AG 2002 02 25 (Recessed) - Laserfiche WebLink

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(3). Construction of the school administrative complex allows the county to proceed an attempt to sell the existing facility pending a move to the new site. 2. Medicaid Expense: State government has decided to increase the county's portion of the local match the federal Medicaid funding from 5.63% to 5.78%. If applied to FY02 ($4,782,663) it would have increased the county's cost by approximately $127,000 (to $4,910,087). However, he total county expense associated with Medicaid may exceed FY02 original estimates by as much as $700,000 (current guess). An increase of the percentage paid by the county along with escalating Medicaid program costs will make Medicaid the most expensive programs the state MAKES the county fund. The most current estimate by the state for FY03 County matches for MEDICAID is $6,303,585. That is an inCrease of $1,520,922 (31.8%) over FY02. Assignment of MEDICAID expense to county government by the state is a method of indirect property taxation by the state through counties. MEDICAID expense for Cabarrus County represents 6 cents on the local tax rate. 3. Other county budgets with the exception of the EXPO (new item) will be flat or reduced for FY03. Capital outlay in terms of prior years is almost nil. There will be very few personnel changes except where documented need demands it. You can also expect some merger of functions where staffing and in-house expertise allows. The EXPO budget will reflect 9 months of expected event support and the county's assumption of the annual fair. Some EXPO expenses will vary based upon demand. More events, More expense, hopefully, More revenue to cover operations. [] Methods available to reduce governmental expenditures The following information is divided into four basis areas where we can impact the bottom line in county government expenditures. I provide this information not as a recommendation but as a guide to action ~ the economic down turn continues or the State further fails to meet its obligations. Some of these activities you will recognize as part of the budgetary wizardry we already deploy. Some of the steps are last, but not least that could be taken in the most adverse of situations. While I do not advocate drastic steps, I want you to be fully aware of what is ahead if the situation dictates. Information is divided into four areas (Finance, Service Issues, Other and Personnel). There is overlap among the categories, but the results are the same, a reduction in governmental expenditures. A random thought: I KNOW OF NO MAGICAL TAX RATE THAT WILL SATISFY EVERYONE. SOME WILL ALWAYS BELIEVE THAT ANY TAX IS TOO MUCH AND SERVICES THEY DO NOT USE ARE A WASTE OF PUBLIC FUNDS. Sometimes, I am inclined to agree, but then I remember that State government in North Carolina tells counties how to spend about 75% of their annual budgets. REDUCTION ACTIONS: FINANCE 1. use reserve and contingency funds 2. refinance or extend debt financing 3. defer debt financing