The Beaufort County Board of Commissioners on Monday began its review of the 2011-2012 budget proposal amid continued threats from local taxpayers and news of continued averse effects from the recent economic downturn on county coffers.

While Monday’s discussion focused primarily on revenue, the commissioners were to continue their discussions Tuesday with a focus on spending.

One board member said more could be done to cut that spending — particularly in appropriations to the county’s public schools — to avoid the 5 cents per $100 valuation property tax increase included in the budget proposal presented to county leaders May 9 by County Manager Paul Spruill.

“We need to look at all of these budgets, especially the schools’ capital budget, for items that can be avoided,” said Commissioner Hood Richardson.

He said that with a cut of $1.5 million in the $13,258,010 appropriation recommended for the Beaufort County Schools and $1 million in additional cuts in the proposed $50,945,552 spending plan presented by Spruill, the commissioners could avoid a property tax increase.

That spending plan also calls for a voter referendum in May 2012 on an increase in the local sales tax from 7.75 percent on each retail purchase to 8 percent — matching the sales tax rate in neighboring Pitt County.

As he’s done in previous years’ budget discussions, Richardson signaled an interest in cutting county appropriations to local nonprofit groups.

Commissioner Stan Deatherage also expressed an interest in finding cuts in the recommended budget.

“We’re going to have to learn how to do more with less,” he said. “There are going to be some cuts that are not in this budget.”

The specter of a tax increase, once again, prompted one county resident Monday to threaten the commissioners with retribution if they approved Spruill’s recommended budget.

Before the start of Monday’s meeting, local accountant Proctor Kidwell told county leaders they should cut spending instead of increasing taxes and vote against the recommended budget.

“Those who vote for it will not get any help from me,” he said.

Kidwell’s comments echoed those made at the May 9 meeting when speakers during a public comment period threatened to vote against any Republican members of the county board who vote in favor of a tax increase.

Monday’s discussion primarily focused on a page-by-page review of revenue assumptions included by Spruill in his recommended spending plan.

That spending plan predicts some $29 million, or about 58 percent of the county’s revenue, coming from property taxes and about $6.5 million, or about 13 percent, coming from sales taxes.
As a result of the continued economic downturn, Spruill’s budget anticipates no growth from normal revenue over the current 2010-2011 budget, a move he has described as “unprecedented.”

“Our forecast for growth in the portion of the total tax base attributed to real, business personal and utility property is a lifetime low of $10 million resulting in new property tax revenue from ‘normal’ growth of as little as $50,000,” Spruill wrote in his budget recommendation.

That budget also predicts a drop of $21,164,025 in the value of motor vehicles in Beaufort County in the 2011-2012 budget and a resulting loss in property taxes of $88,000, primarily because of many county residents opting to delay purchases of new vehicles because of the recent economic downturn, Spruill told the board.

“The purchases of new vehicles hasn’t been enough to offset depreciation,” he said.

While Spruill said he anticipates a continued drop in sales tax revenue from local retail sales, the county’s share of state sales tax revenue should increase because retail sales are improving statewide.

Commissioner Al Klemm expressed concern that local sales tax revenue could fall more than anticipated because of new competitors in neighboring counties that have reportedly drawn retail sales from Beaufort County.

“Are we overestimating sales tax revenue?” he asked.

The 2011-2012 proposed budget trims the county government’s work force — which has been cut by 22.5 positions, or 7 percent, in the past two years — by one position.

It also includes a two-day work furlough in the coming year for county employees — down from the current year’s five-day furlough.

Spruill’s proposed county budget for 2011-2012 is $50.94 million, some $1.69 million, or 3.2 percent, less than the county’s $52.63 million budget for the current fiscal year.

The budget includes about $800,000 in cuts in county department appropriations as follows: $80,000 in savings from the elimination of a physician extender II position at the Beaufort County Health Department; a savings of $198,294 from postponing debt on an industry ready building; a cut of $115,000, or about 1 percent, to Beaufort County Schools’ local current expense budget; a cut of $20,000, or about 1 percent, to the county’s appropriation to Beaufort County Community College; a cut of $45,000 to local funding of subsidized day care for working families; a cut of $24,500 to local foster care appropriations; a cut of $39,105 in solid waste expense; a cut of $57,000 in the net cost of professional contracts; and a $7,800 across-the-board cut to the county’s travel and training budget of $80,000 for all departments.

Spruill’s recommended budget also includes a cut of $565,206 in funding for school construction projects to be offset by direct appropriations to the county schools from state lottery proceeds.