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expenditures and said that they appear to be on target for what was budgeted, which was $3.1 million. It was thought that Medicaid expenditures might skyrocket, but it seems that they have not. Another big topic last year was sales tax. The original budget included $15.7 million, which was no increase over the prior year. The first quarter receipts were comparable to what they had budgeted. Since the original budget, the general assembly authorized the additional ~/ cent sales tax for local governments. This was effective December 1, 2002. The Association of County Commissioners anticipates that Orange County will collect about $1.8 million in unbudgeted revenue in the current fiscal year as a result of the additional '/ cent sales tax. There will be an update on February 26th as to the first quarter receipts. Some of the items that may be addressed in February with the additional sales tax revenue are as follows: restore some portion of the County's fund balance, restore some portion of the Public School Building Funds that were "frozen" in the State's adopted budget, reinstate some portion of SChOOIs' recurring capital, and begin phased-in implementation of the County's classification and pay study. Commissioner Jacobs asked that this list include the County capital costs that were frozen ar cut and the monies for the Affordable Housing Trust Fund and the Lands Legacy. Commissioner Carey verified that the $1.8 million was from December 2002 through June 2003. Donna Dean continued by talking about the Undesignated Fund Balance, which is about 10% or $11.6 million. Revenue Update: The additional'/ cents sales tax for a full year will provide $3.1 million for next year, which will replace what was withheld by the State. The property valuations continue to be strong. The estimated revenue from one cent is about $950,000. The other County revenues will remain the same. Regarding expenditures, when Chapel Hill-Carrboro City Schools opens elementary school #9, there will be additional students in both school systems, and there may be a loss of the Public School Building Capital Funds again this year ($800,000). The County's budget initiatives include increased debt service for 2001 bonds and alternative financing, employee classification and pay initiative, state initiatives to restructure mental health, County capital items postponed last spring, solid waste alternative financing, public safety initiatives, and initiatives identified in organizational assessment. The challenges beyond fiscal year 2003-2004 include the equity of funding between the two school systems, opening of three new schools over the next five years, and operational costs associated with County related capital projects. Commissioner Jacobs said that during the budget process, he would like to see historical tracking of the CHCCS district tax and how it has gone up and what it was spent for. He would also like to know how Chatham County has a shortfall in funding but has a huge fund balance. He would like to know, for the five adjoining counties, what kind of fund balance they maintain and what kind of tax rate they have and what services they are providing in relation to Orange County. Commissioner Gordon would like to see a 10-year CIP that goes through the entire 10 years. That would involve including more detail in the last five years of the plan.