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