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Money, money, money, money
<br /> Budget, reimbursements on minds of commissioners around the state 20
<br /> By Todd McGee of nearly$2 billion puts in jeopardy the entire$330 million of reimbursements for repealed
<br /> Director of Communications local taxes that are due to local governments,plus the 5200 million or so of state-collected
<br /> local taxes,such as the utility franchise tax.
<br /> Just like minor league baseball and the blooming of the azaleas,the North Carolina As a result,the Association is expecting Governor Easley's budget for FY'03 to include
<br /> Association of County Commissioners'regional meetings are a rite of spring in the Tar Heel a new,local-option half-cent sales tax to replace the reimbursements for next fiscal year.The
<br /> state.This year's series of meetings,held across the state in April,gave county govenor is also expected to propose removing the local option on the state sales tax that was
<br /> commissioners and managers a chance to learn more about events in Raleigh.The meetings enacted last,October and letting it expire next June.
<br /> also gave Association staff members an opportunity to learn more about what is going on in Reaction was mixed to this news.At some meetings,commissioners said they would
<br /> county government around the state. have no choice but to enact the sales tax in light of the likelihood that the reimbursements
<br /> As might be expected,financial concerns were among the top priorities discussed at would not be forthcoming.Others,however,said they did not think the state should force
<br /> counties to raise taxes in order to bail the state out of its budget problems.
<br /> "I'm having a hard time justifying that it's good news that we can add a local-option
<br /> i,.. half-cent sales tax to take the place of the reimbursements,"said Coy Privette of Rowan
<br /> County.Privette was a member of the General Assembly when the legislature promised to
<br /> reimburse counties and cities for the repealed inventory taxes.
<br /> �'.
<br /> Reaction was similarly mixed to Governor Easley's lottery.Many commissioners
<br /> >` ` favored putting the lottery to a referendum,but others were concerned that the state would
<br /> ¢l use the lottery proceeds to fund new initiatives and not to help balance the state budget.
<br /> "A lottery is just more money to spend,"said Buster Robertson,a Stokes County
<br /> : r
<br /> �K More counties join debt setoff clearinghouse
<br /> Not all the news at the district meetings was bad.The North Carolina Local
<br /> Government Debt Setoff Clearinghouse,a joint effort by the Association and the League
<br /> of Municipalities,continues to be a success.
<br /> - Sixteen counties and 18 municipalities have begun sending data to the
<br /> clearinghouse,and the program has returned more than$170,000 to the entities in its
<br /> "* first seven matches.
<br /> The program was set up with the Department of Revenue to allow local
<br /> governments another vehicle to collect unpaid debts.A total of 91 participants—41
<br /> counties and 50 municipalities—have signed up for the program.
<br /> A large crowd turned up for the NCACC's Regional Meeting In Mahn County on April 29. For more information on the program,including copies of the forms and resolutions
<br /> Commissioners and managers wanted to know the latest news regarding the state budget as well as needed to sign up,please visit our web site(www.neacc.org/debtsetoff.htini).
<br /> find out about changes In the risk management markets and other pertinent Information.The
<br /> Association held seven regional meetings around the state In April,giving county officials an County Debtors Debts Total Submitted Total Matched Total Returned
<br /> opportunity to loam about the latest news In Raleigh and around the state. Avery 177 348 78,538.58 3,955.28 3,685.28
<br /> Catawba 1 1 340.35 0.00 0.00
<br /> Photo by Todd McGee Craven 1,500 2,905 425,165.53 42,738.17 39,318.17
<br /> Davie 200 205 54,428.51 462.00 432.00
<br /> every meeting.Commissioners and managers wanted to know the status of ibis year's lost Forsyth 589 1,067 207,632.56 3,451.70 3,181.70
<br /> reimbursements,the likelihood of getting next year's reimbursements,the prospects of a Greene 362 483 279,450.81 7,281.95 6,951.95
<br /> state lottery,and potential state or federal Medicaid relief. Halifax 370 504 176,655.90 1,113.88 1,038.88
<br /> Unfortunately,the concrete answers that could be provided were not good news. Harnett 106 106 48,515.45 422.18 407.18
<br /> According to Association Executive Director C.Ronald Aycock,the state's disappointing Henderson 378 479 72,409.43 18,048.68 16 293.68
<br /> April personal income tax Nash 14 22 4,212.93 81.02 66.02
<br /> collections meant that the Pasquotank 654 932 358,242.92 7,456.74 7,036.74
<br /> $209 million in Person 25 26 :24,412.15 0.00 0.00
<br /> Sampson 392 494 '< 129,231.70 726.84 666.84
<br /> reimbursements and state- Wayne 745 773 621;0I7.06 4,936.13 4,711.13
<br /> collected local taxes that Yadkin 16, 16 27,967.05 140.18 110.18
<br /> had been taken by Gov. Subtotals 5,529 8,361 $2,508;22093 $90,814.75 $83,899.75
<br /> Mike Easley to deal with
<br /> the state's$1.6 billion
<br /> budget deficit were likely
<br /> not coming back. Commissioner."Until you have some cuts,you're not going to get out of this.If we don't
<br /> In addition,next year's get our reimbursements this year and next year,we're looking at cutting 25 percent of our
<br /> burgeoning budget deficit people.You can't keep on raising taxes.Small,rural counties cannot absorb what we are
<br /> losing."
<br /> Several commissioners and managers expressed concerns that the General Assembly
<br /> and Governor Easley did not fully understand the severity of the crisis that is being felt at
<br /> the local government level.The state's sales tax revenues and income tax collections are
<br /> down,but counties sales tax revenues are down as well.Some counties are reporting that the
<br /> slow economy has caused their property tax collections to go down.
<br /> "Our budgets are due July I,"said Rowan County manager Tim Russell."What is the
<br /> mood of the General Assembly?When is their plan going to come?Will we get some money
<br /> back this year?Will we get any back next year?We can't wait.What is their plan?
<br /> "When you go through this kind of time,you lose any confidence and you lose respect
<br /> for the people doing it to you.The General Assembly has got to develop a plan.They've got
<br /> to develop a solution,and they've got to do it soon,and they've got to take into account
<br /> counties and cities."
<br /> Another topic that was discussed at virtually every meeting concerned the ongoing
<br /> negotiations with the Utilities Review Commission over the use of 9-1-1 funds.The
<br /> Association is trying to ease the restrictions on what the monies can be used for,while the
<br /> phone companies are trying to tighten the restrictions so that counties can only spend the
<br /> money on equipment.
<br /> "They(the phone companies)have the idea that the only uses for the funds should be
<br /> the equipment to receive the calls,"said JoAnne Burgdorf,the Pitt County attorney who is
<br /> involved with the negotiations."What we're trying to do is get it to where you can buy
<br /> whatever communications equipment you need to get the call to the center."
<br /> May 2002
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