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Dr. Lunsford stated that one item that would affect both systems is the <br /> cutback of the money for custodians and energy. This would then have to <br /> become the county's responsibility. If this happen, it will reduce their <br /> ability to fund the continuation budget. It is more difficult to have money <br /> taken away. <br /> Chairman Carey noted that these are infringements on funding and may be <br /> repeated for years to come. It is going to take some creative planning and <br /> hard work to deal with these funding cuts. With regard to equal funding, he <br /> will be asking the Board to consider a countywide district tax. He believes <br /> all children should benefit from the tax base in Orange County and would <br /> like for the public to speak on this matter. That will not solve any <br /> problems right now but it would give some direction to the two school <br /> systems. <br /> Mary Bushnell indicated they want to definitely be involved in that <br /> discussion. <br /> Ruth Royster expressed a concern about the tax base to draw upon for <br /> education. The children must be educated in order to expand the tax base. <br /> There is no better place to put tax money than for educating children. <br /> Commissioner Marshall stated that one of the things out of kilter is <br /> that all these needs have increased while the state and federal government <br /> have stepped back and looked at the County to make up the difference. <br /> Somehow the County has got to get the people to understand the situation and <br /> stand united against Raleigh. The County Commissioners are doing what they <br /> can and hope that the two school systems do what they can to support the <br /> Economic Development strategic plan. <br /> Chairman Carey stated that the state passes the burden down to the <br /> County level and then the County is forced to raise taxes. <br /> Commissioner Willhoit stated that this is a year when the County's tax <br /> base is not expanding. The dilemma is that there are two different <br /> groups -- one which has a district tax and one which does not. <br /> Discussion ensued on possible ways of making up the $196, 000 cut <br /> expected from the inventory reimbursement to the County. Option one was to <br /> cut every single budget by a fixed percentage. John Link does not recommend <br /> Option 1 because of the impact on some of the larger program budgets. Option <br /> 2 is to take this amount out of fund balance, and option 3 is to take <br /> $100,000 out of the fund balance and $20,000 out of contingency and the <br /> remainder out of the department budgets. Option 4 would be to add .55 to the <br /> tax rate to cover this amount. <br /> Commissioner Marshall questioned if departmental budgets could really be <br /> cut further and John Link indicated it would be the larger departments that <br /> would be cut. <br /> John Link explained that the eight percent fund balance is derived by <br /> using the formula that is most stringent. The LGC requires that the County <br />