HomeMy WebLinkAboutAgenda - 10-17-1995 - IX-C 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 17 , 1995
SUBJECT: Equity Funding in the Recurring Capital Budget for the
Two School Systems in Orange County
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DEPARTMENT County Manager PUBLIC HEARING YES NO X
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ATTACHMENT(S) INFORMATION CONTACTS
None Commissioner Gordon, 933-0550
County Manager, ext 2300
TELEPHONE NUMBER
Hillsborough 732-8181
Chapel Hill 968-4501
Mebane 227-2031
Durham 688-7331
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PURPOSE: To consider revising the method by which recurring capital
funds are allocated in the two school systems.
BACKGROUND: For a number of years, each school system has received
$750 , 000 per year to use for recurring capital needs . The source for
the $1 . 5 million appropriation has been the county property tax
revenue. During the budget discussions held in June, 1995 , the
Commissioners agreed that it was appropriate to discuss allocation of
recurring capital funds during the next budget cycle.
During those 1995 budget deliberations, Commissioner Gordon suggested
that in the future these funds should be allocated on a per pupil
basis. She noted that, although such an equity adjustment would be
made by using a per pupil formula, it is of some interest to note the
number of school buildings in the two systems. Counting construction
currently underway, there are 12 school buildings in the CHCCS system
( 60%) and 8 in the OCS system ( 40%) . It is also relevant to note that
the total square footage of the schools is divided in a similar
fashion, with the square footage of the OCS system being 822, 929 (or
41% of the total ) and for the CHCCS system, 952 , 766 square feet (or 59%
of the total ) .
During the 1995 budget deliberations, Commissioner Gordon suggested two
possible options as a way to begin the discussion. If Method I were to
be used, the total dollar amount for the recurring capital budget would
be unchanged. If Method II were to be used, the Orange County Schools
would be held harmless since they would receive the same amount as in
previous years.
2
( 1 ) Equity funding in the recurring capital budget - Method I _
Reallocation within current budget of $1 . 5 million
If the current recurring capital budget is allocated on a per pupil
basis, then the Chapel Hill-Carrboro City Schools (CHCCS) would receive
58 . 3 percent of $1 . 5 million and the Orange County Schools (OCS) would
receive 41 . 7 percent. Thus the new allocation would be $874 , 500 in
recurring capital for CHCCS and $625 , 500 for OCS, instead of the old
formula of $750, 000 for each.
( 2 ) Equity funding in the recurring capital budget - Method II -
Increased budget (More than $1 . 5 million)
If the recurring capital budget is allocated on a per pupil basis and
the budget is increased to continue funding of the Orange County
Schools at the rate of $750 , 000 per year, then the amount for the
Chapel Hill-Carrboro Schools would need to be increased.
RECOMMENDATION: The Manager recommends that the Board of
Commissioners :
1 ) endorse the concept of equity funding in the recurring capital
budget and approve allocation of those funds on a per pupil basis;
2 ) revise the policy for appropriating recurring capital to the Schools
using Method II;
3 ) thereby hold harmless the Orange County Schools and appropriate
additional revenue annually to the Chapel Hill-Carrboro City Schools
based on average daily membership; and
4) fund the additional appropriation from sales tax revenue rather than
property tax revenue.
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