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2 <br />2} N~edi~aid Relief ~- The Medicaid Relief/Sales Tax Swap <br />action by the North Carolina General Assembly during , <br />the X007 session continues to cause significant adverse <br />financial impacts to Drange County. As depicted in the <br />charts provided at Exhibit A, Orange County is <br />experiencing a substantsal decrease in sales tax <br />revenue. Drange County asks that the 2DD9 General <br />Assembly protect the ~54D,ODD in "hold harmless" <br />funding to the County as designated in the 2QD7 <br />legislation. Any efforts to reduce or eliminate this <br />funding further exacerbates the an--going negative <br />financial impacts of the ZDD7 legislation on the <br />County; <br />37 ~ale~ Tax Exe~m tivn -~ Support legislation to exempt <br />counties, cities, school boards, community colleges,, <br />and the Drange Water & Sewer Authority from payment of <br />state and local sales taxes on purchases within North <br />Carolina. The legislation should contain a provision <br />permitting the state to repay the last refund over a <br />multiyear period to minimize .state budget impacts. <br />Alternatively, Drange County supports legislation to <br />fully restore public schools' access to sales tax <br />