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Home My WebLink AboutAgenda - 02-20-2018 4-b - FY2018-19 Chapel Hill Carrboro City Schools (CHCCS) Continuation Budget ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 20, 2018 Action Agenda Item No. 4-b SUBJECT: FY2018-19 Chapel Hill Carrboro City Schools (CHCCS) Continuation Budget DEPARTMENT: County Manager ATTACHMENT(S): FY2018-19 CHCCS Preliminary Continuation Budget INFORMATION CONTACT: Bonnie Hammersley, 919-245-2300 Dr. Pam Baldwin, 919-967-8211 Ext. 28226 PURPOSE: To receive an update on the current continuation budget projections for the FY2018-19 Chapel Hill Carrboro City Schools budget. BACKGROUND: During the last collaboration meeting of the three Boards, Chapel Hill Carrboro City Schools requested the opportunity to appear before the Board of County Commissioners prior to the official start of the budget process. The request is an effort to be transparent with information early in the process so that the Board of County Commissioners is aware of the current reality in Chapel Hill Carrboro City Schools. The estimated local cost for potential state mandates is $3,057,231. This represents the estimated amount of funding needed to maintain the current educational services, programming, and staff. FINANCIAL IMPACT: There is no immediate financial impact related to this presentation. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ENABLE FULL CIVIC PARTICIPATION Ensure that Orange County residents are able to engage government through voting and volunteering by eliminating disparities in participation and barriers to participation. RECOMMENDATION(S): The Manager recommends that the Board receive the presentation and provide any feedback. 1 Date: February 13, 2018 To: Bonnie Hammersley, Orange County Manager From: Pam Baldwin, Superintendent Re: 2018-19 Preliminary Continuation Budget Each year the district prepares a continuation budget estimate to begin the budget development process. The continuation budget is an estimate of the additional funding needed to maintain our current educational services and programs. This estimate is based on the anticipated state salary increases and benefit cost increases that must be matched for locally paid employees. The continuation budget also includes estimated revenue increases as a result of student growth, special district tax inflation, and other miscellaneous revenue growth. We anticipate receiving our official state enrollment projection from the Department of Public Instruction by the end of February. At this time our continuation budget is based off the same growth as the state projected last year of 109 additional students. We project a $777,460 increase in local revenues from student growth and the special district tax inflation. We also project a $175,000 increase from all of the other revenue sources. A placeholder amount has been included in the preliminary budget for a 6.9% state pay raise for certified staff and a $1,000 increase of all other staff. This placeholder will also support the district meeting Orange County’s living wage goals for all of our employees. We have also projected increases in the state retirement employer match rate as well as in the health insurance rate. In total the estimated local cost for these potential state mandates is $3,057,231. This represents the estimated amount of funding needed to maintain our current educational services, programming, and staff. District schools and central offices submitted budget requests as part of our budget development process. Over $3 million was requested by school improvement teams and district administrators to support unfunded educational needs of our students. Over the next two months, these requests will be prioritized and may be included in the Board’s budget request to the Board of Orange County Commissioners. . District administration will make a brief presentation and be available for questions. 2 FY18 FY19 DIFFERENCE PROJECTED ENROLLMENT 12,239 12,348 109 CHARTER SCHOOL Funded 162 162 ‐ Less: Out‐of‐District Estimate (241) (242) (1) TOTAL STUDENT BILLING BASE 12,160 12,268 108 Revenue at FY 2018 per pupil ($3,991)48,530,521$ 48,961,588$ 431,067$ County Appropriation 48,530,521$ 48,961,588$ 431,067$ Special District Tax 23,092,849 23,439,242 346,393 Prior Year District Tax 125,000 125,000 ‐ Tuition670,000 670,000 ‐ Fines & Forfeitures 330,000 330,000 ‐ Interest Earnings on Investments 25,000 50,000 25,000 Other Local Revenues 2,600,000 2,750,000 150,000 Total Local Revenue 75,373,370$ 76,325,830$ 952,460 Fund Balance Appropriation 1,000,000 1,000,000 Local Operating Expenses 75,373,370 76,023,568 Total Local Budget 76,373,370$ 77,023,568$ State Mandated Increases (estimate)3,057,231$ Estimated Funding Gap (2,104,771)$ *Projected student enrollment based on DPI estimate from 16‐17 to 17‐18. CHAPEL HILL CARRBORO CITY SCHOOLS BUDGET UPDATE 2018‐19 SCHOOL YEAR 3 2018-2019 Enrollment Projection 12,348 2017-18 DPI Student Enrollment Projection 12,239 Projected Student Enrollment Growth109 Add: Projected Charter Students162 Less: Out-of-District Students242 TOTAL STUDENT BILLING BASE12,268 LOCAL FUND EXPENSES: State/Federal Mandates Amount Potential State pay raises: 6.9% Teacher Pay raise - base pay including benefits1,488,731$ $1000 Pay Raise for all other Locally-paid employees ( incl. benefits, supplements, PFP)857,000 Increase in employer state retirement match from 17.13% to 18.44% 500,000 Increase in employer health insurance match from $5,984 to $6,104;currently budget at $5869 211,500 Subtotal 3,057,231$ TOTAL CONTINUATION REQUESTS3,057,231$ Priority Expansion Requests Total of Operating Budget Requests from Schools 2,070,750$ Total of Operating Budget Requests from Administrative Offices 1,079,506 TOTAL EXPANSION REQUESTS3,150,256$ GRAND TOTAL OF CONTINUATION AND EXPANSION REQUESTS6,207,487$ LESS PROJECTED LOCAL FUND REVENUE INCREASES: County Appropriation for student growth (108 x $3,991)431,067$ 1.5% Inflationary increase in Special District Tax Revenue 346,393 Net Change in all other Local Revenues - estimate 175,000 GRAND TOTAL - REVENUES952,460$ BUDGET EXCESS/(DEFICIT)(5,255,027)$ CHAPEL HILL - CARRBORO CITY SCHOOLS 2018-2019 CONTINUATION/EXPANSION BUDGET REQUEST The ad valorem tax rate for 2017-18 generates $1,781,692 per $.01 increase. The district receives 60% of the revenue increase or $1,069,015. A 4.91 cents tax rate would be required to fund the $5,255,027 shortfall or a $428 per pupil increase. PRELIMINARY 4