Gov. Mike Easley’s proposed budget adjustments for FY 2002-03 help to frame the coming fiscal debate in North Carolina. The plan relies primarily on increasing revenues — including more than $400 million in tax hikes, $250 million from a theoretical state lottery, and $210 million from raiding the state‘s Highway Trust Fund — rather than on budget savings. And contrary to the governor’s assertion, his plan would increase state spending in the midst of a fiscal emergency.