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<br />Orange County Budget
<br />08/30/07
<br />County Medicaid RelieflSales Tax Swap Staff Analysis
<br />Fiscal Years 2007.08 Through 2011.12 Fisal Year 2~9-i0 re8eds year that phase-in of County Medicaid Swap i
<br />(Footnotes to spreadsheet provided on pages 2 & 3)
<br />The spreadsheet below provides ayear--by-year analysis of the State's recently approved Medicaid Swap/Relief package for counties. The numbers used to
<br />North Carolina Association of County Commissioners.
<br />1
<br />2
<br />are based on State projections furnished by the
<br />Section 1. Coun Medicaid Relief 20D7.08 2008.09 2009-10 2010.11 2011.12 Total
<br />Amount of County Medicaid Expenditures That State Assumes (i.e.
<br />County's Medicaid Relief from State, 3 Year Phase In Plan Beginning $761,706 $2,393,587 $5,239,549 $5,893,443 $6,525,868 $20,814,153
<br />10/01!07) ttl
<br />3
<br />Section 2. Public School Buildin Funds'`'
<br />State Takes Public School Building Fund Monies (Only in First Year ($457,024) $0 $0 $0 $0 ($457,024)
<br />of Relief Plan
<br />6 Section 3. Sales Tan Changes Isl
<br />Loss of Article 44 Local Sales Tax -State Takes Beginning with
<br />114 cent beginning 10101108 followed by 100% beginning 10101!09
<br />(Article 44 Sales Tax is the most recently enacted local option sales $0 ($1,871,909) ($4,683,837) ($5,725,48D) ($6,022,221) ($18,303,447)
<br />tax; counties were giving the authority levy the tax in 2001 when the
<br />State took back Intangibles revenue from local governments)
<br />Loss of Article 42 Local Option t/2 Cent Sales Tax -Distribution
<br />Formula Converts 1/4 Cent from Per Capita to Point of Sale Effective $0 $D ($726,004
<br />)
<br />($753,656)
<br />($783,802)
<br />($2,263,462)
<br />October 1, 2009 (Per the County Capital Funtling Policy, Article 42
<br />Revenues are currently dedicated to School & County capital)
<br />State's Projection of Article 44 Sales Tax Distributed to Orange $0 $622,953 $652,424 $0 $0 $1
<br />275
<br />377
<br />County (Temporary for 2 Years Beginning in Fiscal Year 2008.09) ,
<br />,
<br />Less: Hold Harmless Sales Tax Pa ment to Munici alities $0 $773,044 $2,927,908 $3,992,934 $4,194,568 $11,888,454
<br />Net Im act of State Takin Sales Tax $0 $2 D22 DDO $7 685 325 $10 472 070 $11 D00 591 $31179 986
<br />i
<br />E
<br />9
<br />10
<br />11
<br />12
<br />13
<br />14
<br />15
<br />16
<br />17
<br />18
<br />Difference Between County Medicaid Relief (Section 1), Public
<br />School Building Funds (Section 2) and 114 Cent Sales Tax $304,682 $371,587 ($2,445,776) ($4,578,627) ($4,474,723) ($1D,822,857)
<br />Chan es Section 3
<br />Plus: Hold Harmless Funds From State (4! $195,318 $128,413 $2,945,776 $5,078,627 $4,974,723 $13,322,857
<br />Coun Gain After Hold Harmless Funds From State $500,000 $500 000 $500 000 $500 000 $500 000 $2 500 000
<br />Funds Required to Replace PSBF IZI ($477,377) ($477,377)
<br />Potential Shortfall Between Orange County Approved Medicaid
<br />Budget and Year•End Expenditure Projections tsl ($545,000) ($545,000)
<br />Potential County Net Loss After Replacing PSBF and Projected ($522,377) $1
<br />477
<br />623
<br />Medicaid Shortfall ,
<br />,
<br />Page 1 of 3
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