Orange County NC Website
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The projected 2011-12 issues: <br /> - Summary: static budget gap going into 2011-2012 of $2.7 recently to $4.3 billion. <br /> - Governor Perdue's budget passes $93.3 million of costs for education related <br /> expenses to the counties. <br /> What Do the State Problems Mean to Local Government? <br /> - Expect "transformational" government at the State level <br /> - Everything will be on the table <br /> - Local Revenue Options — Sales tax, Hold Harmless <br /> - Cuts (15%)/New Taxes/Tax Reform <br /> - Potential loss of 10,000+ state jobs <br /> - Retirement System <br /> General Fund and Financial Overview <br /> Top 3 Revenues — General Fund <br /> Ad Valorem Taxes — 76% <br /> Local Option Sales Tax— 8% <br /> Intergovernmental Revenues — 10% <br /> Other—6% (Charges for services, investment earnings, licenses and permits, miscellaneous) <br /> Revenues <br /> - Property taxes — Little growth in Tax Base. Only 1 percent in real property estimated <br /> for FY 2011-2012 <br /> - Sales Taxes — a little growth expected in fiscal years 2011 and 2012 as the economy <br /> recovers from the recession. <br /> - State Budget and Shared Revenues — uncertain due to the fiscal issues at the Federal <br /> and State levels. Currently too uncertain to predict the affect on the FY 2011-12 <br /> budget. <br /> Property Tax <br /> - 75% of the General Fund <br /> - 99% Historical High Collection Rate <br /> - 2010-2011 Real Property Collection = $123 million <br /> - Vehicles ($8.2 million 2009) est. $7 million <br /> Sales Tax <br /> - Everything Has Changed <br /> o Counties hold harmless for Medicaid <br /> o Article 44 eliminated <br /> o Distribution of Article 42 — point of delivery <br /> - Impact <br /> o Retail sales are starting to recover slightly <br /> o Budgeted Revenues $1.5 million less than 2009-2010 <br /> o Hold harmless from state +$2.6 million <br /> Top 3 Expenditures — General Fund <br /> Education — 37% <br />