A fiscal watchdog group says it's proud of plans by elected north carolina republican leaders not to expand medicaid through the federal health care overhaul and its impending decision to refuse to extend federal unemployment benefits.

Americans for Prosperity national president Tim Phillips and North Carolina state director Dallas Woodhouse spoke Tuesday at a news conference at the legislative building. They praised the actions of the GOP-led general assembly and Gov. Pat McCrory, saying just because they're offered money from the federal government doesn't mean they should spend it, because it's all tax dollars.

"We need to correct the wrongs that Beth Wood, a democratic auditor said is occurring right now, and that's why I am not expanding it. We have to first fix the current system before we expand the current system," said Governor McCrory.

Mccrory says North Carolina shouldn't expand medicaid to cover about 500,000 uninsured people and should leave it to the federal government to run an online marketplace for private health insurance.