Wake: Schools' budget would hike taxes

RALEIGH -- If Wake commissioners want to grant the county school board's request for a $29.4 million budget bump, they'll likely have to raise property taxes even further than the amount already expected.

County Manager David Cooke has not finalized his budget for fiscal year 2008, but he told commissioners Monday that he will not recommend the full amount the school board has requested.

He said that across county government there will be requested needs that are not met so that he can hold the tax rate to about 67 cents per $100 of assessed value -- a nearly 6 percent increase over the current rate of 63.4 cents.

When voters approved $970 million in new bonds in November, Wake officials said they would have to raise taxes up to 4.7 cents over the next three years to pay for it, with about 3.4 cents tacked on in 2008. All of the money raised through the increase would go to pay on the debt incurred building new schools and to pay for their operation once the facilities open.

Last year, the commissioners also raised property taxes by 3 cents to meet a requested $21.5 million increase in school funding -- the full amount requested.

In its budget for 2008, the school board asked for an additional $29.4 million to help pay for 8,000 new students expected to enroll in the fall and to cover the county's share of a state pay raise for teachers. Cooke said county revenues are expected to grow about $41 million next year through increases to the tax base. However, all but about $17 million of that new money is already spoken for, he said.

With Wake Technical Community College seeking an additional $5 million, a proposed 4 percent raise for county employees and the increased burden of employee health insurance, Cooke said there are $33 million in unfunded requests besides the $29.4 million for the schools.

Commissioners are scheduled to have a joint meeting with the Wake school board Wednesday.

Commissioner Joe Bryan reiterated Monday that he would be open to a request for more school construction bonds. The county is already planning to put $187 million in new bonds before voters this October to build new libraries, expand Wake Tech and buy undeveloped land for preservation.

Asked by Commissioner Kenn Gardner whether schools could be added to the list, Cooke said: "We could do that. There's still time."