$255 MILLION BUDGET OUTLINED

2005 Plan Wouldn't Include Surplus From Anti-Drug Tax

In the continuing controversy surrounding Jackson County's anti-drug
tax, County Executive Katheryn Shields said she will not recommend
spending money next year from the estimated $5.1 million surplus fund.

On Monday, she blamed a lack of direction from the county Legislature
for her decision as she proposed her administration's $255.5 million
2005 county budget.

The anti-drug tax surplus fund has been a constant source of
controversy this year, sparking an ongoing audit of the
Community-Backed Anti-Drug Tax, known as COMBAT.

Shields said she sought guidance from legislators about distributions
from the fund balance but received none.

However, Shields expected such guidelines to be discussed during
legislative budget hearings scheduled to begin Nov. 29.

Without allocations from the surplus, proposed COMBAT appropriations
would be $19.9 million, about $6 million less than was budgeted this
year.

On Monday, legislators Dan Tarwater and Robert Stringfield sought to
provide guidance by proposing to re-establish percentage guidelines
adopted in 1995 for spending surplus and annual revenues from COMBAT.

The resolution also proposes setting aside some percentage of COMBAT
funds for administrative costs and audits. Tarwater and Stringfield
said that the proposal did not reflect their recommendations, but that
they sponsored it to begin discussions about how to spend the tax.

COMBAT is a quarter-cent sales tax for law enforcement, drug treatment
and drug prevention.

In February, Prosecutor Mike Sanders accused Shields of misspending
COMBAT money by failing to allocate it according to the 1995 guidelines.

Shields denied the allegation, saying annual revenues are spent
according to the percentages. She said the guidelines for surplus
expired in 2001, but acknowledged they were never followed.

Shields has said those surplus guidelines were the intent of the 1995
Legislature but were not mandated.

Overall, Shields' proposed 2005 budget is about $27 million less than
the county's 2004 budget.

Legislators will hold hearings on the budget beginning on Nov.
29.

In addition to decreased COMBAT spending, the budget proposes cuts in
about 13 other funds, including the county's general and health funds.