AG 2002 04 15 (Regular) - Laserfiche WebLink

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FY03 educational capital outlay is recommended at $1.5 million to be' budgeted and distributed based on ADM between the two systems. Those allocations will be withheld until the state makes a scheduled payment of-~ reimbursements set for October 5, 2002. Historically, the county has allocated new school start-up funds of $150,000 per school. In FY03, three new schools will open. The actual allocation of $450,000 is to be deferred until they scheduled payment of reimbursements by the state set for April 30, 2003. RCCC The County Commission has previously committed to. share the cost of a new building at RCCC. This project should be deferred along with the county's funding obligation until specific local funding is identified. No provision for that expense is contained in the FY03 proposal contained herein. It is proposed that RCCC be authorized a 1.6% increase in local operations funding over the FY02 level. This budget contains no capital expense allocation for RCCC for FY03. Debt Service - Education Proposals being discussed include a deferral of new debt for two elementary schools in Cabarrus County and new construction in Kannapolis until January/February 2003. This will move that debt service fi.om 2003 to 2004 as previously discussed. The five new gyms and new school administrative office facility for the Cabarrus County Schools would be tied to debt to be sold in July/August 2002 requiring one debt service payment for those projects in FY03. Adjustment to the tax rate may be required to fund debt service in FY04. Anything beyond the proposals outlined will require new revenues or reduction of expenditures elsewhere within county government. It is with recognition that the topic of school system merger has neither political nor community support, that I continue to advocate its serious consideration. The state's fiscal crisis will eventually reach out and touch education far beyond the county's ability to respond. Locally, education expense will consume roughly 47 cents of the county's proposed 56-cent tax rate for FY03. Without a public willingness to pay higher property taxes to maintain two separate school systems, something should be done to assure more effective and efficient use of available resources. Beyond the emotions of the subject, there is no substantiated reason to avoid unifying the two separately operated school systems into a centrally managed system stressing equity, quality and student achievement. 4. Highway 49 Exposition Project This project began as a relocation of the annual Cabarrus County Fair to a new site and was expanded to create a facility designed for year round public entertainment and meeting use. FY03 will be the facility's start up year. Action will begin in September of 2002 with the Cabarrus County Fair's celebration of 50 years of success. A full slate of other public meetings, concerts, circus and rodeo visits is beginning to take shape. Once the facility is fully developed numerous opportunities will exist to expand its public use. There are numerous "one-time" expenditures associated with this project in the FY03 budget. Estimates regarding nine months of operations are also included. 5. Convention Center- Hotel Project For FY03 this project is not expected to be a factor. Economic conditio.ns, hotel/motel' usage and lack of full agreement between interested parties will defer any near term consideration. The City of Concord and Cabarrus County remain partners in the acquisition of additional acreage near the current property owned by the City. That activity on the county's part will be funded through hotel/motel taxes dedicated to facility development. 6. Social Services Funding- Medicaid Expense FY02 saw the continued escalation of MEDICAID expense as a county financial obligation. FY03 projections estimate the county's portion of MEDICAID to be $6.3 million. That represents 6 cents on the local tax rate. UP from just over $4 million in FY01, providing for a 50% increase over two years. MEDICAID is an issue beyond the county's ability to address. Expansion of benefits, programs and participants by state and federal legislative action imposes a local property tax levy without input by the county commission.