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Chairman Gordon asks staff to model 5% and 2.5% General Fund reductions; one-cent change equals about $1.4M
Summary
Chairman Kevin Gordon asked staff to prepare two General Fund reduction scenarios (5% and 2.5%) excluding protected areas such as debt service, public safety, employee compensation and teacher supplements; County Manager David Cotton said each one-cent change in the tax rate equals roughly $1.4 million in revenue and that the county budget totals about $240 million.
Chairman Kevin Gordon provided a budget overview and asked county staff to prepare two expenditure-reduction scenarios for the upcoming budget process: one modeling a five percent reduction across General Fund departments and another modeling a two-and-a-half percent reduction. He specified that the scenarios should exclude critical and protected areas including debt service, public safety, employee compensation, and teacher supplements.
Gordon noted the county’s total budget is approximately $240 million with the General Fund about $194.6 million and that the current tax-rate components are 40.5 cents for general government, 14 cents for schools and 7 cents for fire districts. County Manager David Cotton explained that "each one-cent change in the tax rate equates to approximately $1.4 million in revenue," and said a four-cent change would equate to roughly $5.8 million. Cotton also reminded the Board the Local Government Commission could intervene if a jurisdiction fails to operate under an adopted balanced budget as required by the Local Government Budget and Fiscal Control Act (N.C. Gen. Stat. §159-8).
