Gov. Mike Easley says incentives are nice, but they aren't as important to economic development as education and work-force development.

Easley spoke Wednesday to nearly 800 people at the annual meeting of the N.C. Chamber in Greensboro.

Easley said the state has gone from 750,000 manufacturing jobs to 500,000. Yet, the state has diversified and picked up jobs across industries.

"All of this progress has been done with investments in knowledge, talent and skill," Easley said.

Easley, who is not allowed to seek a third consecutive term, also made a pre-emptive strike as campaign season heats up.

Easley said that in the last seven years the state's education budget has risen by almost $4 billion. But all that money, Easley said, has gone to make education better.

"All of those dollars have gone into the classroom," Easley said, "and I want to make sure you know that as we come up on this election year and you start seeing this issue demagogued."

Perdue-Moore race narrows

Lt. Gov. Beverly Perdue's lead over State Treasurer Richard Moore in the Democratic primary for governor has tightened.

According to a survey by Public Policy Polling, Perdue is the choice of 41 percent of likely Democratic voters, while Moore is the favorite of 34 percent.

The same tracking poll showed a Perdue lead of 27 points three weeks ago.

For the first time, the polling company expanded its definition of likely voters.

The Democratic polling firm surveyed 673 likely Democratic voters on March 24. The margin of error was plus or minus 3.8 percentage points.

Meanwhile, on the Republican side of the governor's race, Charlotte Mayor Pat McCrory appears to have a narrow lead over state Sen. Fred Smith. McCrory was favored by 27 percent of likely GOP voters, followed by Smith at 24 percent.

Salisbury attorney Bill Graham had 8 percent, and former Supreme Court Justice Bob Orr, 7 percent.

In the last poll, Smith and McCrory each had 29 percent.

The firm surveyed 551 likely Republican primary voters on March 24. The margin of error is plus or minus 4.2 percentage points.

Stem cell research sought

State Sen. Walter Dalton, one of four Democratic candidates for lieutenant governor, is calling for North Carolina to become a leader in stem cell research.

Dalton proposes creating a fund to provide grants to companies, universities and hospitals "with proven track records in stem cell research." He proposes to provide initial funding of $15 million a year.

"Stem cell research has simply too much potential to not invest in it," Dalton said in a statement. "Not only will it bring a great industry to our state, but more importantly, it can save lives and cure diseases."

Marsalis endorses

It can be difficult to get folks to tune in to the race for lieutenant governor.

But Hampton Dellinger, a Democratic candidate for the post, has managed to get the attention of renowned jazz saxophonist Branford Marsalis.

Marsalis has cut a radio ad endorsing Dellinger, a Durham attorney.

Marsalis, who lives in Durham, says in the ad that he has been impressed by Dellinger's willingness to talk about poverty and the need to create jobs in North Carolina.

"Now I'm not a political guy," Marsalis says in the ad. "But it's not often I hear somebody talking about what really matters."

Dems' dinner rescheduled

The N.C. Democratic Party has changed the date of its annual Jefferson-Jackson Dinner.

The Raleigh fundraising event typically features high-profile national Democrats as keynote speakers. Sens. Hillary Rodham Clinton and Barack Obama have been invited this year, though neither has confirmed.

The dinner will be held at Dorton Arena at the N.C. State Fairgrounds in Raleigh on May 2 -- four days before the state primary.

Blue backs Obama

State Rep. Dan Blue has endorsed Obama.

The Raleigh Democrat told Dome he decided last summer to back Obama, but never made a public announcement because nobody asked.

"I think that Obama is poised and positioned to elevate America's position on the world stage and deal with the issues that have kept us from addressing the big challenges in this country," he said.

Blue, who served as House speaker from 1991 to 1995, was the first black speaker in the South.

He served as chairman of Bill Clinton's North Carolina campaigns in 1992 and 1996 and said he still considers the Clintons friends.

"I just think that Obama would be the better person to lead us right now," he said.