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After serving 16 years in the Senate, Carpenter figured he was safe, tucked into the eight westernmost counties - a mountainous area of parks and waterfalls. The area leaned Republican, and Carpenter, a retired banker, had not had a close election in years.

TV was out of the question -- or so Carpenter thought. The nearest TV station was in Asheville, 70 miles east of his home in Franklin.

But in the final week of the campaign, the Basnight organization poured money into the district in a blitz of TV ads attacking Carpenter's votes in Raleigh.

Carpenter was defeated by Democrat John Snow, a retired judge.

Snow spent nearly $400,000 -- much of it from the Basnight organization. Carpenter spent $82,000.

"Don't let anybody ever tell you that the Democrats don't have money," Carpenter said. "They have money. They turn it loose and aim it in a direction and they usually get results."

When he got to Raleigh, Snow showed he was a Basnight team player on the major issues -- supporting the Democratic budget and, after lengthy negotiations, the state lottery.

Five Senate Democrats opposed the lottery -- an indication, says Basnight, that they are free to vote their conscience despite the caucus position.

But the independence goes only so far. No Democratic senators voted against the budget -- a move that would have branded them as mavericks.

The money that fuels the legislative parties comes from power companies, trial lawyers, labor unions, banks, textile companies, doctors, optometrists and the pharmaceutical industry. It comes from the video poker industry, insurance companies, telephone companies, road contractors, home builders, tobacco companies and hospitals and car dealers.

The leaders raise money

During the session that starts Tuesday, lawmakers are expected to consider tightening campaign finance laws.

But first, they're planning to squeeze more money from lobbyists and political action committees tonight.

Senate Democrats, Senate Republicans, House Democrats and House Republicans are all throwing fundraisers. All events are in or close to downtown Raleigh, enabling lobbyists to hit all four if they choose. Senate Democrats are asking for up to $4,000 from those attending. The other three caucuses set $2,000 as their top price.

Black and Basnight are the point men for their caucus fundraising machines.

Individuals and political action committees are limited to giving candidates $4,000 for each election. But individuals and political action committees can give as much as they want to state political parties. The parties are allowed to make unlimited donations to individual candidates.

Black and Basnight collect money and give most of what they raise to the state party. The party then pours it into districts where Democrats are in close races.

In 1996, nearly $275,000 in donations Basnight collected went into a state Senate campaign fund. In 2004, Basnight gave more than $1.3 million to the state party, according to reports filed with the State Board of Elections.

Once Black and Basnight run their money through the state party, it can be mixed with money from other contributors and directed to specific districts. Though candidates must report how much they received from the party, the money's origin is not known. And candidates can take money from their parties in unlimited amounts.

Other states limit party contributions to campaigns, and a reform group is pushing for a $4,000-per-election limit here. Candidates often receive more money from the party than they raise from their potential constituents, said Bob Phillips, a founder of the N.C. Coalition for Lobbying Reform.

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