House budget writers rolled out a proposed state Health and Human Services budget on Thursday that cuts some $2 billion from an earlier $5.5 billion spending plan. Some of the money would be supplemented with federal stimulus money, but the revamped plan makes massive cuts, says Rep. Verla Insko, especially to Medicaid and programs affecting children. Rep. Insko adds that some of the cuts do eliminate the over-utilization of some services, but the Orange County Democrat has particular concerns about the $75 million in cuts for mental health community services. Insko is among those House lawmakers arguing for increases in state revenue instead of making such deep cuts to services.

The News & Observer of Raleigh reported Friday that banking Commissioner Joseph Smith Jr. said the bonuses were "unwise and inappropriate" given the state economy and a $4 billion budget shortfall.

The bonuses were scheduled for February, but officials withheld them because other state employees were getting pay cuts and furloughs. The agency had planned to wait until the economy improved before boosting staff paychecks.

Legislators had threatened to stop the bonuses, which ranged from about $1,250 to $12,500. The commission isn't funded with general tax dollars, but raises its money through fees charged banks.

Last year, the commission paid about $480,000 in bonuses to 72 employees.