RALEIGH, N.C.  – North Carolina’s tax office finally has good news from lawmakers after a year of dwindling tax collections.

A key House lawmaker said Wednesday the Department of Revenue told colleagues it can generate an additional $150 million in revenues next year beyond what it had previously expected.

Rep. Jim Crawford of Granville County said the extra money gives budget-writers breathing room to put together a final spending plan for the next two years. The money could help prevent some expected cuts in education and health care.

It’s not immediately clear how the department would collect the additional revenue.

The state is dealing with what Democrats call a budget gap of more than $4 billion. Republican say the gap is much smaller.