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Morning Memo: The recasting of Gov. McCrory? Unraveling his shifts

PAT McCRORY LINKS MEDICAID REFORMS TO TEACHER PAY HIKES -- Governor pledges big announcement in coming months: Speaking at the Cary Chamber of Commerce's annual banquet Wednesday evening, Gov. Pat McCrory promised "controversial" proposals to change the state's Medicaid system. Overruns in Medicaid costs are a huge burden on the state and have drained funding for education, he said.

Citing issues with federal regulations, "a lack of waivers from the feds, and frankly, some of the politics within Raleigh here," McCrory said he wanted to change the state's implementation of the federal health program for people with low income.

"I'm going to have to bring up some fairly controversial proposals to change Medicaid, or we're going to continue to have some very, very serious issues here in North Carolina," McCrory told the crowd. "That's coming in the next three, four months. I'll probably introduce them while the legislature's out of town, between now and May," he said, drawing laughs. Changes to Medicaid, he said are " the way we're going to get raises to the teachers."

***McCrory appears to be charting a new course, but the administration is backtracking on a different education announcement. Read it all below in today's Dome Morning Memo***

Morning Memo: Lawmakers return for overrides; elections board hears appeals

Lawmakers return to Raleigh on Tuesday to consider overriding vetoes of two immigration and drug-testing-for-welfare-recipients bills. House Republican leaders may think they have enough votes, but Republican Gov. Pat McCrory has been fighting to the end to sway them, using new media to get his points across and relying on old-fashioned endorsements.

The governor isn't the only one using the veto-session to highlight legislative issues. ***Get more on it all below in today's Dome Morning Memo, along with a holiday weekend news roundup.***

Congressman David Price says Raleigh 'agitation' trumps talk of DC gridlock

Democratic Congressman David Price said Wednesday he is hearing a good deal from constituents about the politics in the state capital rather than the nation's capital these days.

"It's as much or more about Raleigh and what's going on here as it is what's going on in Washington," the Chapel Hill lawmaker told N&O reporters and editors. "Maybe Washington gridlock after a while gets to seem like old news.

"I haven't seen it this way ever; I think you'd have to go back to the civil rights years," he continued. "Certainly not since I've been in office has there been this much agitation over state level issues."

Morning Memo: Tillis dodges shutdown questions; McHenry pressed on Obamacare

TILLIS DODGES GOVERNMENT SHUTDOWN QUESTION: Republican Thom Tillis is emphasizing his opposition to the federal health care law in his campaign for the U.S. Senate but at the same time he's avoiding answering some questions on the issue. A Democratic Party operative recently asked the Republican House speaker about whether he agrees with Texas Sen. Ted Cruz and others who suggested shutting down government to defund the federal health care law.

While walking to a recent D.C. fundraiser, Tillis didn't offer a direct answer -- even though if elected he may face similar circumstance. "It's not my decision to make but anything we could do to slow down or eliminate Obamacare would be good for the nation," he said in a video posted online. (Watch above.)

Does Tillis agree with North Carolina Sen. Richard Burr that a shutdown is the "dumbest idea" ever? Again no answer. "I'm going to leave that to the duly elected senators but i think we can do to stop Sen. Hagan and President Obama from creating all the uncertainty and cost that comes with Obamacare it would be a good thing," he said. Expect both questions to return soon.

***See the Tillis video below in the Dome Morning Memo, along with another video from Republicans punking people at the "Moral Monday" rally.

Hagan uses Voting Rights Act to criticize GOP legislature

U.S. Sen. Kay Hagan is using today's anniversary of the Voting Rights Act to poke at the state legislature -- a jab likely intended for potential Republican rival Thom Tillis.

Hagan's office issued a statement Tuesday touting the law on its 48th anniversary but said "injustice remains and threats to the right to vote still exist."

She pointed to North Carolina in particular. “We must look no further than our own state to witness efforts to limit voter access," she said in the statement.

Morning Memo: With jobless benefits expiring, focus on Moral Monday protest

TODAY AT THE STATEHOUSE: How big will Moral Monday get? That's the top question today at the statehouse. Now in the ninth week, the protests are expected to grow because long-term unemployment benefits end Monday for more than 70,000 workers thanks to a bill approved by the Republican legislature and signed by Gov. Pat McCrory. A rainy weather forecast may dampen the demonstration.

With the House not holding full sessions this week, the Senate is moving forward. At 2 p.m., the Senate Finance Committee will meet to look at the chamber's tax plan again. It is expected to send it back to the floor, where it will get a final vote this week and start the conference process on an issue that has stymied Republicans. The full Senate starts at 7 p.m.

UPDATED: McCrory released a public schedule later in the morning saying he would attend the swearing in ceremony for utilities board members.

CHRISTENSEN: Tax debate cherry picks statistics. In his Sunday column, Rob Christensen looks at the motivation for tax reform, picking apart the numbers to conclude: "There may be a legitimate argument for tinkering with the tax code – making sure corporate taxes are not out of line with neighboring states. But the link between lowering taxes and a booming state economy is weak. ...

So what is the value to having one of the lowest business tax rates, if you jeopardize the state’s quality of life? Those business executives don’t just want to move businesses here, but they want to live here as well." Full story.

***Find many more political headlines below in the Dome Morning Memo.***

Morning Memo: Tillis likely a 'no' on immigration; Ellmers weighs Senate race

TILLIS LIKELY WOULD HAVE VOTED 'NO' ON IMMIGRATION BILL: House Speaker Thom Tillis said Thursday he likely would have voted against a bipartisan immigration measure approved by the U.S. Senate. The Cornelius Republican is making a bid to replace U.S. Sen. Kay Hagan in the 2014 elections. Hagan voted for the bill. Tillis, after initially saying he hadn't looked at the bill, added that he shares "a lot of the concerns that Sen. (Richard) Burr has and Sen. (Jerry) Moran." Burr and Moran voted against.

Pressed on how he would have voted, Tillis said, "I'm not informed enough to know how I would go but most likely I would have taken the position of the majority the Republicans." The majority opposed the bill but 14, including Sens. Marco Rubio, Lindsey Graham and John McCain, voted in favor.

ELLMERS TO DECIDE IN NEXT TWO WEEKS ABOUT U.S. SENATE BID: Roll Call has the update -- Rep. Renee Ellmers, R-N.C., has pushed back her timeline to make a decision about the Senate race for another couple weeks. “I haven’t quite reached my full decision, but I think I know where I’m leaning,” Ellmers told Roll Call on Thursday between votes on Capitol Hill.

***More on Ellmers decision below, along with the disbandment of the Beard Caucus and more legislative news in the Dome Morning Memo.***

Morning Memo: Arrests near 500, Democrats debut anti-Tillis website

TOTAL ARRESTS NEAR 500: Eighty-four demonstrators were arrested by the N.C. General Assembly police on Monday, bringing the total since April 29 to more than 480. Holly Jordan, 29, a teacher at Hillside High School in Durham, said she decided to get arrested on Monday because she was thoroughly upset with the education policies and budgets proposed. She knew that some of the Republicans had described their naysayers as “aging hippies” and “outsiders” who considered it “en vogue” to get arrested.

TODAY AT THE STATEHOUSE: The Senate will take a final vote on its tax plan, and send it to the House. The two chambers remain far apart on how to cut taxes. The House will consider Gov. Pat McCrory's transportation funding bill. In committees, House lawmakers will consider a bill to raise the speed limit to 75 mph on certain roads and a bill requiring cursive -- which is likely to be remade entirely at the last minute, given a similar bill passed earlier this session. Senate lawmakers will meet in committees to consider a bill requiring background checks on those who receive some public assistance and another measure to roll back energy efficiency regulations on building to 2009 levels.

Gov. Pat McCrory will visit another rotary club, this time in Winston-Salem, before meeting with unidentified business leaders in a private meeting at Womble Carlyle, a law firm that also has a lobbying practice.

***Below in the Dome Morning Memo -- U.S. Senate race news, remember Jim Holshouser and a legislative roundup.***

Morning Memo: Amid crossover, the unfinished tax plan takes center stage

HOUSE TO UNVEIL TAX PLAN OUTLINE:House Republicans plan to offer their own North Carolina tax overhaul plan Thursday that would reduce personal and corporate income tax rates and expand the sales tax to cover more services. The proposal's scope is much narrower than what Senate counterparts offered as GOP legislators try to fulfill a commitment to carry out tax reform this year.

The plan attempts to simplify income taxes and reduces the number of income tax brackets from three to one, according to the proposed legislation obtained by The Associated Press. House Republican leaders want to reduce slightly the combined state and local sales tax consumers in most counties pay from 6.75 percent to 6.65 percent. They also would subject the sales tax to a handful of new services such as automobile repairs and installations for personal property and warranty and service contracts, the bill says. In contrast, the Senate proposal unveiled last week would make the sales tax base one of the broadest in the country. More here.

NORQUIST TO BLESS SENATE TAX EFFORT: Americans for Tax Reform leader Grover Norquist will stand with Senate leader Phil Berger at a 9:30 a.m. press conference Thursday to talk about the Senate's tax rewrite. The visit is being coordinated by Americans for Prosperity, an advocacy group that pushing hard for a major tax overhaul measure this session. Opposition groups already are framing the visit, saying Norquist will support a bill that could raise taxes on a majority of people in the long-term. A luncheon with tax activists outside the legislature will follow later in the day.

Good Morning! This Dome Morning Memo is (unofficially) brought to you by Krispy Kreme donuts and coffee -- which is much needed after the House worked near midnight to beat the crossover deadline on a bevy of controversial bills in a 10-hour session. If you went to bed early, click below for all the North Carolina political news and analysis.***

Morning Memo: UNC-CH gets new chancellor; McHenry won't challenge Hagan

UNC-CHAPEL HILL TO GET FIRST WOMAN CHANCELLOR: As first reported by The News & Observer, UNC system officials will name Carol Folt, the interim president of Dartmouth College, as the next chancellor at the University of North Carolina at Chapel Hill. Folt, 61, would be the first woman to lead the campus in Chapel Hill, where the 29,000-member student body is 58 percent female. She will succeed Holden Thorp, who is stepping down by July 1 to become provost at Washington University in St. Louis. Full story.

McHENRY WON'T CHALLENGE HAGAN: N.C. Congressman Patrick McHenry took his name out of the crowded field of potential challengers to Democratic U.S. Sen. Kay Hagan, who faces re-election in 2014. Polls put McHenry in the top half of Republicans. "I'm grateful for the good numbers, but I think I've got a better opportunity to make a difference here in the House," McHenry told the Mountain Xpress in Asheville. "I want to end the distraction about this potential Senate run so I can get back and focus on the work that I need to be doing to help get this economy going."

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

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