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UPDATED: DEMOCRATIC PARTY'S PROBLEMS GROW: The head of the North Carolina Democratic Party is facing questions about credit card charges made during a March trip to a Las Vegas casino to watch basketball games with his old college buddies. Records obtained by The Associated Press show state Democratic Chairman Randy Voller made $3,327 in charges to Southwest Airlines and the Wynn Las Vegas Hotel on an American Express Business Gold Card embossed with his name and that of the North Carolina Democratic Party. He said he's paid off the balance in full. Much more to this story -- click here.

N.C. LAWMAKERS TO PLAY "THE OTHER CAROLINA" IN BASKETBALL: North Carolina lawmakers will challenge their South Carolina counterparts to a game of hoops Wednesday evening at Reynolds Coliseum. The game is the first in at least four years between lawmakers from the two Carolinas. Rep. Burt Jones, a Rockingham Republican who will coach the North Carolina squad, helped revive the tradition. “The games in the past were pretty competitive,” he said. (Scouting report below.)

***This is the Dome Morning Memo -- the source for N.C. political news and fun (see below). Send news and tips to dome@newsobserver.com. ***

EDWARDS REGROUPS: Former presidential contender John Edwards has reactivated his license to practice law and is setting out on the speaking circuit, the Associated Press reports. The former U.S. senator and 2004 Democratic vice-presidential nominee is scheduled to appear June 6 at a private retreat in Orlando, Fla., for lawyer clients of the marketing firm PMP.

Edwards has remained largely out of public view since his acquittal in May 2012 on one charge of campaign finance fraud. A judge declared a mistrial on five other criminal counts after jurors couldn’t agree whether Edwards had illegally used campaign money to hide his pregnant mistress as he ran for president in 2008. An itinerary says Edwards will speak for about 45 minutes as part of a program titled “Historic Trials of the Century.” Edwards earned millions as a personal injury lawyer before entering politics.

***Thanks for reading the Dome Morning Memo. If you're here, you survived crossover. Get a wrap up below. Now hold your hats for the final weeks of the legislative session. Send news and tips to dome@newsobserver.com.***

TODAY AT THE STATEHOUSE: The action starts early Tuesday and will likely stretch past 10 p.m. again. The House and Senate plan to convene a skeletal session just before 10 a.m. to read in committee reports, then recess until 2 p.m. House Speaker Thom Tillis said the session will go until 5:15 p.m. or so before a dinner recess for committee meetings. The chamber will reconvene at 7 p.m. and go late. The Senate isn't expected to stay as long but its calendar is getting crowded. Gov. Pat McCrory lists no public events.

McCRORY'S OFFICE WON'T RELEASE DAILY SCHEDULE ANYMORE: The governor's Communications Director Kim Genardo is changing the office's policy of releasing a daily calendar. Genardo said if there is no event scheduled, she won't send out a notice stating as much, meaning some days will have no notice to the governor's schedule. McCrory pledged to release a daily schedule during the gubernatorial campaign as he bashed his predecessor, Democratic Gov. Bev Perdue, for taking a "secret" trip to Pennsylvania to study fracking rigs. Republicans jumped on McCrory's Democratic opponent for not pledging to do the same. “Everyone knew where I was as mayor,” McCrory said a year ago. “My records were open."

***A busy week means lots of news below in the Dome Morning Memo. Send more news and tips to dome@newsobserver.com. ****

Welcome to Crossover Week on Jones Street. Think the action’s been fast so far? Well, hold onto our elephant ears, this week lawmakers will be shoveling as many bills as possible through committee and out to their floors for a vote to meet a Thursday deadline dubbed crossover.

The House and Senate rules say that bills that don’t raise or spend money or propose amendments to the state constitution must pass either the House or Senate by Thursday to be considered during the session. Of course, rules are made to be circumvented, so there are many ways to keep legislation alive. Dome’s favorite: Strip a bill that has already crossed over of its language and insert your bill of choice.

***Thanks for reading the Dome Morning Memo. Read more about the issues hanging in the balance this week at the legislature. And send news and tips to dome@newsobserver.com.***

TODAY AT THE STATEHOUSE: The sausage machine is churning fast these days. A House regulatory reform committee will consider a number of measures to streamline government oversight, a major Republican agenda item, and the House Elections Committee will hear bills to repeal the state's antiquated literacy test and make judicial elections partisan contests. A Senate education committee will vote on a bill to regulate student prayers at school and athletic events and a Senate health care care committee takes up another abortion-related bill. The full House will take votes on a bill to impose term limits on House and Senate leaders and a proposal to repeal the estate tax. The full Senate will hear a measure to ban e-cigarette sales to minors. Gov. Pat McCrory will make an economic development announcement at 3 p.m. in Raleigh.

***More political intelligence below in the Dome Morning Memo including analysis of the Senate's tax plan and a roundup of the fast and furious legislative action. Send news and tips to dome @newsobserver.com. Thanks.***

Top Senate Republicans detailed a much-anticipated plan Tuesday to overhaul the state’s tax system by cutting personal and corporate income taxes in exchange for a broader sales tax applied to everything from haircuts to car repairs.

Senate leader Phil Berger, an Eden Republican, said the forthcoming legislation would trim the personal income tax from the highest 7.75 percent rate to 4.5 percent over three years and cut the corporate income tax from the current 6.9 percent to 6 percent.

The combined local and state sales tax would fall from 6.75 percent to 6.5 percent, but it would apply to hundreds of services currently exempted, including prescription drugs. The food tax would increase from the current 2 percent to the full sales tax rate, more than a three-fold increase.

The plan represents a retreat for Senate Republicans who earlier this year announced intentions to eliminate personal and corporate income taxes, a proposal also floated by Gov. Pat McCrory on the campaign trail. And many questions remain because lawmakers have not filed the exact legislation yet. Full story.

TODAY AT THE STATEHOUSE: In a metaphor for this legislative session, the Senate is moving fast to raise the speed limit to 75 mph on some highways. The full Senate is scheduled to hear the bill Thursday, a day after it passed a committee and a week after it was filed, AP reports. The Carolina Panthers incentives bill also won approval in committee Wednesday and heads to the floor. Senate convenes at 10 a.m. The House is expecting a longer-than-normal day with a busy calendar, including a measure to limit the N.C. Lottery's ability to advertise and sell games. It starts at 1 p.m. Earlier in the day, House committees will consider a wind energy bill and IT changes requested by the McCrory adminsitration.

Gov. Pat McCrory will attend the UNC system Board of Governors meeting in Pembroke -- where he will surely face questions about the budget cuts he proposed -- before making an economic development announcement in the area.

HOW WILL GOP REACT? As AP reports, an American-Islamic group wants national Republican leaders to repudiate comments by a North Carolina legislator who compared Muslim prayer to terrorism. The Council on American-Islamic Relations said Wednesday that bigoted comments must be rejected if the GOP wants to reach minorities. State Rep. Michele Presnell of Yancey County did not respond to messages seeking comment.

***The Dome Morning Memo sets the stage for the day in North Carolina politics. Get more news and analysis below.***

The state's personal and corporate income tax rates would gradually decrease under two major tax bills introduced Wednesday by leading Senate Republicans.

Under Senate bill 669, the personal income tax would fall to 4 percent by 2016 for most households and married couples making less than $12,500 would pay no income tax. The state's current rate is the top income bracket is 7.75 percent -- the highest in the Southeast.

Senate President Pro Tem Phil Berger, a possible U.S. Senate candidate in 2014, took the unusual step of signing on as a primary sponsor of the measure. A Berger spokeswoman said the bill is a placeholder for a larger plan expected in coming days that calls for the complete elimination of the personal income tax. She referred all other questions to Sen. Bob Rucho, a primary co-sponsor, who was not immediately available for comment.

The second measure, Senate bill 677, reduces the state's 6.9 percent corporate income tax rate to 6 percent after 2015. The legislation is scheduled for its first hearing Tuesday.

FLAG FLAP PROMPTS McCRORY ABOUT-FACE: A Confederate battle flag hung inside the old North Carolina State Capitol last week to mark the sesquicentennial of the Civil War is being taken down after civil rights leaders raised concerns. The decision was announced Friday evening, hours after the Associated Press published a story about the flag, which officials said was part of an historical display intended to replicate how the antebellum building appeared in 1863. The flag had been planned to hang in the House chamber until April 2015, the 150th anniversary of the arrival of federal troops in Raleigh.

"This is a temporary exhibit in an historic site, but I've learned the governor's administration is going to use the old House chamber as working space," Cultural Resources Secretary Susan Kluttz said Friday night. "Given that information, this display will end this weekend rather than April of 2015." The decision was a quick about-face for the McCrory administration, which initially defended the display. More from AP here.

***Good morning. Thanks for reading the Dome Morning Memo. Much more N.C. political news and analysis below. ***

Gov. Pat McCrory proposed a modest $20.6 billion state budget Wednesday that includes a 1 percent pay hike for state employees but limits spending growth to 2 percent.

The Republican governor emphasized spending on education and economic development, two campaign priorities in the plan, by including money to hire 1,800 additional classroom teachers and $2.7 million to craft a new branding strategy to lure companies to the state. Another 5,000 at risk 4-year-olds would be able to get into pre-kindergarten programs, at a cost of $9 million a year. But it also cuts $117 million that now funds teacher assistants.

“We have a sound foundation but the foundation now has some cracks in it,” McCrory said in an announcement at the Capitol. “Our immediate goal is to fill in those cracks ... so we can have stronger foundation for future generations.”

McCrory included no major high-priced spending initiatives, reflecting the state’s still tenuous economic picture and his campaign promises to limit government programs. On average, state agencies will see their budgets cut 1 percent to 3 percent from the current year’s $20.2 billion spending plan, leading to some jobs cuts and the elimination of longtime state interests. The budget year starts July 1.