Agenda - 04-28-2009 - Laserfiche WebLink

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3 During fall 2008, the County Budget Director developed the FY 2009-19 CIP revenue projections based on the assumption that Public School Building Fund and NC Education Lottery monies would be in place for FY 2009-10. At that time, this assumption appeared to be solid. However, in February 2009 Governor Perdue implemented emergency budgetary and financial actions in order for the State to have sufficient funds to pay its bills. This action included the State seizing Public School Building and NC Education Lottery funds due to counties. While State officials have indicated this is a temporary measure, the General Assembly is still in session and has not balanced the State budget. It is important to note, in past years, the State has balanced its budget by withholding monies to which counties are entitled, such as Public School Building Fund monies. There is still much uncertainty surrounding the State budget for next fiscal year. Given this uncertainty, County staff advises caution in relying on these two large revenue sources -Public School Building Funds, $1 to $1.5 million and NC Education Lottery proceeds, $2.1 million -for FY 2009-10 until the General Assembly has adopted a final budget. During early April 2009, the County Manager advised both School Superintendents of the uncertainty of these monies. Each superintendent agreed to review their district's FY 2009-10 capital funding proposal to (1) determine which projects to fund with pay-as-you- go funding beginning July 1, 2009, and (2) which projects to postpone until the State has finalized its budget. This approach would ensure the County does not count on State revenues that ultimately do not transpire. During tonight's presentation, each system will share their prioritized list of FY 2009-10 capital projects with the Board of County Commissioners. FINANCIAL IMPACT: Preliminary FY 2009-10 revenue projections anticipate the County's General Fund revenues would be $174.6 million, a reduction of $8.7 million from the FY 2008-09 General Fund revenues. Staff has assumed no receipt of Public School Building Fund monies in this projection for the County's General Fund. (Note: NC Education Lottery proceeds are revenues budgeted in individual capital projects and not considered General Fund Revenue.) Assuming the Board's funding target of 48.1 % of County General Fund revenues, the County's total allocation to schools for current expense, recurring and long-range capital, debt service and fair funding would be $83.84 million in FY 2009-10, a reduction of $4.69 million. The chart below outlines revenue available for appropriation to school related functions.