AG 1999 06 21 - Laserfiche WebLink

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Agenda June 21, 1999 Page 1 ! As is pointed out in Exhibit H, the supplemental school tax is a property tax rated applied to subjected properties in addition to any county or city property taxes and specifically designated for school system uses. By N. C. Statute, the tax rate is limited to a maximum of 50 or 60 cents depending on if the County's two school districts are considered together or not. Imposition of the tax is subject to a vote of impacted citizens. Other than establishing a specific tax rate just for education, there may be little benefit of this option in Cabarms County. Because of system size and other limitations, it might better apply to the Karmapolis City School System. If declining enrollments and ADM funding formulas fail to provide sufficient operating revenues to allow the system to continue to function independently, the supplement tax might bridge revenue needs. This has been discussed in the past but not acted upon. It would require a vote of those citizens residing within the school district from both Rowan and Cabarms County. Variables of this Statute might be applied in Cabarrus County but might require further enabling legislation or at minimum legal clarifications and a vote of those citizens impacted. Examples could include: 1. Establishment of specific areas for new schools funded by taxes in those areas. Considering the County's approach to new school funding in the past, this might be difficult to pursue. Voters would need to be convinced this was a better option. 2. Possible expansion of the Statute to the funding of the County's total local educational expenditures at some established maximum. Thereby establishing that assessment base growth would be directly tied to availability of funding for education. (This could place limitations on funding for education.) 3. Provisions could be made with legislative approval to extend taxation decision authority under this legislative umbrella for educational needs to the elected school boards. This would remove the County Commission from the educational funding decision process. The net effect would be to reduce the "county" portion of the property tax rate while shifting the "education" portion of the tax rate responsibility to the Boards of Education. Whether any of these variables are implementable is unknown. Each is offered only to provide "thought provoking" options outside current limitations. Conclusion The information should comply with the Board's request for options related to funding future school construction needs. If added input is required, please advise.