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3 <br />ORANGE COUNTY BOARD OF COMMISSIONERS <br />A RESOLUTION REGARDING INCREASING THE STATE CIGARETTE <br />TAX TO SUPPORT COUNTY MEDICAID RELIEF AND FARMLAND <br />PRESERVATION <br />WHEREAS, only the states of New York and North Carolina require county <br />governments to participate in all the costs of Medicaid, and <br />WHEREAS, the state of New York recently took action to lower the costs of Medicaid <br />to its counties, and <br />WHEREAS, Medicaid costs for counties are faz outstripping county governments' <br />ability to provide for those increases through the traditional source of flexible revenue - i.e,, the <br />property tax, and <br />WHEREAS, Orange County will spend a projected $3.6 million in 2004-OS for <br />Medicaid, which equates to 3.56 cents on the property tax rate, and <br />WHEREAS, North Cazolina counties have no opportunity under federal and state law to <br />control Medicaid expenditures, and <br />WHEREAS, a plan to completely phase out required county Medicaid expenditures is <br />desirable, and <br />WHEREAS, cigarette smoking contributes to health problems that increase Medicaid <br />costs, and <br />WHEREAS, the state of'North Carolina has the lowest cigarette tax in the nation, and <br />WHEREAS, an increase in the state cigarette tax could yield significant funds to reduce <br />the county share of Medicaid, and <br />WHEREAS, the Orange County Board of Commissioners adopted a resolution in March <br />2005 supporting an increase in the cigarette tax with a portion of the new revenues being <br />dedicated as a funding source for the Farnand Preservation Trust Fund and for the creation of <br />regional processing centers to create value-added products and help promote farm options; <br />NOW THEREFORE BE IT RESOLVED that the Orange County Board of <br />Comrissioners hereby urges the General Assembly of North Carolina to enact a significant <br />cigarette tax increase with a substantial portion of that tax to be used to begin aphase-out of <br />required county contributions to fund Medicaid costs, and with a portion of the new revenues <br />being dedicated as a funding source for the Farmland Preservation Trust Fund and for the <br />creation of regional processing centers to create value-added products and help promote farm <br />options. <br />FURTHER BE IT RESOLVED that a copy of this resolution be presented to members <br />of the General Assembly, <br />Adopted this the 23"~ day of June, 2005 <br />Moses Carey, Jr., Chair <br />Orange County Board of Commissioners <br />