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2 <br /> General Fund <br /> General Fund revenues are 84.7%of budgeted revenues as compared to 86.8%the prior fiscal year. The variance <br /> is attributed to a timing variance in U.S. Marshals Service detention center reimbursements and a performance <br /> variance in Ambulance charges further described below. <br /> • Property Tax collections include Real, Personal and Motor Vehicles. Real and personal taxes collections <br /> peaked at the end of December prior to the January assessment of penalties and interest and has met <br /> the budgeted revenues. Propertytax revenues are 98.7%of the budget compared to 97.5%the priorfiscal year. <br /> The Tax Administration Office billing and collection rate will meet the 99.2%budgeted amount. Real and Personal tax <br /> revenues are$177.1 million and have metthe budget.The remaining property taxes represent the last three <br /> months of motor vehicle tax revenues. The State remits motor vehicle tax revenues to the county <br /> monthly. Motor Vehicle billing versus collection are at 80%through the third quarter representing the <br /> monthly timing variance of these remaining revenue from the State. <br /> • Sales tax revenues are 62.5%of the budget compared to 74.9%the prior fiscal year.The Hold Harmless sales <br /> tax revenues which was budgeted at$5.7 million in FY 2023-24 are projected to be negatively impacted by up <br /> to$2 million due to increased State Medicaid expenditures as described below.As a response, Finance is <br /> working with the NC Department of Revenue to expeditiously process$1.5 million in sales tax reimbursements <br /> resulting from County sales tax previously paid to the State primarily for capital projects. <br /> Medicaid Hold Harmless Sales Tax Revenue <br /> The General Assembly enacted the Medicaid 2007 and 2008 Funding Reform Legislation (House Bill 1473) which <br /> phased (swapped) out NC counties share of Medicaid expenditures in exchange, NC counties <br /> ceded Article 44 Sales Tax to the State beginning October 1, 2009. In exchange for the State assuming the <br /> counties' share of Medicaid costs, NC counties and municipalities are to be held harmless for their loss in Article <br /> 44 sales tax revenue, through supplemental sales tax revenues also known as Hold Harmless Sales Tax revenues. <br /> North Carolina counties were notified mid-March 2024 that Hold Harmless Sales Tax would be decreasing for <br /> both fiscal years 2023-24 and 2024-25. The projected decrease in this revenue source is attributed to an <br /> increase in State Medicaid expenses. The increase in Medicaid expenses thus erodes the Hold Harmless Sales Tax <br /> revenues received by NC local governments (See Appendix 3). The North Carolina Association of County <br /> Commissioners Research Office and the Department of Health and Human Services attributes these Medicaid <br /> increases to: <br /> 1) 2023 State Appropriations Act (State Budget) which increased state Medicaid spending by providing <br /> over $600 million to increase Medicaid provider rates, including rates for skilled nursing, personal care, <br /> and behavioral health. These provider rate increases singularly added over $90 million to the historical <br /> county 15% share, which results in a decrease in County Hold Harmless payments. <br /> 2) 2022 State Appropriations Act (State Budget) increased state Medicaid by $231.8 million to continue <br /> higher COVID reimbursement rates for a continuation of coverage for nursing homes, personal care <br /> services and prescription drug costs. <br /> 3) Increase in the State share of the Federal Match rate. <br /> 2 <br />