Commissioners fear state threats of cuts
Polk County commissioners have taken steps designed to keep North Carolina from using the county’s fund balance to justify cuts in funding for the county.
State representatives recently reviewed information about county fund balances. County officials said they are concerned that the state, which is in the midst of a budget shortfall, will cut funding for those counties with fund balances above the required 8-percent level.
County commissioners Monday, April 4 unanimously approved a resolution in support of preserving the county’s fund balance.
“Polk County is extremely concerned that because the county has acted fiscally responsibly and has cut county spending and programs to reflect much lower revenues we, and other such counties, may now be penalized for following a prudent fund balance policy,” says the county’s resolution. It continues, “and WHEREAS, the proposal to shift the state’s fiscal burden to the counties would weaken the counties and, possibly, cause the counties to be given lower bond and credit ratings, increasing the cost of governmental needs for all taxpayers; and
“NOW, THEREFORE, BE IT RESOLVED that the Polk County Board of Commissioners must oppose any proposal recommending that the State of North Carolina solve its fiscal difficulties by shifting the state’s fiscal burdens onto the counties who have acted in a fiscally prudent manner.”
County manager Ryan Whitson said the county’s current fund balance of between 19 and 21 percent is in line with the current North Carolina county average. As of the last audit, for fiscal year ending June 30, 2010, Polk County had an unrestricted fund balance of more than $7 million. The county has since spent some fund balance money.
Whitson said the spreadsheet that was presented to the state’s appropriation committee showed all fund balances from counties across the state. He said the numbers were skewed because the fund balances were from the beginning of the fiscal year, or nine months ago. The state requires counties to keep at least an eight-percent fund balance, but Whitson said eight percent is only one month worth of operating expenses.
Whitson said the governor’s representatives are trying to use the county fund balances as the “silver bullet” to fix the state’s budget and he doesn’t want any part of it.
Polk will send the resolution to Sen. Tom Apodaca, Rep. David Guice and to Governor Beverly Perdue’s office.