HomeMy WebLinkAboutAgenda - 09-20-2007-2aI
'-_'~
Orange County Budget
08/30/07
County Medicaid RelieflSales Tax Swap Staff Analysis
Fiscal Years 2007.08 Through 2011.12 Fisal Year 2~9-i0 re8eds year that phase-in of County Medicaid Swap i
(Footnotes to spreadsheet provided on pages 2 & 3)
The spreadsheet below provides ayear--by-year analysis of the State's recently approved Medicaid Swap/Relief package for counties. The numbers used to
North Carolina Association of County Commissioners.
1
2
are based on State projections furnished by the
Section 1. Coun Medicaid Relief 20D7.08 2008.09 2009-10 2010.11 2011.12 Total
Amount of County Medicaid Expenditures That State Assumes (i.e.
County's Medicaid Relief from State, 3 Year Phase In Plan Beginning $761,706 $2,393,587 $5,239,549 $5,893,443 $6,525,868 $20,814,153
10/01!07) ttl
3
Section 2. Public School Buildin Funds'`'
State Takes Public School Building Fund Monies (Only in First Year ($457,024) $0 $0 $0 $0 ($457,024)
of Relief Plan
6 Section 3. Sales Tan Changes Isl
Loss of Article 44 Local Sales Tax -State Takes Beginning with
114 cent beginning 10101108 followed by 100% beginning 10101!09
(Article 44 Sales Tax is the most recently enacted local option sales $0 ($1,871,909) ($4,683,837) ($5,725,48D) ($6,022,221) ($18,303,447)
tax; counties were giving the authority levy the tax in 2001 when the
State took back Intangibles revenue from local governments)
Loss of Article 42 Local Option t/2 Cent Sales Tax -Distribution
Formula Converts 1/4 Cent from Per Capita to Point of Sale Effective $0 $D ($726,004
)
($753,656)
($783,802)
($2,263,462)
October 1, 2009 (Per the County Capital Funtling Policy, Article 42
Revenues are currently dedicated to School & County capital)
State's Projection of Article 44 Sales Tax Distributed to Orange $0 $622,953 $652,424 $0 $0 $1
275
377
County (Temporary for 2 Years Beginning in Fiscal Year 2008.09) ,
,
Less: Hold Harmless Sales Tax Pa ment to Munici alities $0 $773,044 $2,927,908 $3,992,934 $4,194,568 $11,888,454
Net Im act of State Takin Sales Tax $0 $2 D22 DDO $7 685 325 $10 472 070 $11 D00 591 $31179 986
i
E
9
10
11
12
13
14
15
16
17
18
Difference Between County Medicaid Relief (Section 1), Public
School Building Funds (Section 2) and 114 Cent Sales Tax $304,682 $371,587 ($2,445,776) ($4,578,627) ($4,474,723) ($1D,822,857)
Chan es Section 3
Plus: Hold Harmless Funds From State (4! $195,318 $128,413 $2,945,776 $5,078,627 $4,974,723 $13,322,857
Coun Gain After Hold Harmless Funds From State $500,000 $500 000 $500 000 $500 000 $500 000 $2 500 000
Funds Required to Replace PSBF IZI ($477,377) ($477,377)
Potential Shortfall Between Orange County Approved Medicaid
Budget and Year•End Expenditure Projections tsl ($545,000) ($545,000)
Potential County Net Loss After Replacing PSBF and Projected ($522,377) $1
477
623
Medicaid Shortfall ,
,
Page 1 of 3
Orange County Budget
08/30/07
County Medicaid Relief/Sales Tax Swap Staff Analysis
Fiscal Years 2007.08 through 2011-12
Footnotes to spreadsheet on page 7
h) In accordance with the Medicaid Relief legislation, the State plans to assume each County's Medicaid expenditures.
The plan is aphased-in plan implemented over a 3-year period beginning fiscal year 2007-08. Projected Medicaid
expenditures are based on State expenditure estimates. The chart below outlines the State's phased-in plan.
1(Fiscal Year 2007.08) - State assumes 25% of Medicaid costs (beginning October 1,
(Year 2 (Fiscal Year 2008.09) -State assumes 50% of Medicaid costs (beginning July 1, I
2008)
3 (Fiscal Year 2009.10) -State assumes 100% of Medicaid costs (beginning July 1,
t21 Analysis of Public School Building Fund (PSBF) for Fiscal Year 2007•
08
State's Projection of Orange County's Share of $1,104
647
PSBF Monies for Fiscal Year 2007-08 ,
Amount of PSBF Monies That State Plans to ($457
024)
Take in Fiscal Year 2007-08 ,
Updated Amount of PSBF Monies Orange
County Anticipates Receiving in Fiscal Year $647,623
2007.08
PSBF Revenue Anticipated in BOCC Approved
Fiscal Year 2007-08 Budget to Offset School $1,125,000
Related Debt Service
Difference Between Amount of PSBF Monies
Orange County Anticipates Receiving in FY ($477,377)
2007.08 and Approved FY 2007.08 Budget
Page 2 of 3
Orange County Budget
08!30/07
tai Analysis of Sales Tan Losses
2008.09 2009.10 2010.11 2011.12
Orange County Impact • Loss of Article 42 & 44 Sales Taxes
Coun Loss of Article 44 Sales Tax $1,871,909 $4,683,837 $5,725,480 $6,022,221
Coun Loss of Article 42 Sales Tax $0 $726,004 $753,656 $783,802
County Reimbursement to Municipalities of Article 44 Sales Tax (i.e. ($773,044) ($2,927,908) ($3,992,934) ($4,194,568)
Munici alities Hold Harmless
Total County Loss of Projected Article 44 Sales T ($2644,953) ($8,337,749) ($10,472,070) ($11,000,591}
Distribution
Munici al Im act - Loss of Article 44 Sales Tax
Munici al Loss of Article 44 Sales Tax $1,158,622 $2,899,072 $3,543,799 $3,727,468
Municipal Loss of Article 42 Sales Tax Due to Changes in $0 ($432,656) ($449,135) ($467,100)
Distribution
State's Projection of Article 44 Sales Tax Distributed to Municipalities $385,578 $403,820 $0 $D
County Holtl Harmless Funds to Reimburse Municipalities for Loss of $773,044 $2,927,908 $3,992,934 $4
194
568
Article 42 & 44 Sales Taxes ,
,
Net Impact on Municipalities' • loss of Articles 42 & 44 Sale $D $0 $0 $0
Taxe
t°I State sales taxes used to hold counties harmless if countywide sales taxes, including municipal hold harmless, exceed Medicaid savings; all counties guaranteed to benefit by at least $500,000
t51 Analvsis of Proiected Orange Countv Medicaid Expenditures For Fiscal Year 2007.08
State's Projection of Orange County's Medicaid Expenditures for $4,570,236
Fiscal Year 2007-D8
Orange County's Approved Medicaid Expenditure Line Item for Fiscal $4,025,236
Year2007-08
Difference Between FY 2007-OS State Medicaid Projections and ($545,000)
A roved FY 2007.08 Bud et
Page 3 of 3