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Outline • <br /> 169 Preliminary Draft <br /> TAX EQUITY IN FINANCING LOCAL GOVERNMENTS IN ORANGE COUNTY, 1987-88 <br /> I. Introduction <br /> A. Purpose <br /> 1. To evaluate the equity of present arrangements for financing public <br /> services and functions by local governments in Orange County that <br /> result from jurisdictional arrangements and practices. <br /> 2. To suggest to what extent jurisdictional inequities, if any, may be <br /> offset or increased by the incidence of taxes and program benefits. <br /> An understanding of the nature and extent of the equities or <br /> inequities in present arrangements should assist citizens iand local <br /> officials in making better decisions about future programs and <br /> activities and their financing. <br /> B. Scope <br /> 1. Units covered will be Orange County and the towns of Chapel Hill, <br /> . Carrboro, and Hillsborough. <br /> 2. The study will take a "slice in time" approach, and will be confined <br /> to the experiences of the 1987-88 fiscal year. [Data for that year <br /> that' are known to be abnormal will be highlighted.] <br /> 3. Funds from all sources and expenditures for all purposes of the <br /> covered units will be analyzed. <br /> C. Methods of Analysis <br /> 1. Basic principles of jurisdictional equity will be set forth. The <br /> current arrangements will then be compared with the basic principles <br /> to determine to what extent the present arrangements are in accord <br /> with the basic principles and the extent to %ditch they are <br /> inconsistent with the basic principles. Variations, if any, will be <br /> expressed in per capita amounts for citizens of the county, citizens <br /> of each municipality, and citizens of the unincorporated area of the <br /> county. <br /> 2. The findings will then be examined in light of the estimated <br /> incidence of each taxing measure and service program of each unit. <br /> This examination should suggest the direction and rough magnitude of <br /> adjustments that might appropriately be made to the findings of <br /> jurisdictional inequities, if any, in order to reflect the "real" <br /> circumstances for citizens of the various governmental units. <br /> 3. No attempt will be made to evaluate the equity or appropriateness of <br /> any particular taxing measure, or the efficiency or effectiveness of <br /> any particular program or function. State and federal financial <br /> support in the form of grants, loans, and shared revenues will be <br /> included at their 1987-88 levels, but without evaluation of their <br /> appropriateness. <br />