McCLATCHY NEWSPAPERS

RALEIGH -- The N.C. House gave preliminary approval Monday night to a nine-month freeze on cities or towns forcibly annexing new land.

Legislative leaders said the temporary ban gives them time to come up with recommendations for updating the state's annexation laws during next year's legislative session, which begins in January.

The House voted 99 to 15 for the moratorium, but a final debate and vote is scheduled for today.

Cities and towns often annex new residents to expand the tax base, and in exchange provide services that those neighborhoods had not been receiving.

Such moves, though, sometimes spark heated protests from residents who don't want the tax increase that typically accompanies annexation.

"We've got a runaway train, and we need to stop and put some laws in place that protect the public," said Rep. Bruce Goforth, an Asheville Democrat and a co-chairman of a special annexation committee.

The legislation drew support from both parties, with lawmakers saying they wanted to accommodate responsible growth but guard homeowners' rights.

"The [existing] legislation is 49 years old, and there have been some abuses," said Rep. Paul Luebke, a Durham Democrat and a co-chairman of the annexation committee.

Stopgap bill keeps spending on track

McCLATCHY NEWSPAPERS

RALEIGH -- The General Assembly approved a short-term spending bill Monday evening as negotiations over the state budget stalled and a midnight deadline neared.

The House and Senate approved a stopgap bill that continues various federal funding streams and makes other adjustments to ensure certain services continue.

State government would not have shut down, because the state is only halfway through a two-year budget.

Some elements in the budget, though, are approved one year at a time, and the first year of the budget ended at midnight Monday.

Rep. Mickey Michaux, a Durham Democrat and a House budget writer, said the House and Senate were split over certain spending for capital improvements and education, including the budget for the state university system.

"The problems are not that many," Michaux said, "but they are big problems."

He said he hopes the disputes could be resolved by week's end.