County budget approved
By Bob Lassahn
The Worcester County Commissioners unanimously approved the FY2006/2007 county operating budget during their regular June 6 session. The final $160,103,865 budget represents an increase approaching $20 million from the $140.3 million FY2005/2006 figure.

During deliberations the commissioners sliced more than $5.6 million in requested expenditures to balance expenditures and revenues. Various county departments and agencies experienced in excess of $5.4 million in cuts, about 97 percent of the total reduction, while the Board of Education request was cut by only $181,000.

The budget includes increases in salary and benefits costs for county employees, with most county employees receiving a four percent cost-of-living increase plus a step increment for those eligible, resulting in a total increase of 6.5 percent.

The budget also includes the initial funding of Other Post Employment Benefits (OPEB) for employees to meet a new Government Accounting Standard Board (GASB) mandate. The GASB standard requires that a funding mechanism for promised benefits to retirees should be established. The county opted to begin the process with an initial contribution of $10.2 million in the FY 2006/2007 budget. That amount could be increased to about $17 million in future budgets to accommodate anticipated expenditures. The ability to demonstrate a proactive approach to funding OPEB could eventually influence bond ratings.

Among more than 25 new employees funded by the increase are an additional 16.5 teacher positions and two new deputies for the Sheriff’s Department. The total number of new employee positions drew a caution about “growing government” from Commissioner Sonny Bloxom and some criticism from Commissioner Virgil Shockley, but in the end they both voted for adoption.

The board of education budget accounts for nearly half (47 percent) of the total county budget. At $74.8 million the board of education budget grew by $6 million plus $7.5 million for the initial installment for OPEB. In total the board of education is up by $13.5 million from the previous figure of $61.3 million

The county benefited from an increase of $15.7 million in real property tax revenues due to the state reassessment for Fiscal 2007. Revenue estimates for income taxes also increased to the tune of $2 million with the remainder of increased revenues accounted for under interest and grants.

The good news is that even with the substantial increase in the size of the budget the commissioners were able to reduce the overall tax hit for both resident and non-resident property owners. Those who make Worcester County their primary place of residence will benefit from the new Homestead Credit cap of three percent that becomes effective July 1, 2006. Previously set at five percent the new rate will hold down the increase in tax liability resulting from the latest round of state reassessments. Benefiting all property owners the commissioners dropped the real property tax rate by $.03 per $100 of assessed value from the previous $.73 (the second lowest in the state).

 The local income tax rate of 1.25 percent (currently the lowest in the state) remains unchanged, as do the business and personal property tax rate, public utility and railroad tax rate, the admission and amusement tax, the room tax, trailer park tax, recordation tax, transfer tax and food and beverage sales tax.

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