provision allowing 14 rural counties to charge a $5 vehicle registration fee.

McCrory was elected for a second term a few months later and staked his political reputation on passing the transit tax. In November of 1998, Mecklenburg voters approved it by 58 percent.

The money—which now amounts to about $77 million a year—is used to pay for buses and a recently opened light-rail line.

The tax was challenged in a repeal last November, but 70 percent of voters backed keeping it, with support especially high among black voters and newcomers to the city. The Lynx Blue Line rail line began serving riders two weeks later.

Opponents of the transfer tax were emboldened by Tuesday's election.

With voters in 16 counties, including Johnston and Chatham, rejecting referenda for the tax, opponents said the fight was over. Dallas Woodhouse, state director of Americans for Prosperity, said Wake County wouldn't dare now.

"If they put a tax on the ballot, it'll get defeated," he said. "And so will some of the commissioners."

Voters looked more favorably on increases in the sales tax. Five counties approved referenda for a sales tax increase.

And an effort to repeal a half-cent sales tax for mass transit in Mecklenburg County failed. Supporters of the tax said taht it worked because they were specific about what the tax pays for. (N&O)

House Speaker Joe Hackney was a big supporter of the tax. (W-SJ) 

* Don Vaughan, Paul Gibson, Melvin "Skip" Alston also mentioned as possible replacements for state Sen. Kay Hagan in legislature. (Capital Beat)

* N.C. Association of Realtors and N.C. Home Builders Association are spending at least $441,000 to finance 15 local groups fighting transfer taxes. (Char-O)

 * U.S. Sen. Richard Burr has gone through a six-week crash course on veterans' issues since taking over committee spot from Sen. Larry Craig. (Politico)

* U.S. Rep. Sue Myrick and three other former Charlotte mayors urge voters not to overturn half-cent sales tax for public transit. (Char-O)