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Wake Commissioners Adopt $920-million FY '08 Budget


6/19/2007

The Wake County Board of Commissioners on Monday adopted a $920-million budget for fiscal year 2007-08 that emphasizes education, mental health and public safety programs, and would raise taxes 4.4 cents.

The adopted budget is $6 million higher than the $914 million budget that County Manager David Cooke recommended May 21, 2007. The difference is due to changes made by the Board of Commissioners. Cooke had recommended an $18.9-million increase for the Wake County Public School System (WCPSS) with a 3.6-cent property tax increase to fund capital, debt service and opening new schools, as supported by voters in the fall 2006 school bond referendum. The Commissioners on Monday approved an additional 0.8-cent tax increase to provide the school system an additional $6 million. This would bring the County FY '08 operating funding for schools to $300.7 million.

The Board of Commissioners also added $750,000 to the recommended capital budget to support the City of Raleigh in its efforts to transition the Police Department to the County's 800 MHz emergency communication system.

Highlights of the fiscal 2007-08 budget:

  • The budget totals $920,031,000, an 8-percent increase over the fiscal 2006-07 budget.
  • Property taxes will increase from 63.4 cents to 67.8 cents per $100 of assessed valuation.
  • School operating funding will increase by $24.9 million to $300.7 million.
  • Wake Technical Community College funding will increase 18 percent, for a total appropriation over $17.5 million.
  • The Sheriff's Office will receive a 5-percent increase for a total appropriation of $57.6 million.
  • The new Northern Regional Center, set to open January 2008, will receive $1.2 million and 40 new staff positions for Human Services, as well as law enforcement, revenue and inspection programs.

The funding allocation emphasizes the County's highest priority areas with the Wake County Public School System (WCPSS) receiving more than 48 percent of the budget for operating, capital and debt service needs. Human Services receives 25 percent, Public Safety 9 percent, and all other County functions combine for 18 percent.

New revenue from normal growth in property taxes will equal $28.7 million, while the revenue generated by the 4.4-cent tax increase will generate an additional $34.4 million. Growth in sales tax revenue, the County's second-largest revenue source, continues to increase at a steady rate. Projected income in FY 2008 will grow by $15.4 million. All other revenues will decrease by $9.9 million primarily due to a shifting in Medicaid billings to private providers.

The 10.2-percent increase in funding for the school system continues to outpace student enrollment growth, projected at 6.3 percent. Over the past six years, the increase in County funding has consistently exceeded the increase in enrollment. The recommended funding will increase the County's per-pupil funding from the FY 2007 level of $2,079 to $2,136 in FY 2008.

The recommended budget proposes a 5-percent increase for the Sheriff's Office, a $2.8 million increase for a total appropriation of $57.6 million. The funding covers 14 new positions to maintain service levels, including two investigators for the Sheriff's Intel/Gang Suppression Unit and four School Resource Officers.

The budget funds increases in Human Services to keep up with population growth. At a pace of 98 new citizens per day, Wake is the sixth fastest-growing County in the United States. The adopted budget funds 16.9 new positions for additional child welfare and community health workers, school nurses and a coordinator for Wake County's Gang Prevention Partnership. With 40 new staff positions, the new Northern Regional Center in Wake Forest will bring clinical, law enforcement, child welfare, revenue, mental health and economic self-sufficiency services, among others.

The budget advances the Commissioners' longstanding commitment to assuring quality mental health care in Wake County. The County is working with partners to develop a full range of mental health services and facilities.

The FY 2008-2014 Community Improvement Plan (CIP) totals $1.5 billion for capital expenditures, with FY 2008 accounting for $407 million of that amount. This seven-year plan, which is funded by 19.2 cents of property and sales taxes, invests heavily in education, for both the Wake County Public School System and Wake Technical Community College. The CIP continues funding for the mental health continuum of care. It also allocates considerable resources to criminal justice and a partnership between the Wake County Sheriff's Office and the City of Raleigh for a joint law enforcement training facility.

The budget also funds a pay-for-performance increase of 4 percent for County employees and covers the County's share of health insurance, with significant changes proposed for the 2008 calendar year.

View the 2008 Fiscal Year Adopted Budget



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