'Real pain' marks counties' budget deliberations

It's never easy putting together a county budget, even in the best of times. But when a lingering recession, uncertainty over the state and federal budgets, and an upcoming election are all factored into the equation, the difficulty is magnified.

County commissioners across North Carolina have been hunkered down for months debating cuts, layoffs, furloughs, service reductions and tax increases in an effort to fashion a balanced budget before June 30.

Transylvania County commissioners are struggling to find ways to close a projected $2.7 million gap between expected revenues and projected expenditures for 2010-11. According to County Commissioner Mike Hawkins, citizens will feel the impact of further cuts.

"There are no good solutions," he said in The Transylvania Times. "There is no magic bullet. All of the low-hanging fruit has been taken. When you talk about cuts, you talk about real pain. We've mentioned different things, but nothing that really makes a difference."

Davidson County commissioners were upbeat June 8 after passing a budget that held property taxes steady and did not reduce the allocation to schools or require any employee furloughs.

"It is a very strange economic situation we're in, and for us to be able to pass the budget with no tax increase, no furloughs and no reduction in our schools for the county, I think is substantial," said Commissioner Fred McClure.

Guilford County commissioners managed to add $1.1 million back to the budget originally proposed by County Manager Brenda Jones-Fox while keeping property taxes steady. Commissioners voted to restore some cuts to libraries in Greensboro and Gibsonville, increase funding for the United Arts Councils of Greensboro and High Point, and provide nine months of funding for the Guilford Adult Health Program while program officials look for some federal funds.

Pender County commissioners were struggling to find additional funds for the county social services department, the Board of Elections, the register of deeds, the parks system and the school system. With revenues dwindling, County Manager Rick Benton's budget proposal came in about 2.7 percent smaller than the current year's budget – meaning additional revenues are non-existent. Benton's proposal reduces funding to all departments by 4.4 percent and eliminates seven positions. Commissioners were hopeful they could find some ways to reduce or eliminate some of departmental cuts.

Gaston County commissioners were debating significant cuts to the county library system and personnel in an effort to make $5.2 million in cuts to avoid a property tax increase. A plan under consideration would cut the equivalent of 17.5 full-time positions, 10.5 of which are filled. Six full-time jobs would be sliced from the county's eight branch libraries, and each branch library would open just three days a week instead of six.

The budget being considered by Lincoln County commissioners would keep property taxes steady and eliminate four filled full-time positions – two each in the planning and health departments. The county would add one position to the library system and other positions in the transportation and sheriff's departments.

In Burke County, commissioners were trying to make up for a $3 million funding shortfall faced by the school system. The county has agreed to provide more than $970,000 in additional funding, but county commissioners said it would be difficult to find another $1 million. The school system recently sent notices to more than 100 teachers informing them that they faced the possibility of being laid off if additional funding cannot be secured.

"We cannot pick up where the state fails," Vice Chair Ruth Ann Suttle said in The News Herald of Morganton.

Henderson County commissioners used $6.4 million in reserves to balance the county budget for 2010-11, prompting Commissioner Mark Williams to say the reserve fund "is a rainy day fund, and it's a rainy day."

The Moore County Board of Commissioners' adopted budget keeps property taxes unchanged at 46.5 cents per $100 valuation, but the new budget of $84.9 million is nearly $4.5 million – or 5 percent – less than the current budget due to significantly decreased revenues. To make up the shortfall, county employees will receive no pay increase for the second consecutive year, and allocations for the school system and the community college will be reduced by 3 percent.

Edgecombe County commissioners were debating a budget proposal that sees budget growth of nearly 5 percent, in part due to existing school debt and required increases to employee benefits.

The proposed spending plan submitted by County Manager Lorenzo Carmon totals more than $58.3 million – slightly more than $3 million larger than the current year's budget. The budget would hold the line on property taxes but would appropriate $4.4 million from fund balance to make ends meet.

A full chart of 2010-11 county property tax rates will run in the July issue of CountyLines.