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Bonds pass, but money's still tight

Thursday, May 8, 2008
(Updated Friday, June 6 - 3:13 pm)


GREENSBORO — Taxes will rise in the upcoming Guilford County budget.

What would you cut to keep expenses down? Join the discussion at the Debatables blog.

That's what county commissioners said a day after voters approved all but one municipal bond in Tuesday's primary.

From those votes, over the next five years, the owner of a $200,000 home can expect to pay $185 more per year on the county tax bill.

And the early projection on a tax-rate increase in the 2008-09 budget would add another $60 to that property tax bill to keep up the business of the county's sheriff's office, jail, schools, administration and other functions.

Not much room exists in extra spending, either, with increasing gas costs and a greater demand for county services as more people try to make paychecks stretch.

"I don't think it will be a budget that anyone will draw up in our dreams," said Kirk Perkins, chairman of the Guilford County Board of Commissioners.

Though the tax increase appears inevitable, commissioners must still decide how it's spent.

Money requests are in for the half-billion-dollar county budget as the first presentation on May 22 nears:

* $250,000 to improve access to health care centers in southeast Greensboro.

* Returning funding to nonprofits, including arts and culture groups such as the United Arts Council of Greater Greensboro; business groups such as Piedmont Triad Entrepreneurial Network; and others such as the Boys and Girls Club of High Point, requests totaling $1.6 million from 22 applicants.

* County department requests for more staff, particularly in Social Services, which has seen increases in requests for help as the economy worsens for residents.

* A mandatory increase for 28 deputies at the Guilford County jail, a cost of at least $1.2 million.

* Guilford County Schools' request for $15.8 million more than last year.

"With the bond passing and the sales tax not passing, I don't see how we can fund it all," said Commissioner John Parks, a proponent of a quarter-cent sales tax that failed Tuesday.

Many in county halls hoped for the sales tax to generate an estimated $15.8 million for the county. Without that, many commissioners are expecting cuts.

"Unless we cut services drastically, we're going to see some rate increases, and they are not going to be favorable by many of our citizens," said Bruce Davis.

Davis said he wouldn't go into detail on places he hoped to cut in County Manager David McNeill's budget.

The board asked for a zero-tax rate increase budget along with McNeill's recommended budget, which usually includes a tax increase.

"It's a worst-case-scenario as far as a budget year," said Steve Arnold, known for opposing tax increases. But he said the sales tax could've helped this year's budget.

"A lot of the commissioners, I think, were relying on that to help with the debt service," Arnold said.

So were some members of local nonprofit arts groups.

Commissioner Carolyn Coleman would like to give those groups funding again.

"I wasn't one of those commissioners that supported not funding (nonprofit community organizations) last year, and I hope that we'll reconsider," Coleman said.

Contact Gerald Witt at 373-7008 or gerald.witt@news-record.com

Accompanying Photos

Lynn Hey (News & Record)

Photo Caption: Guilford County Sheriff BJ Barnes watches the votes Tuesday regarding a bond to build new jail.

A Tax Increase

By approving $651.4 million in municipal bonds Tuesday, Guilford County voters also wrote in a hefty property-tax rate increase for themselves.

Several county commissioners said Wednesday they expected another tax-rate increase on top of the expected bond-related tax increase, unless major cuts are made in the 2008-09 budget.

What youll pay
How much the owner of a $200,000 home paid or will pay in property taxes yearly:
2005: $1,192
2006: $1,238
2007: $1,273
2008: $1,383
2009: $1,519*
* projection with bond-related and early estimated property tax rate increase

By the numbers
$549.3 million: Guilford Countys current operating budget.
$185.20: What the owner of a $200,000 home will pay, on average, in each of the next five years to pay debt on the bonds approved this week.
13: Percent tax bill increase related to the bonds over last years county tax bill.
$6.60: How much extra the owner of that same home would have paid each year during that same time for a $20.2 million parks bond, which voters turned down.
$60: The county tax bill increase last year for a $200,000 home.
5: Property-tax rate increases since 2000 in Guilford County.
3: Property-tax rate increases in the past three years.

Key concerns
Some key concerns in the 2008-09 budget:
* Guilford County Schools wants a $15.8 million increase over last years budget.
* Several nonprofits want funding again after being cut from the 2007-08 budget, including $345,000 to area arts councils; $100,000 for the North Carolina Shakespeare Festival; and $75,000 for the African American Atelier museum at the Greensboro Cultural Center.
* There is staff increase for 28 positions added by a state mandate to the sheriffs office at a minimum cost of $1 million to the county.
* The department of health is asking for $250,000 to address health care access problems in southeast Greensboro.

Related
Voters shot down a quarter-cent sales tax, which commissioners said would have helped subdue the hit from increases in the county budget caused by operating expenses, passed bonds or other money. The tax would have netted about $15.8 million each year for the county. It failed, with nearly three out of four votes against it. Commissioners can choose to put it before voters again in November.

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