State budget shortfall makes county budget planning difficult

By Lisa Majors-Duff

Leading off the session, county Manager and Chairman of the Board Jay Denton told commissioners that next year's budget will be down by more than $870,000 right from the start.

Jackson County officials have been told to plan for about $575,000 to be withheld by the state in inventory and intangible tax reimbursements. These funds have been targeted by Gov. Mike Easley to be included in a $1 billion escrow account that will be used to ensure the state has enough money in June to cover an estimated $800 million shortfall.

In addition, Denton said, Jackson County can expect a $303,000 increase in its Medicaid expenditure line item, up from $1.3 million last year.

"We'll need to pick some areas to make some cuts," he said. "I've already asked departments to hold off on non-essential spending."

Departments like recreation and maintenance could take the biggest hits, Denton said, since the services they offer are not essential to running county government.

"Recreation is great, but it is not essential," agreed Commissioner Franz Whitmire.

"The public will be upset without (use of) the ballfields," Commissioner Roberta Crawford countered.

"Will they be more upset without fire and rescue?" Whitmire asked.

"Why not ask each department to cut the same amount?" Commissioner Conrad Burrell asked.

"Many department budgets were cut down to the bare bones going into this year," Denton said. "There's no real icing on the cake."

With no easy solution presenting itself, commissioners agreed to support Denton and county finance officer Darlene Fox as they make decisions to cut spending from this year's budget and next.

"I think you two are capable of making cuts," Commissioner Stacy Buchanan said.

"You are doing a good job. You know what the essentials are," Burrell told Denton. "I'll back you up as the county manager. If you make a decision, I'll stand by you."

Commissioners only briefly discussed the possibility of raising revenues by raising taxes. Each time the issue was brought up, it was quickly put back down.

"Let that be the last resort, please," Crawford said.

At the current tax rate of 48 cents on each $100 valuation, a 1-cent tax hike would generate $312,928 in additional revenue, Fox said.

A second bit of bad news was delivered by Rick Lee of Lee Architectural, the firm hired to renovate the former Western Builders property in Dillsboro. The county purchased the site in 1999 for $500,000 to avoid a lawsuit threatened by owners Roger Bartlett and Don Hensley, who claimed their property had lost its value due to contamination caused by the adjacent county landfill.

Commissioners had planned to used the site to provide additional space for the county's Soil and Water Conservation office and the Cooperative Extension Service. But in his presentation to the board, Lee said an additional $111,565 above the budgeted $249,000 would be required to renovate the site.

"It was our goal to leave the office there alone," Lee told the board. "But nothing is up to code."

Architectural, mechanical and electrical problems have been identified since Western Builders vacated the site, Lee said. "This should not reflect badly on Western Builders. This was Western Builders solving their problems in their own facility."

After discussing possible solutions to the space problem - including new construction, acquiring the school system Central Office, an expansion of the Community Service Center and renovation of the old Qualla School - commissioners decided to put the project on hold.

With so much financial uncertainty, board members found it difficult to assign dollar amounts to budget line items for next year. Commissioners agreed to wait for the results of a salary survey currently under way before making final decisions on cost of living adjustments, 401(K) contributions, insurance benefits and bonuses for their employees.

Nor were they prepared to address a requested increase of slightly more than 20 percent from the Jackson County Board of Education for next year. The $867,000 increase request includes a 2 percent teacher supplement, 4 percent cost of living adjustment for certified employees, 3 percent cost of living for non-certified employees, 30 percent increase for health insurance coverage and $70,5000 for additional janitorial staff at both Blue Ridge and Scotts Creek schools.

In other areas of education, commissioners did agree to a 5 percent increase for Southwestern Community College, but they denied a request from former school Superintendent Charles McConnell to spend $18,500 over the next three years to pay tuition costs for local high school graduates who choose to attend SCC.

Other item discussed included funding for fire departments, some of which have requested $20,000 to purchase the "Jaws of Life"; ambulance contracts with both WestCare and the Glenville-Cashiers Rescue Squad; projected increases in the solid waste program and the hope that an ordinance addressing the issue can be adopted soon; funding for non-profit agencies; and the fact that expansions of both the countyšs public libraries should be put on hold.

Before adjourning, commissioners outlined their goals for next year's budget. Commissioner Burrell requested a staffed recycling center in Canada; Commissioner Crawford suggested a picnic area be build in Savannah community; Chairman Denton recommended an assistant county manager position be developed to handle human resources, solid waste and planning; while all agreed the tax rate should be held at its current level.

At their regular meeting last week (March 1), commissioners adopted a resolution asking Gov. Easley not to withhold funds from the statešs counties and cities and to give local governments the authority to enact a broad-based approach to raising revenues, including a 1 percent sales tax option. "This action will restore balance to the state and local partnership that has served the citizens of North Carolina for the past 225 years and restore faith of city and county officials, as well as our citizens, in the governor and the N.C. General Assembly," the resolution states.

On the recommendation of John Cort, architect on the Smoky Mountain High School renovation project, board members awarded a $116,600 contract to Quality Flooring Services of Hendersonville to replace the gym floor. The company's bid was about 6 percent under the estimate, Cort said. Work should start April 1 and be completed by Aug. 1, he said.

Also last Thursday, commissioners amended language in the interlocal agreement that established the Jackson County Greenway Commission. The new language serves to "clarify what this board will be responsible for," Denton said.

The change - "The cost of the construction of the greenway will be covered by grants, donations, etc., or as the governmental unit has available funds. Maintenance of the greenway will be the responsibility of the respective jurisdiction in which the greenway is constructed" - must be approved by each of the town governments participating in the project.

In addition to offering a position to Kevin Jamison in the tax assessor's office, board members waived a room tax penalty of $670 against University Inn after manager Carol Clark explained the circumstances.

The next meeting of the board will be held Tuesday, March 20, at 5 p.m. The meeting schedule was changed from its regular third Thursday date to accommodate Commissioner Burrell, who will be sworn in as a member of the state Department of Transportation board March 15 in Raleigh.

Back to Archive: 03/08/01.