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Ill economy drives 'No' vote


Rocky Mount Telegram

Thursday, May 08, 2008

The state of the economy and the wording on the ballot played roles in the quarter-cent sales tax increase failing in the Twin Counties, county and education officials said.

More than 61 percent of the voters in Nash County and 68 percent of the voters in Edgecombe County voted against the increase, which mainly would have generated funding for the public schools and community colleges.

"The timing was just not right for anything that smelled of a tax," said J. Reid Parrott Jr., chairman of the Building for Education Committee.

When the Nash County Board of Commissioners approved the tax increase for the primary ballot, the price of gas and groceries weren't skyrocketing, Parrott said.

Besides the economy, Nash County Commissioner Robbie Davis said, the N.C. General Assembly's mandatory wording on the ballot was seen in a negative fashion.

Edgecombe County Board of Commissioners' Chairman Charlie Harrell cited the economy and the ballot wording as the same reasons the initiative failed in Edgecombe County. Also, voters didn't understand the need for the increase, Harrell said.

"There wasn't a clear vision as to why it was on the ballot," he said.

The state will acquire the counties' cost of Medicaid, and in return, the counties must give the state a half-cent of sales tax from each purchase.

To make up for the loss, counties were given the option to levy a quarter-cent sales tax increase – one penny for every $4 – or a 0.4 percent land transfer tax.

On Tuesday, both options failed miserably across the state.

Only two out of the 20 counties who put the sales tax increase up for a vote – Cumberland and Haywood – saw them successfully passed.

The land transfer tax was turned down in the four counties where it was up for approval.

Though the voters have spoken, the initiatives that were expected to receive funding if the tax increase passed could be put on hold for the time being.

"The needs of course ... are still there," Davis said. "But we'll have to put them on the shelf and wait awhile until the economy gets better."

The funding in Nash County would have gone to capital projects for Nash-Rocky Mount Public Schools, Nash Community College and other public safety and community facilities.

"We were all optimistic that the sales tax referendum would be the best way to generate revenue for the public schools and the county," said Mark Strickland, Nash-Rocky Mount's special assistant for auxiliary services. "The economy and other things dictated otherwise."

Nash-Rocky Mount's capital priority is building a new Rocky Mount High School. Tuesday's decision means the school district will have to review its priorities and funding options, Strickland said.

Edgecombe County Public Schools faces a similar future. The school district was hoping the revenue from the sales tax increase would help fund portions of its laptop program.

"We will revisit our one-to-one laptop initiative plans and continue to pursue other funding sources," said Diane LeFiles, Edgecombe County's community relations director.

Tuesday's results doesn't mean the quarter-cent sales tax increase won't be on another ballot in the future.

The counties' Boards of Commissioners can place the issue on the ballot as many times as they want, but that doesn't mean they will, Davis said.

"It will definitely be back on the ballot," Harrell said. "I doubt it will be as early as November. We will just have to wait to assess the economy and try it again."

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