Democrats wrap up negotiations on NC budget

RALEIGH, N.C. (By GARY D. ROBERTSON, Associated Press) - Democratic lawmakers tentatively agreed on a final budget deal Saturday that would eliminate a tuition subsidy for some out-of-state athletes and require that a 1 percent cut if extra federal money isn't delivered.

The agreement lays the groundwork for lawmakers to approve its first state budget bill on time since 2003. It also would direct state officials to take money from the rainy day reserve fund and reduce the state retirement system contribution to help close a potential $525 million gap if federal Medicaid funds never come.

Congress has backed off earlier legislation that would have given $24 billion to states by extending a more generous Medicaid formula for another six months.