does Person county need a sales-tax increase?regional brief
Figure 1. Person County Projected Revenue and Savings
that the county has received over those ve
Person County’s cash reserves are 22
percent of its annual budget. The staterequires all counties to have eight percentof their budgets held in cash for emergen-cies, but Person County has 14 percentmore than that minimum. This means
that the county has over $6.5 million in
cash that it can spend on pressing needs.
This gure represents almost 8.6 times the
amount that the proposed sales tax wouldraise. In other words, the county could usethis available cash for the next eight yearsinstead of new sales-tax revenue, which is
estimated to be worth only about $762,000per year. Based on this item alone, the
county does not need to increase the salestax.If Person County were to restrict its reve-nue increases to the increases in population
and ination, the county’s revenues wouldincrease 38 percent over the next ten years.
Over the next ten years, the number of students in Person County public schoolswill
by 203 students, or by about 3.6
If the school district has facility needs, thecounty commission and school board needto show taxpayers how they would spendthe almost $9.6 million in state moneyprovided for capital improvements over thenext ten years.
Person County beneted from the Medic
aid swap above the state’s promised “holdharmless” amount of $500,000 a year for
ten years. Person County receives over
$824,000 the rst full year and a total of over $8 million over ten years (see Figure
From FY 2004 to FY 2006, Person Countygave nearly $96,000 per year in incen
-tives to a few selected private businesses.This practice is unfair to the hundreds of businesses in the county who are, at times,forced to compete with tax-subsidized busi-nesses.
In its 2007 session, the North Carolina Gen
-eral Assembly relieved all counties of paying
the portion of Medicaid expenses that had
been forced on counties, in exchange for thehalf-cent sales tax that the counties levied
Revenue Gains1 year10 years
Gain from Medicaid swap (FY 2008-09)$824,525$8,081,760Estimated school capital (Avg based on projections)
Eliminate economic incentive giveaways (2004-2006 Avg)
Revenue in excess of population and inflation (FY2006)$5,525,003$55,250,027
TOTAL$7,438,721$73,862,136Fund balance in excess of state requirement (FY 2007)$6,548,561$65,485,610
Potential extra availability$13,987,282 $139,347,746Revenue from Sales Tax Increase$761,880 $10,193,754