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ISent: Tuesday, February 05, 2002 3:54 PM <br />ITo: fwclifton@co.cabarrus.nc.us; jdday@co.cabarrUs.nc.us; sfbonds@co.cabarrus.nc.us <br />ISubject: Governor's Action to Hold County Money <br /> <br />governor impact,xls To Gov. re ITR payments <br /> 1-31-0... <br /> <br />COMMISSIONERS. * * * <br /> <br />PLEASE PROVIDE COPIES TO <br /> <br />Today at 2:00 p.m., Governor Easley held a press conference to announce his actions to 'balance <br />the state budget for the current budget year. He announced that he would reserve $1.17 billion to <br />cover the state's budget shortfall, which is expected to be approximately $900 million. Actions <br />affecting county governments include: <br /> <br />· Keeping the $95 million in inventory tax reimbursements ($64 million county share). <br />· Cutting public schools' funding 3-4% with a'direction that there be no classroom impact. <br />· Taking the balance of the Mental Health Reserve Fund--S37.5 million. <br />· Holding the $26 million ($9.6 million county share) in local beer and wine taxes. <br />· Holding the state elderly/disabled property tax exemption reimbursements--S7.9 million ($6 <br /> million county share). <br /> <br />In addition to actions affecting county governments, the following additional actions were <br />announced: <br /> <br />· Holding $80.1 million of city utility franchise tax. <br />· Using $112 million of state repair and renovation funds. <br />· Using $313 million of the state's rainy day fund. <br />· Taking $80 million from the Highway Trust Fund. <br />· Taking $20.8 million from the Clean Water Trust. <br />· Requiring state agencies to reduce expenditures by an additional 3% (above the 4% already <br /> ordered) for a total reduction of 7%. <br /> <br />We are attaching another copy of the letter sent to the Governor by the AsSociation last week. <br />This letter pointed out reasons why the Governor should not take the action he has taken <br />regarding county revenues. We are also attaching a spreadsheet that shows the county-by- <br />county impact of the state action. Please note that, in a separate table, we show the projected <br />additional and total Medicaid expenditures. <br /> <br />Please determine the effect of the Governor's action on your budget and send letters to him with <br />copies to your legislative delegation. Please also send copies of all correspondence to the <br />Association. <br /> <br />Very truly yours, <br /> <br />C. Ronald Aycock <br />Executive Director <br />NC Association of County Commissioners <br />919-715-2893; fax: 919-733-1065 <br />ron.a¥cock~,ncacc.orq <br /> <br /> <br />