Loading...
HomeMy WebLinkAboutMinutes - 20050602APPROVED 8/16/2005 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET PUBLIC HEARING June 2, 2005 7:30 p.m. The Orange County Board of Commissioners met on Thursday, June 2, 2005 at 7:30 p.m. at the F. Gordon Battle Courtroom in Hillsborough, North Carolina. The purpose of this meeting was to hold a public hearing on the County Manager's recommended 2005-2006 budget. COUNTY COMMISSIONERS PRESENT: Chair Moses Carey and Commissioners Valerie P. Foushee, Alice M. Gordon, Stephen H. Halkiotis, and Barry Jacobs COUNTY COMMISSIONERS ABSENT: COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Managers Rod Visser and Gwen Harvey and Clerk to the Board Donna 5. Baker (All other staff members will be identified appropriately below} NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE. 1. Opening Remarks- Chair Chair Carey asked the people who have signed up to speak to limit comments to no more than three minutes. He also asked that after people have spoken, that they move outside ar upstairs so that other people can move down. He dispensed with the reading of the public charge, but asked the audience to observe it. 2. Presentation of Manager's Recommended FY 2005-06 Budget County Manager's Recommended 2005-06 Annual Operating Budget Presentation to the Orange County Commissioners Orange County, NC June 2, 2005 Tonight's Presentation ^ Major Milestones ^ Sustaining Our Resources ^ Recommended Budget Highlights . Revenues . Expenditures . County Operations . Education . Capital Funding . Employee Pay and Benefits What Lies Ahead? Major Milestones ^ Joint initiatives between County and Schools . Collaboration discussions . Educational Excellence Report . Revenue enhancement and expense reduction efforts ^ Tremendous strides in Park Development . Opening of Little River Regional Park and Natural Area . Master site plans completed for Phase 2 at Efland-Cheeks Park, Twin Creeks District Park and Educational Campus, and Northern Park ^ Continued progress in Lands Legacy program . More than 1500 acres of land throughout the County being protected and conserved since inception of program . Leveraged more than $3.7 million in Federal and State grants to assist with conservation and preservation initiatives New County Facilities . Opening of Cedar Grove Branch Library and Carrboro Cybrary . Planning far Southern Orange Senior Center, Orange County Satellite Campus of Durham Technical Community College . Completion of Space Study Update and County Facilities Needs Report Sustaining Our Resources ^ Sustainability Principles ^ Financially sustain existing critical services to citizens as new initiatives are considered ^ Retain stable, qualified, competent, flexible work force ^ Carefully correlate operating and capital expenditures for all initiatives or projects ^ Put infrastructure in place to meet citizens expectations for service delivery ^ Balance resources for all major functions such as education, public safety, and human services ^ All in context of County's organizational mission, legal responsibilities, and available resources Across the Nation Due to state and federal funding cuts and implementation of unfunded mandates, a number of local governments have had to become "creative" in funding services . They have become dependent on one-time budget "fixes" such as borrowing from unspent capital projects, freezing and delaying hiring, and using fund balance to try to keep tax increases low . Most have tapped all of their non-recurring funding sources . True for Orange County as well To that end, analysts predict that the majority of State and local governments will face a budget gap as they begin planning for fiscal year 2005-06 County's Revenue Highlights Revaluation -Appreciation of Property Values ^ Factors affecting real property appreciation include location, size and nature of property use . If property owner experienced valuation change that fell below the countywide average percentage and if the tax rate remained at the effective tax rate, would probably experience a decrease in property taxes . If, an other hand, the change increased the value above the average, owner would probably experience an increase in property taxes Property Tax Base ^ Overall property tax base approaching $12 billion ^ Compared to $10 billion base used to plan 20Q4-05 budget ^ Reflects estimated growth rate of about 19% ^ Average increase in non-Revaluation years between 3.5 to 4°l° Proposed General Fund Tax Rate ^ Recommended tax rate of 86.8 cents per $100 of assessed valuation . Represents an increase of nine cents over the equivalent "revenue neutral" post- revaluationtax rate of 77.8 cents ^ One cent an property tax estimated to generate $1,187,580 Property Tax Revenues Continue to Be Strang -chart Other Revenue Highlights Revenues such as sales tax reimbursements and investment earnings have slowed or decreased over last few years . Intergovernmental revenues far next year increase by about $1.4 million . 11 % increase tied mainly to Department of Social Services . Offsets expenditure increases such as . Daycare services . Social Worker positions added during the current fiscal year Fund Balance ^ Fund balance serves as "cash safety net" and enables entities to: ^ "Pay the bills" during slower revenue collection periods . Meet unforeseen needs should they arise ^ Recommended budget provides far no fund balance appropriation . Barring external impingements during the remainder of current fiscal year, expect year end fund balance to fall between 8 and 8.5% County's Expenditure Highlights General Fund Budget Totals $952.8 -chart Maiar Elements Driving Budget $1.9 million to increase the current per pupil appropriation by $95 $1.9 million to cover increased debt service resulting from Summer 2004 band sales and additional programmed debt planned for the upcoming year $4.9 million to reinstate full funding far school recurring capital and County recurring and long-range capital $1.5 million for employee pay and benefits $1 million to establish reserve fund to address priority funding needs such as education and human and court related services $1 million to address the County's share of Medicaid, fuel and utilities costs Public Assistance and Foster Care ^ Number of families receiving Faad Stamps increased by about 50% in the past two years ^ Medicaid caseload has risen about 20% ^ Costs for foster care has increased due to increased casts per child as well as arise in the number of families requiring intervention Education School equity issues discussed during April 2005 work session ^ Equity in process of being defined . Programmatic . Equal per pupil funding . 2005-06 education budget possible framework . Tier I -mandates/obligations . Tier II -possible restoration of State cuts or address continuation of 2004-05 school board initiatives covered with fund balance . Tier III -Educational Excellence, equity considerations Education Observations ^ Since 1997, Orange County continues to be #1 in per pupil funding in annual rankings by Public School Forum ^ $95 per pupil funding increase falls short of school board requests, but it and capital funding should keep Orange near top of rankings ^ Smallest net student increase in at least last 15 years Annual Student Growth -graph Education Observations ^ $95 recommendation aimed at addressing Tier I expenses such as salary and benefit increases ^ Actual salary/benefit funds needed are subject to change during State budget political process ^ Recommendation does not significantly address: . $1.4 million to continue 2004-05 OCS program enhancements paid through fund balance . 2004-05 mid-year CHCCS fund balance adjustments . DPI projected loss of 123 CHCCS students Per Pupil Allocations to Each District State Mandated Funding Formula -table Education Observations ^ Based on higher per pupil increase request by OCS of $399, full funding of both school system requests equates to another 4 to 4.5 cents on tax rate ^ Recommending CHCCS district tax at past-revaluation revenue neutral rate of 17.5 cents -down from 20 cents in 2004-05 ^ BOCC may consider additional school funding, such as "Tier III" appropriations outside of per pupil allocation . Middle college high school initiative . School resource officers Critical Needs Reserve ^ New approach this year involves creation of $1 million reserve for critical and emerging needs ^ BOCC may allocate during June budget process, or later in fiscal year ^ Could address Tier II or III education needs -social workers, subject area specialists, other school board priorities - on per pupil basis ^ Potential non-education uses of reserve include: . Public assistance . Day care . Justice and court services . Fund balance enhancement Capital Funding ^ Changes to capital funding policy a 2004-05 priority for BOCC ^ Since 1988 bond referenda, over 75 percent of capital funds spent for school needs ^ Capital constraints exacerbated by need in recent years to use earmarked capital funds to help balance County operational budget ^ BOCC adopted policy in November 2004 of 60% for schools, 40% for County for next ten years Capital Fundina ^ Spring 2005 work sessions on 60-40 capital policy led to BOCC selection of Option 2 ^ Includes recurring capital for schools and County at 3 cents and 1 cent of tax rate proceeds, respectively ^ Recommended budget fully implements Option 2 $5 million increase from 2004-05 for school and County recurring and long- range capital Progress towards $17 million+ backlog of County facility maintenancelrepairslimprovements Other Capital Considerations ^ Uncertainty in Raleigh about impacts of potential "education lottery" ^ Possible State sequestering of Public School Building Funds - a key component of Orange County debt service funding ^ $100,000 construction manager initiative . 6Q°~ from school capital, 40°lo from County capital . Three year pilot effort . Provide independent, critical review of County and school construction projects for savings/efficiencies Employee Pay and Benefits Manager's Recommended Budget emphasis on funding pay plan on an ongoing basis and some "catch up" in increased cost of living and salary compression issues ^ Elements include: . 2.5 percent cost of living effective July 1, 2005 . Reinstatement of 2.5 percent in-range salary increases for proficient or higher work performance . Reinstatement of Meritorious Service awards to recognize top performing employees . $5 increase in County 401 {k) contribution for non-sworn law enforcement employees from $20 to $25 per pay period ^ Employee health insurance increase of up to 15.9 percent ^ Increase in the Living Wage from $9.11 to $9.34 per hour On the Horizon ^ Start up costs for OCS Middle School #3 -opening August 2006 ^ Start up costs for CHCCS High School #3 -opening August 2007 ^ Capital impacts from phased implementation of BOCC-endorsed Space Needs Report ^ Assuming successful property acquisition negotiations, future operationslmaintenance costs of SportsPlex and co-located senior center ^ Review of various County fees to ensure they are at appropriate levels Conclusion ^ One of the most challenging Orange County budgets of past 20 years, and my tenure as Manager ^ Progress on capital repair and improvement goals ^ Address school priorities in some creative ways ^ Recognize our talented and committed employees ^ Manager and staff ready to assist BOCC in making this their budget Public Hearings and Work Sessions (All Meetings Begin at 7:30 A.m.) Public Hearings - May 31St at Southern Human Services Center June 2"d at F. Gordon Battle Courtroom Work Sessions - June 9t" at Southern Human Services Center June 14t" at Government Services Center June 16t" at Southern Human Services Center Work Session/Adoption -June 20t" at Southern Human Services Center Final Adoption - June 23`d -Southern Human Services Center Document Availability ^ Clerk to Board of Commissioners ^ County Budget Office ^ Orange County Library ^ Chapel Hill Public Library ^ Carrboro Library ^ Cedar Grove Library ^ Orange County Website {portions of document): ^ www.co.orange.nc.us 3. Public Comment Commissioner Jacobs said that a lot of citizens in this County serve as volunteers on advisory boards, and he appreciates people volunteering their wisdom on the budget. He recognized the staff that was in attendance to speak about the budget tonight. He encouraged all people that speak tonight to contact their State legislators. The State crafts its budget in secret, and the counties only see the results. One example is that half of a cent of the County's tax increase is for increased cost of Medicaid. North Carolina is now the only state in the United States that requires counties to pay for Medicaid. Five cents on the cigarette tax would freeze the cost of Medicaid increases for North Carolina. There are some counties that spend more on Medicaid than on education. He said that Orange County would do its best with the resources that it has. Lori Carter Edwards spoke on behalf of Cameron Park Elementary School. She is an Associate Professor, and they are interested in increasing the opportunities for having a science teacher at Cameron Park. She said that North Carolina ranks in the middle far academic achievement, but last year it ranked four states higher. Cameron Park has demonstrated success by being a school of excellence. She said that she understands the need of putting the money in first so that you can see what comes out later. One of the goals for Cameron Park is to establish itself as a math and science magnet school. They need a science teacher in order to reach this goal. She said that she and her husband are constantly seeking the best academic and social environment for their son and his peers. They desire to keep the resources in the community. Bab Schreiner is Chair of the Board of Trustees of the Chapel Hill Public Library. He was representing his board and the Chapel Hill Town Council. He thanked the County Commissioners for their ongoing budgetary support, for the library needs studies that have been conducted, and for the clear message conveyed that libraries are important in Orange County. He said that the Chapel Hill Public Library provides library services far many Orange County residents that are not Chapel Hill residents - approximately 45%. The County's contributions offset costs for this. He said that one of the speakers at the last budget public hearing was recorded in the press to have stated that our school systems are the jewel in the crown of Orange County. He agrees with this, and he also agrees that public libraries are strong and critical partners in that excellence. He said that five new schools have been built and another is being built, with no expansion of the public library. This is a large disproportion and a problem. The Chapel Hill Public Library Board of Trustees does not want to lase ground in the excellence it has achieved and it requests that the County provide additional support when it can. Aaron Kendall said that two years ago he came to a Board meeting and talked about Cameron Park Elementary Schaal. He asked the County Commissioners to fund a Spanish teacher, and they did it. He thanked them for this. He asked for everyone in support of Orange County Schools to stand. He said that schools really need teacher assistants and he asked that all of them be kept. He said that the specials also really make adifference -art, music, computer, media, and P. E. He asked the County Commissioners to please fund the budget as requested for OCS. Faith Nager spoke on behalf of the Chapel Hill Parks and Recreation Commission. They are glad that the County voted to approve band referendums in 1997 and 2QQ1 to help develop parks and recreation facilities in Chapel Hill. To date, the money from these bonds has been spent at Scroggs Elementary School athletic field, Homestead Park, and planning for phase I of the Southern Community Park. Operations and maintenance of all of these facilities will be the responsibility of the Town. She also thanked the Board of County Commissioners for contributing $1QQ,QQQ toward the completion of the $1.4 million project at the Hargraves Community Center. She said that they do not believe the current County contribution to the Town is equitable in lieu of non-Town resident use of Town constructed and maintained amenities. Based on the County Manager's recommended budget, the per capita contribution the County may provide the Town of Chapel Hill next fiscal year is less than the County's contribution to the Town of Carrboro. The County's contribution to run the facilities is just 3.6°k, but the non-Town resident participation is 1Q%. The 1Q% participation figure does not include use of parks, greenways, or gym and pool use during free play. She made reference to the Special Olympics of Orange County and noted that over 35°~ of the 23Q+ athletes and 10Q+ volunteers who participate in Special Olympics are Orange County, non-Town residents. By policy, Special Olympics programs cannot charge user fees, and the Tawn of Chapel Hill is the only public sponsor of this program. They welcome the offer for staffing assistance by both Orange County and the Town of Carrboro and will work with them to continue this model Special Olympics program. Tom Konsler was representing the Orange County Employee Relations Consortium. He asked the County employees that were present to stand. He said that, with no glamour or heroics, Orange County employees work with trash and garbage every day from area residents and businesses, making sure it is handled safely and appropriately. When there are serious communicable disease threats such as SARS, meningitis, and other viruses, Orange County employees are there late at night and on weekends making sure control measures are in place to protect the population. Orange County employees are also there during natural disasters. He said that the employees are the heart and soul of Orange County government. He said that these are the same employees who have received only a 2°~ cost-of-living adjustment in the past three years, although the cost of living has skyrocketed. There have also been no in-range salary increases in the past three years. He urged the County Commissioners to support the Manager's pay and benefit recommendations in full. Tam Metzguer is an OCS parent and an OCS employee for 2Q years. During these years, his daughters have gone from kindergarten through 12t" grade in the school system. He is a school psychologist, and he has seen the impact first hand of unfunded needs. He said that without full funding of the proposed school system budget, the fraction of an additional school psychologist position that is in the budget might not come to be. He is willing to pay more taxes as long as the money is used wisely. Education reduces the need for public assistance or incarceration in years to come. He asked for full funding of bath school systems' requests. Kate Sanford said that last year, the County Commissioners committed $100,000 to pick up children in the Orange County DSS waiting list. She thanked them for making a difference in the lives of 46 children. She wants to be a voice far children that are still on the waiting list in Orange County. She made reference to a public opinion poll conducted in April 2005 by Peter D. Hart that found that voters, both democrat and republicans in North Carolina, strongly favor expanding existing early education programs to serve all children under the age of five. The Economic Impact Study of the childcare industry for June 2004 also reinforces the importance of quality childcare in generating income for the County and helping to prepare young children for the opportunities in the new economy. She said that $500,000 would shorten the time families are waiting far help with childcare. These funds will keep the working poor employed with their children safe and well nurtured. She said that the dollars spent an subsidy is a preventative measure to the costs that are often incurred when low-income children cannot benefit from ahigh-quality early childhood education. Eddie Huffer is a senior building maintenance mechanic with Public Works. He said that they Public Wark employees are talented and dedicated, and are essential to the County's operation. The amount of work they do has increased, and they have fewer employees to do the job. They do not mind the hard work, but some of them have not had a raise, other than a 2°I° cast-of-living increase, since 2003. They have also seen new employees coming in at salaries equal to or greater than some employees who have been employed with the County far a long time. This has hurt morale. The cost of living has risen and many are working more than one job to make ends meet. He asked the County Commissioners to support the Manager's recommended pay and benefits budget, including a 2.5% cost-af-living increase, a 2.5% in-range salary increase, and an increase in 401 k contributions. Pam Anderson spoke on behalf of families on waiting lists far subsidies far child care programs. She said that the people on these waiting lists are contributing members of the community. Some people on the waiting lists are even childcare providers. At her center, which is a five-star program, the average pay for the lead teachers is $13/hour. This is $2,253 a month before taxes. Infant care casts $1,195 a month. This means that 53°~ of a lead teacher's income would go to childcare. She spoke about the benefits of high quality childcare. If families do not have local support systems, then they will be in crisis. They will no longer be financially contributing members of the community because the community will have to support the family. She thanked the County Commissioners far the money put forth last year. She asked them to fund the childcare subsidy program again. Eric Hoefler is a rising senior at Cedar Ridge High School and has been a member of the marching band far the past three years. The first year, the marching band had only 21 members. This past year, there were 92 members and next year they are expecting 115 members. He feels that his experience in the marching band has been an influential part of his education and life. He said that Cedar Ridge and Orange High Schools' band programs have struggled to equip the members with the needed uniforms, equipment, and instructional staff. The band students and parents have done as much as possible to keep up with the financial demands needed to keep the programs operating. Next year both programs will have more band members than they have equipment and uniforms. This is unacceptable to them. He asked the County Commissioners to approve the Superintendent's budget in full. This will give the band programs the funds to purchase additional uniforms and equipment for all band members. Ray Martin is President of the Chapel Hill-Carrboro Association of Educators. He said that he has returned to address full funding of all Orange County schools. He reminded the County Commissioners of their three promises -1) to administer their EOG test question, "Will you support fully funding for our schools?" 2} to invite the County Commissioners to join a nationwide lawsuit far No Child Left Behind, that seeks to get the funds back that have not been released; and 3} to pledge their support far the County Commissioners' politically courageous support for full funding of our schools. He distributed a personal "pocket" reminder - a nickel - to remind the County Commissioners that it only takes five cents more in the proposed budget to provide full funding for all school children in Orange County. Cathy Ahrendsen is Executive Director of A Helping Hand. A Helping Hand has been providing services in Orange County since 1995. They assist senior citizens, the chronically ill, and those permanently or temporarily disabled. They are requesting $5,000 from Orange County to help fund services for people unable to afford them. They work with the Orange County Department on Aging and other community agencies to make sure that the senior citizens receive the best care possible. They also provide escorted transportation, meal preparation, grocery shopping, and light housekeeping. They serve about 200 people annually, half of which receive free or subsidized services. They also provide crisis intervention. She said that the Orange County population of people 65 and older is expected to grow by 131.6°/a by 2020 to 21,553. She asked the County Commissioners to provide $5,000 to help these senior citizens stay in their homes. Their focus will be individuals in the unincorporated areas of Orange County. Lisa Hoffman is a CHCCS teacher and she spoke an behalf of both school systems. She said that she is privileged to serve the children of many nations, races, and walks of life. They have dedicated significant resources to the goals of equity and equal opportunity for all children. She said that, from an economic standpoint, there is not one school employee that does not exceed his or her job description. She said that many of the teacher assistants hold advanced degrees in education. She asked the County Commissioners to invest wisely and fully fund the future. James Baxter is employed as a field inspector in Planning and Inspections for Orange County. He asked the County Commissioners to vote `yes' for the employee pay and benefits portion of this year's budget proposal. He said that he was employed by the County two weeks and two days prior to the 9111 attacks. He said that Orange County employess are in the front lines because they save lives and they also save the County from potential litigation from systems or building failures through intervention. He said that the Planning and Inspections Department provides invaluable expertise through years of specialization and continuing education. He said that years without a raise after the 9111 attacks was a responsible reaction by the County. They pitched in without complaint. He is aware that the County is still recovering from budgetary constraints. He said that this increase would be easily paid for with the population increases expected in this County over the next 15 years. David Weinberg is on the McDougle Elementary SGC. He was speaking for himself. He said that his father used to quote the Bible a lot: "If not now, when?" The point is, if you know there is something you have to do and you are passionate about it, and there is a clear course of action, then you should do it now, without delay, while it is clear to you. He said that the Manager's recommended budget was a shack to him. He said that he was certain that the County would do something dramatic with the OCS budget this year in light of the recent discussions and threats of merger. He said that when the OCS Board submitted a $400 increase in per pupil funding, he thought there was a chance that some or most of it would get passed. At $400 per pupil, the CHCCS would be over funded, and the district tax could be cut by two cents. The recommended budget does not help OCS and inflicts a wound on the CHCCS. He made reference to the sales tax diversion and said that the County has been diverting some sales tax, generally used for capital projects, over to the operating side for the past few years. He asked the County Commissioners to consider phasing in Optian 2 and not fix the sales tax in one shot with the $4.9 million. Instead, the County could have a little less and then the rest could be given to the schools. Because of the 60140 enrollment split, a $2 million diversion towards the schools would give OCS $800,000 and CHCCS $1.2 million. This wauld save the teacher assistants in CHCCS. He said that there must be some capital items that are less critical for the coming year than the needs of the schools. Chris Mason is a Social Studies teacher at Phillips Middle School in Chapel Hill. He spoke in support of full funding for the schools. He recognizes that the process of making these decisions is difficult and painful. He said that these citizen comments are made in the spirit of helping the County Commissioners make these decisions. He said that the school resource officers could be cut if the budget is not fully funded. The SRO at Phillips is a vital resource to the students. Secondly, the middle school afterschool programs might be in jeopardy if the schools are not fully funded. This service is vital to students who struggle to achieve. Many of the students are minorities and the after - school program is very helpful in closing the achievement gap. Clayton Hearne is employed with the Solid Waste department. He said that he created a letter that was sent to John Link at the end of March "Our concerns and feelings are about the fact that we have not had a substantial pay raise in the past few years, other than the 2°~ that we received last year. While we did look forward to the 2°~ raise, even though we had to wait until October to get any benefit from it, in reality it did not cover the cost-of-living increase for the past year. The cost of living for North Carolina last year was 3.5%, and who knows what it will be this year. For example, last time this year, we were paying $1.25 to $1.35 for gasoline. Now we are paying in the range of $2.10 to $2.20 per gallon. For an average County employee who drives 20 miles to and from work each day, this is an annual increase of $400 per year. It is because of this that some of us also have been forced into working a second job just to cover our meals. After the pay and classification study that was completed in 2001-02, we really looked forward to the adjustments in everyone's pay, bringing it up to what the surrounding job market stated we should be. Our excitement was short-lived since we have returned to the prior status of no pay raises or minimum pay raises that were consistent with the time before the catch up was enacted. Now we are right back to where we were before the study. For the employees that have been here less than four years, and they were hired during this time period, they have had only one raise. Since it does not make any difference if you do a proficient job or an outstanding jab, the long- term employees are also once again behind. Plus, now, there is again salary compression between the old and new employees. The lack of in-range raises and meritorious awards is a great concern to all employees. As a group of concerned employees, we are asking that you relay our wishes to the Board of County Commissioners and suggest the following budgetary decisions for the 05-06 budget: - compensate employees for the true cost-af-living raise - reinstate the merit pay with another 2.5°~ increase - reinstate the meritorious award Also, instead of the proposed five-cent increase, we would like a contribution of about 5% of each person's salary put into the 401 k every year." He said that he speaks on behalf of all of the employees. Judy O'Connell is the Assistant Director and Child Service Coordinator for Kidscope. She spoke on behalf of the Kidscope staff and families of children they represent. She thanked the County Commissioners for their ongoing concerns and support far the children's services of Orange County. She distributed some children's art. She said that last week they promised to return to speak about the impact the OPC's PEO retirement option would have on the Kidscope program. They had not obtained the documents outlined in the PEO option until Thursday, May 26t". She made reference to the emails received from OPC's Human Resources, which were in response to their questions regarding divestiture and what would happen to them as staff. Copies of the emails are in the packets distributed to the County Commissioners. It is clear from the PEO option that the continuation of their program is at risk. Ninety-one percent of their staff falls outside of the PEO retirement guidelines. If only ten of these people are forced to seek employment somewhere else in order to save their retirement, they would lase 45% of their staff. This loss would be devastating with the divestiture. To survive divestiture, they must be sure to have the personnel needed to process billing, maintain medical records, and provide direct therapies. Not one of the employees in these key positions falls within the PEO option. She said that no one was watching out for them as employees. Ta suggest that their program could survive without the skills of the Billing Specialist is ludicrous. In view of what the PEO retirement option will do to Kidscope, they are asking for the County Commissioners' help. Another retirement plan must be made available to the staff. Myra Gwin-Summers is an advocate for Kidscope and services far young children in Orange County. She appreciated Commissioner Jacobs' comment about the State budget, saying that it was crafted in secret. This is her feeling about the OPC Management's proposal for how to handle the retirement program. She has only learned today how this will impact the programs, and she was appalled to learn that there were only two people out of all of the personnel that would qualify and that mare than 90°~ of the staff would essentially be outside of the system. She said that the programs couldn't continue intact if the personnel are lost. She said that there are some options on the table, and the County Commissioners know about these options. She said that it seems obvious from the OPC Management proposal that it is not a priority to keep the programs intact and continue the services. She said that now is the time to act on this. She asked the County Commissioners to consider the options available and help them to make sure that the services are not disrupted. Elizabeth Mitchell is a parent of a child that goes to Kidscope. She said that there are parents here whose children have gone through the Kidscope program and are now in the Orange County School System. She thanked the County Commissioners for giving the needed funding in the past. She said that this staff was one of the most dedicated groups of women that she has come across in a long time. She asked the County Commissioners to support the Kidscope program and work with OPC to keep the staff. Chris Lutes said that he is willing to pay higher taxes for better funding for public schools. He said that if his taxes were increased by 30°l0, he would only be paying another $200 a year. If he had to put his children in private school, it would cast a whale lot more. He said that trained, skilled, knowledgeable employees are worth more in his organization than $200 a year. He said that we are educating the citizens that will help run the country in ten years. He agrees that our schools are well funded in comparison with the state as a whole. The schools still scrape by. The proposed increase is barely enough to keep up with inflation, salaries, and materials. He said that he does not see a lot of strong progress on collaboration and funding equalization. He said that it is the time to move toward funding equalization and improved funding far education. He asked the citizens to consider what he is going to do - send a check to the schools. Terri Tyson is a CHCCS parent of four children. She is serving an the Board of the Phillips Middle School PTSA and her son will be attending Smith Middle School in the new Leap program. Both groups have encouraged her to speak. She said that it is the County Commissioners' direct responsibility to provide for the public safety of citizens. Therefore, she asks that the County specifically fund the resource officers for the middle schools. This should be done under the Public Safety budget. She said that the SROs help prevent possible bad events. She spoke highly of the SROs in the schools. She also asked for full funding of the CHCCS budget request. Robert Dowling is the Executive Director of Orange Community Housing and Land Trust. He said that they appreciate what Orange County has provided aver the past 14 years. They would like to request $110,000 rather than $100,000 in operation funding. He said that they rely on periodic increases from local government funding in order to remain a financially viable organization. Their workload has increased dramatically in the last five years. Five years ago this month they placed the first house in the land trust, and today there are over 100 houses in the land trust. Land trust homes are built to be affordable forever. The bulk of the land trust homes are currently in Chapel Hill, but the next 100 homes will be more evenly distributed among Chapel Hill, Carrboro, and Hillsborough. Their budget next year is projected to be $347,000, and they are projecting a $12,000 deficit next year, including the additional $10,000 requested of the County. He provided a line item budget to the County Commissioners and said that no one gets rich working far anon-profit organization. This year he had to recommend to his board to reduce the retirement benefits for his staff. He said that their services are very valuable to the residents of Orange County because the homes are affordable and dispersed in new neighborhoods. He asked for the County Commissioners' assistance in the additional $10,000. Sally Boericke was representing the Historic Hillsborough Commission, which owns and operates the Burwell School historic site. She asked for a grant of $4,000 in capital funding for urgently needed repair to the exterior of the Burwell School. The building is threatened by moisture damage that has compromised the structural support system. The total cost for the repair project is estimated at $107,000. She said that Orange County has previously supported restoration at the Burwell School. The Commission is seeking a mix of funding from the State, County, Town of Hillsborough, private foundations, and local organizations. She spoke about the historical significance of the Burwell School. It is the site of one of the earliest female academies in the state. The school also houses an important Orange County archival collection. It also holds concerts, art exhibits, lectures, and Last Friday events. Finally, it functions as an educational resource with interpretive programs, teacher workshops, and a heritage education program that has served 1,200 school children since 2002. Carolyn Wade is an employee of the Orange County Health Department. She is an outreach worker and does home visiting. She is an advocate for mothers that are on Medicaid, and she goes to some dangerous places. She spoke in support of the Manager's recommended budget for Orange County employees. She has been an employee for 19 years and she said that a lot of new employees come in making mare than she does now. Andrea Tullos was representing the Orange County Schools Parent Leadership Council as the elected president. The PLC represents all of the PTOs and PTAs of each of the 11 schools in the OCS district. She thanked the Board of County Commissioners for their support and guidance to the schools, in particular, the opportunity for the Educational Excellence Report to be conducted. They also acknowledge that the funds to the schools are provided in a lump sum and it is up to the school board to implement the funds to support the needs and requests for the entire district. The PLC fully supports the Superintendent's budget this year. She asked for full funding of the OCS budget. Sandra Peterson is a patron of the local library, a member of the Orange County Friends of the Library, and an advocate for library services in northern Orange County. She spoke specifically about the expansion of the main central library in Hillsborough. She thanked the County Commissioners for appointing the Library Services Task Force in 2004, which presented a final report in October. She is also pleased that the Orange County Space Needs Report presented in March indicated the plan to have an adequate library facility by 2010. She said that many citizens eagerly await this facility. She encouraged the County Commissioners to continue these plans for all Orange County citizens. Susan Julian spoke about teacher assistants. She has worked as a teacher assistant at Frank Porter Graham Elementary School for almost 13 years. She is also working on becoming licensed at NCCU to teach. She asked the County Commissioners to fully fund the school budgets for the coming year. She said that if the budget were not fully funded, many assistant positions would have to be eliminated. She said that, by performing a variety of clerical tasks, teacher assistants help teachers deal with the increasing burden of necessary paperwork and documentation. They also provide teachers with much needed planning time. They also work with small groups of struggling learners or non-English speakers. Lauren Sacks is a representative of the ArtsCenter in Carrboro. She said that the ArtsCenter has come a long way in the past year financially. For the first time in their 30-year history, they will be operating in the black. Last year alone, they gave out $26,000 in scholarships to children and an additional $5,000 in scholarships to adults. Their most recent demographics indicate that about 53°~ of ArtsCenter constituents live in Orange County, and the ArtsCenter spends aver $500,000 a year on Orange County residents. The County gave them $5,000 last year and they are asking for that same amount for this year. Their specific request is for the children's programs, specifically the afterschool arts immersion program. This program is in conjunction with the Arc of Orange County and Communities in Schools. The children's programs serve over 4,000 children a year. She said that they are hoping to expand the afterschool arts immersion program to other programs and organizations in the community. The Communities in Schools program and the middle schools in Orange County are in financial difficulty, and they are interested in a partnership with the ArtsCenter to provide a program similar to the arts immersion program for middle school students. The Arc of Orange County would also like to partner with the ArtsCenter to provide arts immersion programs far middle school, high school, and adults. Pat Keck Cameron has been employed with Orange County for 15 years and has done various jobs in social work. She is now working with the Health Department as a Maternity Care Coordinator and a home visitor. She is overwhelmed by the choices and decisions that the County Commissioners have to make. She said that she is here because she is an employee and she is a broke employee because they have not had a raise in a long time. She sees new employees come in and start within $2,000 of what she makes after 14 years. She now works with pregnant teens and women who are on Medicaid. She said that she wants everything she has heard advocated tonight. She asked for the County Commissioners to consider the Manager's budget for Orange County employees. Gary Wallach spoke in support of the CHCCS. He said that when he spoke two nights ago, he was unaware of the historical commitment Chapel Hill has had to education. According to the County Tax Assessor, the education tax paid by Chapel Hill dates back about 85 years. He said that over many years, they have built up something to be proud of. They do not want this system to be slowly dismantled by losing teacher assistants and resource officers. He said that they would be willing to pay more to ensure that this system is preserved. He said that an extra two cents per hundred-dollar value comes out to about $62 for the average house in the district. He urged the County Commissioners to consider helping them maintain what they have and to agree on a budget that would cover the costs of educating the children. Liz Brown said that this is her 7th year coming to budget public hearings. She is now an OCS board member and she is starting to lose patience about the inequities between the school systems. Every year she asks far full funding, and every year she loses. There is always a new excuse. She said that the most the County Commissioners have ever funded the schools since she has spoke is 95%, and that year CHCCS got 103%. She said that the only way to increase per pupil funding for County students is by lowering the City's district tax. She explained this scenario to Judge Howard Manning and he immediately understood the link between the district tax and the OCS funding. He confirmed that this is inequitable. She said that if there is any doubt to the definition of equity or inequity, then she will define unconscionable, which means, "not guided by conscience; unscrupulous; shockingly unfair or unjust." She said that to continually refuse to provide sufficient funds to one group of students while providing more resources to the mare vocal, wealthier majority is unconscionable. She said that in the hallway Tuesday night, those people who could not fit into the auditorium were offered a large poster to sign to support school funding. This was on the back of a "Stop Merger" poster. She said that this was the subtext of the evening. City parents are worried about lasing staff people that County students have lived without for years. City students will attend a new environmental showplace high school with state-of-the-art amenities, while students at Orange High study in classrooms that do not even meet OSHA safety standards, and they use bathrooms without stall doors. A County school's district tax would only perpetuate the problem, with the City tax driving its budget, while the County residents sit by lovely, non-taxpaying green space. She said that she read a tax equity study commissioned by the Board of County Commissioners in 1989, which concluded that rural residents indeed subsidized urban dwellers in bath Chapel Hill and Carrboro. For every dollar County residents paid in taxes, they received 84 cents worth of services. Meanwhile, City residents received $1.10, and this did not even include schools. She said that it is time to stop trumpeting the success of the City schools when it is clearly at the expense of the County's children. Commissioner Halkiotis said that, for a historical perspective, Principal Patrick Rhodes at Orange High School had the doors removed from bathroom stalls. It was a site-based decision. Mary Ellen Olsen is a CHCCS parent. She asked for full funding of both school budgets. She is in favor of raising taxes to do this. She said that millions of dollars of tax money at all levels of government go to programs that help people who have not been successful in life or to react to people who are not successful in life. She feels that improving the education system will lessen the total tax burden, by lessening the need for the assistance programming in the future. She said that if the school has to cut a successful middle school after school program, then some of them will be left on their awn and might end up needing other kinds of help in the future. This will not save any money. She said that our children are tested beyond endurance on reading, math, and writing; but this might not be where their skills lie. Skills such as foreign language, mechanicacs, music, and art will go unnoticed if these programs are cut. She asked the County Cammissioners to look at the long-term consequences of their decisions. She said that probably the most endangered students would be most likely affected by the budget shortfalls. Rosetta Wash is DSS Board Chair and Dee Gamble is Chair of the Orange County Daycare Task Force. They requested that $100,000 be reallocated to the Child Care Trust Fund for daycare subsidies. Because of the generosity of the County Commissioners last year, 46 children at 20 different facilities benefited because it reduced the amount of time they had to wait to receive these subsidies by about two months. As of May 5th, there were aver 400 children still an the waiting list at DSS and Child Care Services Association. These children are eligible for the subsidy. Mary Purcell is a reading recovery teacher at Central Elementary in Hillsborough. She asked for full funding of all Orange County schools. She particularly supports funding to add social workers. At Central Elementary, 69% of the student population receives free and reduced lunch. She spoke of a personal experience that shows the urgency of added social worker positions. She said that apart-time social worker is not enough and it is critical that all schools in the County have full-time social workers. Jack Nestor is a CHCCS parent. He spoke in support of full funding for both school systems. He said that it is time to fix the broken system by raising the countywide property tax and reducing the City district tax accordingly. He asked what excuse there was far not adjusting the taxes in order to achieve equity and balance. Amy Levine is an OCS parent, and two of her children have autism. The only thing that has ever been proven to help this condition is education. She asked for full funding far both school systems' requests. She does not mind paying mare taxes. She said that, as County Cammissioners, there is no more important duty than the future of the children. Kelly Monroe Parco said that she would like to know why the County could not institute a countywide supplemental tax with a commensurate decrease in the district tax to begin instituting some equity in the school systems. She asked for an answer via email. She also spoke in support of a new organization called NC CARE, which stands for North Carolina Community Advocates far Revitalizing Education and is run through the North Carolina justice organization. The email far information is infoCanclustice.org. This is a parent group that supports the Leander decision and also supports ensuring that the State continues to provide money far quality education. She said that she spends a lot of time in Orange County schools on different committees. Mostly, the committees involve raising funds for the school system. She is also a former high school English teacher and is tutoring students in both districts. She said that the time is right far the County to do something. She said that according to the Rural School and Community Trust, North Carolina is overlooking its rural schools and ranks ninth in the United States in need of rural education attention and improvement. According to the Leander decision, one of the requirements for a sound basic education is that every school must be provided the resources necessary to support effective instruction within that schools, so that educational needs of all children, including at-risk children, can have the equal opportunity to have a sound basic education. She said that Dr. Madeline Grumet pointed out that Orange County children do not have an equal opportunity when compared to CHCCS, especially after elementary school. She hopes the County Commissioners will work toward solving the equity problem and fully fund the OCS budget. Rick Kennedy is an OCS parent. He said that over the past 13 years, he has witnessed his oldest daughter navigate the Orange County school system. He has come to these public hearings over the years to talk about funding. He said that they are no closer to the idea of a quality education far all. He said that this County is segregated, not by race, but by socioeconomic status, and no debate will change that. The typical income of city dwellers is double that of those in the County. According to the most recent census, Orange County has the greatest discrepancy between rich and poor in all of North Carolina. He said that quality education should be for everyone and not just for those whose parents can afford it. He said that a gradual reduction of the district tax and a commensurate increase in the property tax would alleviate the disparity between City and County school funding, although some oppose it. Those in opposition say that the County is free to choose regarding its own district tax. He said that the Town reaps the economic vigor from the security of water and sewer lines, public services, the rural buffer, the extraterritorial jurisdiction, conservation easements, and a protected watershed. In contrast, the surrounding County endures the landfill, the Public Works site, prohibitions against water and sewer lines, thousands of acres of watershed restrictions, low density restrictions, restrictions of conservation easements, and thousands of acres of restrictions in the rural buffer. He said that County citizens have no choice but to accept these massive economic burdens for the Town's benefit. He said that this year's tactic is defining equity and tiered funding, and replaces last year's tactic of asking for collaboration and a study comparing the two school systems. He asked the County Commissioners to do what is right and provide equal education for all. Sue Cunningham is a member of the Orange County Schools Parent Leadership Council, the Chairperson of Cameron Park's Parent/Teacher Governance Organization, and an OCS parent. She asked the Board to fully fund the OCS budget and to follow the recommendations of the Educational Excellence Task Force, and focus on a way to distribute educational resources equally between the two districts. She said that Dr. Grumet agrees that the students need more, not less, opportunity to succeed. This means providing more highly qualified staff and specialists, and providing this will require that the budget be fully funded. The County Commissioners' decision will affect the lives of many families. She asked the County Commissioners to remember their commitment from last year to fund the Spanish teachers and social workers and programs funded by the OCS fund balance. She does not mind paying extra taxes if they are used wisely. Marc ter Horst is a CHCCS parent. He had questions about the tiered approach to school funding. He understands that the tiers allow the County to determine funding based on previous funding sources for certain services, staff positions, and programs. He asked if the County Commissioners would hold the school boards responsible for spending the money on those specific items. If so, he asked if lack of flexibility in identifying specific needs across the school districts would force the school boards to fund some items over others. He said that this approach might put high school reform in competition with school resource officers or band uniforms and instruments with Spanish books and classroom supplies. He said that, should school-funding fall short of each district's request, then the County Commissioners should give the school boards the flexibility to use the limited funding as needed. He said that the tiered approach combined with the discretionary fund proposed in the budget is a departure from the usual per pupil funding method. He encouraged the County Commissioners to be creative in meeting the needs of Orange County and both school districts. Ken Latta is representing his daughter who is academically gifted and his learning disabled son, who works very hard to maintain an honor roll status. He made reference to the report from Dr. Grumet and said that the proof is in the pudding. He is a 28-year employee of Duke, and they have outcomes oriented everything. He said that it is evident from this report that OCS outcomes are significantly poorer than the CHCCS outcomes. He thinks it is imperative to raise the outcomes of the OCS. He said that the divergence starts in the middle schools and it carries on in the high schools. The SAT scores are higher in CHCCS and the dropout rate for OC5 is higher. The OCS dropout rate is in fact higher than the State average. He said that he would not mind paying extra taxes for education. Anita Hawks is a CHCCS teacher and an OCS parent. She asked for equal funding far bath school systems. She said that the difference she sees is the needs of the children in the two systems. She asked the County Commissioners to fully fund the needs of all of the children. She said that it was ironic that in the early 90's the County did away with the Spanish program in OCS and now the school system is asking for it back because of the increase in the Latino population. In the CHCCS, there will be a loss of some Spanish teachers and teacher assistants and she is concerned about this. She is also concerned about the difference in socioeconomic class. She lives in Orange County because she cannot afford to live in Chapel Hill. She challenged the County Commissioners to figure out a way to pay for everything in the budget. She suggested taxing some of the larger companies more, such as Wal-Mart. Roger Smith spoke on behalf of Orange Congregations in Mission. He thanked the County Commissioners for their past support and asked for continued support in the future. He said that they are anon-profit and they survive by getting funding. Jane McIver is a first grade teacher at Central Elementary School in OCS. She said that this year the schaol system began a new pragram to assign each school a family specialist or social worker. Because this is a new pragram, she is recommending that the County Commissioners fully fund the budget request so that this program can continue. She said that this position directly affects children. She gave examples of interventions the family specialist has worked on at Central. Tony Kane is an OCS parent. He said that one of the things that struck him was the fact that the County conducted the study to look at the discrepancies in the school systems and received recommendations. He has a hard time understanding that if there are discrepancies and the recommendation says to get more social workers, and the school budget includes it, but the County does not fund it. He said that there are a lot of children in the OCS that do not have support at home, and this needs to be addressed. He asked for full funding of the OCS budget. Nancy Grebenkempor is a resident of Orange County and a school psychologist at Grady Brown Elementary. She said that they are at a bare bones budget and have minimal support staff. She said that recently the school system has made major cuts in services and in positions to handicapped children. These cuts will impact significantly the services that are provided. She works in a room with fuse baxes. She thinks that in these times with mental health services being cut, education becoming a much more demanding field, and budget cuts being made, that the budget needs to be funded fully for both school systems. Susan Clifford is a Health Educator at Orange County Health Department. She is fluent in Spanish and works with the Latino immigrant community to help improve their access to health and safety information. She spoke on behalf of County employees. She loves her jab and coworkers. She is thankful, as a new mother, far the excellent medical and dental benefits provided by the County. Also, she is concerned about her personal finances because she provides the main income for her family. She feels the difference when the employees do not get cost-of-living or in-range increases. It is hard far her to ignore the higher-paying private and University research jobs in this area, but she really wants to stay with the County. She urged the County Commissioners to support the recommendations of the employee consortium and the Manager. Linda Dougherty is an OCS parent. She realized that there was an issue that she wanted the County Commissioners to address when her son started attending public school in Orange County. For six years she has listened to parents, teachers, and staff ask the County Commissioners for mare funding for the OCS and to address the funding disparity between the two school systems. For six years she has heard that more information needs to be gathered and that research needs to be done. She hopes that after six years the County Commissioners finally have enough information to take action to deal with the funding inequities. She said that it is time for every child in Orange County, regardless of their address, to have access to the same educational opportunities and resources, and to have the same chances for achievement and success. She is willing to pay more to ensure the success of the schools and the children's opportunities. Gayanne Chambless is an OCS parent and volunteer. She is concerned about the recommended $95 per pupil, because she does not see how this will fund social workers, the elementary Spanish program, or textbooks. She said that the City district tax continually seems to hold the OCS hostage. She said that sa many countywide services are shared at the cost of taxpayers equally, yet the future of the children of Orange County is determined by who lives where. She asked the County Commissioners to find a way to change the status quo so that the children are no longer harmed based on where they live in the County. She spoke in support of reducing the district tax and increasing the property tax. She said that she was also shocked, as Mr. Weinberg was, after the discussions of the past two years that more was not done for OCS. She is willing to pay more taxes for education. She asked that bath school systems be fully funded and then using the district tax to fund the new state-of-the-art school that will be built in CHCCS. AI Hartkapf is an OCS board member. He asked for full funding for both school systems. He said that through interaction with the staff, board, the community, and the results of the Grumet report that the Board of County Commissioners commissioned, it is now plain for all to see that the OCS budget is a committed plan that addresses four key areas far the school system: Literacy development; dropout prevention; increasing student enrollment and performance through challenging coursework; and high quality teacher recruitment, development, and retention. They have tied specific positions and actions to these areas. He said that there is much more than just social workers. They are trying to specifically address what the Grumet report said. He said that they cannot accomplish these things alone. He said that his view on equity is that the County funds every pupil at the same level. He also spoke in support of library services and the budget request for this. He said that the County Commissioners' resourcefulness and dedication to educational excellence remains unquestioned by him. He said that nowhere in North Carolina does there exist a school system of our size that receives the generous funding that Orange County receives. He believes the County Commissioners will continue this tradition. Ann Hill gave the County Commissioners the list of people that were outside in support of education. She asked for full funding for both school systems. She said that education affects everyone. She asked that education be kept the number one priority in the community. Schatzie Crowther spoke an behalf of full funding for the OCS school budget. She has been a volunteer at OCS for 17 years. She is president of the OHS PTSO. She said that the teachers and administrators have achieved success with limited resources. She thinks that Orange County is fortunate to have two excellent school systems. There are critical needs that go unmet. They especially need more social workers, additional reading remediatian instructors, enhancement of the OHS AP program, and financial assistance for AP testing of students in the lower soci-economic spectrum. She agrees with funding for the entire recommended budget. She hopes that all needs of Orange County citizens can be met. Gina Reynolds is a CHCCS parent. She congratulated the County Commissioners for their past decisions, but the school system must be compared to the whale country and not just the state. She feels that the school districts are the most important assets in the community and that we have to be stewards of assets. She said that by funding the schools, a capital investment is being made, a human capital investment. She said that she loves how involved the parents are in the community, but the teacher assistants are critical. Linmarie Sikich is a child psychiatrist and she has had the chance to see how an early education program can make a difference for special needs children. She has also worked with children in places where they do not have the support and there are horrid consequences. She urged the County Commissioners to fully fund all of the early childhood and school programs. She said that she moved to North Carolina about ten years ago, and people have told her that the reason they live in Chapel Hill is because of the schools. She is 1 QO°~ convinced that if the level of funding in the OCS is raised to the level of the CHCCS, all of Orange County will be a magnet for people. Caroline Sherman is a CHCCS parent. She encouraged the County Commissioners to fully fund bath school districts. Specifically, for CHCCS, the Superintendent has outlined areas on the cutting block such as teacher assistants. She has been an active volunteer for the past five years, and she has seen firsthand the difference of having afull-time teacher assistant. She said that the learning in the classrooms without full-time assistants suffered. She said that she witnessed the achievement gap in a second grade classroom because there were not enough assistants. 4. Adjournment The meeting was adjourned at 10:55 p.m. Moses Carey, Jr., Chair Donna S. Baker Clerk to the Board