Recommended 2007-08 Budget Includes 3.6-Cent Tax Increase to Fund Education
5/21/2007
The proposed Wake County fiscal year 2007-08 budget emphasizes education, mental health and public safety programs, and would raise taxes 3.6 cents.
County Manager David Cooke presented a recommended budget of $914.2 million to the Wake County Board of Commissioners today that is 7.4 percent larger than the adopted fiscal 2006-07 budget (the fiscal year is July 1 to June 30). Some highlights of the budget include:
- Provides additional funds to Wake County Public Schools and Wake Technical Community College, Human Services and public safety.
- Accounts for increased revenues of $28.7 million from normal property tax growth.
- Increases the property tax rate by 3.6 cents per $100 of assessed valuation, which would provide an additional $28.1 million.
The Board will hold public hearings on June 4 and a work session on June 11 before considering the budget for adoption on June 18.
As proposed by Cooke, the budget totals $914,207,000, a 7.4-percent increase over the fiscal 2006-07 budget. The recommended budget contains a 3.6-cent tax rate increase, entirely to support the school system. Tax rates would increase from 63.4 cents to 67 cents per $100 of assessed valuation.
The funding allocation emphasizes the County’s highest priority areas with the Wake County Public School System (WCPSS) receiving 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.
"The budget I am recommending emphasizes our continued support for education," Cooke said.
"Last fall, the citizens of Wake County laid a foundation for the future by approving a $970-million-bond referendum for school construction. The recommended budget partially implements this referendum and includes a 3.6-cent tax increase to fund the debt and operating costs of the new schools."
"In addition, the proposed budget will maintain and enhance our existing services while laying foundations for the future that will keep Wake County a great place to live and work today, and in the years to come," Cooke said.
Cooke applauded the Commissioners for setting clear priority goals for building on these foundations, among them ensuring an educated citizenry, a healthy and safe community, and a vital economy. He praised the Blue Ribbon Committee on the Future of Wake County for giving recommendations to address the infrastructure needs associated with Wake County's rapid growth.
Cooke commented that the County's growth has surpassed the committee recommendation's assumed growth rate of 25,000 people a year. Wake County grew by almost 36,000 people over the last year. At a pace of 98 new citizens per day, Wake is the sixth fastest-growing County in the United States.
Cooke noted that the County has a strong tax base, but he added, "The growth alone is not sufficient to meet the priorities established in this budget."
New revenue from normal growth in property taxes will equal $28.7 million, while the revenue generated by the 3.6-cent tax increase will generate an additional $28.1 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.
Increased revenue would provide more funding for the Wake County Public School System ($18.9 million, for a total appropriation of $294.7 million), Wake Technical Community College (18-percent increase for a total appropriation over $17.5 million), and the Sheriff's Office (5-percent increase for a total appropriation of $57.6 million); $1.2 million and 40 new staff positions for the Northern Regional Center; and increased funding for public safety.
The 8.8-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 $2,084 to $2,094 in FY 2008.
The recommended budget proposes a 5-percent increase for the Sheriff's Office, a $2.8 million increase. 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, with 40 new staff positions for the new Northern Regional Center in Wake Forest. The NRC will bring clinical, child welfare, mental health and economic self-sufficiency services, among other services, closer to Wake's growing population.
The proposed 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.
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 $1.55 billion for capital expenditures, with FY 2008 accounting for $370 million of that amount. This seven-year plan, which is funded by 19.5 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 proposed budget also funds a pay-for-performance increase of 4 percent for County employees and covers the County's share of health insurance, which will change significantly with the 2008 calendar year. Employees will have a choice of two plans: a point-of-service plan that is similar in structure to the existing plans, and a new consumer-driven health plan. As part of the new 2008 plans, all employees will be required to contribute toward the cost of health-care premiums, and the County will begin subsidizing the cost of dependent coverage.
"As we lead Wake County through this period of change and growth, we will strive to maintain and build partnerships with community stakeholders," Cooke said. "By maintaining service levels and laying foundations, Wake County will continue to be recognized as a great place to live, work, learn and play."
The Board of Commissioners did not act on the budget on Monday, other than to accept it for review. For more information on the budget, contact Cooke at 856-6160 or Budget and Management Services Director Johnna Rogers at 857-9430.
Budget Schedule:
Public Hearings
Monday, June 4, 2 p.m., Wake County Courthouse, Board Room, Room 700
Monday, June 4, 7 p.m., Commons Building, Wake County Office Park
Work Session
Monday, June 11, 9 a.m., Ground Floor Conference Room, Wake County Office Building
Board Vote
Monday, June 18, 2 p.m., Wake County Courthouse, Board Room, Room 700
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