County, towns to feel effect of state budget cuts

By Lynn Hotaling and Lisa Majors-Duff

Inventory tax payments from the state, counted on as a regular source of income by county and town officials since the state stopped collecting the tax from its citizens about 10 years ago, are being put into escrow, said county finance officer Darlene Fox.

Rei,bursement estimates late in the last budget year called for Jackson County to receive $259,918 in 2000-01, Fox said. But state officials have recently told her that they will be witholding $130,297.

"They said we might get it, but I don't have much hope of seeing that money,² said Fox. "I think we are going to have to plan to adjust our budget for a loss.²

During a meeting with department heads Tuesday, Jackson County Manager Jay Denton asked that they scrutinize their budgets, suspend travel plans and not make unnecessary purchases.

Sylva, Jackson County's largest town, will also feel the effects of the governor's budget cuts. Projections call for Sylva to lose almost $20,000, said town administrator Tommy Thompson.

The loss will be a nuisance, Thompson said, but it can be covered by town reserves.

The town received a letter Tuesday from state officials indicating Sylva should budget for the loss of those funds, said assistant finance officer Lynn Allen.

Other Jackson County towns that will lose state funds include Dillsboro, $778; Webster, $562; and Forest Hills, $479.

Back to Archive: 02/22/01.