NC Public School Capitol Fund Troubles

NC Public School Capitol Fund Troubles (Added: March 06, 2009)

Three state senators are sponsoring a bill that would temporarily stop putting tax money into the capital fund for public school buildings. (more)

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Three state senators are sponsoring a bill that would temporarily stop putting tax money into the capital fund for public school buildings.

By: Arthur Mondale | WNCT
Published: March 06, 2009

In these tough economic times, the state can use all the cash flow it can get.
Now three state senators are sponsoring a bill that would temporarily stop putting tax money into the capital fund for public school buildings.
Senator Dan Clodfelter says Senate Bill 386 would make the best use of state resources during the current economic downturn--allowing the government to focus on state obligations.
But some counties argue it's not the states money to touch.
Clodfelter and others say the schools are sitting on millions of dollars they just aren’t using.
Senator Dan Clodfelter said, “It's not right to ask the state when we have a shortfall of over $2-billion to continue to put more money into the fund when there is unused money in the fund.”
Bill 386 would temporarily stop money from going to the public school capital fund for the next two fiscal years so the state can focus on highways, prisons and other problems.
Senator Clodfelter adds, “When we are short the money to do the things we're responsible for—can we afford to continue to give away state money to the counties to cover things that they’re really responsible for.”
But officials in places like Craven County argue it's not the state cash to control.
Craven County finance administrator Rick Hemphill said, “Counties don't have $50-million sitting around to build high schools…The state seems to think it's their money but it's our money. If the law didn't say that, Mr. Clodfelter wouldn't have to introduce this bill to take the money."
The lottery money is not involved in Senate Bill 386.
But Hemphill points out, less money is expected to come in from taxpayers because of the economy.
The Public School Capitol Fund was established in 1987 and this isn't the first time cash flow has stopped. Senator Clodfelter says it happened in the 2001-2002 fiscal year as well.
If the bill passes it would go into affect the next fiscal year.