County officials forced to cut $1.8 million from funding requests

By Lisa Majors-Duff

Similar cuts have already been required in this year's budget to cover approximately $575,000 withheld by the state in the form of inventory and intangible tax reimbursements. A portion of next year's county shortfall ­ about $259,000 ­ is also being blamed on a projected shortfall in the state's 2001-02 budget, said county finance officer Darlene Fox. Just how much North Carolina will need to balance its budget next year remains to be seen.

Increased expenditures in next year's county budget that cannot be adjusted include a 35 percent increase in health insurance costs for county employees and a 34 percent increase in the county's share of Medicaid costs, Fox said. When combined with the state shortfall, these figures total more than $1 million.

Finding places to cut costs within county government is "going to be hard," said board Chairman Jay Denton, who also serves as the county's budget officer. Department heads have submitted budgets at much the same rate as those turned in last year, he said. The increases have been seen mostly in a projected 2.5 percent cost of living adjustment and additional funds for travel to meet the rise in gasoline costs.

"(Department heads) have been very conservative," Denton said. "We'll be squeezing blood from stone."

His goals for the budget, Denton said, are to continue to provide services at the same level and to not be forced to cut positions.

Other requested increases Denton and Fox pointed out to the board included a request for 20 percent more for public schools, 8.5 percent more for Southwestern Community College, 92 percent more for the Cashiers Community Development Club and 43 percent more for the Cashiers-Carlton Library.

"I told the superintendent that it would be impossible to give a 20 percent increase to the schools," Denton told his board. A salary supplement for educators represented about 6 percent of school system request, he said. Another 8 percent of the requested increase would go to cover salaries and insurance costs that would have been covered by the state, while yet another 8 percent would go to maintenance, he said.

Another issue discussed revolved around a salary survey of county positions commissioned by the board. Preliminary results indicate implementing that measure would cost about $400,000, Denton said.

"If we told the department heads that the salary survey could be implemented if they made cuts, do you think they could whittle anything away from their budgets?" Commissioner Stacy Buchanan asked.

"I don't think there's anything to whittle away," Commissioner Roberta Crawford said. "And I wouldn't want to see people cut just so we could implement the salary survey this year."

County population growth is quickly leading to a need for additional staff, not a reduction in the workforce, Denton said.

"Our county is growing, and we have at least one department ­ building inspections ­ that needs another employee," he said.

On the revenue side of the budget, Denton suggested increasing the landfill fee by $12, from $60 a year to $72, which led to a brief discussion of a future solid waste ordinance to include a "pay-as-you-throw" system. By consensus board members were against any fee increases.

"Remember, we can do anything as long as we can fund it," Denton said.

The county is expected to generate about 3.5 percent more in property taxes next year through growth alone, Fox said. Sales tax revenue is also expected to go up by about 4.5 percent.

The additional revenue generated by last year's tax revaluation will continue to go toward debt payments on $20 million in capital projects, she said. These projects include the new Scotts Creek School, a law enforcement center and jail addition to the Justice Center, improvements to Smoky Mountain High, Fairview and Smokey Mountain Elementary schools and the new recreation center in Cullowhee.

The county's balanced budget will be formally presented to the board and the public Friday, June 1, during a 1 p.m. special session at the Justice Center. Several budget work sessions have been scheduled through June. The budget must be adopted by June 30.

Back to Archive: 05/17/01.