In one of the most competitive legislative races of the midterm election, three candidates are vying to claim North Carolina’s 3rd House District — the only race of its kind in the state.

The race pits Republican Norman Sanderson, owner of a child care center in Havelock, against Democratic incumbent Alice Graham Underhill, a four-termer and former member of the Craven County Board of Education. A third party candidate, Libertarian Herb Sobel, also is on the ballot.

The contest is a rematch from 2008, when the same three candidates duked it out in one of the closest races of that cycle. Sanderson lost to Underhill 50 percent to 48 percent, with Sobel claiming just over 2 percent of the vote. That close margin led some Republicans to label Sobel a spoiler for their candidate.

But Sanderson disagrees. He doesn’t think Sobel’s third party bid will hurt his chances this year, saying he feels “very good” about where the campaign stands.

“People who came out and voted for the third party candidate probably would not have voted for either me or my opponent,” he said. “I’m not going to blame the Libertarian.”

The 3rd District is one of Republicans’ top pickup prospects this year. The district, encompassing Craven and Pamlico counties on the coast, is divided evenly in voter registration between Republicans and Democrats. In the last presidential race, it broke for Republican John McCain over Democrat Barack Obama by an overwhelming 61-38 percent.

A poll in September from the GOP-aligned Carolina Strategy Group showed Sanderson had a 48-33 percent advantage over Underhill. At a poll luncheon in Raleigh sponsored by the conservative Civitas Institute, Democratic strategist Brad Crone said the district is one to watch this election season.

“Underhill is in big trouble,” Crone said.

Both candidates are competitive in the money race. Underhill had $26,123.14 on hand June 30, and Sanderson had $16,232.10. Sobel had $780.

On the issues, Sanderson said that legislators need to stay away from tax hikes, look for ways to combine state services, and slash the state budget.

“It’s going to be very difficult,” he said, “and I think we’re going to have to look at reducing and cutting back in every area that we possibly can, and hopefully keep the collateral damage in terms of layoffs to a minimum.”

A campaign staffer for Underhill said the New Bern Democrat wasn’t available for a telephone interview due to scheduling constraints. In office, Underhill voted for the state’s $20.6 billion budget during the short session this summer and was a primary sponsor of a bill in 2009 to extend the life of the Legislative Commission on Global Climate Change.

Her campaign website lists quality of life, a strong economy with diverse job opportunities, good schools, a clean environment, and affordable healthcare as her top priorities.

In an interview with the New Bern Sun Journal, Underhill said the 2010 election cycle is no different than any other time she’s run. “I always have to campaign real hard. I live in one of the hardest districts in the state to win,” she said.

For his part, Sobel said he would support eliminating permanently several state agencies — including the Alcohol Law Enforcement Agency and the State Board of Education — and cutting budgets for other agencies.

“I suggest a review of all the laws from the past five years,” he said. “About five years ago we had a robust economy, so we need to find out which laws impacted the state economy and find out which to repeal.”

Sobel said he thinks his two opponents are focusing on second-tier issues. “I do believe that the two candidates who oppose me are running campaigns that are dealing with small, irrelevant issues that will pander to voters,” he said.

Asked to name a key difference between himself and Underhill, Sanderson said he wouldn’t have voted for the last state budget “with the billion-dollar tax increase.”

“When there is a revenue shortfall, my first thought is to look for ways to cut costs,” he said. “Their mentality is to look for ways to raise additional revenue.”

On his campaign website, Sanderson also lists support for a state constitutional amendment defining marriage as between one man and one woman and for a law legally recognizing an unborn child as the second victim of a crime against a pregnant woman.

He supports lifting the 100-school cap on charter schools and would back legislation exempting North Carolina from health insurance mandates under the health care reform law passed by Congress in March.

David N. Bass is an associate editor of Carolina Journal.