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FIRST LADY BACKS BILL TO REGULATE PUPPY MILLS: Venturing into public policy for the first time as First Lady, Ann McCrory issued an open letter to lawmakers supporting House Bill 930 to establish standards for dog breeders. The bill is a weakened version of the original legislation which sought to crack down on puppy mills. "| am writing to thank you for your unanimous support of l-louse Bill 930. Passing legislation to establish basic standards of care for large commercial dog breeding facilities is a very important issue to me, and to people across our state," Ann McCrory wrote in the letter. "| especially wish to Representatives Saine, McGrady and Brown for their leadership on this issue. l hope you and other members of the General Assembly will continue to advocate for this bill, and other legislation establishing higher standards for Commercial breeders. These policies increase our quality of life in North Carolina and ensure better care for dogs across the state. You have my full support."

TODAY AT THE STATEHOUSE: A House committee will consider a Taxpayer Bill of Rights measure, known as TABOR, that would restrict state spending. Its hugely controversial and produced varied results. Other legislative committees will consider trimming environmental regulations and altering rules governing midwifery. On the Senate floor, lawmakers will hear a bill to prevent undercover whistleblower operations at farms and processing plants. And in the House, a bill about cancer drugs that split Republicans faces another vote, as does the LEED certification bill. Gov. Pat McCrory lists no public events.

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TODAY AT THE STATEHOUSE: A controversial voter ID measure gets a double billing Wednesday, appearing in a 1 p.m. House Election Committe meeting for discussion only and a 4 p.m. public hearing. A lawyer from the Indiana Secretary of State's Office and the N.C. NAACP's William Barber will present at the earlier meeting. The House will also unveil a major education bill at a 2 p.m. press conference, just hours after a Senate panel considers President Pro Tem Phil Berger's own overhaul plan at a 10 a.m.

Senate committees will also consider bills to increase the speed limit on some highways to 75 mph and provide tax money to the Carolina Panthers for stadium renovations. Gov. Pat McCrory will attend a private reception for the N.C. Homebuilders Association at 5 p.m. The group is advancing two controversial measures this session to limit local control of inspections and design standards for homes that are angering counties and cities. Wonder how Mayor Pat would have reacted to the legislation?

McCRORY'S FIRST 100 DAYS: The governor is nearing the 100-day mark of his term -- a benchmark that means little but will generate a media extravaganza. McCrory is sitting down with various media outlets this week, about 10 minutes at a time, to discuss his accomplishments. WRAL-TV is the first with an interview. Check it out here. 

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McCRORY TO ANNOUNCE MEDICAID SYSTEM OVERHAUL: Gov. Pat McCrory rejected a Medicaid expansion earlier this year saying the system was broken and Wednesday morning he is expected to describe how he plans to fix it. The Republican has talked frequently about the rising costs of the healthcare system for select low-income and disabled residents and issued a video preview Tuesday saying he would create a "partnership" that will help keep costs low. Check Dome later today for more details from the 10 a.m. press conference.

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North Carolina’s Latino advocates are voicing alarm following the governor’s decision to eliminate the state’s office for Latino affairs. The closing of the Office of Hispanic/Latino affairs was sudden and caught many by surprise. The move appears to have exacerbated the already tense relationship between Republican Gov. Pat McCrory and the Latino community, including criticism over a driver’s license plan for young immigrants.

Advocates says it sends a message that McCrory and Raleigh conservatives are less concerned with the needs of the Latino community. Paradoxically, it comes at a time when issues of deep concerns, like immigration, are at the political forefront and Republicans nationally are trying to appear more welcoming to Latinos.

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GOV. MCCRORY PROMISES BIG CHANGES COMING: Days after releasing a modest state budget and weeks after a tepid State of the State address, Republican Gov. Pat McCrory is promsing big things. "Now we're moving into policy," he told a Chamber crowd Wednesday. The News-Record hits the highlights of what we should expect: "McCrory said the state Department of Transportation will be “revamping” how it finances and distributes money. ... McCrory said he’ll have “major announcements on Medicaid reform” next week, and that his administration is “completely revamping” the state’s commerce department. ... He said his tax plan should be ready within weeks and reaffirmed a desire to cut income and corporate tax rates to the lower levels of neighboring states. ... He said major announcements are coming on the state’s job recruitment efforts at the N.C. Department of Commerce, which new director Sharon Decker said last week may privatize many of its functions."

TODAY AT THE STATEHOUSE: The Senate convenes at 11 a.m. to hear a Mecklenburg property tax measure. The House meets at noon to hear a bill to repeal taxpayer funded judicial elections and another bill that favors Blue Cross Blue Shield. At the Capitol, McCrory and Public Safety Secretary Kieran Shanahan will announce at 10 a.m. the new Highway Patrol commander, Alcohol Law Enforcement director and State Capitol Police chief at a swearing-in ceremony.

Also on the political calendar: Mayors Against Illegal Guns is promoting a day of action to push its background-check legislation; a group of area university and college professors host a 5 p.m. forum at Duke University titled, "Save Our State: Scholars Speak Out on North Carolina's New Direction"; and former Florida Gov. Jeb Bush appears at Guilford College for a 7:30 p.m. event with former U.S. Sen. Bill Bradley, hosted by PBS's Gwen Ifill. This is likely Bush's his first visit to the state since the release of his book and open talk about running for president in 2016.

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UPDATED: WHAT THE BUDGET SAYS ABOUT McCRORY: Columnist Rob Christensen -- "It suggested that McCrory is a pragmatic, moderate conservative – not a tea party Republican. The budget colored him an incrementalist with a modest vision of what government can or should accomplish. A governor’s first budget is particularly important because the governor is at the height of his or her power to push an agenda through the legislature. McCrory will never has as much leverage as he has today. So what did he do with his leverage?

"McCrory’s budget offered no sweeping vision of what he wants his governorship to be about. ... This may be sound management, but it is not the stuff of which legacies are made."

REPUBLICANS STACK THE DECK: The UNC Board of Governors elections in the House on Wednesday opened a chasm between Republicans and Democrats. The GOP elected mostly its own kin to the board, sweeping out all incumbents. Democrats voiceferously objected. But House GOP leader Edgar Starnes' response crystalized the debate: "I would just remind you of one thing. The Republicans won the election. We are in control. We intend to elect Republicans and appoint Republicans and we make no apology for it."

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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.

McCRORY'S BUDGET DEBUTS TODAY: Gov. Pat McCrory will unveil his first state budget proposal at 10:30 a.m. Tuesday -- a document that will help define his legislative agenda and vision for the state. Here are five questions he will face:

1. THE STATUS QUO OR BIG IDEAS? The state budget is as much a policy document as it is a line-item spending plan. Does McCrory offer big ideas to overhaul state government, such as a tax overhaul or major spending cuts, or put forward a status quo budget with few changes from the previous years?

2. WHO'S BUDGET IS THIS -- McCRORY'S OR POPE'S? State Budget Director Art Pope knows the innards of state government from his time as a lawmaker. But he is a polarizing figure in some political spheres and Democrats are looking for his fingerprints, ideological and otherwise, on the spending plan.

3. HOW DOES THE BUDGET ADDRESS UNDERPAID TEACHERS, OR STATE EMPLOYEES? McCrory's budget comes days after a new report showed the state's teachers ranked No. 48 in the nation in pay. Does the governor acknowledge this and offer them a raise? And likewise with state employees, who received a minimal 1.2 percent salary bump last year after years without pay increases -- do they get any love?

4. HOW DOES THIS BUDGET HELP CREATE JOBS?Following the GOP mantra that everything is about jobs this legislative session, what does the budget do in terms of economic development, incentives and job creation?

5. WILL LAWMAKERS TAKE IT SERIOUSLY? McCrory is the new governor with an approval rating higher than state lawmakers, but the lawmakers craft the budget. Will they stick closely to McCrory's draft or go their own direction?

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McCRORY BUDGET RELEASE NEXT WEEK? Top GOP lawmakers say Gov. Pat McCrory is expected to release his state budget plan next week. The governor's office is remaining mum. But budget details are leaking to lawmakers, who say McCrory's spending plan isn't like to include details of a major tax overhaul, such as corporate or personal income tax cuts, and instead it will assume the tax plan being negotiated privately by Republicans will be revenue neutral.

MEN OPPOSE NIPPLE BILL: Public Policy Polling will release more from its statewide voter survey later Friday. But here's a peak: nearly half of men -- 45 percent -- oppose the bill to prohibit women from barring their breasts and 34 percent support. Women are deadlocked at 38 percent on what is called the "nipple bill." (Insert stereotypical joke about men here.)

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Only three states are expected to spend less per student than North Carolina in the current school year, according to the latest rankings from the National Education Association.

North Carolina's per pupil spending for the 2012-13 school year is estimated at $8,433 with only Texas, Utah and Arizona spending less per student. The U.S. average is $11,068.

The state also ranks No. 48 in teacher salary among the 50 states and District of Columbia in the current school year, paying an average $45,947. Only Oklahoma, Mississippi and South Dakota pay less. The U.S. average is $56,383.

Both rankings in per pupil spending and average teacher salary represent a decline in the NEA rankings from the previous year. North Carolina spent $8,492 per student in the 2011-2012 school year and paid an average teacher salary of $46,605.