HomeMy WebLinkAboutMinutes 04-27-2010 APPROVED 5/6/2010
MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
CHAPEL HILL-CARRBORO BOARD OF EDUCATION
ORANGE COUNTY BOARD OF EDUCATION
WORK SESSION
April 27, 2010
7:00 p.m.
The Orange County Board of Commissioners met for a joint session with the Chapel Hill—
Carrboro Board of Education and the Orange County Board of Education on Tuesday, April
27, 2010 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, North Carolina.
COUNTY COMMISSIONERS PRESENT: Chair Valerie P. Foushee, and Commissioners Alice
M. Gordon, Barry Jacobs, Pam Hemminger, Mike Nelson, Bernadette Pelissier, and Steve
Yuhasz
COUNTY COMMISSIONERS ABSENT:
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant County Managers Willie
Best and Gwen Harvey, and Clerk to the Board Donna S. Baker (All other staff inembers will
be identified appropriately below)
ORANGE COUNTY BOARD OF EDUCATION MEMBERS PRESENT: Vice-Chair Tony
McKnight and Board members Eddie Eubanks, Susan Hallman, Debbie Piscitelli, Ted Triebel,
and Superintendent Patrick Rhodes were also present.
ORANGE COUNTY BOARD OF EDUCATION MEMBERS ABSENT: Steve Halkiotis and
Anne Medenbleck
CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS
PRESENT: Chair Mike Kelly, Vice Chair Jamezetta Bedford, and Board Members, Mia Day
Burroughs, Joe Green, Gregory McElveen, Michelle Brownstein, and Superintendent Neil
Pedersen was also present.
CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS ABSENT:
Annetta Streater
1. Openinq Comments
OCS Vice-Chair Tony McKnight thanked the Board of County Commissioners for their
overall support of education in the County. He said that the OCS has faced major budget cuts
from the County and the State, but with financial planning they were able to make some
amends. He said that last week the Governor recommended a 4% decrease and the school
board is asking the Board of County Commissioners to keep the per-pupil funding as it was
last year with no additional funding this year. This would be $3,096. He said that if they are
not funded at the current level then this will affect classroom teachers. He said that it is
imperative that the schools receive adequate funding to maintain the current educational
programs.
CHCCS Chair Mike Kelly said that Annetta Streater is not here this evening and he
echoed Mr. McKnight's comments. He thanked the Board of County Commissioners for
funding the Carrboro Arts Wing. He said that the operating budget is an investment in the
future of our schools. He asked the County Commissioners to fund the per pupil allocation as
they did last year.
Chair Foushee said that the Board of County Commissioners remains committed to
education in Orange County. The circumstances may be different, but she pledges to do the
best for Orange County's schools and the communities.
2. Chapel Hill-Carrboro City Schools - Presentation of FY 2010-11 Board of
Education Approved Budqet
CHCCS Superintendent Neil Pedersen said that they appreciated the support of the
Board of County Commissioners and they are aware of the difficult financial situation that
Orange County is in this year, but there are some costs that are unavoidable. The budget has
a proposed 2% increase in the per pupil costs.
He said that the 48.1% figure will come up tonight and this number came up because at
one time the budget for the County was over 50% for the schools, and thus this figure was put
in place, and they all know that this is a "target" number. This is a guidepost and not a
formula.
He said that the worst case scenario would require about $5 million of reductions in their
budget. He hopes that the Board of County Commissioners would consider what this type of
reduction would do their school system. The Board of County Commissioners' financing of
schools and education is an investment in the future.
He made a PowerPoint presentation.
Board of Education's 2010-2011 Budget Request
April 27, 2010
Local Continuation Budget Request
State Mandates
. Employer health insurance match increase ($4527 to $4929) $294,193
. State retirement match increase (8.75% to 10.51%) $367,850
Subtotal $662,043
Current Services
. Revenue Sharing with Charters (impact of court ruling) $ 25,000
. Nurses' Salaries and Benefits paid by Orange Co. $254,250
. UNC Hospital School Teachers' Salaries paid by UNC Hosp. $419,685
. Utility Rate Increases $153,009
. 3 H.S. Athletic Trainers (after$28K stipend reduction/school) $ 67,429
Maintenance of Current Services
- Dual Language Expansion at FPG and Scroggs Elementary $20,000
- Newcomer Center (loss of grant funding —4.5 FTEs) $243,916
- Welcome Center (loss of grant funding — 1 clerical position) $38,618
- Middle School Mental Health Services (loss of grant funding) $24,000
Subtotal $1,245,907
TOTAL CONTINUATION BUDGET REQUEST $1,907,950
Local Expansion Budget Requests
- 20% Increase to school custodial supply budgets $52,985
- High School Instructional Resource Teachers (3 FTEs) $270,000
TOTAL OF CONTINUATION AND EXPANSION REQUESTS $2,230,935
Budget Reallocations/Cost Reductions
Central Office Non-Personnel Reallocations $ (172,116)
Gifted Lead Teacher Position $ ( 69,598)
Permanent Substitute Teacher Positions $ ( 75,200)
Energy Conservation Measures $ (153,009)
Total Reallocations/Reductions $ (469,923)
Total Local Budget Increase $1,761,012
(after deducting Hospital School and Nurses' salaries) $1,087,077
2010-11 Student Enrollment Projection
2010-11 District Enrollment Projection 11,834
2009-10 State Enrollment Projection 11,740
District Projected Enrollment Increase 94
2009-10 Actual 20th Day Enrollment 11,585
Projected Local Revenue Increase
■94 new students @ $3,096 $291,094
■UNC Hospital Reimbursement $254,250
■Orange Co. Nurses Reimbursement $419,685
■Medicaid Reimbursements $300,000
■Reduction in other Local Sources ($ 234,885)
Total Net Increase $1,030,144
Local Budget Revenue Shortfall
■Continuation & Expansion Requests $1,761,012
■Less: Projected Increase in Revenues $1,030,144
■Shortfall $ 730,868
■Required per-pupil increase $62
Best Case Scenario
- County fully funds local request
- Additional $666,183 state discretionary reduction (no further state reductions)
- No state-mandated salary increases or bonuses or increases in retirement rates
- Total Reductions Required $666,183
Middle Case Scenario
- County keeps same per-pupil allotment $732,840
- Additional shortfall in local funding due to
Governor's Recommended Increases $700,000
- Governor's Recommended Budget Cuts $1,900,000
- Total Reductions Required $3,332,840
Worst Case Scenario
- County reduces funding by $1.3 million $2,323,864
- Additional shortfall in local funding due to Governor's
Recommended Increases $700,000
- Governor's Recommended Budget Cuts $1,900,000
- Total Reductions Required $4,923,864
Previous Budget Reductions
- 2006-07 $732,172
- 2007-08 $1,510,318
- 2008-09 $146,036
- 2009-10 $1,984,302
- TOTAL $4,172,828
3 Tiers of Potential Reductions
- Priority 1 $5,046,761
- Priority 2 $1,967,768
- Priority 3 $1,003,570
- TOTAL $8,018,099
Recurring Capital Budget
2010-11 Recurring Budget Projected at the Current 2009-10 Amount
$1,861,467
Budget Reallocations:
Central Office Non-Personnel Reductions
Central Office:
Human Resources $30,500
Budget and Finance 2,000
Superintendent's Office 7,449
Community Relations 2,500
Student Services 2,000
Instructional Services Division 80,267
Technology 45,000
Assistant Superintendent for Support Services 2,400
Total of Central Office Reductions $172,116
Other Personnel Reductions
■Gifted lead teacher position $ 69,598
■Permanent substitute teacher positions 75,200
Total Personnel Reductions $144,798
Cost Reduction: Utility Savings $153,009
Grand Total of Reductions and Savings $469,923
Superintendent Pedersen said that he did provide the County Commissioners with
information on Elementary School #11. He said that if they are to stay on the revised schedule
to open in 2012, then they need to start this process now. He asked for direction from the
Board of County Commissioners.
3. Oranqe County Schools-Presentation of FY 2010-11 Board of Education Approved
Budqet
Superintendent Patrick Rhodes thanked the Board of County Commissioners for funding
them but now more than ever the OCS need the requested funding. He made a PowerPoint
presentation.
Orange County Board of Education
Local Current Expense Budget
2010-2011
Looking Back...
Local Appropriation Reductions $921,918
State Appropriation Reductions $4,775,501
Total Funding Reduction: $5,697,419
Impact of Local Funding Cuts
District-level Positions $385,000
School-level Positions $209,000
Programmatic Reductions $461,000
(non-personnel)
Miscellaneous District-level Funding $179,000
Total Reductions $1,234,000
Moving Forward
- Safeguard Vital Classroom Expenditures
- Maintain Class Sizes K-3
- Stabilize Instructional Funding Support
- Continue Support of At-Risk Programs
- Minimize Job Loss
Budget Planning Framework
- Focused on Efficiency
- Developed on Actual Expenditures
- Applied State Funding Flexibility
- Transferred Local Expenses to State/Federal Sources
- Froze Existing Vacancies — 9 Positions
Cost Containment Measures for 2010-11
- Freeze Existing/Anticipated Vacancies $434,091
(9 positions)
- Redistribute Local Transportation Funds $450,000
(replace with State funds)
- Decrease Local Staff Development $12,839
- Reduce Contracted Services $30,000
Total Savings: $926,930
2010 Requested County Appropriation:
$22,795,848
This represents the same per-pupil allocation of$3,096 that was funded in 2009-10
Additional Required Expenses
Employee Benefit Cost Increases: $265,000
Utility Services Increase $127,542
DSS Social Workers' Cost Increase $68,000
Total $406,542
Governor's Teacher Pay Raise $255,056
Total Additional Required Expenses $715,598
Deeper Cuts Ahead?
2010-11 Discretionary Reversion $1,485,386
Additional State Cuts $657,953
Total $2,143,339
Dollars Directed to Student Needs
Student Support:
- At-Risk Services
- Exceptional Children's Academic Support Efforts
- Gifted Program Enhancements
- Increased Opportunities for Advanced Coursework
- Summer Dropout Recovery
- Academic Support for Suspended Students
- ESL Intervention Program Enhancements
- High School AVID Support
Guiding Principles
Effective Programs
Efficient Operations
Fiscal Responsibility
Balancing the 2010-11 Budget
Existing/Anticipated Vacancies:
District Testing Coordinator $62,000
Accounts Payable Clerk $37,000
Maintenance Clerical Support $51,000
French Teaching Position $72,000
Transportation Office Staff $44,000
High School Teaching Position $57,000
(currently vacant)
3 Teaching Assistant Positions $111,091
Total Savings $434,091
Superintendent Rhodes said that they are developing sustainable budgetary practices,
including doing budgets on what actual expenditures are in the second quarter.
Commissioner Nelson asked if the OCS Board wanted a district tax and whether the
children of Orange County would be better off with a district tax. Ted Triebel said that the
Board has not discussed this yet. He said that next year will be much worse than this year
because the schools will lose stimulus funding. He thinks the school board needs to look at
this.
Mike Kelly asked why this is a question at all since the Board of County Commissioners
can provide what the schools need through the ad valorem tax. He said that unless the OCS
needs more money than CHCCS, than they do not need that mechanism.
Commissioner Nelson said that the issue is making sure that all children get what they
need and he does not care where it comes from — district or ad valorem — but there is the
question of disproportionate funding because of having a district tax in one system and not the
other.
Commissioner Yuhasz said that no matter what it is called, it is still a tax on the
taxpayers.
Ted Triebel said that the school board is suggesting that the per-pupil be maintained,
but what has not been mentioned is the inflation factor. He said that it may be the same
amount of money, but it buys less.
Mia Burroughs said that to use capital money for operating expenses is not a good
practice and it is a short-term fix.
Eddie Eubanks said that one of the responsibilities of the State and the County is to
provide education and that any teacher would forego a raise in order to keep another teacher
employed. He said that they need to reduce other aspects of the budget rather than the
educational component.
Commissioner Gordon said that this is a difficult year and she agreed that using capital
for operating is problematic since many of the schools are older and need extra maintenance.
She said that both school districts have made very compelling cases and the Board of County
Commissioners will do the best that it can.
Debbie Piscitelli said that they are at the point where the classrooms are going to be
affected by budget reductions. She said that they as a board usually turn to the Board of
County Commissioners for help and she hopes all three boards can work together in Raleigh
to fight some of the proposed reductions for grades K-12.
Commissioner Yuhasz said that on April 8th the Board of County Commissioners had a
budget work session and they were given projected budget revenues. He reviewed these. He
said that their projected revenues for the County are $3.5 million less than what they have to
spend in this fiscal year. He said that the County is not going to be able to fund the schools as
requested when it has $3.5 million less to spend.
Chair Foushee said that Commissioner Yuhasz's statement is a reality statement. She
said that what everyone is facing is a gloomy situation. She said that last year they talked
about doing more with less and they can no longer do this. Now they must do less. She said
that, just like the school boards, the County will need to implement efficiencies. The people in
the County cannot pay more taxes. She said that the County Commissioners are thinking not
only of the children, but also their parents. She said that there has to be a way to make
Orange County an affordable place to live, because if people cannot pay the taxes then they
cannot live in Orange County. Many people that have lived in Orange County all of their lives
now do not know if they can stay here because of the taxes.
Commissioner Jacobs said that if the per-pupil and the students are the most important
thing, then the capital is not. He said that if holding onto the capital is that important that the
school board is willing to risk cutting the per-pupil, then that is a decision that the school board
will have to make. He said that he has urged the school boards to take the capital and use it
for the children. The facilities will suffer, but the school boards need to decide on their top
priority. Everyone will have to make tough choices.
Michelle Brownstein said that she hopes that the Board of County Commissioners will
use the scalpel approach as opposed to an arbitrary percentage cut. She said that, in
reference to capital issues, that is an area the school board cannot cut into. It is a point of
health and safety at this point with some of the facilities.
Commissioner Gordon agreed that there are some health and safety needs with the
older schools, such as air quality and hazardous materials.
Frank Clifton said that the County is going through a difficult process and there is not a
service that Orange County delivers today that will not be affected negatively by budget
reductions. He said that he is going to recommend cutting programs and reducing County
staff and there will be no salary increases. He said that he thinks it will take about four years
from now to get back to where they used to be financially. He said that he will bring the Board
of County Commissioners a balanced budget, and he would support the schools moving
capital to operating expenses, if needed. He said that the 48.1% has always been a target, but
it is usually more than 48.1% that the County funds the schools.
Mia Burroughs said that they need to speak about Elementary School # 11.
Ted Triebel said that he appreciated the comments from Commissioner Yuhasz and
Chair Foushee and their honesty about the financial situation. He said that they do recognize
what is coming down the pike and the sooner they get to work on this the better. He asked the
Commissioners to please get the budget information to the school boards as soon as possible.
Chair Foushee said that the Board of County Commissioners has not had the
discussion yet about Elementary School #11 due to other budget concerns.
Commissioner Hemminger said that the debt payments for the County go up next year,
and there is also a reduction in revenues. She said that fiscally the County cannot do
Elementary#11.
Frank Clifton said that the debt limit for the County is 15% and is non-negotiable as far
as the bonding agencies go. He said that the lack of other revenue sources in this County is
the Achilles heel. If it were not for the food tax, Orange County would be one of the lowest in
the State for sales tax collections.
Gregory McElveen said that the schools are being asked to increase their
achievements by the public so they are putting pressure on teachers to do this better. He said
that the Board of Education is getting pressure from the community to do more for the
students.
Debbie Piscitelli said that they are here as advocates for the educational needs of the
students. She said that they as a BOE are aware of the situations of the families because in
Orange County, 45% of their students have free or reduced lunches.
Superintendent Pedersen emphasized that he would like to get the bad news early if
possible. He asked when the information would be available regarding the funding of the
schools.
Chair Foushee said that since the Board of County Commissioners (BOCC) has not
seen the budget yet, it is difficult to know. There is a budget work session on May 11tn
Commissioner Gordon noted that the last scheduled BOCC meeting before the break is
June 15th, so the budget should have been adopted by that time.
Frank Clifton said that he will have the budget wrapped up in the next 10 days, so
within a couple of weeks the Manager's recommendation at least will be ready.
Susan Hallman said that the school board appreciates the Board of County
Commissioners and they appreciate anything that the Board of County Commissioners can do
for them. She hopes that they do not go backwards with the school funding.
Tony McKnight said that if they are not going to get their requested per-pupil funding,
then the school boards need to know this as soon as possible.
Commissioner Jacobs applauded the lack of acrimony in this meeting.
4. Closinq Comments
With no further items to discuss, the meeting was adjourned at 8:50 p.m.
Valerie Foushee, Chair
Donna S. Baker, CMC
Clerk to the Board