HomeMy WebLinkAboutAgenda - 09-25-2007-1aOrange County Budget
08/30/07
County Medicaid RelieflSales Tax Swap Staff Analysis
Fiscal Years 2007.08 through 2011.12 Flsal Year 2009.10 reflechs year that phase-in of County Medicaid Swap is
(Footnotes to spreadsheet provided on pages 2 & 3J
The spreadsheet below provides ayear--by-year analysis of the State's recently approved Medicaid Swap/Relief package for counties. The numbers used in t
North Carolina Association of County Commissioners.
1
2
9
10
11
12
13
14
15
16
17
1E
Section 2. Public School Buildin Funds'"'
State Takes Public School Building Fund Monies (Only in First Year ($457,024) $0 $D $0 $0 ($457,024)
of Relief Plan
3
rm
are based on State projections furnished by the
Section 1. Coun Medicaid Relief 2007-D8 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
lorovo7) t'I
6 Section 3. Sales Tax Changes tai
Loss of Article 44 Local Sales Tax -State Takes Beginning with
114 cent beginning 101D1108 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) ($5,725,480) ($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 ofArticle 42 Local Option 1/2 Cent Sales Tax -Distribution
Formula Converts 114 Cent from Per Capita to Point of Sale Effective $0 $0 ($726,004
)
($753,656)
($783,802)
($2,263,462)
October 1, 2009 (Per the County Capital Funding 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 $2 022 OOD $7 685 325 $1 D 472 070 $11000 591 $31179 986
Difference Between County Medicaid Relief (Section 1), Public
School Building Funds (Section 2) and 114 Cent Sales Tax $304,882 $371,587 ($2,445,776) ($4,578,827) ($4,474,723) ($10,822,857)
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,ODD $500 000 $500 000 $500 000 $500 000 $2 500 000
Funds Required to Replace PSBF t~1 ($477,377) ($477,377)
Potential Shortfall Between Orange County Approved Medicaid
OOD)
($545
($545,000)
Budget and Year-End Expenditure Projections t~ ,
Potential County Net toss After Replacing PSBF and Projected ($522,377) $1,477,623
Medicaid Shortfall
Page 1 of 3
Orange County Budget
08/30/07
County Medicaid RelieflSales Tax Swap Staff Analysis
Fiscal Years 2007.08 through 2011.12
Footnotes fo spreadsheet on page 1
t~l 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,
2 (Fiscal Year 2008.09) -State assumes 50% of Medicaid costs (beginning July 1,
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-OB
Amount of PSBF Monies That State Plans to ($457,024)
Take in Fiscal Year 2007-OB
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-OS 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
t3) Analysis of Sales Tax Losses
2008.09 2009.10. 2D10.11 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.
Munici alities Hold Harmless ($773,044) ($2,927,908) ($3,992,934) ($4,194,568)
Total County Loss of Projected Article 44 Sales T
Distribution ($2,644,953) ($8,337,749) ($10,472,D70) ($11,OD0,591)
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
Distribution $0 ($432,656) ($449,135) ($467,100)
State's Projection of Article 44 Sales Tax Distributed to Municipalities $385,578 $403,820 $0 $0
County Hold Harmless Funds to Reimburse Municipalities for loss of
Article 42 & 44 Sales Taxes $773,044 $2,927,908 $3,992,934 $4,194,566
Net Impact on Municipalities' • Loss of Articles 42 & 44 Sale
Taxe $0 $0 $0 $0
t41 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
t5) Analvsis of Proiected t)ranpe County Medicaid Expenditures For Fiscal Year 2007.08
State's Projection of Orange County's Medicaid Expenditures for $4,570,236
Fiscal Year 2007-08
Orange County's Approved Medicaid Expenditure Line Item for Fiscal $4,025,236
Year2007-D8
Difference Between FY 2007.08 State Medicaid Projections and ($545,000)
A roved FY 2007.08 Bud et
Page 3 of 3