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$20.7B state budget approved

Monday, July 30th, 2007

By Chris Fitzsimon

By GARY D. ROBERTSON

Associated Press Writer

RALEIGH, N.C. (AP) — Democrats pushed through a $20.7 billion budget for state government Saturday, despite defections by three lawmakers worried about the consequences of voting to let counties raise land transfer taxes.

But the Democrats, combined with Republican opposition to what it called runaway spending and higher taxes, didn’t stop initial approval of this year’s budget, part of a two-year spending plan that also phases out the counties’ Medicaid expenses by mid-2009.

"It will make a tremendous difference," said Rep. Doug Yongue, D-Scotland, who voted for the budget as it received initial House approval by a vote of 65-53. "We’ve been giving lip service to Medicaid since I’ve been here. But that is reality now."

Earlier Saturday, the Senate voted 25-13 in favor of the plan, which was worked out by Democratic legislative leaders nearly two months after negotiations began and four weeks after the start of the fiscal year.

"This is a difficult process," said Sen. Walter Dalton, D-Rutherford, one of the chief budget negotiators. "But it was worth it because we have a budget that we can be proud of."

The second of two required votes in each chamber is scheduled for Monday. The proposal then goes to Democratic Gov. Mike Easley, who called it a "gutsy and aggressive budget" that he’s expected to sign into law. (more…)

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