HomeMy WebLinkAboutMinutes - 20040610APPROVED 919!2004
MINUTES
ORANGE COUNTY BOARD OF COUNTY COMMISSIONERS
WORK SESSION
June 10, 2004
7:30p.m.
The Orange County Board of Commissioners met for a Budget Work Session on Thursday,
June 10, 2004 at 7:30 p.m. at the F. Gordon Battle Courtroom in Hillsborough, North Carolina.
COUNTY COMMISSIONERS PRESENT: Chair Barry Jacobs, and Commissioners
Margaret W. Brown, Moses Carey, Jr., Alice M. Gordon, and Stephen Halkiotis
COUNTY COMMISSIONERS ABSENT:
COUNTY ATTORNEYS PRESENT: Geoffrey Gledhill and S. Sean Borhanian
COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County
Managers Rod Visser and and Clerk to the Board Donna S. Baker (All other staff members will
be identified appropriately below}
Chair Jacobs said that this meeting was originally scheduled for the Southern Human Services
Center but was changed due to a public safety situation.
1. Chair Review of Schedule and Topics
Chair Jacobs reviewed the budget schedule for the next two weeks.
Commissioner Gordon said that on June 23rd, she will need to stop the meeting at 10:30 p.m.
She suggested starting that meeting at 5:30 p.m.
Commissioner Halkiotis suggested that the County Commissioners time themselves for three
minutes each.
Chair Jacobs said that they will entertain both suggestions and will know more at agenda review
on Monday.
2. School Budgets and CIP
John Link welcomed everyone. He said that he would highlight what he has already presented
three times. He said that CHCCS will go first this year. This is a rotation.
County Manager's Recommended 2004-05 Annual Operating Budget
Education Funding
Work Session with Schools
Orange County, NC
June 70, 2004
Manager's Recommended General Fund Budget Totals $137,351,929 ~~~
Property Taxes Remain Largest Single Source of Revenue
General Fund Revenues
• Estimated real property tax base growth far fiscal year 2aa4-a5 will be about 4 percent
- Property Tax revenue increases about $7.65 million from original 2x03-a4 budget
. Approximately $3.1 million comes from natural tax base growth and the balance
produced by the proposed tax rate increase
• Projected overall growth in sales tax is 4.5 percent
• Able to appropriate $1.6 million out of fund balance
- Equivalent of about 1.6 cents on tax rate
• State and Federal assistance to local governments continues to erode
- Overall expected growth in other County revenues, including those revenues received
from State and Federal sources, totals $3aa,aaa
Growth in Property Tax Base Compared to County Operating Budget Growth
Orange County Has Historically Led The State in Education Funding
Source: Annual Public School Forum Report
Public Education Funding for Fiscal Year 2004-05
• Total General Fund appropriation for Education increases by 5.6 percent and totals $66.3
million
- Reflects a $3.5 million increase from 2aa3-a4
• Qverall share of County budget is 48.4 percent
- BC~CC funding target is 48.1 percent
- According to the Public School Forum of North Carolina, "county education funding
generally consumes one-third of local budgets."
• CHCCS District Tax remains at 2a cents per $1aa valuation
- Anticipated collections of $12.9 million
+ Equivalent of $1,178 per student
Proposed Per Pupil Appropriation of $2,620
• Orange County Board of Commissioners allocate school funding to each district based on an
equal per pupil amount
- Commissioners do not appropriate money to the Schools for individual line-items or
specific purposes
• Increase of $54 over the FY 2003-04 allocation of $2,566
• Both systems experiencing increases in student membership
- Orange County Schools - 127 students
- Chapel Hill-Carrboro City Schools - 277 students
• Cost to fund increase in students totals $1,036,664 or the equivalent of 1.03 cents on the tax
rate
Cost Required to Fully Fund School Requests
On the Horizon
• Factors shaping County budgets, policies, and programs for 2005-06 and beyond:
- Future BOCC decisions on school funding equity
• Collaboration opportunities befi+veen the two school systems
• Educational Excellence Work Group
• Assessment of the efficiency of school resources
- Operatinglmaintenance/support services for new facilities
• Orange County satellite campus of Durham Tech, Senior Centers, Justice Facility,
Animal Shelter, new parks
- Operating impacts from the opening of three new schools
. OCS Middle School #3, CHCCS High School #3, and CHCCS Elementary #10
- Additional park acquisition and development through 2001 bonds and Lands
Legacy program
- Sustainability of Orange County government in terms of organizational mission,
functions and resources
John Link said that his recommended budget is $137 million, and 48.1 °~ goes toward education.
He said that if the County Commissioners were to fund all that was requested (countywide}, it
would be almost 14.9 cents on the tax rate. He said that the County only has two major sources
of revenue -property and sales tax. There will be some tough decisions based on relying on
these two revenue sources. He said that CHCCS was #1 in the state for per pupil, based an
having the additional district tax. OC5 is ranked #4 in the state, with just the appropriation from
the County.
Chair Jacobs made reference to the threats to funding in the future years, and said that the
optional'12 cent sales tax expires next year and the legislature will be voting whether or not to
sunset it or extend it. This could have a major impact on the County's financial situation.
CHCCS Superintendent and Board of Education Presentation:
CHCCS Board Chair Elizabeth Carter said that she is pleading their case and she supports
Superintendent Neil Pedersen's budget submission as well as the OCS budget submission.
She said that they are all aware that this is a bleak economic year, but the needs of students do
not disappear. She said that the monies they are requesting are no new monies, but
continuation and expansion of current programs. They are projecting 277 new students in the
district. She said that when she thinks of the school budget, she thinks of her household budget
where she does atrade-off. But when it comes to the school budget, it is different. She thinks
that we could do better for our students. She said that they are not able to open new facilities
this year and all of their schools are filled to the brim. She said that they have the responsibility
of advocating for the needs of the students.
Superintendent Neil Pedersen said that this is the most challenging budget they have had to
present. He said that he has been serving as an advisor to the State Board of Education, and at
the last board meeting, the Treasurer's office recognized the Finance and Budget office of the
OCS far its excellence and gave it an award as the best financial operation in the State.
Chapel Hill - Carrbaro
City Schaals
Raising the Achievetrrent of All Students
Board of Education's
2004-2005 Budget Request
to the Orange County Commissioners
June 10, 2004
Local Budget Revenues
2003-04 2004-05 2004-05
Budget Requested Recommended
County Appropriation $27,479,294 $33,177,720 $28,783,320
Special District Tax $12,477,727 $12,940,547 $12,940,547
Other Local Revenues $ 1,584,604 $ 1,420,513 $ 1,420,513
Approp. Fund Balance $ 1,500,000 $ 1,000,000 $ 1,000,000
Total $43,041,625 $48,538,480 $44,144,380
Difference between 2003-04 and 2004-05: $ 1,102,755
Net Increase in Revenues
and 2004-05 Spending Ability
Manager's Per Student Increase
Inflationary Increase to Special District Tax
Subtotal of Increase from County funds
Net Decrease in other District Revenues
Decrease in use of Fund Balance
Net Increase in Revenues for 2004-05
$1,304,026
462,820
$1,766,846
{164,091)
50( 0,000}
$1,102,755
One-time Banus Funds Available 208,924
Total Available for 2004-05 Spending $1,311,679
Student Growth
^ 2004-05 County Resident Students 10,986
^ 2003-04 County Resident Students 10,709
^ Projected New Students 277
277 new students @ recommended $2,620 $ 725,740
10,709 current students @ $54 increase $ 578,286
Total of Manager's Recommended Increase $1,034,026
Per Student County Appropriation
Year Rate Increase
1994-95 $1,451 $ 88
1995-96 $1,571 $120
1996-97 $1,782 $211
1997-98 $1,889 $107
1998-99 $2,040 $151
1999-00 $2,256 $216
2000-01 $2,395 $139
2001-02 $2,437 $ 42
2002-03 $2,516 $ 79
2003-04 $2,566 $ 50
2004-05{proposed} $2,620 $ 54
Special District Tax Rate
Proposed Increase as Percentage of Local Cost Per Student
2003-04 Local Cost Per Student: $3,731
^ Proposed per student appropriate increase $54
^ Proposed per student special district tax increase $13
$67
2004-05 Local Cost Per Student: $3,798
Proposed Increase as a °f° of Local Cost Per Student 1.8°~
Proposed Increase as % of Local Budget 2.6°t°
Non-Discretionary Budget Requests
Salary Increases (3°~ across-the-board} $ 890,100
Health Insurance Increase ($125 pIFTE} 82,500
State Retirement Contribution Increase 147,425
Salary Supplement for new state teachers 68,159
Salary Increase for nationally certified nurses 46,700
Total $1,234,884
Total Available to Spend $1,311,679
Available to Fund Other Budget Needs $ 76,795
Possible Salary Increases
Governor's House's
Recommendation Recommendation
Certified Employees
Other Employees
Certified
Other Employees
Total
S.S. & Retirement
Grand Total
2.5% 2.5%
2°r6 + $250 BOI'lu5 $1,000
370,875 370,875
386.700 360.000
777,575 730,875
104.351 98.083
881,926 828,958
District Estimate @ 3°~ across-the-board: $890,100
Budget Line Deficits
Substitute Teachers $140,000
New school openings, increased staff development requirements, and teacher leave time have
increased the cost of classroom substitutes over the years.
Pre-kindergarten Program $156,430
Growth in the Pre-k Program has increased the number of teachers and teacher assistants and
operating costs of the program.
Budget Line Deficits
Telecommunications $ 55,000
Water $ 50,000
Property Insurance $ 65,000
These line items have been under-budgeted in recent years. Funds from other utility lines have
covered the shortfalls. Funds are not expected to continue to be available in the other lines to
cover these sho~tFalls in the future. Praperty insurance rates have increased significantly.
Other Employee Benefits $125,000
As the seniority of the workforce increases more employees qualify far longevity. In addition,
the state added bonus leave days for the past two years which must be paid out when
employees leave or retire along with annual leave days. This line has been under-budgeted for
several years.
State Discretionary Reductions
^ Continuing 03-04 Reductions $353,817
^ Reductions from Sales Tax $220.959
^ Total State Discretionary
Reductions $574,776
Anticipated State Program Reductions
^ Reduction in Student Accountability Funding
^ Textbooks
^ Classroom Materials and Equipment
^ School Technology Funds
^ School Building Administration Funds
^ Teacher Assistants
^ Non-Instructional Support
^ Central Office
^ At Risk Student Services
^ Vocational Education Program Support
2003-04 Program Area Reductions $270,000
Total Anticipated State Reductions
Discretionary Reduction $574,776
Programmatic Reductions $270.000
Total $844,776
Budget Requests Related to Student Growth
^ 4`" Assistant Principal for CHHS $ 77,048
^ Additional Secretary for CHHS 35,887
^ Guidance Counselor for CHHS 56,399
^ Half-time Media Specialist -CHHS 28,200
^ Additional ESL Teacher 56,399
^ LPN for Special Needs Student 31.500
Total $295,433
These are positions that the District would normally fund when a school's enrollment increases
to the next enrollment threshold.
Projected 2004-05 Enrollments: CHCCS 1,867 students
ECHHS 1.739 students
Funds Required to Continue Current Services,
^ School Crossing Guards
^ School Resource Officers
^ AVID
^ Middle School After-school
^ After-school in 21St Century Sites
^ Blue Ribbon Mentor Advocate
^ Dual Language
^ Translators/Interpreters
Total
Teacher Assistants for K-3 Mandatory ~
. 2002-03 1st Grade - 5 TA positions
. 2003-04 2nd Grade - 4 TA positions
Subtotal of Unfunded TA positions
from prior budgets
Programs, or Commitments
$ 7,132
113,105
35,aoo
35,000
95, 248
28,868
45,000
5o.aoo
$409,353
lass Size Reduction
$132,505
$106.004
$238,509
. 2004-05 expected reduction of $106,004
3rd Grade at 23:1 ratio - 4 positions
Total funding required to maintain
1:1 ratio of teacher assts. in K-3 $344,513
Governor's Recommendation is 21:1 student/teacher ratio. Requires 4 more TA positions
than requested @ a cost of $106,004; New Total $450,517
Summary
Substitute Teachers $ 140,000
Pre-Kindergarten Program 156,430
Telecommunications 55,000
Water 50,000
Property Insurance 65,000
Other Employee Benefits 125,000
State Budget Reductions (discretionary and programmatic) 844,776
Student Growth Positions 295,433
Current Services, Programs, and Commitments 409,353
Teacher Assistants 450.517
Total $2,591,509
Less Available Budget (76,795)
Total Increase Required $2,514,714
Required per pupil funding increase: $2,514,714/10,933 students =$230
$217 increase
Per Student County Appropriation
Year Rate Increase
1994-95 $1,451 $ 88
1995-96 $1,571 $120
1996-97 $1,782 $211
1997-98 $1,889 $107
1998-99 $2,040 $151
1999-00 $2,256 $216
2000-01 $2,395 $139
2001-02 $2,437 $ 42
2002-03 $2,516 $ 79
2003-04 $2,566 $ 50
2004-05{proposed) $2,783 $217
Other Unfunded Requests
^ Additional budget requests total $2,173,421
-Expansion of after school program to all elementary schools
-High school reform planning funds
-Operating costs for dual language program
-Facilities code compliance funds
-Mathematics specialists for middle schools
-Professional development funds for teachers and administrators
-Full funding of technology specialists for each school
FUND BALANCE
Implications of the Manager's Budget Recommendation
^ We will not be able to maintain current levels of services, regardless of our ranking in local
funding
^ Some staff positions will have to be eliminated and/or frozen
^ We will not be able to keep up with inflationary increases
^ Our fund balance will dwindle
^ We cannot offset the significant state budget reductions
Translation of the $2,514,714
Funding Shortfall to Continue Current Levels of Service
Elimination of:
Recurring Capital
46 Full-time Teaching Positions
OR
34 Full-time Administrative Positions
OR
78 Full-time Classified Positions
Budget
. 2000-01 $1,267,215
^ 2001-02 $1,352,149
^ 2002-03 $1,150, 088
^ 2003-04 $1,093,030
^ 2004-05 $1,242,787
CHAPEL HILL-CARRBORO CITY SCHOOLS
2004-14 CAPITAL INVESTMENT PLAN
Major Capital Projects Scheduled for 2004-05
^ Carrboro, Estes Hills, Glenwood, F.P. Graham, and Seawell Elementary Schools -air
condition kitchen space
^ F. P. Graham Elementary -new chiller and boiler
^ Scroggs Elementary - 2 mobile classrooms
^ Culbreth Middle School -roof replacement
^ McDougle Middle -intercom system
^ Chapel Hill and East Chapel Hill High - 4 mobile classrooms
^ Chapel Hill High -covered canopy
^ Lincoln Center -repair visitor parking lot
Major Capital Projects Scheduled for
2005-06 through 2008-09
^ Ephesus Elementary -upgrade firelsafety system and replace classroom carpet
^ Estes Hills Elementary- roof replacement and replace classroom carpet
^ F.P. Graham Elementary -classroom casework, roof replacement, and replace classroom
carpet
^ Seawell Elementary -paving and driveway repairs, window replacements, and replace
classroom carpet
^ Culbreth Middle -air condition kitchen space and window replacements
^ McDougle Middle -install tennis courts, repair and seal roof
^ Phillips Middle -replace HVAC system, upgrade support spaces, electrical upgrades,
window replacements, and replace asbestos floor the
^ Chapel Hill High -repair HUAC system in Cultural Arts Bldg., electrical upgrades, air
condition kitchen space, replace HVAC system in D Bldg., window replacements, replace
asbestos floor tile, and replace roof on Cultural Arts Bldg.
Major Capital Protects Scheduled for
2000-10 through 2013-14
Ephesus Elementary -replace classroom light fixtures, bathroom improvements, paving and
driveway repairs, and window replacements
Estes Hills Elementary -bathroom improvements
F.P. Graham Elementary -replace classroom light fixtures and bathroom improvements
Seawell Elementary -replace classroom light fixtures and bathroom improvements
Culbreth Middle -replace classroom light fixtures, bathroom improvements, HVAC duct
replacement, renovate science labs, and install field bathrooms
^ McDougle Middle -paving and driveway repairs, construct auditorium, and install field
bathrooms
^ Phillips Middle School -replace classroom light fixtures, gymnasium bleacher replacement,
bathroom improvements, paving and driveway repairs, and install field bathrooms
^ Chapel Hill High -replace classroom light fixtures, gymnasium bleacher replacement,
replace classroom carpet, HUAC duct replacement, paving and driveway repairs, and
bathroom improvements
CHAPEL HILL-CARRBORO CITY SCHOOLS
2004-14 CAPITAL INVESTMENT PLAN
NEW FACILITIES
Project
Funded Protects:
High School #3
Elementary School #10
Unfunded Protects:
New Central Office
Middle School #5
Conversion of Lincoln Center
Elementary School #11
Future School Sites
Capital Investment Plan
High School #3 Funding Plan
Funding Source
Impact Fees:
Budgeted Impact Fees
Impact Fee Balance
Alternative Financing:
HS #3 Funds
Smart Growth Funds
2001 Bond Funds:
(formerly elementary #10)
Pay-As-You-Go Funds
TOTAL
Scheduled Opening
2007-08
2007-08
2008-09
2009-10
2010-11
2012-13
2008-09 and 2011-12
Amount
$ 6,100,000
6,400,000
2,5o0,o0a
2,200,000
12,800,000
1,142,000
$31,142,000
Commissioner Gordon asked about the policy for the fund balance -she thought it was 5.5°~.
Finance Director Ken Chaviaus said that the policy is 5.5°~, but for the past several years, it has
been significantly below this. It has not caused a cash flow problem for the school systems yet,
that he knows of. The reasoning behind the 5.5°~ was the district tax. A continued dwindling
would cause some cash flow difficulties.
Neil Pedersen said that the problem is that when you rely an fund balance for ongoing
expenses, then you become dependent on that. He does not think they would appropriate more
than $1.5 million of the fund balance. He would like to use as much of fund balance as possible
in a responsible manner.
Commissioner Halkiotis said that he has learned to keep the message and the messenger
separate. He thinks that both school systems will have a difficult year. He appreciates them
sharing the memo from the school boards association and NCASA to members of the N. C.
House of Representatives. He thinks the state has been deliberately disengaging itself from
funding K-12 education. The process started a few years back with cutting out the utility
payments. He is willing to bet that the state will stop paying for school buses. He made
reference to pre-K programs and asked Neil Pedersen if they could assume this budget deficit.
Neil Pedersen said that it is a bureaucracy but a lot of the kids are exceptional, which is another
bureaucracy. There are daycare and school standards. He believes it is worth the money to
level the playing field.
Commissioner Halkiotis said that the bottom line is that this is another program that the state
has put down. He thinks both school systems need more money. There is a deliberate
program of cutting back funding from the state and putting the responsibility on the local county
level. The schools are being asked to do things they were not doing 15-2d years ago and the
financing is not there to support it.
Commissioner Carey said that he appreciates the analogy of the increase in per pupil funding,
but this was in the boom years and they were able to fund more. Since then, there has been a
downward trend, and we are not out of that yet. This will contribute to the scarcity of resources.
Commissioner Carey asked about state discretionary cuts and asked if it was incorporated in
both of the budget recommendations {Governor and House). Neil Pedersen said that a portion
was in the Governor's budget and another $220,QOQ is proposed in the House's budget. He
said that the cuts are coming about from offsetting the expense of lowering class size. The cost
of lowering class size is the same as the discretionary reductions.
Commissioner Brown said that they are all in the same predicament of losing funds. She said
that it is a total disaster in DSS. She thinks that everyone needs to sit down and talk about what
to do about this predicament. She does not think it is going to end. She said that she
appreciates people asking for the County Commissioners to raise taxes for education, but not
everybody can afford that. She has no solution, but she does not want it to rip the County apart.
She would like to talk about this at the next joint school board meeting. These are pass down
COSts.
Commissioner Brown asked about the pre-K program. A lot of citizens came last week and
asked for more funding for daycare. She said that she was talking with some people that said
that their programs at some of their schools were more expensive than the ones provided by
CHCCS. She asked for an explanation of this. Neil Pedersen said that they are supposed to
have a neutral rate so that they are not unfavorably competing against other daycares. They
arrived at their figure by looking at other comparable programs and taking an average. Most of
the students are not tuition paying. All of the tuition slots are not filled.
Commissioner Brawn made reference to page 8, under Funds Required to Continue Current
Services, and asked about Dual Language. Neil Pedersen said that this has been operating for
two years in two of their schools. In the program, students are instructed in English and another
language. The one in Carrbaro is English and Spanish and at Glenwood it is English and
Chinese. It is acost-effective program, because the students do not need ESL services
otherwise. He said that there are some transportation costs because some of the students at
Glenwood do not live in the attendance zone. When they started it, there was a grant, and it
has run out.
Elizabeth Carter made reference to the comments by Commissioner Halkiotis and
Commissioner Brown and said that each year they meet with the legislative delegation at the
state level and they invited David Price to be a part of this process. They want the state and
national representatives to know that the decisions impact the local level. She thinks it would be
important for the legislators to be a part of the process of bringing the three boards together and
how the decisions impact the local level. Commissioner Brawn said that this is a wonderful
start.
Chair Jacobs said that he does not think it is our legislators from Orange County that are the
problem. He made reference to the $72 million and said that it was half of what was given to RJ
Reynolds last fall to keep jobs in North Carolina when studies show that the most important
thing for attracting companies to the state is education.
Chair Jacobs said that one of the things that Ronald Reagan did was to demonize government
and make popular the notion that cutting taxes was better than funding services. He thinks this
is the age we are living in. He said that there is no simple way out of this other than to continue
to advocate for the values.
Chair Jacobs said that last year the County Commissioners discussed the fund balance and
decided that the policy is obsolete. The County has not followed the policy for years, and it
does not make sense to have a policy that you do not follow. He said that the fund balance is
attempting to address the cuts at the state level. He asked Finance Director Ken Chavious if
they have decided to take $1.5 million out of the fund balance. Ken Chavious said that this is an
alternative.
Neil Pedersen said that the board's budget shows $1 million. They wanted to show the impact
of $1.5 million. Chair Jacobs encouraged the school board to use $1.5 million.
Neil Pedersen thanked the County Commissioners far the funding of nurses this year.
OCS Superintendent and Board of Education Presentation:
OCS Board Chair Brenda Stephens said that they stand shoulder to shoulder with CHCCS,
appealing on behalf of their schools. They recognize and appreciate that they lead the state
historically for funding education. However, they need more.
Superintendent Shirley Carraway made the presentation.
Orange County Schools
"Providing Educational Opportunities for Successful Futures"
- Orange County school budget allocation increase 2003-04: $1,112,694
- Department of Public Instruction Projected Student Enrollment 2003-04: 6,451
- Actual Orange County School Enrollment 2003-04: 6,503
- Department of Public Instruction student projection for 2004-05: 6,632
(End of Grade and SAT Four-Year Analysis Graphs incorporated by reference)
SIGNIFICANT ACCOMPLISHMENTS
• Alt elementary and middle schools are ABCs Schools of
Distinction ar Schools of Excellence.
• 100 % of our schools made at least Expected Growth on
the ABCs; &6 % made Nigh Growth.
• SA T scores are higher than state average with an 80
participation rate.
• We met 173 out of 197 Adequate Yearly Progress targets
for No Child Left Behind.
• At least 10 teachers completed master's program in
Literacy Education at UNG-Chapel Hill.
• Eight teachers earned National Board for Professional
Teaching Standards certification, bringing the district total
to 62 teachers or 13%, compared to 6% statewide.
• 93 % of our teachers met the `Highly Qualified" standard
under No Child Left Behind requirements, much higher
than the state average.
• Incidents of crime and violence dropped by 40%.
• Pathways Elementary was named North Carolina Model
Technology School of the year.
• Pathways Elementary was named Impact School of the
Year.
• MlCasa after-school program began at Central Elementary.
• lnternatianal Baccalaureate Program is in the final stages
of approval at Gedar Ridge High.
• The district has completed afive-year strategic plan.
• The Middle School Task Force completed
recommendations for new middle school programming.
• The district held ten community engagement sessions
about middle school programming.
• Orange High student was named the winner of the Pauli
Murray YOUth Award.
• After school programs joined the Winner's Circle, serving
healthy snacks and promoting nutritional education.
• 25 Teaching Assistants completed the Apprenticeship
Program to advance their qualifications.
• ACE alternative program opened at Orange High far
students with non-traditions! needs.
• Opened Alternative Program on Tryon Street.
• Digital Communications Systems class was piloted at
Cedar Ridge and Orange High for NCDPI.
• Renovations are nearing completion at Hillsborough
Elementary School and the auditorium renovation
completed at Orange High.
APPROVED BUDGET FOR 2004-05
Mandates/Critical Needs
Salary Increase 3%
Matching Social Security
Insurance from
$3,307 to $3,432
from
$ 316,527
42,4791ncrease Matching Hospital
50,115 Increase Matching Retirement
3.42% to 5.77°!°
35,000 TOTAL MANDATESICRITICAL NEEDS
EXPANSIONS AND NEW INITIATIVES
HUMAN RESOURCES
6 -Spanish Teachers
4-Social Workers
259,311 Utilities Increase
$ 703,432
5-Teacher Assistants
0.4-Full time Nurse Hillsborough Elementary
7-Extra Months Assoc. Principals
Programs & Recognition
Increase Athletic/Extracurricular Supplements 10%
Central Administrative Salary Scale Adjustment
Classified Salary Scale Adjustment
Resource Officer Match
Increase Tenured &Non-Tenured Teachers Supplement
Total
Curriculum and Instruction
Southern AssociatianAnnual Dues
SACS Review Expenses
Replace loss of Instructional Materials ($10tADM}
International Baccalaureate Coordinator 112 time
28,948
Staff Development
Instructional Materials
Program and Exam Fees
Teachers and Scientists Collaborating (TASC)
Staff Development Project
Grade 9 Transition/Academy Program Casts
1 Reading Recovery Teacher Leader
1 Sims Coordinator
Total
318,766
212,511
124,520
21,251
45, 500
2o,ooa
43,500
46,500
5o,ooa
100,000
330,000
1,312,584
6,5oa
6,300
65,030
10,000
32,200
17,864
24,000
2o,aao
41,000
53,920
305,762
Auxiliary Services
System Wide Furniture Replacement
Finance
System Wide Computer Time Keeper/ELBA
TOTAL EXPANSION OR NEW INITIATIVES BUDGET
REDUCTIONS
One Time $550 Bonus 2003-04 (65,549)
Drop Out Prevention 6 mos. Positions (35,344)
Total Reductions (100,893)
TOTAL BUDGET REQUEST 2004-05 $ 2,280,849
INTERNAL REDIRECTIONIREDUCTIONS
CWS Middle School After School Program 44,285
Printed Material far K-12 Media ($20 per ADM) 133,340
Restore School Level Equipment Dollars ($25 per ADM) 162,500
Career & Technical Education Upgrades
EXPENDITURE INCREASE
County Appropriation 2003-2004
10.000
1,678,310
County Appropriation Increase Requested
TOTAL PROPOSED COUNTY APPROPRIATION 13.26% increase
STATE CUTS TO PUBLIC EDUCATION 2004-2005
State Discretionary Reduction $44,291,248
Proposed Additional Reduction $27,700,000
Orange County Schools Discretionary Reduction $ 214,627
Proposed Additional Reduction $ 134,035
Total State Reduction $ 348,662
County Manager's Recommendation 2004-2005
Current Expense $17,899,840
Increase over FY 2003-2004 Approved Budget 694,810
50,000
160, 734
500,859
17,205,030
2,280,849
19,485,879
Mandates/Critical Needs
Salary I ncrease 3% $ 316,527
Matching Social Security 42,479
Increase Matching Hospital Insurance from
$3,307 to $3,432 50,115
Increase Matching Retirement from
3.42% to 5.77% 259,311
Utilities Increase 35,000
TOTAL MANDATESICRITICAL NEEDS $ 703,432
Local Budget Shortfall $ 8,622
State and Local Budget Shortfalls 2004-2005
State Budget Shortfall $348,662
Local Budget Shortfall $ 8,622
Total Proposed Budget Shortfall $ 357,284
Recurring Capital Annual Needs:
Playground surfacing 15,000
Playground Maintenance and Repairs 8,000
Asbestos Inspections/Abatement 64,000
Bloodborne Pathogens Standard 7,000
Chemical Removal 5,000
Roof Repairs 25,000
Paint Schools 20,000
Line Painting 10,000
Pest Control 11,000
Landscaping 12,000
Cafeteria Hood Cleaning 10,000
BleacherlBasketball Goal Maintenance 18,000
Fire Alarms 15,000
Turf and Field Maintenance 22,500
Indoor Air Quality Yearly Assessment 14,000
NCDPI Engineering Service 6,750
Trim Trees 15,000
Mobile Unit Rental 20,000
Carpet Cleaning-System wide 10,000
Turf Equipment 15,000
Copier Leases 60,000
Total Recurring Capital Annual Needs 383,250
Recurring Capital Health and Safety Needs:
Replace worn out carpet with People Friendly Tile Flooring System
Additional Carpet Removal 57,750
Install New Fire Alarm System (Upgrade to New Fire Code Standard)
New Fire Alarm System for C. W. Stanford Middle School 160,000
Efland Cheeks Fire Doors
New internal fire doors {total 10 doors} for Efland Cheeks 6,000
Fire Extinguisher Retrofit for Entire School System
There is a six-year mandated fire extinguisher renewal {discharge, pressure test,
and recharge) required far all fire extinguishers in the system 8,000
Cleaning HVAC Ductwork at all Schools 10 years old or older
Professionally clean all HVAC ductwork at all facilities 10 years old or older {this
includes Central, GAB, Efland Cheeks, CWS, OHS, New Hope,
and Cameron Park Schools} 80,000
Replace Back up Batteries far Emergency Lir~hts and Exit Lights
These back-up batteries for these required emergency systems have an
estimated 10 year life expectancy (all schools) 5,000
Total Recurring Capital Health and Safety Needs 316,750
CIP Improvement Plan -2004-2009 incorporated by reference
CIP Revenue Projections for 2004-11 incorporated by reference
Shirley Carraway said that they would ask that the County Commissioners very much consider
the Board of Education's formal request to reconsider the capital funding policy to finance the
debt for Cedar Ridge High School from the unrestricted funding services before the
appropriation of funds for County and School Capital Projects. She said that she sincerely
appreciates the resources provided to the schools, and she realizes how fortunate the students
are in this County. However, it is also a reality that in Orange County there exists a significant
disparity in funding from one end of the County to the other. Orange County Schools wants to
be able to increase reading scores, math scores, and SAT scares. They also want to decrease
the dropout rate. To do this, they must provide increased access to instructional opportunities
and a higher level of support. Without additional resources, this cannot be done. She spoke
about the budget public hearings where she heard about the programs at CHCCS -Community
Alliance for Student Success {computer access}, Blue Ribbon Advocacy, Jump Time, dual
language program, etc. She said that she could not help but think that each of these
opportunities gives the students in the city district an added advantage. She said that there is
so much more that they need to do for the students, and she believes they have a moral and
ethical obligation to do it. They cannot do more with less. She said that with the level of funding
proposed, they will have to absolutely cut out expansion programs and they possibly might not
have enough to take care of the mandates.
Commissioner Gordon asked about page 8 and the renovations at Hillsborough Elementary.
Shirley Carraway said that they are ongoing. They have done the renovations in phases. The
renovations in the kindergarten building should be completed by the end of the school year, and
then the 100 additional seats would be available by the next school year - 2005-2006.
Commissioner Gordon asked what the $1.4 million would do. Shirley Carraway said that part of
that was for the renovations done at this point. There were a number of unfunded items that
were listed - $800,000 -that were additional things that needed to be taken care of.
Chair Jacobs asked about the fund balance {yellow sheet} and verified that OCS has a 15.17°~
fund balance. He also verified that middle school #3 would be scheduled to open in the fall of
2006.
Chair Jacobs said that they could cut the fund balance by a third, and even with the state
reductions, they could still have $500,000 to put toward the shortfall and have almost 95% of
what they requested. Shirley Carraway said that the board could use any or all portions of the
fund balance, but they would like to reserve as much as they can for the new middle school.
They also have a commitment to their two existing middle schools to bring them up to the
standard of the new middle school.
Chair Jacobs said that he will say what he said to Neil Pedersen, and he would encourage them
to look at the fund balance.
Commissioner Gordon asked far an explanation of the 2.7°~ fund balance policy and Ken
Chavious said that this is strictly related to cash flow because there is no district tax.
Commissioner Gordon asked if it really were 2.7°~, how much money would they "have
available" and Ken Chavious said $500,000 would be 2.7°rb of the expenditures. The policy
says that they have to keep $500,000.
Commissioner Halkiotis said that the County Commissioners have been telling school boards
for years to maintain their fund balances, with the anticipation of a major cataclysmic event.
This has not happened, and they may need to revisit this.
Ken Chavious said that it was in their plans to look at this issue but the CHCCS and the OCS
finance officers both left, and they have not had a chance to do this.
Commissioner Brown said that she would be interested in seeing from the CHCCS a graph on
the student achievement and SAT scores.
Chair Jacobs asked for a chart with the percent of the County budget adopted for schools and
actually expended for schools. Also, he would like to see the percent of total funding per pupil
for students that came from the state far 10 years.
A motion was made by Commissioner Halkiotis, seconded by Commissioner Brown to adjourn
the meeting at 10:00 p.m.
VOTE: UNANIMOUS
Barry Jacobs, Chair
Donna S. Baker
Clerk to the Board