AG 2002 10 21 (Regular) - Laserfiche WebLink

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.Memorandum Page 2 September 30, 2002 Adoption of the ½ Cent Sales Tax If the Board acts upon the tax, appropriate budget actions are provided (Attachment E). Revenues will be adjusted by zeroing out the reimbursements ($3.8 million) and adding new revenues of $2.3 million. Expenditures of $1.5 million of school capital outlay and $450,000 ADM CPI current expense will be released to schools. Capital projects in the General Fund, First Union Bank ($500,000), Harrisburg Park ($224,000), Frank Liske Park ($57,500), and Camp Spencer Park ($218,500), will be zeroed out except for some previously committed expenses. The amount required to balance the reduction in expenditures to meet expected revenues will be allocated to the County's undesignated fund balance. Non Adoption of the ½ Cent Sales Tax If the Board chooses not to act upon the ½ cent sales tax, appropriate budget amendments are provided (Attachment F). These budget actions reduce revenues and expenditures accordingly. Allocations for the School System Capital Outlay and CPI ADM adjustments will be zeroed out. The aforementioned general fund capital projects will be zeroed out. · The remaining reductions will be assigned to the County's undesignated fund balance. County revenues of $3.8 million ' attributed to the State reimbursement will be zero. Summary: The Govemor has taken the 'Easley' way out, funding a Political promise at the expense of the State's local governments. The legislature has authorized a ½ cent local option sales tax to replace a previous legislative 'commitment' to local govemments (reimbursements). Taken together, these a~tions by the State place burden upon County Commissioners to address financial shortfalls not only in county budgets but also in towns and cities. You may stand alone in addressing the issue, but your decision will impact beyond the FY03 budget for Cabarms County. If estimates are correct, the State has only forestalled a much more serious budget issue until FY04. It. is certain the State will fome additional financial commitments upon local governments.