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HomeMy WebLinkAboutMinutes 09-26-2013 APPROVED 11/19/2013 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS CHAPEL HILL-CARRBORO BOARD OF EDUCATION ORANGE COUNTY BOARD OF EDUCATION JOINT MEETING September 26, 2013 The Orange County Board of Commissioners met for a joint session with the Chapel Hill—Carrboro Board of Education and the Orange County Board of Education on Thursday, September 26, 2013 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, N.C. COUNTY COMMISSIONERS PRESENT: Chair Barry Jacobs and Commissioners Alice M. Gordon, Mark Dorosin, Bernadette Pelissier, Renee Price, Earl McKee, and Penny Rich COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: Interim County Manager Michael Talbert, Assistant County Managers Clarence Grier and Cheryl Young, and Clerk to the Board Donna S. Baker (All other staff members will be identified appropriately below) ORANGE COUNTY BOARD OF EDUCATION MEMBERS PRESENT: Chair Donna Coffey and Board Members Steve Halkiotis, Tony McKnight, Debbie Piscitelli, and Lawrence Sanders. Interim Superintendent Del Burns was also present. ORANGE COUNTY BOARD OF EDUCATION MEMBERS ABSENT: Brenda Stephens, Anne Medenbleck, CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS PRESENT: Chair Michelle Brownstein and Board Members Mia Burroughs, James Barrett, Jamezetta Bedford and Annetta Streater. CHAPEL HILL-CARRBORO CITY SCHOOL BOARD OF EDUCATION MEMBERS ABSENT: Gregory McElveen, Mike Kelly Chair Jacobs said he would like to add the following item to the agenda for the Board of County Commissioners: Resolution Honoring Frank Clifton on his retirement. ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION RECOGNIZING FRANK CLIFTON FOR SERVICE TO ORANGE COUNTY WHEREAS, Frank Clifton served for four years as Manager of Orange County and has filled similar administrative positions in government in Florida, Tennessee, and several counties in North Carolina; and WHEREAS, Frank Clifton helped lead Orange County through an extended period of national economic turmoil when fiscal discipline, efficient operations, and creative adjustments were the primary means of protecting the county's financial welfare and staying on track to pursue its policy goals; and WHEREAS, Frank Clifton worked with commissioners and staff to improve the fiscal standing and long-term financial health of Orange County government; and WHEREAS, Frank Clifton helped to improve the county's economic development efforts, including the successful passage of a quarter-cent sales tax partially devoted to economic development, funding instrumental in providing infrastructure that resulted in the location of the Morinaga Company in western Orange County; and WHEREAS, Frank Clifton worked devotedly to promote policies and practices he believed were essential to the well-being of Orange County; and WHEREAS, public service requires a level of dedication, responsiveness, training, and hard work that is to be admired and saluted. NOW, THEREFORE, BE IT RESOLVED that the Orange County Board of Commissioners, the county staff, and the residents of Orange County do hereby express our appreciation and respect for Frank Clifton for his service and leadership, and wish him well as he retires and moves on to other endeavors. This the 26th day of September 2013 A motion was made by Commissioner Rich, seconded by Commissioner Price to add this item to the agenda and to adopt the resolution. VOTE: UNANIMOUS 1. Welcome and Opening Remarks —CHCCS Chair Brownstein, OCS Chair Coffey and Chair Jacobs Chair Brownstein said collaboration has been good. She said she is happy to see relationships being built in order to help all the students in Orange County. Chair Coffey said the same, and she expressed appreciation for all that the Board of County Commissioners does for both schools. Chair Jacobs said that one of the fruitful consequences of the merger discussions is that the three boards began meeting to talk about issues of common concern. He said the meeting agenda has become a collaborative effort. 2. Overview and Presentation by Davenport and Company, LLC on Orange County's Financial Status and Debt Capacity Chair Jacobs said the Board has seen this at the collaboration meetings and it is an illuminating report. Clarence Grier said this company helps with many of the County's financial and bond issues. He reviewed the County's bond ratings and other background information from the abstract. He said this report will provide an overview of the County's debt. He introduced Ted Cole, Sr. Vice President and Robert High, First Vice President from Davenport and Company, LLC. Ted Cole said this report outlines where the County stands with regard to Debt Capacity and Debt Affordability. He noted that the most current capital program and CIP for the schools has been added as a reference and is located in the final pages of the booklet. He reviewed the following highlights from the Discussion Materials Booklet included in the abstract: Page 5 - Existing Tax Supported Debt—All County debt is fixed rate. He noted that debt related to utilities, landfill and the Sportsplex are not included. He noted the current total outstanding debt is $190,958,159. He said payments go down every year moving forward and if nothing is done, all existing debt would be retired by fiscal year (FY) 2033. He noted the reduction in annual payments each year and said this is how the County can begin to afford new debt for new projects moving forward. Page 6 - Key Debt Ratio: Tax Supported Payout Ratio— He noted that the County is amortizing debt quickly. Commissioner Gordon asked for the definition of back loading debt. Ted Cole said this is when principal is pushed to the back end of the loan. Page 7 - Debt Per Capita— He said the County is at$1400 per person, and this ratio will come down as years pass. Page 8— Key Debt Ratio: Debt to Assessed Value— He said this is the amount of debt outstanding, as it relates to the County's tax base. He said the County has a policy in place to cap this ratio at 3 percent, and the current ratio is well below that number. He said the ratio on the top left of this page illustrates where there is a capacity to take on additional debt. Page 9 - Debt Service vs. Expenditures—This illustrates how much county money is going toward debt. This number is capped at 15 percent. He said Orange County is much closer to that policy at 14 percent. He said this is a ratio where there is less capacity as it relates to taking on new or additional debt. Page 10- Decline in Tax Supported Debt Service— He said this shows the decline in debt service is tied into the 10 year debt payout ratio. Page 11 — Debt Affordability Analysis— He said the county has budgeted for pay as you go capital. He said column f shows total debt service going forward. He said column g assumes that same $25 million per year in appropriation, and column h assumes $4.3 million per year in pay-as-you-go cash. Page 13— Capital Improvement Program (Years 1-5) — He said the funds usage is addressed at the top of the chart in lines 5-7 and totals $129 million. He said the rest of the table outlines where the dollars come from. He said the green bar shows $94 million in debt to be issued to satisfy a portion of the County capital needs. He said there is an expectation that some of this will be paid with cash. Page 14—Existing and Proposed Tax Supported Debt— He noted this is a 20 year term with a 5% interest rate, and he said these are debt issuance assumptions. Pages 15-16 - Key Debt Ratios— He said the County will maintain stated policies. He said the take-away is that the capital program is doable over the next 5 years with the listed assumptions. Page 17 - Debt Affordability Analysis— He said this looks at how the County pays for their debt. He said column b is the debt that is on the books today; column c is the projected new debt service for the capital program; and column d is pay as you go capital. He said column f would become the new debt schedule if the County were to implement the entire capital plan. He said the affordability depends on the equivalent of a 2.81 cent incremental tax effect, as shown in column o. Page 19- Future Debt Capacity— He said this shows the County's additional debt capacity beyond the 2018 fiscal year, for years 2019-2023. This page looks at the available debt capacity if the County were to fund the CIP. He said that there will be an additional $120 million debt capacity that could be issued while still maintaining compliance with policies and debt affordability. Page 20 — Future Debt Affordability—This shows that the cash flow is there. Page 21 - Potential Impacts on Future Debt Capacity— He said credit is a large factor, and maintaining good credit insures the lowest cost of capital. Page 23 - Observations— He said the County has managed its finances well and has excellent policies. He said the question is where the additional resources will come from to help pay for new debt service. Clarence Grier said staff goes through this exercise each time a credit package is created and debt is issued. He noted projects in the current capital plan include the Culbreth Middle School science wing addition, as well as a couple of other school projects. Chair Jacobs introduced Michael Talbert as the Interim County Manager. Robert High noted that the debt affordability chart does not include operational increases in the plan. This is noted throughout the book and will be a drain on growth increases. Commissioner Price asked what happens in years 2026-28 where the numbers appear to fluctuate. She reference page 11 and noted that the total in column f goes up. Ted Cole said this is tied to the existing debt. He said the annual payments are going down from one year to the next. He said there is a year in 2027 where the debt structure causes the number to go up. He said all of the debt matures at different years, and that is why this number dips and wanes. Chair Jacobs referred to page 13, and he noted that this includes 4 out of 5 years not approved by the County Commissioners. Clarence Grier said the County approves the structure every year, but as the current CIP stands the County has $76 million over the next 5 years. Chair Jacobs said the Board had talked about aligning the three CIPs so each would use the same language and the same projections. He said this has been identified as a source of confusion in the last budget year. Chair Brownstein said this is especially true with the unfunded categories. She said there needs to be a consensus as to where to put large ticket items that are not funded. She said each entity has a different definition for these. Commissioner Gordon asked how this is reflected on page 13. Clarence Grier said the unfunded projects are not listed in this document. He said there needs to be discussion in the future about what is unfunded and how these items will be funded. He said he provided a sheet that gives the funding over the last 25 years and included the long term capital. He said the average of this for both school districts over the last 5 years has been roughly $5 million. He said that any project unfunded over that amount would be considered unfunded. He said the Board and school boards need to find a happy medium. Chair Coffey said that OCS considers any item that cannot be paid for with pay as you go funds to be an unfunded item. She said pay as you go money is maintenance money, and all big ticket items are unfunded. Clarence Grier said that is the benchmark that would most likely be used. He said these items would have to be financed, with consideration of the debt capacity. Chair Coffey asked what the equivalent of$1 million in debt would be in debt service. Clarence Grier said this would be $80,000-$100,000. Chair Brownstein said the threshold needs to be defined as to what is unfunded. She said this clarity is needed before next budget process. Clarence Grier said there is a monthly meeting of superintendents and managers, and this will be discussed at that time. Chair Coffey said it would be good for the school collaboration group to hear this discussion. Commissioner Gordon asked if each of the boards will get the same template to use for the budget process. Clarence Grier said yes. 3. Proposed County Jail and Chapel Hill — Carrboro City Schools Middle School #5 Discussion Chair Jacobs said these are the two biggest ticket items on the horizon. He said that these needs must be defined to have starting parameters for a possible bond in 2014. Clarence Grier said the state has given the county a 50 year land lease for the new county jail facility. He said the jail will cost approximately $30 million and house 250 prisoners. He said construction will begin in 2015, with completion by 2017. The state has given the county 5 years to complete the project. Clarence Grier said the Culbreth science wing has been approved to alleviate overcrowding. He said this pushes out the need for a 5th Chapel Hill/Carrboro middle school by two years. He said the project will be completed in years 2017-2020, and the cost is projected to be $43 million. He said the total of these two projects is $74 million. He said there are no projects for Orange County Schools addressed here, and there is a possible need for an 8th elementary school in Orange County. He said the debt service for the two big items, measured over 20 years, is $4.9 million with 3 cents on the tax rate. Chair Coffey said DPI projected that Orange County Schools would grow by 82 students this year. She said there were already 186 new students as of the 10th day of school. She said the bulk of this has come at the high school level. She said the County is already over 100% at the high school level, which means that this number will be bumping up to 110% over the next couple of years. She asked for some consideration of how far the 500 student addition will go at Cedar Ridge, versus a 1200 student high school. She said the cost effectiveness needs to be considered. She encouraged the Board to consider the new facilities needed by Orange County schools as bonds are being discussed. Chair Brownstein said the other piece to this is the need to address the issue of older schools and the need for new construction. She feels that this issue must be addressed. Commissioner Gordon said there is a process in place to handle school growth, and that is the SAPFO process. She said the County gets new student enrollment numbers in the fall, and these are reviewed by the technical committee. She said projections of growth are not the problem; however the funding of growth is another question. She said that if a bond were initiated, this would involve a bond committee and a process. Chair Jacobs said this is a discussion about two different things— 1) projections 2) two large projects as the impetus for when the Board would make a decision about a bond. He said this grows into the question of other perceived needs of the older schools and whether these would be addressed with a bond or not. He noted that the jail is a pressing item as this land is leased and must be used by a certain date. Commissioner Dorosin asked for clarification of the state law for paying off bonds for jails. Clarence Grier said the time frame is 20 years for any bond. Commissioner Price said she does not feel that there has been a good analysis on Orange County Schools yet. She would not want to move forward on a bond without this analysis. Chair Jacobs said no one is proposing that only these two items be put on the bond issue. These items are just the impetus for making a decision. He said if the Board decided to go forward with a bond, a bond committee would be formed to vet out these questions. Chair Brownstein said the middle school and OCS needs can be affected directly by these decisions, and any bond may need to include these other issues. Chair Jacobs said the next item will address this. Commissioner McKee said he also wants to make sure all needs are considered. He said this is just the beginning of the process and a bond referendum is likely a year out or more. He noted that new school and old school needs are bumping up against each other as Orange County expands. Mia Burroughs said the old schools are very spread out in both districts, and this will affect when and where a bond will be needed. She said there needs to be some thought regarding what will be appealing to voters county-wide. Commissioner Dorosin asked for clarification on the jail timeline and outside constraints for the building of the jail. Michael Talbert said the lease has been signed, and the County has 5 years from that date. He said construction needs to be underway by year 4 in order to show intent. Commissioner Dorosin asked for the latest date that a bond could be issued to pay for this. Michael Talbert said the discussion of a bond referendum allows an 8 year window to issue debt. Commissioner Dorosin asked when the referendum is needed. Michael Talbert said he recommends the County would need funding by 2016-17, and a bond referendum would be needed 6-9 months before that date. Clarence Grier said the latest date would be November 16, 2014 for that schedule. Chair Jacobs said there has been no discussion or decision of what kind of jail the County would want, or when the old jail would close. This item is here to give guidance on when the County has to act. Commissioner Pelissier said none of the debt capacity included operational costs. She said the sticker price for a new school can be shocking with the inclusion of operation costs. She said it is important to consider this and present the total budget accurately to the public. Commissioner Rich asked if both a school and jail bond would be issued at the same time or separately. She said a bond for a jail could be a hard sell. Bond Attorney Bob Jessup said the program items for the bond have to be presented separately. He said all school projects could be in one item, but he jail would have to be presented separately. Commissioner Rich asked if the voters would still vote on one bond. Bob Jessup said the voters would vote separately for each item on the referendum. Commissioner Price said the packet states that a bond is proposed for 2014. She said the full picture hasn't been considered yet, and she questioned the timeline projected for these items. Chair Brownstein said it sounds as if there are two separate conversations. She said the school districts are trying to work collaboratively on this bond issue to provide incredible detail about the proposed needs and how to address them. She said the jail conversation seems to be in a different place. Commissioner Price said she brings these items up this way because of the joint listing on the agenda. She said she is not contesting the need for a bond, but she wonders about the timeline. Chair Jacobs said that is still to be determined, partially by the next item. He suggested moving forward to the next discussion. 4. Summary of Ongoing Assessments and Estimates Related to Older Buildings and Facilities for Both School Districts Clarence Grier said there was discussion during the collaboration meeting regarding the need to address repairs and updates to older schools. He said CHCCS recently had an assessment and analysis of their older schools. He said the low end figure for limited repair was quoted at $52 million and goes up to $170 million. He said $43 million of that high figure is for middle school number 5. He said that OCS has just started the process and does not have a firm number. He said the ADM projects a low end figure of$20 million and a high end figure of$68 million. He said this means the figure for both school systems ranges from $110 million to $230 million. He said this figure is well over the general funds budget and it should be noted that the need to address repairs of old schools is outside of the CIP. He said these needs must be addressed in future years. Chair Brownstein asked for clarification on whether the range for both school districts includes any new schools. Clarence Grier said middle school #5 was included. Chair Brownstein said that is not included. She said this only includes analysis of the 10 older schools for CHCCS. She said this analysis is being done in tandem with Orange County who has 13 older schools. Chair Jacobs suggested the superintendents provide an overview of the information from CHCCS and OCS. He said there is no way with the current budget that these expenses could be swallowed with one bond issue. He said this would have to be staged with a series of bonds to cover all of the older school needs. CHCCS Superintendent Forcella said their next step is to look at the proposal and options for their older schools in order to prioritize the most important needs. Chair Brownstein said the sense of urgency is part of the challenge, and the districts are working together in trying to address some safety issues. She said some are glaring needs that cannot wait. Todd LoFrese said phase I of the analysis of their 10 older schools validated that there are significant needs that include: HVAC systems, air quality issues, safety code issues, handicap accessibility needs, electrical systems, plumbing systems, and general structural maintenance issues. He said details are included in the packet. He said staff is working through possible approaches that may include renovations, or complete deconstruction for facilities that have exceeded their useful life. He said that some of this work could push off the need for new schools. He said the need is approaching $200 million at the older schools, and this does not include middle school number 5. He said the second phase will be to work directly with building staff to narrow in and make recommendations on a specific basis at each campus. He said three basic options have been laid out at each school. Chair Brownstein said when the numbers for the next ten years were considered, it became apparent that the band aid approach is not working. Todd LoFrese said the CIP puts forward $20 million over the next ten years toward all of the schools, and this is about$100,000 per year for each school. He said this will not go very far. He said even the newer schools are entering into the age where HVAC and roofing needs are common. Commissioner Dorosin mentioned the reference to Lincoln Center on page 36. He noted the mention of this being turned back into a school and asked for more information. Todd LoFrese said this is still a very preliminary discussion. He said one option is to just renovate this building and use it as a central office. He said the other option is to deconstruct it and build a new central office; and the third option is to return Lincoln Center to some type of community use and build a new central office at a different location. Commissioner Dorosin said he appreciates the potential for increased capacity with upgrades, and he wonders if this can be prioritized. He said the next school needed will be the middle school. He asked if there is a way to put more money into maximizing the increased capacity to push the need for the next middle school out even further. Commissioner Pelissier asked if OCS study will incorporate the issue of Pre-K classrooms. She wants to make sure that this is looked at. Todd Lofrese said two of the options have presented the idea of coming in line with the Orange County construction standards, to include a dedicated Pre-K site. Commissioner Price asked if staff anticipates that any of the schools would need to be deconstructed and re-built. Todd Lofrese said one portion of Chapel Hill High School may require this. He said other options at Estes Hills do remove some existing buildings and replace them with others. He said the approach would depend on the campus. Commissioner Price asked if there is any goal to get rid of trailers in both systems. Todd LoFrese said this is part of the recommendation. He said the HVAC and flooring in the mobile units already need to be replaced. Commissioner Gordon referred to the square footage information on pages 9 and 36 of the presentation. She noted the differences in the various schools in the number of square feet per student. She asked how the calculation is made to determine how many students get added to the capacity of the building when additional square footage is constructed. Todd LoFrese said each school is unique and has to be looked at individually. He said there were some things that were assumed to be fixed. He said realistically it does not make sense to tear a wing down if it is in good shape and is only 200 square feet under the standard. He said core capacities, such as cafeterias and gymnasiums, are a big consideration. These must be large enough to handle increased capacity. He said the impact of capacity on programming and teams within the schools also has to be considered. Commissioner Gordon said at some point the rooms are just too small to serve the needed purpose. She said she assumes this would be looked at in another level of analysis. OCS Interim Superintendent Burns referred to the timeline for the OCS approach, outlined on page 41. He said there have been three steps, which included: 1. Working with DPI on an assessment of older facilities; 2. Contracting with Safe Haven for a comprehensive review of buildings to look at facility safety needs and risk management practices; and 3. Approval of a complete facilities assessment. He said the timeline for this third step estimates the results will be back in January, 2014 for presentation to the Board of Education. Chair Brownstein said this has been a wonderful collaboration between the two school systems. Jamezetta Bedford said has been looking at the number. She wants the Board of County Commissioners to think about the fact that the CIP has been reduced, and the older schools have been deferred. She said the schools are facing what the County faced 10 or 15 years ago in terms of facility needs. ` She said there needs to be a conversation with the citizens about this. She said there needs to be discussion before moving forward with buildings, parks and other programs when the current schools cannot be maintained. She said there are serious issues, and there needs to be criteria and a long range plan to evaluate these older schools. Michael Talbert said the current outstanding debt is $190 million, and these proposals would double that debt in a short period of time. He said there are limits to what can be done, and the debt has to grow in proportion to the budget and the population. He said a 25 year plan is not realistic, as things will change. He said the two projects that started the discussion are both in the CIP. He said this discussion is about adding additional projects and there will have to be some give and take, as the County cannot afford to do it all. Chair Coffey clarified that the County will do the first two items without a bond referendum but these projects will be debt financed. Michael Talbert said yes. Chair Jacobs said financing a jail through existing mechanisms is better than a bond. He said the County will need to be strategic in this process. Chair Jacobs said reports from the boards should be back by April, and the options can be laid out and compared. Chair Jacobs said both school systems wanted to put this before everyone to see the task that lies ahead. 5. Possible Bond Issuance for November 2014 Clarence Grier said dates were discussed at the collaboration meeting, and May 2014 was too soon. He said the focus is on November 2014, and the amount discussed was $100 million. He said the two projects total $76 million, which leaves $24 million left for other debt issuance. He said the latest possible date would be November 2016. Chair Jacobs said there is no assumption; the Board is just getting information on the bond process. Commissioner Gordon said the Board has not had a general discussion of this, and there needs to be clarification that all that is being discussed tonight is the possibility of a bond issuance. Chair Brownstein clarified that the mention of November 2016 was in the context of the jail. She asked if the date piece is still fluid. She said there will be a sense of urgency as more details come forth about level of need. She said 2016 is too late to address school needs. Clarence Grier said staff will start prioritizing issues now, but no decisions are made yet. Bob Jessup said there is a formal timeline to get a referendum called. He said there are formal steps that must be taken by Board of County Commissioners in January for a May referendum, and in June for a November referendum. He said the second issue is that a bond referendum must happen on a regular election day. He said the voters vote once, but the money is borrowed and issued over a multi-year period. He said the last point is that the voters vote on separate generic questions regarding specific dollar amounts for separate generic projects. He said it is up to Board of County Commissioners to determine when that money is borrowed and what specific projects it is used for. He noted that priorities may evolve over time and use of the dollars may be changed. He said there would be one figure proposed to cover both schools Commissioner Gordon referred to Bob Jessup's comment regarding priorities and money usage changing after a bond referendum was passed. She said the County has always estimated funding per project and spent the money on those projects. She has always felt that the Board of County Commissioners had an obligation to follow through on what was proposed. She asked for more information on this issue. Bob Jessup said the law says the voters approve whatever the question is, such as "bonds for schools". He said voters are told where the dollar figure comes from, but the control of how the money is borrowed comes back to the Commissioners. Commissioner Gordon said it should not be easy to deviate from proposed purposes that the voters approved. She said there would need to be a compelling reason to do this. Steve Halkiotis said he is puzzled. He said the packet tonight references past bonds with specific designations for the use of the money. He agreed with Commissioner Gordon. Bob Jessup said he is just informing them of their legal authority. He said the decision is still up to the Board. Chair Jacobs noted that there are 8 school board members and 5 Commissioners who have not gone through a bond, and he said this is a helpful discussion. He said what the voters vote on based on educational efforts is what the elected officials feel committed to doing. He said this is only deviated from for extenuating circumstances and changes should be well explained. Chair Brownstein said what the boards are working toward is unprecedented in terms of the level of detail and the campaign to educate the public. She said the focus is on the older schools now, versus building new buildings. Chair Jacobs said he does not feel that impact of Newtown can be underestimated in terms of looking at the older schools. He said that safety issues have forced school systems to look comprehensively at all of their facilities. Chair Jacobs noted that the Board of County Commissioners discussion on bonds will continue at a work session on October 8th 6. Update on Legislative Actions Affecting Funding for Public Education (NC Schools Boards Association and Others) Chair Jacobs said there is no presentation in their packets. He asked for an update on the effects of the legislature's actions. Chair Coffey said Superintendent Burns could share some preliminary information. OCS Interim Superintendent Burns said the final presentation of the adopted budget will occur at the October 14th Board of Education Meeting. He said the analysis at this point shows a positive impact on revenue due to the growth of Orange County Schools. He noted the projected change of 81 students, which allowed for an additional $400,000 in state revenue. He said this was a good thing, though there was still a reduction in state revenue. He said the net is over$100,000 less, even with the growth. He said there has been a net reduction in the federal allotment. He said the generosity of the Board made a big difference in mitigating the impact of the stimulus money that was lost. He said the Board has made hard decisions to reduce recurring funding, and this has made an impact. He said there will be a fund balance appropriation of$900,000 to balance the budget and there will be adjustments made in the state budget. He said there will not be a reduction in force for teachers, teacher's assistants (TA's), or programs. Chair Brownstein said the schools are very lucky to have such a supportive Board of County Commissioners. Superintendent Tom Forcella said CHCCS is in a position where things are still moving to the bottom of the barrel. He said the schools have been able to maintain the TA positions, but there are some difficult times ahead. Todd LoFrese said the discretionary reduction in the General Assembly (GA) was thought to be temporary; but this June the GA eliminated discretionary reduction and then reduced funding for teachers and TAs. He said CHCCS got less money from the state this year than last year. He said this is the last year that CHCCS has a fund balance left. He noted that teachers' salaries have been reduced. Commissioner Dorosin asked if there are salary supplements for teachers. He noted that it takes NC teachers up to 16 years to work up to the starting salary in other states. Todd LoFrese said CHCCS does pay a 12% supplement in addition to salary; however this still does not compete with other states. Commissioner Dorosin said it is good that impacts have been softened by wise budgeting and increased enrollment, but it is a mistake not to be very aware that the legislature has declared war on education. He said there has been a devaluation of teaching as a profession. He noted the increase in charter schools and the voucher systems, and he said Orange County needs to recognize the situation and take a stand. Chair Jacobs said funding education was a commitment of the Board of County Commissioners when he came on board 15 years ago. He said it was also a priority of the citizens, and it still is. He said he is proud to be a part of that commitment. 7. Pre-K Discussion Chair Jacobs said the capital needs discussion took priority at the joint school collaboration meetings, so there has not been adequate time to discuss this issue in depth yet. Commissioner Dorosin noted that Orange County serves 240 Pre-k children, and there are at least 140 at risk children on a waiting list. He said there is a real need out there. 8. Whitted Building Permanent Meeting Room Update Chair Jacobs said the Board of County Commissioners has not adopted anything yet. He said the Board still wanted to bring this forth, since there have been misconceptions about the usage of this room by other governmental entities. He said this is proceeding on a schedule that would have the Board reach a decision by the end of this year as to whether or not to proceed. Jeff Thompson presented the location, background and schematic designs of the proposed Board of County Commissioners meeting room at Whitted. Commissioner McKee said Chapel Hill Carrboro School Board would be welcome to use the facility as well. With no further items to discuss, the meeting adjourned at 9:36 pm. Barry Jacobs, Chair Donna Baker Clerk to the Board