Local News - March 2003

Budget woes dominate chamber breakfast

By ALICE SMITH, LTN Staff Writer

March 14, 2003 - It was the budget over breakfast for about 65 members of the community this morning.

The Lincolnton-Lincoln County Chamber of Commerce held its annual “Elected Officials Breakfast” this morning at the Lincoln Cultural Center.

The primary concern voiced by all who spoke was the ongoing budget trouble which is plaguing local government at every level.

Sen. Jim Forrester said that the budget is the biggest issue facing the state and Lincoln County this year.

“And that’s the second biggest issue and the third biggest issue,” Forrester said.

There will be significant cuts in programs and a push for increased taxes, Forrester said.

He expects redistricting to be brought up again, but said that will not have a significant impact on Lincoln County.

Malpractice reform, which will combat the rising cost of health insurance, will be a hot topic this year.

Forrester sponsored Senate Bill 55, which will reduce the cost of Medicaid to counties. North Carolina is one of only 19 states that requires counties to pay for Medicaid, Forrester said.

Lincoln County currently pays about $3 million, he said, which equals out to about 6 to 7 cents on the tax rate.

“If the state took over, it would help the county budget,” Forrester said.

His bill calls for the state to pay 1 percent per year over five years until the cost is eventually phased out.

“I think it’s something we can do, and we shouldn’t pass that on to property owners,” he said.

Rep. Joe Kiser, R-Vale, told the audience that part of the governor’s proposed budget this year could take away the hold-harmless provision.

The recently approved half-cent sales tax did not completely make up for the money some governments lost by the withholding of incentives and intangibles. The hold-harmless provision would have provided those governments with money to fill the gap.

Lincolnton faces a several hundred thousand dollar loss, Kiser said.

“That is a detrimental effect on revenue for local government,” he said.

The budget would also take away the Average Daily Membership corporate income tax, which would pay for new school construction. That amounts to $561,000 for Lincoln County.

Part of the budget calls for the reduction in the number of second graders per class from 21 to 18.

“That requires 571 more teachers in North Carolina,” Kiser said. “That requires 571 more classrooms. Which we have neither.”

Kiser said the state continues to put pressure on local governments.

“Local government needs relief,” he said. “We’ve balanced the budget on local governments enough.”

Kiser spoke highly of the community college system, and said the state has not done enough to support it.

“I don’t know anything that’s any more important at this time than retaining people who are without jobs, and no one can do it better than community colleges,” Kiser said.

Kiser spoke against the early release of prisoners to relieve bed space.

“I don’t believe the people of North Carolina are ready to do that,” he said.

Jerry Cochrane, chairman of the Lincoln County Board of Commissioners, spoke about five major county projects: the new EMS building, new east Lincoln library, new Department of Social Services building, and two new schools.

“Unfortunately, you have to pay for those projects,” he said. “And instead of our funds increasing, they’ve been drying up.”

Cochrane said the coming budget year is going to be very challenging tax-wise.

The county has only one source of revenue, which is property taxes.

“It’s not fair to keep laying the burden of new school construction and all projects on property owners,” Cochrane said. “I hate to have to increase it (the property tax), but I don’t see how we can avoid it.”

Cochrane told the audience about the county’s enterprise funds, which use no taxpayer money. The Landfill Fund, East Lincoln Water and Sewer District and the Lincolnton-Lincoln County Water and Sewer District are included in the enterprise funds.

City Manager Jeff Emory, who represented the City of Lincolnton, spoke highly of elected officials.

He said the city has taken a “tremendous hit” over the past three years.

“Clearly, the biggest challenge ahead of us does revolve around the financial situation,” Emory said. “We’re receiving less and less help from federal and state government.”

Emory said the key to staying afloat is to find ways to be self-sufficient.

And while residents want to see taxes lowered, they also don’t want to see services cut.

“People expect services, and that’s our job in local government to provide them,” Emory said.

Among several projects the city is taking on are the renovation of the Water and Wasterwater Treatment plants and the Highland Drive Park.

Some of the other elected officials in attendance were Mayor Bobby Huitt, City Council members Carrol Heavner, Fred Houser and Larry Mac Hovis, and County Commissioner Tom Anderson.

© 2001 Lincoln Times-News  

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