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Wednesday, June 16, 2004

Franklin County supervisors quarrel over how to spend surplus in funds

A public hearing on the proposed budget and tax rate amendments is scheduled for July 8.

ROCKY MOUNT - Tension rose at Tuesday's Franklin County Board of Supervisors meeting as members debated how to handle too much of a good thing: an unexpected surplus in state funding for schools.

One result will almost certainly be a further reduction in the county's real estate tax rate, from 53 cents per $100 of assessed property value to 52 cents per $100. In April, as county and school staff anxiously awaited the delayed state budget figures, the supervisors approved a budget that fell $937,000 short of the school board's budget request.

Last month, after a two-month delay, the General Assembly passed a state budget, and the Franklin County school staff learned the good news: The division was eligible to receive about $2 million more than expected. But how much of that money the schools actually would get depended on supervisors' approval.

Tuesday, County Administrator Rick Huff presented figures explaining how supervisors could handle the windfall. Of the $2,084,599 in additional state funds, only $1,027,450 would be needed to fully fund the school budget and fulfill some new state mandates, including the hiring of three additional elementary teachers. That left a $1,057,149 surplus.

The supervisors decided to use $418,566 about of that money to reduce the real tax rate by an additional penny. They also decided to use about $200,000 to hire three paramedics. Those positions were to be funded by a new emergency services billing system, which supervisors now want to delay.

Because of the county real estate reassessment taking effect this year, the assessed value of land and houses in the county rose an average of 44 percent. When supervisors adopted the county budget in April, they took about $418,500 out of the general fund to reduce the real estate tax rate. Tuesday they decided to restore that money.

Boone Supervisor David Hurt proposed that instead of restoring all the money taken from the general fund, about $170,000 could be used to fund 5 percent raises for teachers and school bus drivers. The school budget currently includes a 3 percent raise.

Union Hall Supervisor Charles Poindexter became angry that 5 percent raises weren't already included in the school system's $60 million total budget. "I would hope the school board could do a little better with $60 million," he said. The supervisors didn't pass Hurt's proposal.

School Superintendent Larry Hixson asked the supervisors to move quickly to adopt the budget amendments. Because the budget isn't completed, teacher contracts still haven't been issued, he said. "I've got 700 teachers out there that I want to keep."

A public hearing on the proposed budget and tax rate amendments is scheduled for July 8.

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