On Nov. 3, the voters of Sampson County will make an important decision about the financial future of our county. On the ballot will be a referendum asking voters whether to approve an additional one-half percent local sales and use tax, with the proceeds dedicated by law to public education.
This opportunity has been a long time coming. The previous Board of Commissioners began working toward getting Sampson County another revenue option through the sales tax, to help address the tremendous cost of our public infrastructure. This year, the General Assembly finally passed legislation necessary for the commissioners to be able to put this question before you, the voters.
Why is this referendum so important?
Sampson County carries a substantial amount of debt. Over $100 million. The great majority of that debt is associated with public education. Much of it comes from schools built years ago, including Clinton High School, Midway High School, Union High School and Roseboro Elementary School. Yet while we continue paying for those investments, our future needs are not going away.
Hobbton High School is moving toward construction. Clinton City Schools faces the need to replace L.C. Kerr. Sampson Middle School, Lakewood High School, Roseboro-Salemburg Middle School and other facilities across our two school systems will continue requiring renovations, repairs and capital investment as they age.
At the same time, Sampson County has significant non-school infrastructure needs. Our historic courthouse in downtown Clinton is one example. The building faces serious electrical and other infrastructure limitations and will eventually require substantial investment.
The problem is simple: our needs are growing while our financial resources are limited.
Just a few years ago, the county budget relied upon approximately $11.8 million in appropriated fund balance to balance revenues and expenditures. The following year, the county dramatically reduced its reliance on savings, eliminated positions, reduced operating expenditures and still increased support for public education. Those decisions were necessary, but they came with consequences.
Today, county government continues to face staffing challenges in important areas. Emergency communications, law enforcement, EMS, inspections and other departments must compete for employees with surrounding counties and municipalities. When experienced employees leave and positions remain vacant, eventually the public feels the consequences through slower or reduced services.
That brings us to the choice before us.
The county’s obligations will not disappear if this referendum fails. School debt still has to be paid. Aging schools still have to be repaired. New facilities will still be needed. Deputies, paramedics, telecommunicators, inspectors and other employees still have to be recruited and retained.
We, therefore, have to decide how we are going to meet those obligations.
If approved, the additional half-cent sales tax is estimated to generate approximately $4 million annually. Under the legislation authorizing the referendum, those proceeds are restricted to public education purposes. Using this additional revenue for eligible school debt, capital and education expenses can reduce pressure on the county’s existing revenues and give future Boards of Commissioners greater flexibility in addressing other needs without relying as heavily upon property taxes.
To put $4 million into perspective, it represents roughly the revenue Sampson County would generate from approximately 5.5 cents on the property-tax rate. That is significant.
If the referendum is approved and this additional revenue becomes available, I intend to advocate during next year’s budget process that the Board of Commissioners consider reducing the property tax rate by approximately one cent. I cannot make that commitment on behalf of the entire Board, and any reduction would have to depend upon the county’s financial condition at that time. But I believe that if additional sales tax revenue becomes available, providing some measure of property tax relief should be part of our budget discussion.
Property taxes are paid by the people and businesses that own taxable property in Sampson County. Sales taxes are collected from taxable purchases made in Sampson County, including purchases made by people who live outside our county but shop, work or travel here. Increasing the sales tax while decreasing the property tax rate would be an effort to broaden who contributes to county funding.
I understand why anyone would hesitate before voting for any additional tax. I do too. But voting against a revenue source does not eliminate the expenses it is intended to address. The question is how those expenses will ultimately be paid.
Without additional revenue, future commissioners will likely again face difficult choices: increase property taxes, draw further upon county savings, reduce services, postpone needed investments, or some combination of all three.
I believe there is a better option.
The half-cent sales tax gives Sampson County an opportunity to broaden the way we fund our public education obligations while reducing some of the pressure those obligations place upon property owners and the rest of county government.
As a County Commissioner, I can explain the financial realities as I understand them and tell you why I believe this option deserves consideration. But ultimately this decision does not belong to the Board of Commissioners.
It belongs to you.
On Nov. 3, I encourage every Sampson County voter to study the issue, consider the financial challenges facing our county and make an informed decision on the Education Sales and Use Tax referendum.