HomeMy WebLinkAboutAgenda - 06-21-2011 - 5aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 21, 2011
Action Agenda
Item No. 5-a
SUBJECT: MINUTES
DEPARTMENT:
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Draft Minutes
INFORMATION CONTACT:
Donna Baker, 245-2130
PURPOSE: To correct and/or approve the minutes as submitted by the Clerk to the Board as
listed below:
April 19, 2011
April 26, 2011
BOCC Regular Meeting
BOCC Joint Meeting with School Boards
BACKGROUND: In accordance with 153A-42 of the General Statutes, the Governing Board
has the legal duty to approve all minutes that are entered into the official journal of the Board's
proceedings.
FINANCIAL IMPACT: NONE
RECOMMENDATION(S): The Manager recommends the Board approve minutes as
presented or as amended.
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DRAFT
ORANGE COUNTY BOARD OF COMMISSIONERS
CHAPEL HILL-CARRBORO BOARD OF EDUCATION
ORANGE COUNTY BOARD OF EDUCATION
JOINT MEETING
April 26, 2011
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 26,
2011 at 7:00 p.m. at the DSS offices in Hillsborough, N.C.
COUNTY COMMISSIONERS PRESENT: Chair Bernadette Pelissier and Commissioners
Valerie P. Foushee, Alice M. Gordon, Barry Jacobs, Pam Hemminger, Earl McKee and Steve
Yuhasz
COUNTY COMMISSIONERS ABSENT:
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant County Manager Gwen
Harvey, and Clerk to the Board Donna S. Baker (All other staff members will be identified
appropriately below) '
ORANGE COUNTY BOARD OF EDUCATION MEMBERS PRESENT: Chair Tony McKnight,
and Board Members Eddie Eubanks, Steve Halkiotis, Anne Medenbleck, Debbie Piscitelli, and
Superintendent Patrick Rhodes was also present.
ORANGE COUNTY BOARD OF EDUCATION MEMBERS ABSENT: Donna Coffey and
Brenda Stephens
CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS
PRESENT: Chair Jamezetta Bedford, Vice Chair Mia Day Burroughs, and Board Members
Gregory McElveen, Michelle Brownstein, Mike Kelly, Jean Hamilton, and Annetta Streater, and
Superintendent Neil Pedersen was also present.
CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS ABSENT:
1. Openinct Comments
Chair Pelissier welcomed everyone and said that last year's process went very well and
everyone is doing well managing the budget challenges. She pointed out some additional
materials from the school systems.
CHCCS Chair Jamezetta Bedford said that it is the best of times and the worst of times.
She said that there is no new news with their budget.
Chair Pelissier said that Commissioner Hemminger will be arriving late tonight.
OCS Board Chair Tony McKnight thanked the Board of County Commissioners for their
commitment to education and said that, though they have to worry about state budgets, they
know that the Board of County Commissioners has always been fair to both school systems.
He said that the OCS is not asking for an increased percentage of the County's revenue due to
the budget situation statewide.
Introductions were made.
2. Orange County Schools
Presentation of FY 2011-12 Board of Education Approved Budget
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2 Superintendent Rhodes made a PowerPoint presentation. He said that enrollment
3 drives funding, and there is an expected increase in enrollment by 2.5%. There is a proposed
4 increase in benefits of $250,000. It is expected that this will continue to rise.
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6 ORANGE COUNTY SCHOOLS
7 Approved Local Budget
8 2011-2012
9 Orange County Board of County Commissioners
10 April 26, 2011
11 Projected Enrollment: 7,272
12 (Increase of 80 Students)
13 Charter School Students 269
14 Out-of-District Students -98
15 Adjusted ADM Projection 7,443
16 Multiplied by the Per Pupil Allocation $3,096
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18 Total County Appropriation $23,043,528
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20 County Appropriation $23,043,528
21 Other Restricted Funds $1,205,326
22 (More at Four, Head Start, FLAP Grant, Afterschool)
23 Fair Funding $494,000
24 Fines Sz Forfeitures $257,600
25 Interest $33,300
26 Fund Bal.-Carryover 146 810
27 Total Local Revenues $25,180,564
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29 State Retirement Rate Increase (1.1%) $145,681
30 Hospitalization Insurance Increase (4.7%) 104 516
31 Total Increase - $250,197
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35 Fund Balance Appropriation $1,400,000
36 Operating Budget Reductions $1,186,215
37 Lottery Proceeds $571,000
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39 Total Redirected Funds $3,157,215
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41 Superintendent Rhodes stressed that this $3.1 million is a one-time deal and is to help
42 offset the budget reductions.
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44 Local Recurring Cost Reductions 2008-2011
45 2008-2009 $769,033
46 2009-2010 $1,999,286
47 2010-2011 196192
48 Total District Reductions - $2,964,511
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Why Local Support is Critical:
Future Budget Projections
The NC House of Representatives Has Outlined Massive Cuts to Public Education
The House has proposed an 8.8% reduction in funding for K-12 public education and
increased the discretionary reversion by $207,954 in 2011 and $311,000 in 2012.
With the current state discretionary reversion, the reduction in funding will be 13.3%.
• Proposed State Cuts for
2011-2012
Category Reduction Dollar Amount
Teacher Assistants 49 $1,188,486
More At 4 20% $67,150
Instructional Support 5% $118,186
Limited Eng Prof. 10% $30,233
AIG Staffing 12% $41,228
Non-Instructional Staff 15% $288,625
Central Office Admin. 10% $79,673
School Building Admin. 8% $158,537
• Proposed State Cuts for
2011-2012
Category Reduction Dollar Amount
School Technology 100% $4,874
Textbooks 68% $8,285
Instructional Supplies 42% $66,444
At-Risk Services 12% $112,248
Transportation 5% $93,830
TOTAL OCS CUTS $2,465,753
Projected 2011-2012 Budget
Local Budget $25,180,564
State Budget $32,271,324* (8.8% cut)
Federal Budget $4,514,874** (35% cut)
Total Budget $61,966,762
Orange County Schools is projecting a budget reduction of $6.14 million for the 2011-
2012 school year. This represents more than a 9% reduction in overall funding.
Projected Budget Reductions
State Funding Reduction
Federal Funding Reduction
State Discretionary Reduction
Elimination of State Textbook Funding
Federal EduJobs Funding
Total Projected Budget Reduction
- $3,341,919
- $2,382,759 (Stabilization/Stimulus)
- $1,485,386
- $ 280,457 (For the past 3 years)
$1,347,206 (One time funding)
- $6,143,315
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2 Budget Uncertainties for 2011-2012
3 The Governor's Budget Proposal Would Shift Costs to the County and School Districts
4 Transportation:
5 Purchase of New Buses (Both Districts) $1,463,546
6 Insurance for Buses $42,000
7 Employee Benefits:
8 Worker's Compensation Insurance $865,000
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10 Budget Uncertainties for 2011-2012
11 Capital Appropriations*
12 Fund Balance*
13 Local Current Expense Budget*
14 *Due to the shifting nature of this legislation, the financial implications of Senate Bill 8 are
15 unknown at this time.
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18 For more information, please contact Donna Brinkley at 732.8126 or via email @
19 donna.brinkleyCa~orange.k12.nc.us
20 Please visit our district budget page @ www.orange.k12.nc.us
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25 Commissioner Hemminger arrived at 7:17 PM.
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27 Commissioner Hemminger asked if Superintendent Rhodes was getting feedback from
28 parents about the funding uncertainties.
29 Superintendent Rhodes said that he thought the parents were doing a good job
30 advocating at the grassroots level.
31 Debbie Piscitelli said that parents are worried about the loss of teachers' assistants and
32 the months of employment for assistant principals.
33 Anne Medenbleck said that she has the same concern about losing teachers' assistants,
34 and also the preschool reforms.
35 Commissioner McKee said that he is also worried about a 49% reduction in state
36 funding and how that will affect teachers' assistants in Orange County.
37 Patrick Rhodes said that the practical effect would be the loss of 40 teacher assistant
38 positions, and there is not another adult in the classroom besides the main teacher that is able
39 to assist with some of the multi-tasking, etc.
40 Debbie Piscitelli said that another area of concern is tutoring and these teacher
41 assistants usually assist with this task during actual classroom time.
42 Eddie Eubanks said that another aspect to consider is that this County has put into
43 affect a number of programs to increase minority achievement, and then now they are talking
44 about less money to do something that needs more attention and this is a great concern.
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46 3. Chapel Hill-Carrboro City Schools
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48 Presentation of FY 2011-12 Board of Education Approved Budget
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Superintendent Pedersen said that he appreciated the recognition that the Board of
County Commissioners gave him at their last meeting in honor of his upcoming retirement and
he appreciated the funding that they have received from the Board of County Commissioners
over the years.
Board of Education's
2011-2012 Budget Request
April 26, 2011
2010-2011 CHCCS Revenue Sources
State
Local Property Tax
Special District Tax
Other Local Revenue
Trust and Agency
Federal Grants
Child Nutrition
Community Schools
Total
$56,447,018
36, 594, 720
18,694,595
3,419,389
500, 000
8,836,705
4,418,765
1,682,616
$130,593,808
2009-2011 Major CHCCS State Budget Reductions
2009-10 2010-11
Discretionary Reduction $1,903,379 $2,566,670
.Classroom Teachers, 31.86 FTEs
.CTE Teachers, 6 FTEs
.Teacher Assistants, 11.6 FTEs
Staff Development $ 188,936 $ 188,936
Mentor Pay $ 70,379
Textbooks $ 478,394 $ 458,345
2009-2011 Major CHCCS Local Budget Reductions
2009-10 2010-11
Central Office Operations $ 643,279 $ 419,451
Reduction in Instructional/non instructional
support staff $ 596,541 $ 75,200
Reduction in Instructional Services/Programs $ 744,482 $ 69,598
Total $1,984,302 $ 564,249
Other Budget Impacts
Retirement Match Increases $ 98,400 $ 367,850
Medical Insurance Cost Increases $ 284,049 $ 294,193
Total $ 382,449 $ 662,043
2011-12 Student Enrollment Projection
2011-12 State Enrollment Projection 11,718
2010-11 State Enrollment Projection 11,834
District Projected Enrollment Decrease 116
The Board's Budaet request is based on the same dollar allotment to the district.
2011-12 Local Continuation Budget Request
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State Mandates
.Employer health insurance match increase ($4929 to $5279) $ 275,601
.State retirement match increase (10.51 % to 11.62%) $ 361,116
Subtotal $ 636,717
Current Services
.Physical Education/Athletics Coordinator
.Retain Exceptional Children's positions (exp. ARRA funds)
Subtotal
Total Continuation Budget Request
Expansion Budget Requests
•Additional positions for Exceptional Children's Program
•Additional support for ESL Program
•Bus Driver
•3 Technology Assistant Positions
Total Expansion Budget Request
Total of Continuation & Expansion Requests
Budget Reallocations/Cost Reductions
Eliminate one-time fund balance allocation for Lit. eval.&support
Reduce cleaning or custodial service/staff
Eliminate signing bonuses for hard-to-fill teaching positions
Reduce utility budget due to Energy Conservation Measures
2% projected reduction in local salaries & benefits due to
under-spending
Total Reallocations/Reductions
Total of 2011-12 Budget Requests
Local Budget Shortfall after Reductions
Increase in Local Revenues
$ 75,000
$ 500,000
$ 575,000
$1,211,717
$ 327,033
$ 40,000
$ 31,235
$ 114,000
$ 512,268
$1,723,985
$ (70,000)
$ (38,000)
$ (25,000)
$ (250,000)
$ 80( 0,000)
$(1,183,000)
$ 1,723,985
$ (540,985)
$ 25,606
Additional Fund Balance Appropriation to balance the budget $ (515,379)
Revenues Contributing to Fund Balance Increase
^EduJobs Grant $2.4 million
^State/Local Position Trades $ .7 million
^ARRA Grants $ .5 million
^Savings initiatives $ .4 million
Total $4.0 million
2011-12 Estimated Legislative Reductions to CHCCS State Budget
.Central Office 10% $ 88,625
.Instructional Support 5% $ 196,556
.Assistant Principals 8% $ 185,850
.Teacher Assistants 49% $1 ,968,984
.Non-Instructional Support 15% $ 478,962
.Academically Gifted 12% $ 67,712
.Limited English Proficiency 10% $ 114,916
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.At-Risk Students 12% $ 175,230
.Supplies and Materials 42% $ 317,330
.Textbooks 68% $ 538,246
.Transportation 5% $ 63,156
Subtotal $4,195,566.
Eliminated Allotments:
.Mentor Pay $ 83,187
.Staff Development $ 189,780
.School Technology $ 233,480
Subtotal $ 505,447
TOTAL PROGRAM AREAS $4,701,013
2011-12 Estimated Legislative Reductions to CHCCS State Budget
Total Reductions to Program Allotments $4,701,013
2010-11 Discretionary Reduction $2,566,670
2011-12 Discretionary Reduction Increase $ 354,970
Total 2011-12 Discretionary Reduction $2,921,640
GRAND TOTAL OF ANTICIPATED STATE REDUCTIONS $7,783,889
Strategy to Address the State Budget
$7.8 million reduction
Continue the current discretionary
reductions $2.6 million
Appropriate More Fund Balance $2.1 million
Remaining amount to be identified $3.1 million
To address the remaining balance we would recommend a combination of accepting
some of the state cuts and additional items from the possible reduction list.
Potential Reductions in Local Budget
.Reduce differentiated pay allocations by $100 p/teacher $
.Reduce stipends for Thematic Academy Directors $
.Eliminate lead proficiency teacher stipends $
.Reduce elementary media assts. allocation to half-time, 5.0 FT Es$
.Reduce 1 elective position per middle school, 4.0 FTEs $
.Reduce teacher allocation at high school level, 2.5 FTEs $
.Reduce elementary world language, grades 1-2, 6.0 FTEs $
.Reduce sec/clerical allocations, 1 per high school, 3.0 FTEs $
.Reduce athletics allocations at middle schools $
.Reduce athletics allocations at high school $
.Restructure high school student assistance program, 1.0 shared FT
.Reduce 1 psychologist position $
Potential Reductions in Local Budget
.Reduce elementary TAs by 2 positions per school, 20.0 FTEs
.Reduce sec./clerical allocations (.5 @ ea. middle school), 2.0 FTEs
30, 000
15, 000
51, 000
162,490
283,788
177,368
417,588
133, 038
40,000
60, 000
E $ 70,947
70, 947
$ 665,480
$ 88,692
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.Reduce Middle College appropriation
.Reduce sec./clerical allocations (.5 @ ea. elem. School), 5.0 FTEs
.Reduce literacy coaches in elem. Schools from 2 to 1, 10.0 FTEs
.Replace middle school ISS teachers with TAs
.Eliminate Newcomer Center, restructure services, 1.5 FTEs
.Reduce central office staff (5%)
Total
Potential Reductions in the CHCCS State Budget
.Central Office 10% $ 88,625
.Instructional Support 5% $ 196,556
.Assistant Principals 8% $ 185,850
.Teacher Assistants 49% $1 ,968,984
.Non-Instructional Support 15% $ 478,962
.Academically Gifted 12% $ 67,712
.Limited English Proficiency 10% $ 114,916
.At-Risk Students 12% $ 175,230
.Supplies and Materials 42% $ 317,330
.Textbooks 68% $ 538,246
.Transportation 5% $ 63,156
Subtotal $4,195,566
Eliminated Allotments:
.Mentor Pay $ 83,187
.Staff Development $ 189,780
.School Technology $ 233,480
Subtotal $ 505,447
TOTAL PROGRAM AREAS $4,701,013
Additional Possible Losses of Funding
.Unemployment Insurance TBD
.Early Childhood Education $228,000
.Charter School Bill* $197,780
.Charter School Bill other provisions TBD
.Diesel Fuel Budgeted by the State TBD
(currently budgeted at $2.71 per gallon)
* (District tax sharing 2010-11 and 2011-12)
$ 25,000
$ 221,730
$ 695,980
$ 148,400
$ 70,803
$ 315,000
$ 3,743,251
Budget Summary
.Combination of cost increases and revenue decreases have required us to make significant
reductions over the past two years
^We have built up our fund balance to help buffer the funding cliff, but can't cover it all
^We face devastating cuts at the state level
.Board requests the same dollar appropriation as this year (a $31 per pupil increase), otherwise
an additional $359,136 must be cut
.Board Requests a $.01 increase in the Special District Tax, if necessary
Recurring Capital Budget
2011-12 Recurring Budget Projected at the Current 2010-11 Amount
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$1, 861,467
CIP Funding History
Pay-as-You-Go Lottery Funds 10 Yr Total Reduction
.2008-18 39,451,994 12,304,854 51,756,848
.2009-19 33,023,429 14,898,408 47,921,837 (3,835,011)
.2010-20 29,418,298 12,397,617 41,815,915 (6,105,922)
.2011-21 17,625,836 9,383,630 27,009,466 (14,806,449)
.Concerns about the long term availability of Lottery Funds
Elementary #11
^SAPFO projects need for additional elementary school in 2013-14
^Deconstruction needs to begin in the Fall 2011
^Requesting a $20,563,117 funding authorization to complete the project
CHCCS Chair Jamezetta Bedford said that they support the'/4-cent sales tax proposed.
She said that they are truly asking them for their continued support just to maintain the current
budget.
Steve Halkiotis said that his comments are his only. He said that, based on a quarter of
a century of watching educational funding in Orange County, he can speak with some
knowledge. He is proud of the efforts that were made in Orange County 25 years ago. He
knows the challenges that everyone is facing. He said that there is only one Orange County
and people chose to live in Orange County. He said that they need to fight for the children in
Orange County. He said that the population of impoverished children is growing in the County.
He said that every school needs to have a nurse and he wants to fight for this. He said that
prisoners are fed better than school children.
He commended the Manager for the abstract because it was very inclusive, until he got
to the last page. The last paragraph talks about a note of caution that, "new anticipated school
debt service for the CHCCS Elementary School #11 expected in a few years will substantially
increase the County funding allocation to education. This increase in debt service could
negatively impact available funding for current expense and operations once the debt is
incurred." He said that there are some old schools that need attention too. He said that the
State is going backwards and the schools are in a painful situation. He said that the ray of
hope is the Orange County Board of Commissioners and he knows that it will do the right thing.
Chair Pelissier said that the Board of County Commissioners also cares about the
children in Orange County and they care about others in Orange County too. She said that the
County Commissioners will do the best that they can.
Commissioner McKee commended the Superintendents, boards, and staffs for the
judicious use of fund balances. He asked about the enrollment and whether it was over or
below the projected figure.
Superintendent Pedersen said that for next year the projected figure is 116 below this
year's projection.
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Michelle Brownstein said that they have been encouraging families to contact legislators
about public school funding so that there is a groundswell across the whole state and not just in
this county.
Jamezetta Bedford said that most of the parents are not informed or aware of the
financial impacts that are projected.
Anne Medenblick said that she serves on the Legislative Committee of the school board
and they are lobbying heavily for the local control of the calendar. There was conservative
support for this as well as support from the school boards. It has not yet come to committee.
The legislators are all very supportive of the bill. She recommended as many emails and
correspondences to Speaker Tillis as possible because he has buried the bill.
Chair Pelissier made reference to Attachment 6, which is the Allocation of Projected
Revenue for FY 2011-12.
Clarence Grier went through Attachment 6.
Allocation of Projected Revenue for FY 2011-12
(based on Preliminary Revenue Estimates of $176.0 million)
Schools -For FY 2011-12, assume the same total dollar amount for Current Expense for
appropriation (does not include funding for Durham Technical College in calculation of the
48.1 % target)
FY 2010-11 FY 2011-12 Difference % Change
Actual Prelimina
Current Expense $59,371,992 $59,371,992 $0 0.0%
(Mandated
Appropriation,
Discretionary
Dollars
Recurring $3,000,000 $3,000,000 $0 0.0%
Capital
(Mandated
Appropriation,
Discretionary
Dollars
Long Range $2,590,117 $2,628,969 $38,852 1.5%
Capital
(Mandated
Appropriation,
Discretionary
Dollars
School Related $18,182,682 $17,519,486 ($663,196) -3.6%
Debt Service
(Mandated
A ro riation
Fair Funding $988,000 $988,000 0$ 0.0%
(Non Mandated
A ro riation
Total School $84,132,791 $83,508,447 ($624,344 -0.7%
11
Fundin (1
of County 48.0% 47.4% 0.0%
General Fund
Revenues
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(1)-Does not include additional County funding for School Health Nurses, School Social
Workers, school Resource Officers. Total Education appropriation % for FY 2010-11 including
these components totaled 49.01 %, and would be 48.46% given the above preliminary amounts
for FY 2011-12.
Calculation of Current expense/Per Pupil Appropriation
FY 2010-11 FY 2011-12 Difference % Chan e
Projected # of 19,177 19,141 -36 -0.2%
Students
Projected Per $3,096 $3,102 $6 0.2%
Pu it Allocation
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Frank Clifton made reference to the word of caution about Elementary School #11 and
said that if the County obligates itself to debt service, it has to pay it with the available funds
and whatever growth takes place will be eaten up by this debt service. In other words, this
cannot happen without a tax increase. There will be no room to grow current expense or other
operational costs unless there is a tax increase.
Debbie Piscitelli asked about the increase in tax and asked if this was to provide the
same funding and not an increase. Frank Clifton said that the debt service would be $1.8
million in debt service and the County's appropriation for education would go up $1.8 million,
but there would be no extra in the classroom.
Debbie Piscitelli wants to be sure that they will at least be able to maintain the budget
and not get a decrease.
Frank Clifton said that deferring Elementary School #11 for one year would be a huge
help to address other things.
Commissioner Gordon said that the Elementary School #11 debt is not the only debt
proposed. There is also a lot of economic development infrastructure proposed.
Chair Pelissier reminded the Board that the County is currently above the debt ceiling.
Frank Clifton said that the Board has not discussed how it will pay for the economic
development infrastructure if the '/4-cent sales tax is not passed.
4. Quarter cents sales tax
Chair Pelissier said that the Board of County Commissioners adopted a'/4-cent sales tax
resolution last week and it is different than last year's resolution. She highlighted that the
commitment is for aten-year period and not afive-year period. The other thing is that it 50%
for schools and 50% for economic development. It is also, "including, but not limited to facility
improvements at older schools and the procurement of technology." She said that they wanted
to have a conversation with the school boards about the anticipated needs.
Interim Assistant to the County Manager Michael Talbert gave a brief summary of the
resolution.
INSERT
Frank Clifton summarized the uses for economic development -utilities infrastructure
and small business loans, etc. The County is limited to only an educational process and it is
restricted as far as the wording.
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Commissioner Yuhasz pointed out that one of the reasons they put language in that
they did was so that schools could come back with specific proposals for allocations. He thinks
that this is a clear commitment, but it is up to the school boards to come up with specific things.
Chair Pelissier pointed out that there will be a special revenue fund for this and it will not
just go into the general fund.
Steve Halkiotis made reference to Commissioner Yuhasz's comment about this being
fuzzy last time. He said that it was fuzzy last time and no one knew what would be done with
the money. He said that the public needs to know very clearly how the money will be spent. He
does not have a problem supporting this.
Michelle Brownstein said that another piece is that if this tax does not pass, the public
needs to know what happens then.
Commissioner Jacobs said that he still believes that the presentation is fuzzy and it was
still fuzzy tonight. He said that the staff needs to explain just how much the County has already
cut in the last few years. He said that what is going on right now in Raleigh is ideological
warfare. There is warfare against the notion of the public good through government. He wants
to make sure that the County Commissioners are not fuzzy about what they are doing to match
what the schools are doing in order to meet the challenges so that they can promote this and
help the tax succeed.
Chair Pelissier said that the Board has not discussed what would happen if the
referendum does not pass.
Frank Clifton said that what the County is doing now is not sustainable and the tax base
has to be diversified somehow.
Chair Pelissier said that she hoped both school boards would support and advocate for
this referendum.
With no further items to address, the meeting was adjourned at 9:13 PM.
Bernadette Pelissier, Chair
Donna S. Baker, CMC
Clerk to the Board
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DRAFT
ORANGE COUNTY BOARD OF COMMISSIONERS
CHAPEL HILL-CARRBORO BOARD OF EDUCATION
ORANGE COUNTY BOARD OF EDUCATION
JOINT MEETING
April 26, 2011
The Orange County Board of Commissioners met fora joint session with the Chapel Hill-
Carrboro Board of Education and the Orange County Board of Education on Tuesday, April 26,
2011 at 7:00 p.m. at the DSS offices in Hillsborough, N.C.
COUNTY COMMISSIONERS PRESENT: Chair Bernadette Pelissier and Commissioners
Valerie P. Foushee, Alice M. Gordon, Barry Jacobs, Pam Hemminger, Earl McKee and Steve
Yuhasz
COUNTY COMMISSIONERS ABSENT:
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Frank Clifton, Assistant County Manager Gwen
Harvey, and Clerk to the Board Donna S. Baker (All other staff members will be identified
appropriately below)
ORANGE COUNTY BOARD OF EDUCATION MEMBERS PRESENT: Chair Tony McKnight,
and Board Members Eddie Eubanks, Steve Halkiotis, Anne Medenbleck, Debbie Piscitelli, and
Superintendent Patrick Rhodes was also present.
ORANGE COUNTY BOARD OF EDUCATION MEMBERS ABSENT: Donna Coffey and
Brenda Stephens
CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS
PRESENT: Chair Jamezetta Bedford, Vice Chair Mia Day Burroughs, and Board Members
Gregory McElveen, Michelle Brownstein, Mike Kelly, Jean Hamilton, and Annetta Streater, and
Superintendent Neil Pedersen was also present.
CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS ABSENT:
1. Opening Comments
Chair Pelissier welcomed everyone and said that last year's process went very well and
everyone is doing well managing the budget challenges. She pointed out some additional
materials from the school systems.
CHCCS Chair Jamezetta Bedford said that it is the best of times and the worst of times.
She said that there is no new news with their budget.
Chair Pelissier said that Commissioner Hemminger will be arriving late tonight.
OCS Board Chair Tony McKnight thanked the Board of County Commissioners for their
commitment to education and said that, though they have to worry about state budgets, they
know that the Board of County Commissioners has always been fair to both school systems.
He said that the OCS is not asking for an increased percentage of the County's revenue due to
the budget situation statewide.
Introductions were made.
2. Orange County Schools
Presentation of FY 2011-12 Board of Education Approved Budget
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Superintendent Rhodes made a PowerPoint presentation. He said that enrollment
drives funding, and there is an expected increase in enrollment by 2.5%. There is a proposed
increase in benefits of $250,000. It is expected that this will continue to rise.
ORANGE COUNTY SCHOOLS
Approved Local Budget
2011-2012
Orange County Board of County Commissioners
April 26, 2011
Projected Enrollment: 7,272
(Increase of 80 Students)
Charter School Students 269
Out-of-District Students
Adjusted ADM Projection 7,443
Multiplied by the Per Pupil Allocation $3,096
Total County Appropriation $23,043,528
County Appropriation $23,043,528
Other Restricted Funds $1,205,326
(More at Four, Head Start, FLAP Grant, Afterschool)
Fair Funding $494,000
Fines 8~ Forfeitures $257,600
Interest $33,300
Fund Bal.-Carryover 146 810
Total Local Revenues $25,180,564
State Retirement Rate Increase (1.1%) $145,681
Hospitalization Insurance Increase ( 4.7%) 104 516
Total Increase - $250,197
Fund Balance Appropriation $1,400,000
Operating Budget Reductions $1,186,215
Lottery Proceeds $571,000
Total Redirected Funds $3,157,215
Superintendent Rhodes stressed that this $3.1 million is a one-time deal and is to help
offset the budget reductions.
Local Recurring Cost Reductions 2008-2011
2008-2009 $769, 033
2009-2010 $1,999,286
2010-2011 196 192
Total District Reductions - $2,964,511
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Why Local Support is Critical:
Future Budget Projections
The NC House of Representatives Has Outlined Massive Cuts to Public Education
The House has proposed an 8.8% reduction in funding for K-12 public education and
increased the discretionary reversion by $207,954 in 2011 and $311,000 in 2012.
With the current state discretionary reversion, the reduction in funding will be 13.3%.
• Proposed State Cuts for
2011-2012
Cate4ory Reduction Dollar Amount
Teacher Assistants 49 $1,188,486
More At 4 20% $67,150
Instructional Support 5% $118,186
Limited Eng Prof. 10% $30,233
AIG Staffing 12% $41,228
Non-Instructional Staff 15% $288,625
Central Office Admin. 10% $79,673
School Building Admin. 8% $158,537
• Proposed State Cuts for
2011-2012
Cateaory Reduction Dollar Amount
School Technology 100% $4,874
Textbooks 68% $8,285
Instructional Supplies 42% $66,444
At-Risk Services 12% $112,248
Transportation 5% $93,830
TOTAL OCS CUTS $2,465,753
Projected 2011-2012 Budget
Local Budget $25,180,564
State Budget $32,271,324* (8.8% cut)
Federal Budget X4,514,874** (35% cut)
Total Budget $61,966,762
Orange County Schools is projecting a budget reduction of $6.14 million for the 2011-
2012 school year. This represents more than a 9% reduction in overall funding.
Projected Budget Reductions
State Funding Reduction
Federal Funding Reduction
State Discretionary Reduction
Elimination of State Textbook Funding
Federal EduJobs Funding
Total Projected Budget Reduction
- $3,341,919
- $2,382,759 (Stabilization/Stimulus)
- $1,485,386
- $ 280,457 (For the past 3 years)
$1,347,206 (One time funding)
- $6,143,315
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• Budget Uncertainties for 2011-2012
The Governor's Budget Proposal Would Shift Costs to the County and School Districts
Transportation:
Purchase of New Buses (Both Districts) $1,463,546
Insurance for Buses $42,000
Employee Benefits:
Worker's Compensation Insurance $865,000
• Budget Uncertainties for 2011-2012
Capital Appropriations*
Fund Balance*
Local Current Expense Budget*
*Due to the shifting nature of this legislation, the financial implications of Senate Bill 8 are
unknown at this time.
For more information, please contact Donna Brinkley at 732.8126 or via email @
donna. brinkleyCc~orange. k12. nc. us
Please visit our district budget page @ www.orange.k12.nc.us
Commissioner Hemminger arrived at 7:17 PM.
Commissioner Hemminger asked if Superintendent Rhodes was getting feedback from
parents about the funding uncertainties.
Superintendent Rhodes said that he thought the parents were doing a good job
advocating at the grassroots level.
Debbie Piscitelli said that parents are worried about the loss of teachers' assistants and
the months of employment for assistant principals.
Anne Medenbleck said that she has the same concern about losing teachers' assistants,
and also the preschool reforms.
Commissioner McKee said that he is also worried about a 49% reduction in state
funding and how that will affect teachers' assistants in Orange County.
Patrick Rhodes said that the practical effect would be the loss of 40 teacher assistant
positions, and there is not another adult in the classroom besides the main teacher that is able
to assist with some of the multi-tasking, etc.
Debbie Piscitelli said that another area of concern is tutoring and these teacher
assistants usually assist with this task during actual classroom time.
Eddie Eubanks said that another aspect to consider is that this County has put into
affect a number of programs to increase minority achievement, and then now they are talking
about less money to do something that needs more attention and this is a great concern.
3. Chapel Hill-Carrboro City Schools
Presentation of FY 2011-12 Board of Education Approved Budget
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Superintendent Pedersen said that he appreciated the recognition that the Board of
County Commissioners gave him at their last meeting in honor of his upcoming retirement and
he appreciated the funding that they have received from the Board of County Commissioners
over the years.
Board of Education's
2011-2012 Budget Request
April 26, 2011
2010-2011 CHCCS Revenue Sources
State
Local Property Tax
Special District Tax
Other Local Revenue
Trust and Agency
Federal Grants
Child Nutrition
Community Schools
Total
$56,447,018
36, 594, 720
18, 694, 595
3,419,389
500, 000
8,836,705
4,418,765
1,682,616
$130,593,808
2009-2011 Major CHCCS State Budget Reductions
2009-10 2010-11
Discretionary Reduction $1,903,379 $2,566,670
.Classroom Teachers, 31.86 FTEs
.CTE Teachers, 6 FTEs
.Teacher Assistants, 11.6 FTEs
Staff Development $ 188,936 $ 188,936
Mentor Pay $ 70,379
Textbooks $ 478,394 $ 458,345
2009-2011 Major CHCCS Local Budget Reductions
2009-10 2010-11
Central Office Operations $ 643,279 $ 419,451
Reduction in Instructional/non instructional
support staff $ 596,541 $ 75,200
Reduction in Instructional Services/Programs $ 744,482 $ 69,598
Total $1,984,302 $ 564,249
Other Budget Impacts
Retirement Match Increases $ 98,400 $ 367,850
Medical Insurance Cost Increases $ 284,049 $ 294,193
Total $ 382,449 $ 662,043
2011-12 Student Enrollment Projection
2011-12 State Enrollment Projection 11,718
2010-11 State Enrollment Projection 11,834
District Projected Enrollment Decrease 116
The Board's Budget request is based on the same dollar allotment to the district.
2011-12 Local Continuation Budget Request
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State Mandates
.Employer health insurance match increase ($4929 to $5279) $ 275,601
.State retirement match increase (10.51 % to 11.62%) $ 361,116
Subtotal $ 636,717
Current Services
.Physical Education/Athletics Coordinator $ 75,000
.Retain Exceptional Children's positions (exp. ARRA funds) $ 500,000
Subtotal $ 575,000
Total Continuation Budget Request $1,211,717
Expansion Budget Requests
•Additional positions for Exceptional Children's Program $ 327,033
•Additional support for ESL Program $ 40,000
•Bus Driver $ 31,235
•3 Technology Assistant Positions $ 114,000
Total Expansion Budget Request $ 512,268
Total of Continuation 8~ Expansion Requests $1 ,723,985
Budget Reallocations/Cost Reductions
Eliminate one-time fund balance allocation for Lit. eval.&support $ (70,000)
Reduce cleaning or custodial service/staff $ (38,000)
Eliminate signing bonuses for hard-to-fill teaching positions $ (25,000)
Reduce utility budget due to Energy Conservation Measures $ (250,000)
2% projected reduction in local salaries & benefits due to
under-spending $ 800 000
Total Reallocations/Reductions $(1,183,000)
Total of 2011-12 Budget Requests $ 1,723,985
Local Budget Shortfall after Reductions
Increase in Local Revenues
$ (540,985)
$ 25,606
Additional Fund Balance Appropriation to balance the budget $ (515,379)
Revenues Contributing to Fund Balance Increase
^EduJobs Grant $2.4 million
^State/Local Position Trades $ .7 million
^ARRA Grants $ .5 million
^Savings initiatives $ .4 million
Total $4.0 million
2011-12 Estimated Legislative Reductions to CHCCS State Budget
.Central Office 10% $ 88,625
.Instructional Support 5% $ 196,556
.Assistant Principals 8% $ 185,850
.Teacher Assistants 49% $1 ,968,984
.Non-Instructional Support 15% $ 478,962
.Academically Gifted 12% $ 67,712
.Limited English Proficiency 10% $ 114,916
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.At-Risk Students 12% $ 175,230
.Supplies and Materials 42% $ 317,330
.Textbooks 68% $ 538,246
.Transportation 5% $ 63,156
Subtotal $4,195,566
Eliminated Allotments:
.Mentor Pay $ 83,187
.Staff Development $ 189,780
.School Technology $ 233.480
Subtotal $ 505,447
TOTAL PROGRAM AREAS $4,701,013
2011-12 Estimated Legislative Reductions to CHCCS State Budget
Total Reductions to Program Allotments $4,701,013
2010-11 Discretionary Reduction $2,566,670
2011-12 Discretionary Reduction Increase $ 354.970
Total 2011-12 Discretionary Reduction $2,921,640
GRAND TOTAL OF ANTICIPATED STATE REDUCTIONS $7,783,889
Strategy to Address the State Budget
$7.8 million reduction
Continue the current discretionary
reductions $2.6 million
Appropriate More Fund Balance $2.1 million
Remaining amount to be identified $3.1 million
To address the remaining balance we would recommend a combination of accepting
some of the state cuts and additional items from the possible reduction list.
Potential Reductions in Local Budget
.Reduce differentiated pay allocations by $100 p/teacher $ 30,000
.Reduce stipends for Thematic Academy Directors $ 15,000
.Eliminate lead proficiency teacher stipends $ 51,000
.Reduce elementary media assts. allocation to half-time, 5.0 FTEs$ 162,490
.Reduce 1 elective position per middle school, 4.0 FTEs $ 283,788
.Reduce teacher allocation at high school level, 2.5 FTEs $ 177,368
.Reduce elementary world language, grades 1-2, 6.0 FTEs $ 417,588
.Reduce sec/clerical allocations, 1 per high school, 3.0 FTEs $ .133,038
.Reduce athletics allocations at middle schools $ 40,000
.Reduce athletics allocations at high school $ 60,000
.Restructure high school student assistance program, 1.0 shared FT E $ 70,947
.Reduce 1 psychologist position $ 70,947
Potential Reductions in Local Budget
.Reduce elementary TAs by 2 positions per school, 20.0 FTEs $ 665,480
.Reduce sec./clerical allocations (.5 @ ea. middle school), 2.0 FTEs $ 88,692
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.Reduce Middle College appropriation
.Reduce sec./clerical allocations (.5 @ ea. elem. School), 5.0 FTEs
.Reduce literacy coaches in elem. Schools from 2 to 1, 10.0 FTEs
.Replace middle school ISS teachers with TAs
.Eliminate Newcomer Center, restructure services, 1.5 FTEs
.Reduce central office staff (5%)
Total
$ 25,000
$ 221,730
$ 695,980
$ 148,400
$ 70,803
$ 315,000
$ 3,743,251
Potential Reductions in the CHCCS State Budget
.Central Office 10% $ 88,625
.Instructional Support 5% $ 196,556
.Assistant Principals 8% $ 185,850
.Teacher Assistants 49% $1 ,968,984
.Non-Instructional Support 15% $ 478,962
.Academically Gifted 12% $ 67,712
.Limited English Proficiency 10% $ 114,916
.At-Risk Students 12% $ 175,230
.Supplies and Materials 42% $ 317,330
.Textbooks 68% $ 538,246
.Transportation 5% $ 63,156
Subtotal $4,195,566
Eliminated Allotments:
.Mentor Pay $ 83,187
.Staff Development $ 189,780
.School Technology $ 233,480
Subtotal $ 505,447
TOTAL PROGRAM AREAS $4,701,013
Additional Possible Losses of Funding
.Unemployment Insurance TBD
.Early Childhood Education $228,000
.Charter School Bill* $197,780
.Charter School Bill other provisions TBD
.Diesel Fuel Budgeted by the State TBD
(currently budgeted at $2.71 per gallon)
* (District tax sharing 2010-11 and 2011-12)
Budget Summary
.Combination of cost increases and revenue decreases have required us to make significant
reductions over the past two years
^We have built up our fund balance to help buffer the funding cliff, but can't cover it all
^We face devastating cuts at the state level
.Board requests the same dollar appropriation as this year (a $31 per pupil increase), otherwise
an additional $359,136 must be cut
.Board Requests a $.01 increase in the Special District Tax, if necessary
Recurring Capital Budget
2011-12 Recurring Budget Projected at the Current 2010-11 Amount
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$1,861,467
CIP Funding History
Pay-as-You-Go Lottery Funds 10 Yr Total Reduction
.2008-18 39,451,994 12,304,854 51,756,848
.2009-19 33,023,429 14,898,408 47,921,837 (3,835,011)
.2010-20 29,418,298 12,397,617 41,815,915 (6,105,922)
.2011-21 17,625,836 9,383,630 27,009,466 (14,806,449)
.Concerns about the long term availability of Lottery Funds
Elementary #11
^SAPFO projects need for additional elementary school in 2013-14
^Deconstruction needs to begin in the Fall 2011
^Requesting a $20,563,117 funding authorization to complete the project
CHCCS Chair Jamezetta Bedford said that they support the'/4-cent sales tax proposed.
She said that they are truly asking them for their continued support just to maintain the current
budget.
Steve Halkiotis said that his comments are his only. He said that, based on a quarter of
a century of watching educational funding in Orange County, he can speak with some
knowledge. He is proud. of the efforts that were made in Orange County 25 years ago. He
knows the challenges that everyone is facing. He said that there is only one Orange County
and people chose to live in Orange County. He said that they need to fight for the children in
Orange County. He said that the population of impoverished children is growing in the County.
He said that every school needs to have a nurse and he wants to fight for this. He said that
prisoners are fed better than school children.
He commended the Manager for the abstract because it was very inclusive, until he got
to the last page. The last paragraph talks about a note of caution that, "new anticipated school
debt service for the CHCCS Elementary School #11 expected in a few years will substantially
increase the County funding allocation to education. This increase in debt service could
negatively impact available funding for current expense and operations once the debt is
incurred." He said that there are some old schools that need attention too. He said that the
State is going backwards and the schools are in a painful situation. He said that the ray of
hope is the Orange County Board of Commissioners and he knows that it will do the right thing.
Chair Pelissier said that the Board of County Commissioners also cares about the
children in Orange County and they care about others in Orange County too. She said that the
County Commissioners will do the best that they can.
Commissioner McKee commended the Superintendents, boards, and staffs for the
judicious use of fund balances. He asked about the enrollment and whether it was over or
below the projected figure.
Superintendent Pedersen said that for next year the projected figure is 116 below this
year's projection.
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Michelle Brownstein said that they have been encouraging families to contact legislators
about public school funding so that there is a groundswell across the whole state and not just in
this county.
Jamezetta Bedford said that most of the parents are not informed or aware of the
financial impacts that are projected.
Anne Medenblick said that she serves on the Legislative Committee of the school board
and they are lobbying heavily for the local control of the calendar. There was conservative
support for this as well as support from the school boards. It has not yet come to committee.
The legislators are all very supportive of the bill. She recommended as many emails and
correspondences to Speaker Tillis as possible because he has buried the bill.
Chair Pelissier made reference to Attachment 6, which is the Allocation of Projected
Revenue for FY 2011-12.
Clarence Grier went through Attachment 6.
Allocation of Projected Revenue for FY 2011-12
(based on Preliminary Revenue Estimates of $176.0 million)
Schools -For FY 2011-12, assume the same total dollar amount for Current Expense for
appropriation (does not include funding for Durham Technical College in calculation of the
48.1 % target)
FY 2010-11 FY 2011-12 Difference % Change
Actual Prelimina
Current Expense $59,371,992 $59,371,992 $0 0.0%
(Mandated
Appropriation,
Discretionary
Dollars
Recurring $3,000,000 $3,000,000 $0 0.0%
Capital
(Mandated
Appropriation,
Discretionary
Dollars
Long Range $2,590,117 $2,628,969 $38,852 1.5%
Capital
(Mandated
Appropriation,
Discretionary
Dollars
School Related $18,182,682 $17,519,486 ($663,196) -3.6%
Debt Service -
(Mandated
A ro riation
Fair Funding $988,000 $988,000 0$ 0.0%
(Non Mandated
A ro riation
Total School $84,132,791 $83,508,447 $624,344 -0.7%
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Fundin (1)
of County 48.0% 47.4% 0.0%
General Fund
Revenues
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(1)-Does not include additional County funding for School Health Nurses, School Social
Workers, school Resource Officers. Total Education appropriation % for FY 2010-11 including
these components totaled 49.01 %, and would be 48.46% given the above preliminary amounts
for FY 2011-12.
Calculation of Current ex ense/Per Pu it A pro riation
FY 2010-11 FY 2011-12 Difference % Chan e
Projected # of 19,177 19,141 -36 -0.2%
Students
Projected Per $3,096 $3,102 $6 0.2%
Pu it Allocation
Frank Clifton made reference to the word of caution about Elementary School #11 and
said that if the County obligates itself to debt service, it has to pay it with the available funds
and whatever growth takes place will be eaten up by this debt service. In other words, this
cannot happen without a tax increase. There will be no room to grow current expense or other
operational costs unless there is a tax increase.
Debbie Piscitelli asked about the increase in tax and asked if this was to provide the
same funding and not an increase. Frank Clifton said that the debt service would be $1.8
million in debt service and the County's appropriation for education would go up $1.8 million,
but there would be no extra in the classroom.
Debbie Piscitelli wants to be sure that they will at least be able to maintain the budget
and not get a decrease.
Frank Clifton said that deferring Elementary School #11 for one year would be a huge
help to address other things.
Commissioner Gordon said that the Elementary School #11 debt is not the only debt
proposed. There is also a lot of economic development infrastructure proposed.
Chair Pelissier reminded the Board that the County is currently above the debt ceiling.
Frank Clifton said that the Board has not discussed how it will pay for the economic
development infrastructure if the'/4-cent sales tax is not passed.
4. Quarter cents sales tax
Chair Pelissier said that the Board of County Commissioners adopted a %4-cent sales tax
resolution last week and it is different than last year's resolution. She highlighted that the
commitment is for aten-year period and not afive-year period. The other thing is that it 50%
for schools and 50% for economic development. It is also, "including, but not limited to facility
improvements at older schools and the procurement of technology." She said that they wanted
to have a conversation with the school boards about the anticipated needs.
Interim Assistant to the County Manager Michael Talbert gave a brief summary of the
resolution.
INSERT
Frank Clifton summarized the uses for economic development -utilities infrastructure
and small business loans, etc. The County is limited to only an educational process and it is
restricted as far as the wording.
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Commissioner Yuhasz pointed out that one of the reasons they put language in that
they did was so that schools could come back with specific proposals for allocations. He thinks
that this is a clear commitment, but it is up to the school boards to come up with specific things.
Chair Pelissier pointed out that there will be a special revenue fund for this and it will not
just go into the general fund.
Steve Halkiotis made reference to Commissioner Yuhasz's comment about this being
fuzzy last time. He said that it was fuzzy last time and no one knew what would be done with
the money. He said that the public needs to know very clearly how the money will be spent. He
does not have a problem supporting this.
Michelle Brownstein said that another piece is that if this tax does not pass, the public
needs to know what happens then.
Commissioner Jacobs said that he still believes that the presentation is fuzzy and it was
still fuzzy tonight. He said that the staff needs to explain just how much the County has already
cut in the last few years. He said that what is going on right now in Raleigh is ideological
warfare. There is warfare against the notion of the public good through government. He wants
to make sure that the County Commissioners are not fuzzy about what they are doing to match
what the schools are doing in order to meet the challenges so that they can promote this and
help the tax succeed.
Chair Pelissier said that the Board has not discussed what would happen if the
referendum does not pass.
Frank Clifton said that what the County is doing now is not sustainable and the tax base
has to be diversified somehow.
Chair Pelissier said that she hoped both school boards would support and advocate for
this referendum.
With no further items to address, the meeting was adjourned at 9:13 PM.
Bernadette Pelissier, Chair
Donna S. Baker, CMC
Clerk to the Board