Lottery could place sales tax bill on hold

Orange County’s leaders are making sure they have enough money to fund school construction, but whether that money should come from the state lottery or a new local sales tax is still up for debate.

The Orange County Board of Commissioners passed a resolution Monday night asking the county’s state legislators to add the county to a bill that could potentially increase sales tax by one-half cent

The revenue generated by the additional tax would go to community colleges and public schools.

The increase would be put on local referenda so that each county’s residents could vote on the tax increase.

But the passage Tuesday of a lottery bill earmarking approximately 40 percent of lottery proceeds for new school construction has called into question the necessity of the sales tax hike.

Board members still want to be included with the other 32 counties already in the bill, which has passed third reading, to ensure that capital needs will be covered.

The board’s vice chairman, Barry Jacobs, said Tuesday morning — before the lottery passed — that commissioners wanted to make sure they would have the funds for school construction in case the lottery didn’t pass.

“Without the lottery, there’s a question that school construction funds would still be available,” he said.

Construction funds are of concern in the county because Chapel Hill-Carrboro City Schools is building a third high school and has plans to construct a new elementary school and central office.

The city schools broke ground on the third high school, located off Smith Level Road in Carrboro, on July 1.

Construction is expected to last at least two years, say school officials.

The Orange County Schools are building a third middle school as well.

The rising price of steel and other construction materials have driven up the costs of some of these projects.

“It would be irresponsible of us to just let the money go away,” Jacobs said.

He said Tuesday evening — after news of the lottery's passage emerged — that if construction money is covered under the lottery, the county “is fine” and would not need the additional tax.

Commissioner Alice Gordon said she’s not in a position to say whether the board still wants to be on the bill.

Gordon added that the house bill might not even move from the state legislature Tuesday.

But she doesn’t see why the lottery would change the board’s decision, as the bill grants the county the ability to ask residents to vote, but doesn’t require it.

“If we get construction money otherwise, we might not put it to a vote,” she said.

“If we get enough money for construction, we’re not going to ask voters for some more.”

Jacobs also noted that a referendum was not a certain tax increase.

“It’s something that at most we would put before voters,” he said.

Rep. Bill Faison, D - Orange, said the county was not originally added to the bill because no one had come forward asking for inclusion.

He said he wanted to know what exactly the county planned to do with the money before he added its name to the bill.

Faison said he thinks the county already has high property taxes to help fund the school systems.

“The question is, how are they spending what they’ve got?” Faison said.

“For me, I need to see a game plan.”

 

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