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Proposed state revenue cut would be “devastating” to Johnston web posted February 25, 2009 JOHNSTON – As the proposed 42% cut in Aid to Subdivisions (towns and counties) is being debated in the SC State House, the town of Johnston is watching things closely. Johnston Administrator Keith Coones said if the cut were passed it would be a “devastating” blow to the town as they begin the budget process. “This 42% cut represents $32,828 dollars less in revenue to the town from the state,” Coones said in an email exchange on the matter. The town had to amend this year’s budget due to a cut of $4,516 in December of 2008, bringing the total revenues down to $78,162. Making the cut even more significant is that the 42% is not from the original funding level, but from the current $78,162 level. “The current proposed reduction in state revenue to the Town of Johnston represents 8 mills of property tax. However, in 2005 the General Assembly capped millage rate increases to only the CPI (Consumer Price Index) unless you are providing a new service not already being provided,” Coones said. This will make replacing the revenues through higher taxes unlikely. “It is definitely a devastating cut.” Town leaders will begin their budget process next month with the proposed cut in mind. © Copyright 2009
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