12/22/12

Travis Fain "Changes in state policy may stress [Greensboro and Guilford County?] budgets" Willful Political Negligence


"Expected shifts in state policy,
combined with the uncertainty of possible tax reform and potential budget cuts,
could tear holes in city budgets across the state...

...A program where the state made payments to cities
to make up for taxes that ended years earlier is ending,
drying up six-figure — and in some years seven-figure — payments.

Did Robbie Perkins know about this 
when he started pushing for the GPAC?

Also, a change in the way the state runs its unemployment insurance tax
is likely to cost cities [and counties?] more as they switch from a reimbursement system
to one that pays into the unemployment fund up front.

...Legislative leaders have said they’re cutting state budgets
so government can live within its means.

...High Point stands to see $870,000 in new costs in the next fiscal year
as the result of two state policy changes.

...There are dozens of changes proposed for employers and workers,
including major benefit cuts.

So as most N.C. taxpayers appear to be heading for more out of pocket costs
Greensboro's elite told the population that we need a GPAC?

...the proposed overhaul would require cities to set money aside each year to cover potential firings,
instead of the state covering those costs up front
and cities [and counties?] reimbursing the system later.

Cities, as well as private employers, will also face new unemployment surcharges
to help refill the state’s fund until it hits $1 billion.

...it’s not clear how much it will cost cities.

On top of the more than $50 million unfunded pension costs 
Greensboro received from the state recently?

...The repealed taxes cost Greensboro more than $7.8 million a year...

...the state still made annual hold-harmless payments to Greensboro and other cities...

Those payments ended this year...

...“Best I can recall ... there was a general consensus
that these folks had known about these (payments expiring),
and we needed to go ahead and let it expire,” said Apodaca, R-Henderson.

“I don’t think our budget is that much better (this year).”

Travis Fain


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