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RALEIGH (AP) — The state House completed work early Friday on its version of the North Carolina government budget for next year that emphasized public schools and small businesses but chose to wait until later on how to handle a potential $500 million shortfall if extra Medicaid money doesn't materialize.

The House voted 63-49 in favor of the $18.9 billion budget shortly after midnight. It came after a long day Thursday when the chamber debated for more than six hours and considered more than 30 amendments before giving the plan initial approval by a narrower margin.

Friday's session was over in less than 10 minutes with no debate. The state constitution required two votes on separate days because some annual taxes were being renewed.

The votes mean House Democrats will start working next week to eliminate budget differences with counterparts in the Senate who approved its own budget two weeks ago. The Senate plan focused on protecting the University of North Carolina system. The House emphasized public schools. Both chambers gave tax breaks to small business, although by different methods.

Negotiators want to get a final budget to Democratic Gov. Beverly Perdue's desk before the new fiscal year begins July 1. They haven't passed a budget on time since 2003.

Every year "I say we plan to be out of here June 30," said House Majority Leader Hugh Holliman, D-Davidson. "I hope we don't have too much time posturing" between chambers and lawmakers can get the budget done on time, he added.

Democrats said it reduces spending by 3.5 percent compared with the plan already in place for the coming fiscal year.

The bottom-line figure for the House plan is less than the Senate plan approved two weeks ago and the one Perdue presented in April. Still, Republicans argued that the spending is actually higher than what Perdue is on track to spend this year because she held back on money to narrow a revenue shortfall. None of the Republicans present voted for the bill Thursday or Friday.

"We think that they fall far short for what we need to do to prepare for next year and what we think will be a protracted strained economy," said Minority Whip Thom Tillis, R-Mecklenburg. Next year, federal stimulus money runs out and temporary income and sales tax increases will expire.

Four Democrats joined the Republicans in voting Thursday against the bill. Two of the four — Reps. Sandra Spaulding Hughes of New Hanover County and Annie Mobley of Hertford County — changed their votes to yes Friday.

The House budget directs the University of North Carolina system to find another $139 million in spending cuts at its campuses and central office compared with the current budget and $89 million more than the Senate plan. Public schools would benefit from $90 million more in North Carolina Education Lottery profits than the Senate used to preserve what House Democrats said are 1,600 positions in classrooms statewide.

Democratic budget writers who have worked for two months fashioning cuts lashed out at Republicans who have suggested spending should fall by an additional $450 million.

"Tell us which teachers do you want us to fire, which correctional officers you want to cut," said Rep. Rick Glazier, D-Cumberland, an education budget subcommittee leader. "The rhetoric that we can all apply is an easy thing."

The spending plan still banks on having $490 million from Congress to extend a more generous formula from Medicaid for six more months through June 2011, even though the U.S. House approved a measure that leaves the additional $24 billion combined to the states.

Rep. Mickey Michaux, senior co-chairman of the House Appropriations Committee, said House and Senate Democrats would delete that Medicaid money if there's no clarity from Capitol Hill on the future of that money. The budget would have to be rebalanced with "a few more drastic cuts," Michaux, D-Durham, told colleagues.

Like the Senate, the House's proposed budget doesn't call for new broad-based tax increases and would freeze salaries for public schoolteachers and rank-and-file state employees for a second straight year. The plan would provide tax breaks for small business investments and small firms that provide health insurance for employees or create new jobs.

Health care would take an 8 percent cut if the extra Medicaid money comes through. It restores less than half of the $40 million that community mental health offices lost last year.