Union County School Merger Plan; Supplemental Taxes

May 20, 1993

Koy E. Dawkins Attorney for Union County Board of Education

P.O.: Box 1034 Monroe, N.C. 28110

Re: Advisory Opinion; Union County School Merger Plan; Supplemental Taxes; G.S. 115C-67, 115C-68.2, 115C-68.3

Gentlemen:

As counsel for the Union County Board of Education and the Union County Board of Commissioners, you request our opinion about the levy and use of local supplemental taxes to support the newly merged Union County School System.

Under authority of G.S. 115C-68.2, the State Board of Education adopted a plan merging the former Monroe City School System and the former Union County School System effective July 1, 1993. G.S. 115C-68.2 required that merger plan to be "prepared and approved in accordance with G.S. 115C-67." Under G.S. 115C-67(6), one issue that had to be addressed in the merger plan was "whether or not there shall be continued in force any supplemental school tax which may be in effect in either or all local school administrative units involved."

Prior to the merger, local supplemental taxes had been approved by the voters in both the former Monroe City School System and the former Union County School System under authority of Article 36, Chapter 115C of the General Statutes. See, G.S. 115C-500, et seq. The authorized tax in Monroe was up to 15 cents per $100 valuation and in Union County was up to 7 cents per $100 valuation. The merger plan, as required by G.S. 115-68.2 and -67(6) addresses the continuation of these taxes. Section 10(a) of the merger plan provides:

The supplemental school tax of up to fifteen cents ($.15) previously authorized by referendum for support of the City School System and the supplemental tax of up to seven cents ($.07) previously authorized by referendum for support of the County School System shall remain in effect and be used to support the Merged School System unless or until abolished or modified in accordance with the provisions of Article 36, Chapter 115C of the General Statutes; provided the Merged School Board shall request the Board of County Commissioners to levy and the Board of County Commissioners shall levy both taxes in the same amount, but not in excess of seven cents ($.07).

You have asked two questions regarding the interpretation and application of this provision. They are:

Does the merger plan eliminate the separate tax districts and create a single county-wide tax district; and
May the proceeds of the taxes be used to support the merged system as a whole or must the tax for the former Monroe City School System be used exclusively to support schools located within the former city system and the tax for the former Union County School System be used exclusively to support the schools located within the former county system?

In our opinion both tax districts remain in effect and do not merge into a single county-wide tax
district. We base this conclusion on the specific language of the supplemental tax provision of
the merger plan that the "Board of County Commissioners shall levy both taxes." (emphasis
added). These straight forward words, though contained in the merger plan, must be treated as the
equivalent of an act of the General Assembly. See, G.S. 115C-68.3 (Ratifying a series of merger
plans, including the Monroe/Union plan, and declaring that such plans shall be "considered to
have been adopted by act of the General Assembly.")

It is also our opinion that both taxes may be used to support the merged school system as a whole
and that their use is not limited to the support of schools located within the respective boundaries
of the former school systems. The merger plan, which is now the law under G.S. 115C-68.3,
specifically states that both taxes "shall . . . be used to support the merged school system.”

In this regard, we do not perceive any irreconcilable conflict between the plan, as adopted by the
General Assembly, and G.S. 115C-511(c). That statute makes it "unlawful for any part of a [local
supplemental school] tax . . . to be used for any purpose other than those purposes authorized by
the election in the unit or district." Each tax in question was approved by the voters to provide
additional financial support for the school system in which the voters resided. With merger, the
voters formerly residing within the Monroe City School System and Union County School
System now reside within a single system, the newly merged county-wide school system. Thus,
using the proceeds of both taxes to support the merged system as a whole is consistent with the
purposes authorized by the voters; that is the support of the school system in which they reside.

If we can provide further assistance with these issues, please call.

Edwin M. Speas, Jr.
Senior Deputy Attorney General