Agenda - 04-07-1986 - Laserfiche WebLink

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ORANGE COUNTY • BOARD OF COMMISSIONERS ACTION ACE t ACTIONN! AGnDA ITEM ABSTRAC l ITEM ti0. MEETING DATE _April T, 1986 ..___ OO • - SUBJECT : Impact of Projected Federal Budget Cuts - Review of School Capital-Reserve Fund and Possible Funding_Alternatives- for, School Cagztal- Ng_eds__..-..-..;._..-. _.. _ �._ ` [EPARii'PNT:- Finance LPU3LIC HEARING: x YES T NO ATTACHMENT(S): INFORMATION CONTACT: Finance Director • ext. 496 • PHONE NUMBERS: HILLSBOROUGH 732--818 • : HILLSBOROUGH -- 737-935 • - CHAPEL HILL. 967--925 MEBANE -- 227--203 • DURHAM - 688-733 PURPOSE: To receive public comment• on the importance of the programs which are projected- to be affected by the anticipated federal budget cuts.and on the status of the school capital reserve fund and possible funding alternatives - . • for school capital purposes. . • • • NEED: On December 12, 1985 President Reagan- signed the Gramm-Rudman-Hollings Deficit- Reduction Act -into public law. This legislation is aimed at reducing the current federal deficit of approximately $200 billion to - • zero by federal fiscal year 1991. For state and- local governments, the • Deficit Reduction Act could be the most fiscally disruptive law ever enacted by the federal government. At best, the new law promises increased uncertainty about just what programs the federal government will fund and at what level. At worst, it means the virtual elimination of all Federal aid to state and local governments over the next five years. Orange County must recognize the new realities of federal funding, assess the potential damage, and determine alternative plans. Also the school systems are experiencing exceptional capital,needs which • are being intensified by the rapid growth in the County, Each school system will update the Board of their capital needs at the meeting on April 22nd. However, at this time, various funding alternatives for school capital purposes will be presented for the Board's information and for public comment. While consxderable' uncertainty exists about the actual dollar amount of the impact that the Deficit Reduction Act wilt have, Orange County IMPACT•' citizens could experience a loss of $7.5 pillion or more of federal funds during the next 5 years as a result of the efforts to reduce the federal deficit. This includes not only the loss to the county government itself, but also the loss to the local boards of education, the various' outside agencies, and the vendors and citizens that receive payment directly from the federal government.