The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Thursday, March 30, 1995               TAG: 9503300519
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY PAUL SOUTH, STAFF WRITER 
DATELINE: MANTEO                             LENGTH: Medium:   81 lines

DARE CONSIDERS TAX HIKE TO FUND SCHOOLS INCREASE MAY HURT CHANCES OF NEW GOVERNMENT COMPLEX

A ``small increase'' in Dare County's property taxes may be necessary to meet the financial needs of local schools, the chairman of the county's Board of Commissioners said Wednesday.

Dare County Schools asked for $2.3 million in local funding foreach of the next two years. Included in the funding package is a four-year commitment for $750,000 annually to improve technology for education.

Commission Chairman Robert V. ``Bobby'' Owens said the commission will examine the schools' total proposal before a decision is made on a specific tax increase.

Owens, Commission Vice Chairman Clarence Skinner and Commissioner Doug Langford have met three times with a delegation from the Board of Education to discuss funding.

``What we're going to do is keep the county's general fund budget separate from education,'' Owens said after the commission concluded a three-day budget workshop. ``We've made a commitment to the children of Dare County, and we're going to meet that commitment.

A tax increase for schools would hurt the chances of going ahead with a proposed new county government complex, Skinner said.

``As I said earlier, a tax increase would have a negative impact on any future tax increases,'' Skinner said. ``We won't have to wrestle with funding concerned (for the complex) until 1996-97.''

Owens said public concern over the government-complex proposal has also caused the commission to take a second look at the facility.

``We thought we could move on (the complex) fairly rapidly,'' he said. ``But with the interplay that's gone on, we've decided we should slow down and listen to people.''

Owens said the commission will also consider the public will on a tax increase for schools. Owens was quick to point out, however, that if an increase is needed, every penny will go to education.

Along with the tax issue, commissioners will have to cope with a $2.1 millionannual shortfall in revenue projections. Owens and Skinner said no county department would be exempt from spending cuts, except for those under state or federal mandates.

``The departments aren't going to get everything they want,'' Owens said. ``But there are certain programs, like Medicaid, that we can't cut.''

A $100,000 increase in the local share of Medicaid funding is included in the $1.47 million social services budget for 1995-96, a jump of 26 percent. Social Services Director Jay Burrus said he is unsure of the costs for 1996-97, because pending legislation at the state and federal levels could drastically increase the costs to local governments.

Owens said the commission is well aware of the public sentiment against tax increases.

``There's a mood out there against raising taxes,'' Owens said. ``But I also believe that people want to do things that will help our children.''

Skinner added, ``We don't want to (raise taxes),'' he said. ``But if we have to bite that bullet, we will.''

Dare County Schools Superintendent Leon Holleman said that if the tax issue is put before the public, communication will be critical.

``The people want and deserve to know what the money is going for,'' Holleman said. ``It's going to be our job to show them.''

In other budget-related news, Dare County property owners may face the first increase in water rates in six years if that department's proposed budget is approved. The minimum monthly charge for water would rise from $15 to $16. A new structure for minimum use would also be in effect. Impact fees would be raised from $2,000 to $2,500.

Connection fees would also be raised from $300 to $325 for three-quarter-inch meters, $325 to $475 for 1-inch meters, $500 to $1,000 for 1 1/2-inch meters, and from $1,000 to $1,300 for 2-inch meters.

``The system is in sound financial shape,'' said Dare County Finance Officer David Clawson. ``We're just trying to stay in front of the ball, and not get behind it.''

The changes are designed to increase revenue collected from seasonal users, and to prompt greater conservation.

Owens, Langford, and Skinner all spoke in favor of the plan, and added that a possible increase in the cost of water the county sells to municipalities also should be considered. by CNB