County, towns to receive state reimbursement funds

By Lisa Majors-Duff

Gov. Mike Easley announced late last week that he plans to return some $95 million in previously withheld reimbursements to the state's counties and towns.

The inventory tax payments, counted on as a regular source of funding by county and towns since the state stopped collecting the tax about 10 years ago, had been put into escrow by the governor in early February to help ease the state's $850 million budget shortfall.

Although the final budget numbers are not complete, Easley said July 6 that his administration cut nearly $500 million in spending in the last five months to help plug the state's shortfall.

Jackson County's share of the inventory tax withheld from last year's budget was projected at slightly more than $130,000, while Sylva officials had estimated a loss of almost $20,000. Both the town and the county were forced to make adjustments to their budgets prior to June 30 to make up for the cuts.

While town officials expect to add their reimbursements funds back to the general fund, county officials are considering doing more, according to board Chairman Jay Denton.

"We've got a couple of options," he said. "We could add it to the fund balance or we could reappropriate the money and put it into this year's budget."

If the funds are added to the current budget, Denton said he'd support hiring a county planner, a position cut from the 2001-02 budget at the last minute to ensure funds would be available to complete the second story of the Justice Center addition.

"(Planning) is one of those critical issues for Jackson County," said Denton, who remained cautious about spending the money before it arrives. "But I won't agree to spend a penny of it until the check clears."

Reimbursements expected from Raleigh by other Jackson County towns are $778 for Dillsboro, $526 for Webster and $479 for Forest Hills.

Back to Archive: 07/12/01.