Orange County NC Website
Orange County Budget <br />08/30/07 <br />County Medicaid RelieflSales Tax Swap Staff Analysis <br />Fiscal Years 2007.08 through 2011.12 Flsal Year 2009.10 reflechs year that phase-in of County Medicaid Swap is <br />(Footnotes to spreadsheet provided on pages 2 & 3J <br />The spreadsheet below provides ayear--by-year analysis of the State's recently approved Medicaid Swap/Relief package for counties. The numbers used in t <br />North Carolina Association of County Commissioners. <br />1 <br />2 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />1E <br />Section 2. Public School Buildin Funds'"' <br />State Takes Public School Building Fund Monies (Only in First Year ($457,024) $0 $D $0 $0 ($457,024) <br />of Relief Plan <br />3 <br />rm <br />are based on State projections furnished by the <br />Section 1. Coun Medicaid Relief 2007-D8 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 />lorovo7) t'I <br />6 Section 3. Sales Tax Changes tai <br />Loss of Article 44 Local Sales Tax -State Takes Beginning with <br />114 cent beginning 101D1108 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) ($5,725,480) ($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 ofArticle 42 Local Option 1/2 Cent Sales Tax -Distribution <br />Formula Converts 114 Cent from Per Capita to Point of Sale Effective $0 $0 ($726,004 <br />) <br />($753,656) <br />($783,802) <br />($2,263,462) <br />October 1, 2009 (Per the County Capital Funding 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 $1,275,377 <br />County (Temporary for 2 Years Beginning in Fiscal Year 2008-09) <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 $2 022 OOD $7 685 325 $1 D 472 070 $11000 591 $31179 986 <br />Difference Between County Medicaid Relief (Section 1), Public <br />School Building Funds (Section 2) and 114 Cent Sales Tax $304,882 $371,587 ($2,445,776) ($4,578,827) ($4,474,723) ($10,822,857) <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,ODD $500 000 $500 000 $500 000 $500 000 $2 500 000 <br />Funds Required to Replace PSBF t~1 ($477,377) ($477,377) <br />Potential Shortfall Between Orange County Approved Medicaid <br />OOD) <br />($545 <br />($545,000) <br />Budget and Year-End Expenditure Projections t~ , <br />Potential County Net toss After Replacing PSBF and Projected ($522,377) $1,477,623 <br />Medicaid Shortfall <br /> <br />Page 1 of 3 <br />