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HomeMy WebLinkAboutMinutes - 20070605APPROVED 8/21/2007 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION June 5, 2007 7:30 p.m. The Orange County Board of Commissioners met far a Budget Work Session on Tuesday, June 5, 2007 at 7:30 p.m. at the Southern Human Services Center in Chapel Hill, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Moses Carey, Jr., and Commissioners Barry Jacobs, Valerie P. Foushee, Alice Gordan, and Mike Nelson COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: Geoffrey Gledhill COUNTY STAFF PRESENT: County Manager Laura Blackmon and Assistant County Manager Willie Best and Clerk to the Board Donna Baker (All other staff members will be identified appropriately below). Chair Carey asked Laura Blackmon to introduce the new staff and to review the information at their places. He also welcomed the members of the school boards. Laura Blackmon introduced Willie Best, Assistant County Manager, who came to Orange County from Guilford County. Laura Blackman said that the message at the budget public hearings was that the public wanted tax increases to fund the schools. She made reference to the hot pink sheet, which had information on Fiscal Year 2007-08 Funding. The chart at the top is the current expense funding for CHCCS and OCS. The requested percent increase for CHCCS over last year was 20.6% and for OC5 was 18%. Using this year as a benchmark, the staff calculated what funding at the current expense and requested per pupil rate would be by 2011-2012. Section 1.1 shows that the total funding required for both school systems at the per pupil rate requested by CHCCS at $3,509 would result in $11,229,429. The projected one-cent would generate $1,247,881, which would be a tax rate increase of nine cents. If the County funds at the current rate as requested by the citizens, to add on the increased costs for the school systems, there would be an increase of 19.6 cents for 2008-2009, 30.2 cents for 2009-2010, 42.7 cents for 2010- 2011,and 57.3 cents for 2011-2012. This would then be over the County's cap of $1.50 per hundred-dollar valuation. Using the OCS request, by the year 2011-2012, there would be an increase of 51.9 cents. Commissioner Jacobs requested that the Manager email these hypothetical increases to the CHCCS PTA website. Budget Director Donna Coffey made reference to the reference documents beginning on page 5-1. Appendix D includes full copies of each schools' budget. 1. Schools Orange County Schools Orange County Schools 2007-08 Budget Presentation June 5, 2007 Shirley Carraway, Ed.D. Superintendent Budget Overview Superintendent Carraway expressed deep gratitude for the support of Orange County for the schools. The fact that almost 50% of the general fund budget goes to schools is a testament of the support. However, there is much more that must be done if the community is to remain vital and be able to continue to boast of its commitment to education. A good education is simply not good enough. For each child, we only get one chance to get it right. In its current form, the proposed 2007-2008 budget requests an increase of 17.99% over the 2006-2007 Operating Budget. Budget Drivers Salary and Benefit Issues (estimates; actual changes will be determined by the General Assembly) Salary increases (average increases; 5°~ certified staff, principals, assistant actual raises could be higher or lower principals based on gradelstep 2% non-certified staff and central office administrators Employer matching retirement rate 1 % increase increases 7.14% to 8.14°~ rate Employer matching insurance rate 14°~ increase increases from $3,854 to $4,394 Growth New school start up Gravelly Hill Increasing student support AVID, ESL, PAAS counselor, reading teachers, English/LA coordinator, Pyramid of Intervention, Benchmark Assessment software, instructional supplies Increasing student opportunities High school elective teachers, PAAS core teachers, biotechnology teachers, distance learning upfit Increasing facility support Maintenance workers, technology technicians, custodial services Transportation issues Bus driver salary schedule, CDL reimbursement, staff development Additional support Print shop technician, grant writer AVID "... what AVID shows is that high minority achievement can be more ordinary when schools not only insist on academic rigor but also offer personal support. AVID offers a blueprint for this scaffolding." - Richard Rothstein, New York limes "The AUID program provides students with powerful instruction and support networks to help them be successful. Within our district we've found that students who participate in the AUID program are eager and prepared to enter rigorous coursework while in high school." Dr. Eric Smith Superintendent of Maryland's Anne Arundel Counfy Public Schools North Carolina Superintendent of the Year, 2002 Rising Standards and Increasing Demands for Accountability Rising Standards: No Child Left BehindlABCs Expectations • Math curriculum pushed down to lower grades; cutoff scores for proficiency raised • Science testing in grades 3-$ • Proficiency targets on the rise Where we are now: LEA Improvement Status • District met 48 out of 54 target goals (88.9°~) • 13 of the 48 targets were met with Safe Harbor or Confidence Interval At-risk subgroups: minorities, Limited English Proficient students, and Exceptional Children Increased Requirements for High School • New high school exit standards, including a senior graduation project • Future-Ready Schools core curriculum in 2008-09 2 years foreign language for all students 4 years math for all students • Reauthorization of NCLB to focus on high school • 100% graduation by 2013 • 90°~ completing College Tech Prep or University Prep by 2009 • 80% meeting UNC requirements for admission by 2009 • Graduation rate at a mare demanding standard Without more funding, we may have to... • Eliminate Teaching Assistants in grades 4 and 5 • Freeze local supplements • Eliminate middle school and JU athletics • Freeze technology upgrades • Cut 10-15°~ in all program areas • Cut summer programs • Reduce instructional supplies • Reduce staff development • Reduce custodial services • Reduce staff for ESL/EC/AIG Board of Education Approved Budget for 2007-2008 Mandates/Critical Needs Salary Increase 5% Certified, 2°~ Other Personnel 744,181 Matchin Social Securi 56,930 Matching Retirement 7.14% to 8.14°~ 96,426 Increase Matching Insurance from $3,854 to $4,394 142,777 TOTAL MANDATESICRITICAL NEEDS 5.03% 1,040,314 Gravelly Hill Middle School 1 Associate Principal 70,552 1 Guidance Counselor 62,855 1 Nurse 62,855 6.5 Regular/Core Teachers 408,558 .5 Social Worker 31,428 .5 Foreign Language Teacher 31,428 1 Teacher Assistant (In School Suspension} 27,341 Instructional Materials 8th Grade 50,000 TOTAL GHMS MANDATES/CRITICAL NEEDS 3.60°!° 745,017 Mandatory Increases - State Salary Increase: o Certified 5%, and Other Personnel 2% $744,181 - Health Insurance Increase: o Projected 14% Increase 142,777 - Social Security Matching 0 7.65°!° 56,930 - Retirement Increase: o Projected 1 % increase 96,426 - Gravelly Hill Middle School: o Start Up Cast 745,017 TOTAL MANDATORY INCREASES 8.63°I° $1,785,331 Current Expansion or New Initiatives Budget 3 AVID Teachers 188,565 2 Elective Teachers (High Schools} 125,710 3 RegularlCore Teachers {PARS} 188,565 1 Counselor (PAAS) 62,855 1 English Language Arts/Soc. Studies Coord. 62,855 2 ESL Teachers 125,710 2 Biotechnology Teachers 125,710 3.5 Readin Teachers/Literac Coaches 219,994 2 Maintenance/Helper and Plumber 74,144 1 Print Shop Technician 27,341 2 Technolo Technicians 82,595 .75 Accounting Technician 29,230 1 Grant Writer {12 month position) 56,969 Bus Transportation Salary Schedule Im lementation 85,432 National Board Stipend 15,000 Criminal Record Checks 2,800 Custodial Services 100,000 Pyramid of Intervention Support 10,000 Benchmark Assessment Program Software 60,000 Instructional Materials PARS 10,000 Distance Learning Classroom Upfit and Equipment 300,000 CDL Reimbursement 3,000 Bus Driver Staff Develo ment 4,000 TOTAL EXPANSION OR NEW INITIATIVES BUDGET 9.48°I° 1,960,475 Savin s/Reductions Legal Fees {10,000) Professional Development School (15,000} Total Reductions 25,000 TOTAL BUDGET REQUEST $3,720,806 Proposed Expenditure Increase 2006-2007 County Appropriation 20,662,387 County Appropriation increase requested 3,720,806 Board Approved 2007-2008 Budget 24,393,193 Total Proposed County Appropriation Increase - 17.99% Current County Budget Recommendation 2006-2007 County Appropriation 20,672,387 Mona er Recommended A ro riation 464,249 2007-2008 proposed County Appropriation 21,136,636 Total Proposed County Appropriation Increase 2.24°~ Budget Request Increase Over Previous Year's Request FISCAL YEAR APPROPRIATION °~ INCREASE APPROPRIATION REQUESTED OVER PREVIOUS YEAR RECEIVED 2006-07 23,407,708 10.45°~ 20,672,387 2007-08 24,393,193 4.21 °~ ©RANGE CQUNTY SCH©C)L S REVENUE Sources include: - Transfer from Community Schools - Fines and Forfeitures (Other} - Child Nutrition Services Indirect Cost - Interest Earned on Investment TOTAL: $420,000 Fund Balance Used: Year Requested Local Appropriation Approved Difference 06-07 23,407,708 20,672,387 22,017,379 1,344,992 05-06 21,192,516 19,608,329 20,430,730 822,401 04-05 19,485,879 17,920,336 19,320,518 1,400,182 Board of Education's Approved Budget 2007-2008 - $28,675,607 (chart) Recurring Capital Annual Needs: Capital Items Board Approved Playground Maintenance 33,000 Asbestos InspectionslAbatement 30,000 Blood-borne Pathogens Standard 12,000 Chemical Removal 7,800 Roof Repairs 35,000 Paint Schools 25,000 Parking Lot Maintenance 40,000 Pest Control 11,000 Landscaping 35,000 Cafeteria Hood Cleaning 10,000 Bleacher/Basketball Goal Maintenance 18,000 Fire Alarm Maintenance 18,000 Turf and Field Maintenance 35,000 NCDPI Engineering Service 7,800 Mobile Unit Rental 20,000 Carpet Cleaning-System wide 10,000 Vehicle Replacement 82,000 Science Lab Maintenance 15,000 Copier Leases 70,000 Energy Management 10,000 New Classroom Setup 25,000 TOTAL RECURRING CAPITAL ANNUAL NEEDS $549,600 Recurring Capital Health and Safety Needs Capital Item Board Approved Floor Coverings 140,000 Emergency Lights & Batteries 10,000 Maintenance Training & Safety Equipment 25,000 Environmental Maintenance 60,000 Safety Padding 12,000 Gymnasium Floor Resurfacing 15,000 Fencing 25,000 Restroom Maintenance 20,000 Sidewalk Maintenance 25,000 Security Cameras 75,000 TOTAL RECURRING CAPITAL HEALTH & SAFETY NEEDS $407,000 TOTAL RECURRING GAPITAL $956, 600 CIP Projects Year 7 (tables} Total CIP Projects $3,049,000 Board of Education's Approved Operating Budget: $24,393,193 Includes: ^ Focus on increasing student achievement ^ Focus on increasing student support ^ Sustained commitment to initiatives including math, literacy, frequent assessments, professional development ^ Efficient facilities management ^ Instructional technology support ^ Gap-closing strategies Big Picture $3,720,806 17.99°/a budget request is fiscally responsible and essential for achieving an agenda that: ^ Raises achievement for ALL Orange County students, and ^ Accelerates achievement for underperforming students (gap} ^ Supports and improves operational efficiency Response to BOCC Questions Question 1 Identify permanent and one-time reductions. Potential Budget Reductions -tables showing 70% and 75% reductions in Central office, System-wide, and Building-Level Question 2 Identify new or expanded programs started in 2006-07. Gravelly Hill Middle Schaal Start Up Mandates 1 Associate Principal 1 Guidance Counselor 1 Band Teacher 1 Technology Resource Teacher 1 Secretary 1 Bookkeeper 1 51MS Human Resources 3 AIG Teachers Curriculum & Instruction AVID Supplies and Materials Science Kits for inquiry-based science Question 3 Identify new or expanded programs in 2007-08. 3 AVID Teachers 2 Elective Teachers (High School} 3 Regular/Core Teachers {PAAS) 1 Counselor (PAAS} 1 English Language Arts/Soc. Studies Coordinator 2 Biotechnology Teachers 2 ESL Teachers 3.5 Reading Teachers/Literacy Coaches Curriculum & Instruction Pyramid of Intervention Support Benchmark Assessment Program Software Instructional Materials PAAS Distance Learning Classroom Upfit and Equipment Question 4 Explain contingency fund amount of $166, 28 ~. Contingency Federal Carryover $146,281 Local Contingency 20 000 $166,281 Superintendent Carraway made reference to a comment made at the first public hearing from a 7t" grade student at Stanford Middle School. The student said, "If excellence is possible, then goad is not enough." She said that for OCS, good is not enough. Commissioner Nelson made reference to the ESL teachers and asked for a brief overview on how many there are. Superintendent Carraway said that there are five, and they are shared within all schools. She said that they try and place the teachers where there is the greatest need. These five teachers serve 493 students. Commissioner Jacobs asked Donna Coffey if the fair funding reserve has been committed in full and she said yes. Commissioner Jacobs asked haw the $800,000 was determined and Donna Coffey said that it was the amount in last year's Manager's Recommended Budget and the Board approved it, and it was split between the two school systems. Commissioner Jacobs asked clarifying questions about the school board's request for a school health nurse and half of a social worker position. Chair Carey verified that the County Commissioners expected the school system to put this in the budget request rather than a supplemental request. Commissioner Jacobs made reference to page 2.1 in packet and the increases in support services, school administration, business support, and central support. He asked if these reflect salary increases. It was answered that this does reflect salary increases. Commissioner Jacobs asked why there was a contingency fund if there was a $1.8 million fund balance. Superintendent Carraway said that it has always been in the budget for whatever might be necessary. It is only $20,000. Commissioner Jacobs made reference to page 2.5 and instructional materials for 8t" grade. He asked if this was aone-time expense and Superintendent Carraway said yes. This was included as part of the start-up costs far Gravelly Hill Middle Schaal. Commissioner Jacobs asked about energy efficiency savings and Superintendent Carraway said that it is cost avoidance and it has made huge differences in utility costs. About $82,000 has been added back, because in December, the management company contract expired for these services. Commissioner Jacobs asked about the possibility of cutting athletics. Superintendent Carraway said that when the school board did its priority list, athletics were the very last on the list to cut. OCS Board Chair Dennis Whitling said that even though the tennis courts are fourth in the priority list, if the County is going to come up with its share of the tennis court costs, then it may be moved up. Commissioner Jacobs said that to fully fund the OCS would be 7.6 cents on the property tax. He asked if the OCS Board was advocating a 10-cent tax increase. Dennis Whitling said that they are advocating for a tax increase or a reallocation of 48.1 °r6. Chair Carey said that the County Commissioners have been hearing about the tennis courts for years and the County set aside some capital money. Donna Coffey said that the money was set aside, but it was used for another capital project last year. The Manager's Recommended Capital Budget includes the County's share of the tennis court renovations. Chair Carey made reference to page six of the PowerPoint, and asked what "without more" meant. Superintendent Carraway said that this means without more than what is being recommended by the Manager. Chair Carey asked how the list of proposed cuts was developed and Superintendent Carraway said that the school board asked staff to start with the Central office and work its way to the schools. She said that, for her, it was imperative that they looked at those things that would not touch classrooms, if possible. Chair Carey made reference to the contingency funds and if the school board has ever used it and it was answered no. Chair Carey asked about the $140,000. Superintendent Carraway said that the school system gets federal money for Title One for students that get free and reduced lunch. The Title One dollars go towards the reading recovery program. In the federal programs, carryover is allowed. Part of the reason is because the federal funding cycle is different. Chair Carey made reference to page 13 of the PowerPoint and the uses of fund balance. He said that it looks like some of the uses were to cover some of the things that the County had covered, such as recurring expenses. Superintendent Carraway said that this list includes the kinds of things that OCS has used the fund balance for previously. She said that they started the partnership with the Department of Social Services prior to the fair funding dollars provided by the County. Fund balance was used to add the social workers at that time. Superintendent Carraway said that this is her swan song and she appreciates the cooperation she has received from the Orange County School Board, the County Commissioners, and the staff. She said that the people in Orange County do not realize haw fortunate they are to have a Board of County Commissioners that is as interested and supportive of education as the County Commissioners are. Dennis Whitling said that Shirley Carraway is knowledgeable about the budget and he wants to thank her far her hard work these past four years. Chapel Hill Carrboro City Schools ^ Operating Budget ^ Capital Budget CHCCS Board Chair Jamezetta Bedford said that the funding increases for the budget were broken down into five key categories: State mandates, costs associated with increased student enrollment, expected new costs of opening Carrboro High School and Elementary School #10, continuation of current services, and new budget requests to enhance programs and services. CHCCS will be opening Carrboro High School in August and will start construction and planning for Elementary School #10. She said that they know that money is tight, but the County Commissioners have a long history of funding schools. On the operating side, State salary increase for teachers and staff are well deserved. There are also associated mandates such as health insurance increases and the retirement match. Opening Carrboro High School will relieve severe overcrowding at the other two high schools, but will require a significant infusion of operating dollars. This is a very appropriate funding use of the district tax as it provides a revenue source without increasing the tax of the OCS residents. She encouraged the County Commissioners to use the district tax to fund the additional operating costs of opening Carrboro High School and the funding for Elementary School #10. She said that they do support increasing property taxes as well, so that they can continue existing programs, etc. Far the last several years, the number one goal of CHCCS has been closing the achievement gap, with all schools meeting No Child Left Behind standards and meeting State proficiency standards. There has been progress in the elementary and middle school levels, and they have turned attention to the high school level. She said that CHCCS is not number one in North Carolina for all children. The vast majority of the district students will go onto college, but there is concern about those who do not and those who do not finish college, and especially those who do not graduate from high school. She said that children now need to be able to compete globally, and this requires education beyond proficiency. She said that the school board has combed through the requests and brought only the most valuable and essential as it relates to the benefit of the students. Because of the uncertainty of funding and the message that was heard of no tax increase except to cover the new debt service, the school system took a parallel approach to convene a working committee to examine potential cuts. It is not the intention to offend or to cause alarm, but to be prepared and to illuminate the severity of the Manager's proposed budget. She urged the County Commissioners to minimally fund the mandated items, the opening of Carrboro High School and planning for Elementary School #10, and sufficient funds for existing programs. Superintendent Pedersen spoke from the document in the plastic sleeve {incorporated by reference). Superintendent Pedersen said that he prepared this document because the staff and school board have worked hard on the budget, particularly as they heard word that there would not be tax increases except for servicing debt. This report was written after the Manager's Recommended Budget was presented. He said that he will not try to convince the County Commissioners of their needs since they heard the speakers last night. He said that CHCCS is in a different place than it has been in the past. He said that, from his vantage point, this is a different ballgame. He said that he is here to ask for funding for education, particularly the part that the County Commissioners are responsible for, and to show them the ramifications of what a "no tax increase" stance would have on the school system. He said that if the per-pupil allocation remains the same and they get money for growth, the schools will not be able to function as they did because of two budget drivers -mandated salary increases and opening Carrboro High School and Elementary School #10. The net increase in revenues as compared to 2006-07 is $1.2 million. The difference between revenues under the Manager's recommendation and the School Board's request is $6.1 million. Superintendent Pedersen said that he knows the budget will not be fully funded. He knew that the County Manager would prepare a budget assuming no tax increase over and above the amount necessary to pay debt service, per the request of the Board of County Commissioners. In light of this, an ad hoc budget committee was convened to make recommendations on how to work through the budget crisis. The 27-member committee included parents, teachers, principals, school board members, classified staff, Chamber of Commerce representatives, and Central office representatives. The committee identified where cuts could best be made. Following are tables of the required items in the budget and the possible cuts. Table 1 Required Items from the Board's Requested Budget Start-up costs for Carrboro High School $2,051,555 5°lo salary increase far locally paid certified staff including benefits and supplements 818,219 5°~ pay increase far non-certified staff includin benefits and su lements 599,875 12.3% increase in health insurance 353,677 Utility rate increases 324,462 1 °lo increase in employer state retirement match 283,853 Increase in supplement for state-paid teachers 246,240 Elementary #10 planning 236,279 Increase in charter school reimbursement for hi her enrollment 98,555 Increased costs for assessments and surveying 60,000 Local supplement for new state-paid teacher positions 54,000 Chemical hygiene safety in schools {new mandate 30,000 Maintaining mentoring position funded by an expiring grant 30,000 Increase in custodial supply costs 21,000 Increase in attorne fees 20,000 Boomerang Program for suspended students (never budgeted) 20,000 Expenses allocated on a per-pupil basis 16,882 AUID ro ram membershi dues increases 14,745 Youth Planning Coordinator for adjudicated youth (never funded) 11,000 Cable casting Board meetings (more meetings) 2,292 5°rb increase in Board stipend (tied to Sala increases for teachers 945 TOTAL $5,293,579 The school board concludes that $5.3 million in new revenues are needed to cover these essential expenditures. When the $1.2 million projected increase in funding under the County Manager's recommendation is applied, there is a funding gap of $4 million. The assumption is that if revenues remain as the Manager recommended, the school system must reduce its current level of spending by $4 million. Table 2 New Requests in Board's Budget that are in Jeopardy Of Nat Being Funded (in reverse priority order) Savings Math and science staff development $23,500 New positions in the Exceptional Children's ro ra m 108,948 AVID tutors and staff development 27,566 District memberships and staff development 3,609 Operating budget increase for Volunteer Office 1,000 Contracted services to implement recommendations from athletic review 20,000 Family specialist assistant at Carrboro Elementary 35,000 Ex anded em to ee wellness ro ram 13,600 Pre-K/Head Start position funding 5,000 Flash technology for staff training on health issues 9,000 Part-time Arts Coordinator sti end 16,200 Gifted Education program (2 additional positions) 144,172 Certified position far day treatment program 66,961 Matching funds for Blue Ribbon Mentor Advocate ra ram 25,000 Director of Student Enrollment 80,000 Online survey tool contract increase and evaluation consulting service 26,500 Dual Lan ua e ro ram 116,136 Arts Education equipment repair and replacement 15,000 Expansion of district assessment system 15,000 Increase school nurse position from 91% to 100% 6,117 Homeless student transportation 25,000 High school academies 91,500 Mathematics Coordinator 80,000 Additional resources for English-as-a- Second Language program 271,844 Automated external defibrillators 5,400 Additional part-time technology support position 20,350 Cost increases in Superintendent's and 8,300 Board of Education's bud ets K-2 literacy assessments 20,000 Increase half-time Technology Specialist allocation to full-time 535,688 Literac staff develo meat 40,000 Additional security guard position at each high school 75,000 Technology repairs and maintenance 50,000 School securi u rades 77,730 TOTAL $2,059,121 None of these items would be funded under the County Manager's recommendation unless corresponding reductions were made in other budget areas. Table 3 includes reductions in the current budget. The committee spent much of its time on these items. Table 3 Potential Reductions in Current Budget and their Savings (ranked from most to least acceptable) Reduce telephone budget and replace with $100,000 federal telecommunications funds Reduce Human Resources advertising 11,000 bud et b 50% Eliminate transportation to Dual Language 22,000 and LEAP programs Replace local spending for non-proficient 100,000 students with state funds Reduce substitute teacher assistant 150,000 bud et Re-bid copier service contract 100,000 Reduce administrative supply budget by 25,500 15°~ Reduce School Improvement Teams funds 18,272 to $1,000 er school Reduce local funding for student field trips 33,600 Reduce substitute teacher budget 200,000 Reduce local contingency fund from 100,000 $150,000 to 50,000 Reduce day custodians to one per ES or 179,899 MS and two per HS Eliminate all differentiated pay stipends 102,600 {committees, clubs, extra duty, etc.) Reduce clerical staff by one position per 551,696 SCIlOOI Drop participation in Middle College 50,000 {second semester 07-08) Eliminate local funding far middle school 131,000 after-school ro ram Reduce Gifted Education Specialists to 1 283,914 per school Reduce elementary Science Specialist 291,501 positions from nine to two Eliminate elementa Media Assistants 263,367 Reduce middle school counselors from 252,358 three to two and explore using CTE funds to restore the third position Reduce Elementary World Language 504,736 positions by 50°/a, starting instruction in grade 3 Provide stipends only for M5 and HS 234,580 athletics and co-curricular activities Reduce local funding for supplies, 90,224 textbooks, and media Eliminate after-school tutorials far grades 131,000 K-5 Reduce Teacher Assistant staffing K-12 1,517,935 (Total of about 50 positions; approximately 3-4 er ES Reduce Exceptional Children's staffing 335,591 {Five inclusion assistants; three partial teaching positions) TOTAL $5,780,773 Table 4 shows the personnel implications of the cuts in Table 3. Table 4 Personnel Implications of Possible Reductions in Current Budget Reductions Savings Reduce day custodian Reduce 5; 2 Vacant $179,899 ositions Reduce clerical staff by one Reduce 15; 10 Vacant 551,696 position per school Reduce Gifted Education Reduce 4.5; 4.5 Vacant 283,914 Specialist positions Reduce Elementary Reduce 7; 4 Vacant 291,501 Science Specialists positions Eliminate Elementary Reduce 9; 3 Vacant 263,367 Media Assistant positions Reduce Elementary World Reduce 8; 3 Vacant 504,736 Language positions Reduce Teacher Assistants Reduce 50; 23 Vacant 1,517,935 Reduce Exceptional Reduce 8; 5 Vacant 335,591 Children's Staffin TOTAL $3,928,639 Superintendent Pedersen said that the last strategy of reducing the budget would be adjustments in salary. The committee was divided on the issue, but the majority of the committee believed that salaries should be "on the table" under these dire circumstances. The possibility that was considered was to freeze next year's local supplements at the current levels. If applied to all administrators, teachers, and classified staff, this would generate approximately $416,500 in savings. Regarding the fund balance, this year CHCCS has already appropriated $1 million of fund balance toward the construction of Elementary School #10 and the one- time start-up costs for Carrboro High School. An additional one million dollars of fund balance would be appropriated in the Board of Education's Requested Budget far ongoing expenses. The fund balance is projected at 6.88°lo and the target is 5.5°l0. The County Commissioners asked if one-time costs could be identified to be paid for from fund balance, and he could only find $100,000 worth of one-time costs. Regarding the contingency fund, the committee proposed reducing it from $150,000 to $50,000. In recent years, the school system has not had to draw down the contingency for significant unforeseen expenditures. It has been reduced to balance the budget when discretionary reversions had to be made to the State. Page nine shows the actual per-pupil casts since 2002. There has not been much of an increase in the budget since 2003. Superintendent Pedersen reminded the County Commissioners that CHCCS reduced $732,172 from its budget last year by cutting programs, services, and positions from the continuation budget. This reduction more than covered the casts associated with the high school schedule change to aseven-period day. He said that it is not his place to resolve this budget problem but it is a mutual challenge. He said that he suggests two options for funding the budget request: • Using the special district tax by 2.85 cents for the costs associated with opening new schools. The BOCC has provided this funding for the last five schools that have been opened. • Increase ad valorem tax by an additional 2.3 cents over the recommended 3.7 cents =total of 6 cents If the Commissioners raised the district tax rate by 2.85 cents and raised the ad valorem tax rate by an additional 2.3 cents (total of 6 cents), the school district could maintain its current level of services, meet projected salary obligations, open Carrboro High School, and keep Elementary School #10 an schedule. Alternatively, if the Board of County Commissioners did not want to use the district tax, it would require an increase of 5.3 cents an the ad valorem tax, or a total increase of 9 cents. Steve Scroggs spoke about the two capital areas, recurring and CIP. The recurring capital is for replacement of equipment as well as renovations to classrooms and ADA compliance. There are also increasing costs in recurring capital on new playground regulations. The school system spends $100,000 a year on mulch to make sure the playground requirements are met. In the Capital Improvement Plan, this is the last year of dedicating the majority of the CIP to construction of Carrboro High School. He said that if they take out the rental space and technology costs, this only leaves them with $370,000 worth of flexible money within the CIP. They intend to use this for ADA compliance, abatement projects, fire safety and security issues, and updating technology. He said that the capital dollars spent for a school district that has over 1,400,000 square feet and 440 acres is a very small amount of money in comparison to the national average of what it takes to maintain school districts. Commissioner Foushee said that the OCS projected a pay increase for uncertified staff at 2°r6 and CHCCS is budgeting at 5°~. Superintendent Pedersen said that no one knows ultimately what the increases will be. These numbers were chosen after the legislative breakfast. Commissioner Foushee asked about the position for the day treatment program and how many students would be served and Jamezetta Bedford said 12. Commissioner Foushee asked about the reduction for the substitute teacher budget and how much has been spent so far and it was answered $400,000 so far. Commissioner Jacobs asked who CHCCS bought mulch from and Steve Scroggs said Orange County vendors because the County's mulch does not pass the playground certification standards. Commissioner Jacobs said that OCS is not budgeting an increase in electricity costs because of energy reduction. He asked why CHCCS was budgeting an increase. Superintendent Pedersen said that they started a program internally driven with the goal to reduce energy consumption by 20°~. This was started about three years ago, and the previous budgets were reduced. The savings have been factored in. The increases reflect rate increases of water, gas, and electricity. Commissioner Jacobs asked about the dollar amount of the fund balance and Superintendent Pedersen said $3.4 million. One factor is that they need 5.5% to meet the payroll in the fall months. Chair Carey applauded CHCCS for using a committee approach to identify potential cuts. He asked about the online survey and if all responses {from parents and staff} were weighted equally. He said that the OCS potential cuts started with the administrative and Central office and then programs. He said that, looking at CHCCS potential cuts, especially on Table 4, it was just the opposite. He said that he did not see a single Central office position on the list. Superintendent Pedersen said that they included every recommendation that was made as a potential area for reduction. No one suggested that specific positions at the Central office be reduced. Lisa Stuckey said that she served on the committee and the committee members were given index cards to provide suggestions and there was no general conversation. Everyone was asked to provide any suggestion. There were about 400 suggestions, and it was not a guided process. Commissioner Jacobs said that this is his 9t" budget and he thinks that these are the two finest school boards that he has worked with. He thanked them for sharing the budget drivers. He said that he was struck last night at the public hearing that the parents have been sent into a panic. He said that the County Commissioners were pretty upset when they read Budget Bulletin, Issue 2 of May 2007, which leads off with the sentence, "The Board of County Commissioners directed the new County Manager, Laura Blackmon, to prepare a budget that would not require a tax increase to support the operating budgets of the County and the two school systems." He said that the way that one might read this is that the County Commissioners are telling the Manager not to support the schools. He thinks that there is a perpetual problem that parents are thrown annually into these kinds of anxieties, partially because of statements like this. He suggested that the school collaboration group work on changing the budget process and ask the school collaboration group to work with the superintendents and the boards to get away from this. He wants to make the budget process the best it can be with the least anxiety produced and with the most honesty. There can still be disagreement, but he hates seeing people who care so much about their children and education in the community thrown into such a level of anxiety, when the County Commissioners are going to do the best they can. Parents need to be assured and not alarmed. He said that, since it is unlikely they will fully fund both school budgets, and it may also be like this next year, he would like to ask both school boards to consider setting up some mechanism so that a parent who really believes in full funding of the budget can calculate the difference between what the County Commissioners adopt and what full funding would be, and be able to contribute it to the school system of their choice. He thinks that some of the parents are serious in giving the money to the school systems. If the County Commissioners do not tax them, it is not given. He honestly thinks that some parents would welcome the opportunity to contribute. Commissioner Gordon thanked both school boards and staff for their presentations. She recognized that both school boards went on record in supporting a tax increase. She said that this is a historic event. She said that she is committed to seeing if there is some way to increase funding to the schools over what the Manager proposed for the schools. She said that she would like the Manager to address the BOCC guidelines for budgeting the lottery in arrears so that if the state does allocate funding from the lottery, then it can be given this year to the schools for capital expenses. Chair Carey said that he has been around for 23 budgets, and the County Commissioners always do the best that they can. He agreed that the anxiety of the parents has been raised beyond anything he has ever seen. He thinks that the nature of the language could be different, because the County Commissioners' history does not indicate the kind of catastrophe that many people believe might occur. A motion was made by Commissioner Nelson, seconded by Commissioner Jacobs to adjourn the meeting at 9:56 p.m. until Thursday, June 7, 2007 at 7:00 p.m. at the Link Government Services Center in Hillsborough, N.C. VOTE: UNANIMOUS Moses Carey, Jr., Chair Donna S. Baker, CMC Clerk to the Board