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Commission calls for budget cuts in response to tax-hike protests
[March 07, 2009]

Commission calls for budget cuts in response to tax-hike protests


(Herald-Sun, The (Durham, NC) Via Acquire Media NewsEdge) Mar. 7--CHAPEL HILL -- As a clamorous chorus of citizens continues to voice disapproval of the tax burdens they feel during an economic decline, the Orange County Board of Commissioners has joined with the county manager in asking all county departments to propose a 10 percent budget reduction that could affect temporary personnel and operational expenses, but not permanent county employees.



"We've heard the message," said Pam Hemminger, a county commissioner. "[The citizens] would like their taxes lowered. The starting point is to go ahead with a budget without a tax increase." Hemminger said too many projects were started before the economic downturn. That factor along with what she called "explosive school growth" -- five new schools in the last 10 years in Chapel Hill and Carrboro -- has created a shortfall of revenue in Orange County, in which 71 percent of the budget comes from property tax income.

Joseph Coletti, a fiscal and health care analyst for the John Locke Foundation, co-authored a regional paper that identified Orange County as high on a list of North Carolina counties whose tax revenue growth has surpassed the need brought on by population growth and inflation. He said when many North Carolina counties and municipalities are faced with either raising taxes or accepting federal bailout money to dig themselves out of a hole brought on by the recession, they should look at a third option: Stop digging.


And some members of the Orange County Board of Commissioners seem to agree with Coletti's warning. Hemminger said the commissioners have reviewed what programs and projects work and which ones do not.

"We've reviewed the list to make sure we're not duplicating any efforts," she said. "We're looking to cut costs." Not only have the county commissioners supported a 10 percent budget reduction from all departments, but they also have delayed a few projects, one of which is the renovation of Hillsborough's John Link Government Services Center.

Other projects in Orange County that had been budgeted for, Hemminger said, include the Central Orange Senior Center, which opened in Hillsborough in January.

Commissioner Alice Gordon said there are other places to find some revenue, like selling some of the old buildings the county is renting out on Churton Street in Hillsborough.

"[We're] looking to divest ourselves of some of these buildings we're vacating," she said. "Sell the old ones. Get the money. Give the county some dollars." Coletti voiced caution about the sort of cuts that are recommended by department heads. He said he has heard of governments in other areas using what is termed the "Washington Monument Ploy" when budget discussions start. Elected officials suggest examining solutions, such as politically sensitive measures of cutting teacher positions and salaries. Putting such controversial items into play may blunt public calls for cutbacks and, thereby, avoid any scrutiny of programs that may or may not be working.

The commissioners, Gordon said, have to accept that in the new climate changes are going to have to be made.

"It's a new day," she said. "We still are the same county in terms of excellent services, like education. We have to figure out a way to deliver excellence at a cost we can afford." Regardless of how they find a way to do that, Hemminger said the commissioners are resolute in not wanting to raise taxes.

"They have been raised for the last 20 years," she said. "That's enough." To see more of The Herald-Sun, or to subscribe to the newspaper, go to http://www.herald-sun.com.

Copyright (c) 2009, The Herald-Sun, Durham, N.C.

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