Reduces Funding for K-12 Education
A moratorium would require the County to reduce $56.7 million in funding to support K-12 education, including the following:
- $9 million for a 5-year phased plan to increase pay for classified staff including bus drivers, custodians, plumbers, electricians, and HVAC specialists.
- $7.9 million to support local operating expenses based on a multi-year funding strategy to promote predictability and cost control by establishing a school funding formula that aligns with consumer price index.
- $5 million for technology replacements & $1.3 million to replace activity buses.
- $33.5 million to prepare for upcoming debt service obligations on the $2.0 billion voter-approved (60% for/ 40% against) bond referendum. Revenue uncertainty could complicate long-term debt planning and construction of planned projects. The Government Finance Officers Association awarded the county the prestigious Award for Excellence for Capital Planning and Financial Modeling.
The introduced NC budget framework would result in an additional $5.3 million local impact, with no additional local funding available to support implementation of the pay adjustments. This will result in cuts to locally funded positions.
Reduces Ability to Support Workforce Preparedness
A moratorium would require the County to reduce $1.5 million in funding to support:
- $0.5 million for salary and benefit increases for locally funded positions.
- $0.5 million for utility and insurance costs
- $0.3 million to lease space for the Allied Health program (140 students).
- $0.2 million for five positions to support custodial and grounds maintenance needs at the state-supported Aviation Building.
The moratorium may also require the County to reevaluate debt service contributions of $6.4 million annually to support planned capital expansions at GTCC to prepare the workforce for high-demand careers in aerospace. Planned capital investments in the recommended budget includes $30 million for Aviation Building 2, which is under consideration for state funding. Projects removed from the budget include:
- $16.5 million for High Point - Health Sciences Building
- $5.0 million for High Point - Skilled Trades Center
- $1.9 million for Center for Advanced Manufacturing Renovation
- $4.0 million for BioProcess Manufacturing Technology Renovation
Reduces Public Safety and Rural Fire Funding
The proposed moratorium would reduce the recommended budget for rural fire
districts by $4.4 million.
Fire districts would lose an estimated $0.3 million associated with public service company equalization.
16 rural fire districts (100%) would be unable to provide requested pay adjustments.
- 6 districts would not have sufficient funding to add new positions to maintain adequate emergency response coverage in growing areas of the county.
Reduces Ability to Provide Core Services
Revenue loss places significant pressure on the ability to provide core services and
limits the County’s ability to respond to growing community needs.
- The County would lose an estimated $4.3 million in revenue associated with
public service company equalization, according to the General Assembly’s
Fiscal Research Division. This represents a 28% reduction from natural revenue
growth under a moratorium. - The County anticipates a $3.1 million loss in reimbursement for Food and
Nutrition Services Administration, associated with H.R. 1. This represents a 20%
reduction from natural revenue growth under a moratorium. H.R. 1 did not
reduce mandates on county governments to provide the service.
A moratorium would require the County to reduce funding for core services by
$23.2 million, including:
- Reducing the planned capital improvement plan.
- New position requests to provide critical health and human services. More than
30% of residents receive Medicaid, Food and Nutrition Services, or both and
the County anticipates additional workload associated with maintaining
compliance with H.R. 1 (the "One Big Beautiful Bill Act").