HomeMy WebLinkAboutAgenda - 06-23-2005-6aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 23, 2005
Action Agenda
Item No. / - Q
SUBJECT: Resolution Expressing Orange County's Position on Increasing the State
Cigarette Tax To Support County Medicaid Relief and Farmland Preservation
DEPARTMENT: County Manager
County Attorney
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Resolution
INFORMATION CONTACT:
John Link, ext, 2300
Geof Gledhill, County Attorney, 732-2196
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To consider approval of a resolution expressing Orange County's position on
increasing the state cigarette tax to support county Medicaid relief and farmland preservation.
BACKGROUND: The BOCC held a public hearing on March 1, 2005 on potential items far
inclusion in Orange County's legislative agenda package for the 2005 North Carolina General
Assembly Session. After the public hearing, the Board reviewed and approved three
resolutions (with associated materials) that requested Orange County's legislative delegation
introduce certain bills and that expressed Orange County's positions on various legislative
issues. It was noted at that time that the work of the Legislative Issues Task Force had been
based on the current information available and that new issues may arise in the ensuing months
necessitating additional BOCC review, The Board subsequently took action by resolution on
two additional items in April 2005, and, in May, the Board authorized the Chair to send a letter
to the North Carolina Association of County Commissioners regarding aforestry-related bill,
During the 2005 General Assembly session, there has been substantial discussion on the
burden that Medicaid places on local governments in North Carolina. The North Carolina
Association of County Commissioners (NCACC) has taken a very active role in these
discussions and has recently asked counties to consider adoption of a resolution requesting
that the state cigarette tax be increased to support county Medicaid relief,
As part of the BOCC's original approval of the County's legislative package in March, one of the
resolutions approved included the fallowing excerpts:
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Support an increase in the cigarette tax, primarily for the purposes of health
programs and for reducing and preventing tobacco use (See March 5, 2003 Board of
Commissioners' Resolution -Exhibit A), and with a portion of the new revenues
being dedicated as a funding source for the Farmland Preservation Trust Fund and
for the creation of regional processing centers to create value-added products and
help promote farm options;
and
Support the North Carolina Association of County Commissioners' goals for Medicaid
Relief by seeking legislation to implement asix-,year phase out of county
participation in the costs of Medicaid; and, for the first ,year, cap rounty costs at the
fiscal ,year 2004-051eve1 and provide relief fy targeting supplemental financial
assistance to any county in which more than X percent of the population is eligible
for Medicaid;
In light of the above, and based on the County's interest in resolving the definite burden placed
on Orange County and the other 99 North Carolina counties, the Board may wish to review and
consider approval of the attached draft resolution. The draft resolution is based on a model
provided by NCACC, but also incorporates the BOCC's previously-stated interest that some of
the revenues from an increased cigarette tax be earmarked for farmland preservation and the
promotion of farm options.
After the BOCC reviews and considers approval of the attached resolution, it is suggested that
the resolution be forwarded to Orange County's legislative delegation, all other members of the
North Carolina General Assembly, the Governor, and the North Carolina Association of County
Commissioners.
FINANCIAL IMPACT: There is no financial impact associated with consideration of the
resolution.
RECOMMENDATION(S): The Manager recommends that the Board review the attached draft
resolution, make changes as necessary, approve the resolution, and authorize the Clerk to
forward the resolution to Orange County's legislative delegation, all other members of the
General Assembly, the Governor, and the North Carolina Association of County
Commissioners..
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ORANGE COUNTY BOARD OF COMMISSIONERS
A RESOLUTION REGARDING INCREASING THE STATE CIGARETTE
TAX TO SUPPORT COUNTY MEDICAID RELIEF AND FARMLAND
PRESERVATION
WHEREAS, only the states of New York and North Carolina require county
governments to participate in all the costs of Medicaid, and
WHEREAS, the state of New York recently took action to lower the costs of Medicaid
to its counties, and
WHEREAS, Medicaid costs for counties are faz outstripping county governments'
ability to provide for those increases through the traditional source of flexible revenue - i.e,, the
property tax, and
WHEREAS, Orange County will spend a projected $3.6 million in 2004-OS for
Medicaid, which equates to 3.56 cents on the property tax rate, and
WHEREAS, North Cazolina counties have no opportunity under federal and state law to
control Medicaid expenditures, and
WHEREAS, a plan to completely phase out required county Medicaid expenditures is
desirable, and
WHEREAS, cigarette smoking contributes to health problems that increase Medicaid
costs, and
WHEREAS, the state of'North Carolina has the lowest cigarette tax in the nation, and
WHEREAS, an increase in the state cigarette tax could yield significant funds to reduce
the county share of Medicaid, and
WHEREAS, the Orange County Board of Commissioners adopted a resolution in March
2005 supporting an increase in the cigarette tax with a portion of the new revenues being
dedicated as a funding source for the Farnand Preservation Trust Fund and for the creation of
regional processing centers to create value-added products and help promote farm options;
NOW THEREFORE BE IT RESOLVED that the Orange County Board of
Comrissioners hereby urges the General Assembly of North Carolina to enact a significant
cigarette tax increase with a substantial portion of that tax to be used to begin aphase-out of
required county contributions to fund Medicaid costs, and with a portion of the new revenues
being dedicated as a funding source for the Farmland Preservation Trust Fund and for the
creation of regional processing centers to create value-added products and help promote farm
options.
FURTHER BE IT RESOLVED that a copy of this resolution be presented to members
of the General Assembly,
Adopted this the 23"~ day of June, 2005
Moses Carey, Jr., Chair
Orange County Board of Commissioners