Buncombe County lobbies legislature for financial flexibility

When local government revenues took a dive after Tropical Storm Helene, Buncombe County officials knew they would have to get creative to continue funding vital services, including education. After a meeting with lawmakers in Raleigh on Feb. 5, an idea emerged that could give local officials more flexibility in how some sales tax revenue is spent.

Officials are considering lobbying the N.C. General Assembly to reverse a 1983 law requiring that only Buncombe County set aside half of its local-option 1-cent sales tax revenue for new public school construction or large renovation projects at schools. County leaders want that restriction removed so they could spend the roughly $28 million any way they see fit.

Amanda Edwards, chair of the Buncombe County Board of Commissioners,  says she would rather use the money to help Asheville City Schools (ACS) and Buncombe County Schools (BCS) avoid potential staff layoffs that both district superintendents have said are likely next year. Both districts were forced to dip into reserves to get through the current school year after the county cut $4.8 million in education funding in January as part of $17.6 million in cuts across the county budget.

“Buncombe County is actively dealing with the financial and budgetary impacts of Helene, including reduced revenues from property and sales tax,” says Assistant County Manager Tim Love. “We’re exploring all options to reduce expenditures and increase revenues to address these revenue losses.”

The county estimates it lost between $3.5 million and $7.5 million in sales tax revenues, contributing to up to $25 million in projected revenue losses this fiscal year. Officials project that it will take “several years” for sales tax revenues to return to pre-Helene levels.

When Edwards, County Manager Avril Pinder and Love met with Buncombe’s legislative delegation, state Sen. Julie Mayfield, District 49, suggested removing that tax restriction.

However, the change could require the school districts to freeze capital project funding for two years, which worries some school officials.

“It would cause a delay in upcoming and very much needed capital projects involving roofs, HVAC systems and school entrance security,” Buncombe County Board of Education Chair Rob Elliot told Xpress.

Ongoing projects would continue in the plan discussed among officials, Edwards says, but new projects would be put on pause.

Projects completed in recent years with local sales tax funding include replacing fire alarms at several county schools, a new roof at North Buncombe Middle School and a new classroom building at Asheville High School. Ongoing projects include lobby security renovations at numerous county schools, a new guardhouse at A.C. Reynolds High School, stadium lighting at Erwin High School’s football field and updates to the Asheville High School’s water and sewer system.

When Asheville City Board of Education Chair Sarah Thornburg first shared the possibility of freezing capital projects at a city schools board meeting Feb. 10, she thought the change would mean the county would use the funds to supplement its own general fund, not necessarily sending it back to the school districts. That enraged several city school board members, who said they felt left out of the process. But Edwards emphasized that’s not the case in a conversation with Xpress Feb. 19.

“My hope would be that we can agree to pause brand new capital projects and allow the schools to utilize those funds to keep staff employed,” Edwards says. “I think at this juncture in our budget, I would hope that we can all agree that keeping staff employed to serve our children across both districts is the priority as part of Helene recovery.”

State Rep. Lindsey Prather, D-District 115, told Xpress that while she doesn’t support taking money out of the hands of the school districts, if the county and school districts can agree on a strategy for how the money can be used, she would happily “file any amendment or bill that would make that happen.”

At its meeting Feb. 18, commissioners agreed to a draft legislative agenda, which outlines key priorities they want county lobbyists to focus on in the coming year. At the top of the list are recovery funds and stabilization grants for local governments, which have yet to see any revenue replacement dollars from state or federal governments, Love says.

“The impacts of revenue losses to Buncombe County have already necessitated a reduction in services, such as those provided by libraries, as well as reductions in the education budget allocation based on reduced collections across the board,” the agenda says.

Commissioners will review the final legislative agenda at an upcoming regular meeting in March. The next budget work session is March 20.

This story was supported by the Fund for Investigative Reporting and Editing.