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OPA iC� 'COUNTY <br /> DOfix;U OF CO"COINFORMATION UN, ONERS ACTIOM AGEUDA <br /> ACTION AGENDA ITEM ABSTRACT ITEM NO_E1 <br /> MEETING DATE ARril 22. 1.986 - • <br /> 00S <br /> SUBJECT: Impact of Projected Federal Budget Cuts - <br /> 1-DEPARTMENT: Finance • : 1 1 PUBLIC HEARING: X. YES HO <br /> ATTACHMENT(S) : CONTACT:. Finance Director, ~ <br /> ext. 496 <br /> .Report on Gramm-Rudman-Hollings and - PHONE NUMBERS: HILLSGOROUGH - 732-,8181 <br /> Projected Federal Budget Cuts HILLSBOROUGH -- 732--9361 <br /> - CHAPEL HILL - 967--925I <br /> ,�EBANE 227-2031 <br /> _ DURHAM -- 688-7331 <br /> PURPOSE: To hear-an update from the Finance Director on the 1986 and 1987 'Federal budget cuts <br /> and how this will affect County departments as well as to receive public- <br /> .- _ <br /> comment on the' importance of the programs which are anticipated to be <br /> • affected. <br /> MUD: 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 /> IMPACT: While considerable uncertainty exists about the actual dollar amount of <br /> the G-R-H cuts and the immediate impact these will have on the county <br /> departments, it is anticipated at this time that the cuts for the <br /> various county departments for the 1986 and 1987 Federal fiscal year <br /> could be more than $1.2 million. <br /> RECOMMENDATIONS: No recommendation is appropriated at this time. The staff will <br /> keep the Board informed as the impact becomes more precise and <br /> alternatives can be explored. <br />