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The Daily Tar Heel

Orange County Commissioners discuss sales tax increase and health care

The Board of Orange County Commissioners voted Tuesday night to support a quarter-cent sales tax increase that will appear on November ballots.

The tax is expected to bring in $2.3 million annually — 42.5 percent of which will benefit the county’s two school systems. An equal amount will also be used to spur area economic development.

County Manager Frank Clifton sought to educate the public at the meeting by providing frequently asked questions and information regarding the ballot, which will feature another referendum item other than the tax increase.

“You need to vote your choice,” Clifton said at the meeting.

County commissioners were also presented with the 2011 Orange County employee benefits plan at the meeting, provided by county Human Resources Director Michael McGinnis.

McGinnis said renewing the town’s fully insured plan was a more financially feasible option for the next year.

“There are a number of goals that we have,” McGinnis said at the meeting. “We are making some good progress in getting better control in maintaining our health care plan.”

A fully-insured plan has a set premium the county pays, while a self-insured plan has a variable premium.

A self-insured plan requires the county to pay for all claims and an administrative fee, while the fully- insured options requires the county to pay one fixed premium based on past claims and demographics.

McGinnis said the health care challenges the county has had to face include dealing with the economic crisis, which has taken its toll on budgets statewide.

Increasing health care costs also pose financial problems for the county, he said.

“We have avoided the worse- case scenario of layoffs,” McGinnis said. “But we have had to do several efforts to prevent this, including cutting off the 401K.”

Commissioners suggested several parts of the plan be altered for more clarification, and all were in favor of further discussion regarding employee benefits.

Contact the City Editor at citydesk@unc.edu.

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