From the Daily Tar Heel comes this story about Orange County’s budget discussions. County Manager Frank Clifton says projected expenses for 2010/2011 are nearly $5.7 milion more than projected revenue.
Clifton said the easiest option commissioners have is to reduce the number of authorized positions in the county. Due to last year’s hiring freeze, 140 of the 915 county jobs are now open and could be eliminated.
The board could also consider increasing property and sales taxes.
But with a property tax rate of 0.858 that accounts for 74 percent of county revenue, Orange County already has the sixth highest rate in the state.
The potential quarter-cent sales tax increase would require a citizen referendum vote. If passed, the increase wouldn’t take effect for three months, a reason Clifton said the measure would be more beneficial next year.
Commissioner Barry Jacobs said he didn’t think either option will happen.
“Almost all of the departments will face cuts, except public safety,” he said.
Now we wait and see at what point the commissioners start saying it’s time for more tax hikes.