Agenda - 05-19-2009 - 7b - Laserfiche WebLink

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Budget Message To: Orange County Board of Commissioners From: Laura E. Blackmon, County Manager Sub"ect: Recommended FY 2009-10 Annual Operating Budget J Date: May 12, 2009 Per North Carolina General Statute 159-11 , 1 submit to you the Recommended FY 2009-10 Annual Operating Budget for Orange County. The proposed General Fund budget totals $177,589,039. It reflects a decrease of $5.4 million, or 3%, from the current year original budget of $183,005,580. 1 believe this funding plan meets Board directives, allows for opening new facilities, addresses many County priorities, and supports employees. Over the last several months Commissioners have heard from many County residents who are finding it increasingly difficult to pay taxes and meet other financial obligations. With that in mind Commissioners directed me to balance the County's operating budget at the revenue neutral tax rate. The Board also directed me to prepare a budget funding local school districts at 48.1% of the County's ,General Fund. While my recommended funding plan attains both of those goals, balancing the budget within these guidelines was not an easy task. It has required difficult funding decisions regarding services and programs. Budget decreases mean everyone schools, non-profit agencies and county departments - receives less money next- year than they received this year. FY 2008-09 FY 2009-10 Difference -County Departments $94,.475,580 $921164.,471 ($2;311,,109)_ Total % of General Fund 51.6% 51.9% Local School Districts $8815301000 $8,514241568 ($3,105,432)j Total % of General Fund 48.4%. 1 48.1 Revenues The County receives revenue from many sources. Major revenues include property and sales taxes, monies from other governments, and fees for services. Early in the budget planning process staff alerted the Board of anticipated revenue reductions in all these areas for the upcoming year. For the most part, decreases are the result of reduced consumer spending, declining construction and housing markets, and reductions in State monies to support county operations. The State's fiscal condition continues to deteriorate. Each day brings new information for us to consider as we enter the final stages of balancing the County's budget for the upcoming year. As an example, late last week Governor Perdue announced additional funding cuts to include furloughs and reduced pay for teachers and other state employees.