Governor Easley's withholding of funds to the NC budget

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Adv. Reporting Exam

8 May 00

Interview with Wilson County Manager Ellis Williford

Online writing services offer help on Governor Easley's withholding of funds to the NC budget On the topic of Gov. Mike Easley withholding funds from Wilson County

Conducted on May 7, 00

Due to the recent recession, the economy is facing hard financial times. While the government is doing everything possible to correct the situation, some state leaders are turning to what may seem like their only option budget cuts. One of the leaders is Mike Easley, governor of North Carolina.

Easley withheld half of the normal funding to North Carolina when the budget for the fiscal year of 001-00 was being determined. He eventually reinstated the funds last August, but this year, funds will be cut by half again and probably will not be reinstated, according to Wilson County Manager Ellis Williford.

Williford, who has been county manager for nine years, has the responsibility of helping with the development and presentation of the local budget, overseeing the operations of all county departments within Wilson, and administering any policies adopted by the Board of Commissioners. He is very familiar with the policies and procedures of managing money in the county.

"One of the major sources of income is the reimbursement for the wholesalers inventory tax," said Williford. "The tax was done away with because it wasnt really benefiting the state. We get reimbursed for that tax, but this year it is being withheld."

Easleys new budget plan will cut four percent from funding to every program in Wilson, including community colleges, sanitation services, and water treatment facilities. Williford said the total amount of money being withheld is $844,000.

An obvious effect of a budget cut is the decrease of jobs. In Wilson alone, 76 jobs will be cut 51 within the school system and 5 in various other departments. Wilson Technical Community College will have to cut back on personnel and the number of classes offered. Fortunately, there will not be too many big business layoffs, said Williford.

"Schools have really benefited from funding during the past few years," Williford said. "Without those funds, education will suffer. Wilson Community College may not even be able to offer classes in the future."

Every program statewide will be affected without proper funding, even non-profit organizations. Most of the funding is used for travel and supplies, including ambulances, police cars, and fire trucks. Without this money, it is impossible for Wilson to make purchases or repairs.

"We certainly hope that an ambulance doesnteak down while carrying a patient," Williford said. "But you never know what will happen."

Not only will counties be affected by the budget cut, but also will the state as a whole. Many county agencies work with and are supported by larger state agencies. Williford gave the example of regional sanitarians. They certify local sanitarians to install and inspect septic and sewer systems. However, three of the regional positions are frozen because the state cannot afford to hire anyone to fill them.

"Wilson has a trainee right now, but he cant work because there is no one to certify him," said Williford.

Williford attributes the withholding of funds to two previous problems. First, he said that Easley "inherited the problem" because the budget was already "going sour" when he came into office.

The larger problem, Williford believes, is the General Assembly. Although the governor recommends the budget, the Assembly must adopt it. Williford said there is no clear majority in the Assembly, though, so a "compromised budget" resulted.

"When no one can agree, they have to compromise," said Williford. "But a compromised budget is no good. It does nothing to benefit the state."

Williford also thinks that the General Assembly is more interested in spending money than saving. He said that spending is fine, but it is necessary to make sure that there is enough money to back it up.

"Our state has been through a lot of economic development over the past 10 years, but now were really going to suffer," he said.

According to Williford, much action is being taken in response to the cut. Some counties are enacting furloughs, which requires workers to take a maximum of six days off without pay. Local senators and representatives are also lobbying to try to correct the situation.

"Some cities threatened to sue Gov. Easley, but they realized that it probably wouldnt be successful," said Williford.

Williford said that at a meeting on Monday night, Wilson officials adopted a resolution to protect their reimbursement.

"If we cant receive our reimbursement, we should be given an alternative form of income," said Williford. "I think the cities should be given control of sales taxes."

As for Easleys career, Williford cannot be sure of how it will be affected. He said Easley just assumed that the counties had mores money in their reserves than they really did, which was the whole reason for withholding the funds.

"Gov. Easley didnt have the cash flow for the proposed budget, so he cut it," Williford said. "Its early in his term, though, so the economy will probably rebound later and this will just be a bad memory. If not, its going to be hard for him to get re-elected."

Williford said the best solution is "for the economy to recover and to have a tax increase for a couple of years." The only problem with this is that the public will not want a tax increase.

"The public thinks that state and county government officials are a bunch of fat-cat beaurocrats," said Williford. "They want no new taxes, but no cutting of services."

Williford is currently encouraging the sharing of resources and employees amongst the county departments. He said that this situation makes his job harder because he has to try to maintain services for the public.

"Its my job to help the departments provide services," he said. "Service to the public is the foremost responsibility."

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