HomeMy WebLinkAboutC.054.93011_0333Dr. Holliday said the system needed the five percent to fund the following expenses:
Hospital insurance
$ 42,025
Retirement
$ 225,904
COLAs
$ 177,199
Local Supplement
$ 828,017
Recruitment
$ 170,130
Woodland Heights
$ 100,000 (principal/SMIS Op./secretary)
Cost of Business (energy, fuel,
insurance, charters)
$1,006,416
Redirection
(For FY 04 over $600,000)
(S 630,481)
Total
i 1 210
Source: Proposed House Project
(Note: Holliday said the figures were different from the numbers given to the county
manager in April, due to using the North Carolina House & Senate's most recent budgetary
figures.)
Dr. Holliday said the system had already reduced its budget by $630,000 to stay within
the five percent stated goal. He said the difference between the expected five percent and the
county's appropriated two percent was $700,651. Holliday said the $700,651 deficit would
mean the system would either have to cut the cost of business, the local supplement, or transfer
the shortage to something else. He said in addition, there were the state conversions, and that the
senate conferees were saying the House budget would probably be approved requiring not only
the $700,000 reversion from last year, but also an additional $300,000. Holliday said the money
was being used to help fund Governor Easley's requirement for class size reductions in the third
grade. He said the system was looking at having to return $1 million out of a $76 million budget.
(The following chart was included in the system's handouts to explain the reductions.)
Difference between 5% county increase and 2% county increase: $700,651
*State revenue loss due to discretionary reductions: $1,032,894
*Total Operating Revenue reductions: $1,733,545
*Total Capital Outlay revenue reductions: $367,388
Attorney Majestic said the county had explained that the lower tax projections were due
to a drop in personal property (equipment owned by businesses). Majestic said the county staff
in January, February, March and April were all quoting a five percent increase in property tax
revenues, but for some reason in May, it was cut to 2.5% with a rise to 3% in June. She said
generally speaking, the county knew what was on the tax rolls in January. Ms. Majestic then
discussed a tax survey from the North Carolina Association of County Commissioners. She said
the tax information revealed the following:
• Iredell ranked 14`h statewide in valuation per capita
• Iredell ranked 25`h in per pupil expenditure in total capital spending but 7`h in growth
• Iredell ranked 29`h in per pupil expenditure in current expense
• Iredell ranked 87`h in the property tax rate in the state and this was more than 15 cents below
the statewide average.
Majestic said that along with the availability of the property tax to fund the schools, the
county could use sales taxes, and the county manager had projected a five percent increase in
these revenues. She said five percent was a conservative projection in a high growth area, and
the state was using an overall 5.5% projection. Majestic said the North Carolina Association of
County Commissioners had estimated a two percent increase in beer and wine taxes.
Attorney Majestic said the school system wanted to mediate and didn't want to take the
county to court. She said the system wanted a solution that would offer a multi -year -budget plan
so there would be future funding predictability.