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HomeMy WebLinkAboutMinutes 05-12-2022 Work Session 1 APPROVED 6/21/22 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION May 12, 2022 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Thursday, May 12, 2022 at 7:00 p.m. COUNTY COMMISSIONERS PRESENT: Chair Renee Price, Vice Chair Jamezetta Bedford, and Commissioners Amy Fowler, Sally Greene, Jean Hamilton, Earl McKee and Anna Richards COUNTY COMMISSIONERS ABSENT: None. COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: Deputy County Manager Travis Myren and Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below) Chair Price called the Board of County Commissioners meeting to order at 7:00 p.m. Chair Price welcomed everyone to the budget work session. Chair Price said the County Attorney, John Roberts, requested that a closed session be added to the end of the meeting. A motion was made by Commissioner McKee, seconded by Commissioner Fowler, to add a closed session at the end of the budget work session. VOTE: UNANIMOUS 1. FY 2022-23 Operating and FY 2022-32 CIP Budget Discussions, with Chapel Hill- Carrboro City Schools and Orange County Schools Dr. Nyah Hamlett, Superintendent of Chapel Hill-Carrboro City Schools, made the following presentation: Slide #1 X7 . ARMOORO 2 Slide #2 Keeplr equlr t tine center r t ct ri-or anal are message Developing a data drivEn culture ' based 1pres*ntagoeistrLat U�ng Orotegic pla raring io inform of - mo L ' Slide #3 StateCHCCS Leads the U.S. News&World R-2pGrrs 202:2 Best U.S.High Schools Our three traditimal high schools are ranked 41(East),t 2 (Chapel Plill),and 43(Carrboro)ortir of.29 high schools in the atrham Metro area.School&are ranked oixperfarmance on skate-reqtired tems�graduation,and how well &tt4ent&are prepared for collage_ f[Zrlyan-L Metro area:CHCCS, Chatham Durham,Granville, Grange, Person) ACT 02QLW Higlyest percentage f 48-4%)in \C for students meeting all four berkdur,r}s i English,Math Reading, Science).Wake r County was 3rd at 27.2%- 3 Slide #4 CHCCS Leads the State Dropout [date C HCCS Dropout fate Over Time CHCCS is in the 1.20 top 5 of all NC 0 districts for the 1'00 lowest dropout '1 0.80 rate. a �} The District's � dropout rate hays L. 0.40 �. 0 decreased from 0.20 0_96 in 2018-19 to 0_30 in 2020-21_ a.oa 2oiS-19 2oi-20 .,.:wo Slide #5 CHCCS Leads the Wciy Graduation [fake 2020-21 Graduation Fates LOO CHCCS had the 90 Fughest overall 9D graduation rate of these comparable s� distri-ets_ 4fl, 3 Q. How ever, there is 21 need for improvement l for Flack sttidents and HLCS 1iuhem WKI Ola" c w4« 5ttulents with mail 922 27.11 E42 9a.% Lei-&ab-111tii2s (S ). ■WW% 84.2 SM MO a7lo OISWO 74.7 71.4 MO C12 7SA a I�ua7 4 Jonathan Scott, Chief Financial Officer of Chapel Hill Carrboro City Schools, continued the presentation: Slide #6 Fiscal Year 2022-23 State Fun d-i rig Cufx�lkl}' thane a:e 350 ulUease5 a31kid ted ka CHM CUXteat level at Stake huldu�f.I'heze LS flo ifidieatiool that Elie held haen&ss status ul State fufl,d'u18 Lhak was u5 eiie€t siace theoo7aet at the Paludrn;c kill corn aue LLuS}'eat. FY:021-22 BLLdgetedADbi; 12,227 HeLd VP FY2021-22 40EhDayADA1-. 11,412�Ach-L "- Average Daily Meknbentdp{ADK i5 expected to decrease by785students relative to khe FY.0:1-22State r� allotted ADM; Estimated Enrollment 11,466 {LR55)Dka of Mt ict EnroUmRnt {::`?� w,» Charter S&uuL EnroLlnuant :05 NoiettedFY2022-29ADM ]1,542 Jonathan Scott said they expect a funding cut from the state of approximately $6,000 per student (for 785 students) due to the decrease in Average Daily Membership projections. He said that due to lower ADM projections, Chapel Hill-Carrboro City Schools will only receive about $1.1 million from the County Manager's recommended increase for schools. He said that the school system will have to use most of their share of the increase to cover the costs of mental health and social and emotional learning that the county gave a grant for in FY22. He said that cost is about $880,000 and will leave about $200,000 as an actual increase. Slide #7 Year - and s ■ u:.soo: Revefiue 1r0hY Skate}uf&ig SOLLICf'S LlaS okttpalzed local operating reventke gro-rth over dw pregious tine tisoal years NUMUK Ihisis Mah-dy d«e to Skate U7a77daked 5alafy �,NR a3)d L teEit rake LnLeeases Co«pLed INW) a "r"'w }�:�-�* SkWation in Local tkkndmg cywerklua past i 7J,i,IN 5evera]years L)raeaedif;�,two bul ek cyde5, kX9 TL-Ve ILUe5 have renrahIEd Lmd,a�11 wLth sGgLit adju5tniRntsdkke to ADM5hifk5 bet-e4n 5choa]distiicks naa !� IIJ- I A & 1 L`" � } r�. 5 Slide #8 Confinuatlon 2�k lnrlud■ -,c. 3rgri -kxxl Cra�l$�d SryrL� �Sk Inrlu&w•idm{m K)x- iCauvllna&s I Bu�.2rl 'lAAWO LooI Suppkmcnr _Jj�ho-etiaoChomI..Ch7 and GaaaLOM salaa,'rr3usm W5.1)4 FYI,CS dl t hi•and Yam: j 2.ik hn"K-bc triad and cLarumd rl. rr ms 190" Erw...Drllrrmrnr'".` kc-Luj ITSMii Les rnrrsa kam 12.29%in Irrr Ia nralch i&AWO anIWsd and c�jssdNd rlwr s UYV")yer-halrb j'w4LpC!COSr RmIncizkCt Iran POP 4DSr.Br $2EK�DUO TmankC�f Jar r-mdww -won 8udWd '1I37 = .• F �l Ulf1L�J # WMR# I MF _ Slide #9 BudgetSummary of Fiscal Year 2022-23 Continuation Cantinuat►on Budget Sum rn aryr Z11144-5a Mm 5d-J{{fl Sala Rol mT -I Nokirg(T2J4} � •r,rp.• V05 XG .xd$LTI]I�TM: �F'J4lsoc�l sacuy�M Ii�GcuKj L'1, MI I 6 Slide #10 Expansion Requests The expansion budget rep resents a ndituies that require ar dific„u1 recurring funding be-•mnI the base fiur�du� �f the prior yearbueget ai3d the requested mntintiaticm use In the Wake of the Amide is ottr People nrttst be our core forts, ate regaest is cewered several peev&luig factors; * ^'Trine Great Resignadozr" -This paradigm shut in the market 13as resulted in high turnover and the stru le to retain existing staff mthe"h y cornpebfive x Re- li Trla,Ygle mmk • Over-burdened and iiiCmsin y fati ed staff 6 rnmk►ers wbose bt,rdeLLcolith terto ow witli earth colleapte's departure * An ever-shrinking pool of qualified education worker U r W "' VW1 I W VKV jam Slide #11 Classified Compensation Study In the tall of 2021,Evergreen Solutions,LLC (Evergreen)was retained to conduct a cmnpei,satioii study for all classified employees.Notable f mdm-Lgs from the study are summarized below: * G1-1GC5 eves not have %ell-defined,current classified pay structure • CHCC5 employees fell,(m average,sWitly above the iaw-dtnum of the market pay ranges • Tluere were ordy five positions total(out of�1)that retttmed pay rates above the market average pad-for market peers • 34 rlassihcations hart a ctuvent actual average pay that was tPelow the market mit=itun for that porsiticm • The mnamder of positions wrtli data load average pay that was abPove the market mir i iumbut below the marker midpoint • The overall average pay for CHCC5 noes appear to be below iatiarket Slide #12 Classified Compensation Study Implementatlon * Closest Step-places employees in the newly recommendedranges at the closest step [roGindln�ttp),This is t1w least expensive opti(m to"tum on"the newly rec4mranerkded system. • ClAss Years Place3men -places employees u-L the plan on the basi5 of their Bryce in current classifiratim.Tl-&would grant one step for ea&year of sen-um in their current class tale, * Ngxt Step Placement-places employees in tlae plan on tlae basis of their current step placement.Preserves all xte�that enrglo ee�s have geared tlrtts far,acid grants one adi.iticmal step for a yeas oFservice in.�012- Capgted AjWraftch-places employees uY the plait ttsLq the"Next citep"placerY eMbttt caps increase to a certain number of steps.Costs shown are for a cap at a five-step iterreaSe,bw could be-adiusteift Lh A Sky S 3La+77.74 673 5 W 8a ].N 5 L1-NMO 5 xzs&.n S �7N TM Plomnl $],M7,77LL9 I W3 I SklL@ GF�i 1-1,— $3FM— S$Flrbi irrry 7Lv rn.�qr S],56�7.78�i All $1,7Gd}I _7 7'ti aril fit 1) ${:k Ikl 77 $x d ] MOM 613 S].LL.3L F21F 'i NOMT.G7 'l72' 62 'l Hlu: M EL Slide #13 SupplementCerfifled 0- 19 years 17%w 20% 51,510,OGD 2D-24 y6eers 21%W M $22D,D00 26+"ors 20%W 27% $11 B4O100 • In the 0-12 year hand.the cost equates to approx„lately$50tXO for each 1%rase in the Supplelhent percentage, • In the 20L24 year band.the cost equates to appz+oxltnately$110AM for each 1%raise m the supplement percerdage, ni.MEL IiILL VNI 8 Slide #14 Supplement Y 1-kol Arivl'f*W 4r LgcA UppWn#nI:i Acrcc44 µ4f4h C;rcdina TAM 1•Ii-5M I _ I "Um -- r� vim B&M I. 1 ] 3 i L T F 19.11 11 ii M IL 11 1f 1�Id.'H 71 it?i:N 71 M Z?C 31 M 5b p.1{} Mft -GiMr hrf Qhr{c1%4bch ikI S HILL Slide #15 AdditionalIE Tlw Diserlct's Fes, "oiW C2,dd&ert(EC)De}arlv3e:.-,.als.o erieL1cing urprececlentedtiuna4Tr acid statfvacandes, CHCCS L-Ias included an L-xpimsim item that PFMdCldid additimul incentives ko rerakLed staff in the EC Deparlv3efit Request 1s for an ac&kLcaial2.5%stipple enk fcr all EC »-.I certified staff This regzuest 2d210 c ant airl� ,er 2.5%sapplenient fur E�• Exce pti o 5l 4d u tafi o n certibed staff+MF" 1with stuclL-nts in adapted nuricuhun o ha crv'loa �n•M.�.... (extended oanffttt scan arcis)dassm=is,creat6tg a a :5LN Ie r ertt for this employee grcuP. � ='- � -"-""• The k o k A cost of the addihedial sLm Iemetfs is$273,000_ 9 Slide #16 • Weeks Paternity Parental leave r,ould prm-ide multiple important berwf-iu for our employees,their fainilie!5,au)d children, Providuig VaLd pmental leave will assist the Dion t in enl:micing the employee experience. • Farentall-eavesttpporks}meat-rltildbortcift nnpTovesrhildret-�5 owcoram awl inav increase gender equity in the workplace. • H,stoncal data was ased to detennh)e an average of 75 einployees anwmally were orL FML A for the birth of a clfdd or adopti m-L • Frovuies p mental leave stippleineittal incoine foitup to six weelks at J M%.This will help the District provide a competitive berw.it to attract and retain our teaching staff. • Usui8 the lustoncal data,the eshniated cost incurred frofn ttds benefit wotild be L J� iIIJ� Slide #17 ExpansionRequests Summary of the Expansion Requests 6*W"W41'yy0W LN-r •A7a �www E��rV��9.p{� t • {s� CU NOW-0orpr-Ikkn 2LCIr r Tawl Expansion Request:$6,109,000 A VMFWJ— L �s-�. fJ� S HILL 10 Slide #18 TotaleRequest Summary Towl Supulmend.nn-Pro""Budget 77' MIX Total Ceanb iced Regaesr S8,d7.S)Dw Mr. a FW1111 ...SHILL Slide #19 Local Revenuc • The Board of Education s bLIdget FL-que-5t includes 5e ua1 dimiges re erme 5ut ces s4Ach as intffe5t I£VKnY7e5.UL{i the 5peli 1 in �' Dist6Lt Tax • Estimates in cate a revEmne decrease-of$ ,000 far Liext }year as in direct r"t of the redYYcticnin hiterest rates Un the District'5 finds held in the NC Stau IreaR er s Short-Ierm Investment Fund 6IIF), The budget also iiwludes art estimated itYcrease of $335,000 in revenues from the 5pedal Disteict Tax The net of these charges pra4idk-5 an additia al 5310,OX available in the laud budget, 11 V#� &" Jonathan Scott said that the estimated increase of $335,000 in special district tax revenue is a little high and he would have to revise the estimate. 11 Slide #20 Fund Balance When the District doe-s nut spenclat of its local seven nein flieLLtn*nt fiscal ar, thee7 )ms rie t cars over into he next btu a )TU is What is known a5"flutcl balance" Unmigned Fund gefxice 7G of Expendrlure5 The current e-sti late of fiscal vear end local unassigned fx-Ldbalanceis512iiA1hcatbefare mW ­q furd baJanoe 15 apprapriatedtobalan etheFY aww ?. local operating bt et „Ob This is pro�u�altely 57.5 uaillion abo th ve e :PM" Distric sadliurtmataFW-a15.5%vr54.5million To elate.the District has appropriated a total-of 3QM $3.5 nffi is nift ftiiul ba nee u)its amended FY WON M 1-22lc Cal cperatingbudpet 8°dY m� has irnL �wk * At this time.tMsbud�et re�ttest does not ina—Lide any appr.,ri..,M. social�iinclbalmu-e Jonathan Scott said the district used about $300,000 in fund balance in the previous fiscal year. He said that the district used almost $12 million in ESSER and ARPA funds to mitigate losses and offer bonuses to staff to reduce turnover. He said that on June 30, 2021, the unassigned fund balance was $11.3 million. He said the school district appropriated $2.5 million to balance the FY22 budget. He said the district later appropriated $3 million for COVID- 19 mitigation strategies and retention bonuses for staff. He said his current estimate of fund balance is about $8.5 million. He said the district expects to use an additional $1-2 million in fund balance prior to the end of the fiscal year due to unanticipated expenses. Slide #21 � CHAT? r wtfEN_ M h-aiex ♦' r r Wh"? ESTIONSIG' :P WHERE? -'-.VHEN? WHAT! WHAT? What? BC 9C =' R V 4 T � NAUS ; 12 Commissioner Richards asked if any of Governor Cooper's budget proposals, which includes raises for teachers, were factored into Chapel Hill-Carrboro City Schools' budget proposal. She reviewed the anticipated increases. Jonathan Scott said that they were not and that he was just made aware by her statement that Gov. Cooper's budget had been released that day. Commissioner Richards said that Governor Cooper just released it today. She said it has an additional 2.5% for state employees and teachers, bringing their raises to 7.5%. She said that retention for teachers is $2,000 bonus for those making les that $75,000. She said that the budget is generous. She asked how long will it take the school system to look at that and incorporate it into their budget. Jonathan Scott said it is not part of this request but would be built into the continuation budget. He said that he was hesitant to put a number out, but it would, at minimum, increase the continuation budget request by $800,000 and then include supplements but he said it would be over $1 million. He said they do not have a plan for that and once it becomes law they will circle back and get a firm estimate of the cost. He said they may come back to request additional money or look internally for funds. Commissioner Fowler asked if paternity leave included maternity leave. Jonathan Scott said it includes both genders and applies to both. Commissioner Fowler asked if the district does not currently have that available. Jonathan Scott said they do not. He said that currently employees are eligible for what they would qualify for under the Family and Medical Leave Act and have to use either sick or annual leave to cover those days off. He said this would allow the employees to retain their accrued leave. He said a lot of employees are early in their careers and only earn 12 days of leave per year and that they are made to take that leave during their family leave. Commissioner Bedford clarified that Chapel Hill Carrboro City Schools did not lose over 900 students. She said the actual loss was 262 students. She said Orange County Schools gained 65 students. She said the budget used state projections, which are high. She said it is a drop in state funding, but the actual students did not leave. Commissioner McKee asked for the fund balance amount on12/31/2021. Jonathan Scott said on June 30, 2021, they had $11.35 million in unassigned fund balance. He said that did not include $2.5 million appropriated by the board to balance the budget last year for continuation. He said from June to December, that appropriation rose to $5.5 million. He said they did that to build outdoor eating and learning areas, a per pupil allotment for COVID mitigation, and employee bonuses. He said the approximate number is around $8.3 million in unassigned fund balance. Commissioner McKee said one of the main drivers of the public attending the budget public hearing on May 10, 2022, was that they needed a 3% raise. He said he knows there are a lot of factors to weigh into that. He said an across the board of 3% would be roughly $1.4 million dollars and leave enough budget in the reserve to meet the minimum. He said he was questioning why there was no recommendation going into the last school year to increase salaries to attract more teachers. Jonathan Scott said that is an excellent question. He said that they do not want to add recurring expenses to a budget without funding available. Commissioner McKee said he understands that but all he is hearing is that they are in an emergency situation. He said that includes the loss of teachers. He said he is not an advocate of a school board sitting on a fund balance that is more than what they are required to have. He said that they knew there was a situation of losing personnel and teachers but there was not an attempt to solve that but to come back and ask for an increase of funding, which he is in favor of, but there are lingering questions about the mechanics of it. He said in his mind, they are running a year late. He said he is concerned that there was a large sum of money that 13 could have been used 9 or 10 months ago. He said on the projected number vs. the actual number, they are funding for children who are not there. Jonathan Scott said he was correct. He said they offer that to further inform the board and public that the total funding is not expected to go up. Commissioner McKee said historically, we have funded at a higher rate than the actual numbers came in. He said that Chapel Hill Carrboro City Schools is highly funded. He said that he does not begrudge that, but there are issues over the salary, and they should have been addressed earlier. He said he understands it is not his decision to make but he has that concern and has for quiet awhile. Commissioner Hamilton asked if the EC certified supplements include TAs getting an increase in salary. Jonathan Scott said it only covers certified ECs and that the EC TAs would be covered in a separate salary study. Commissioner Hamilton asked if they get additional money because of their duties. Jonathan Scott said he does not know that answer. He said that the board raised the TAs salary years ago and they are paid higher than the general curriculum. Commissioner Fowler thought when she was on the school board, they included 50 cents more per hour for the EC TAs. Chair Price asked for clarification on parental leave, she asked if it is more than paternity. Dr. Nyah Hamlett said yes, the slide had a typo, and it is parental. Chair Price asked about the unassigned portion of fund balance. Jonathan Scott said it was about $8.5 million. He said it is made of several components. He said there is a reservation for year-end expense, and they do not have that anymore. He said that it is hard to give them an exact picture without a certified financial statement. Chair Price asked if the minimum they should keep is $4.5 million. Jonathan Scott said that was the amount set by the Board of Commissioners. He said that the 5% level is two weeks of operating cash. Chair Price asked for the estimate for next year. Jonathan Scott said he is estimating that expenditures will exceed revenues by $1-2 million dollars. He said before they appropriate any money to balance the budget, they would be somewhere around $12.5 million, recognizing that they will have to appropriate some money to balance the budget. Chair Price asked if they did not appropriate money from the fund balance the expenses over revenues would be $12 million? Jonathan Scott said no. He said that, for example, if the Board of Commissioners fully funded the school's budget request this year, and the school board did not have to appropriate any fund balance, he estimates that it would be at $12 million. He said that is prior to them having to allocate any of the fund balance. Commissioner Hamilton asked if currently it is about $8 million and at the end of next fiscal year, would be about $12 million. Jonathan Scott said fund balance always depends on operations. He said that it is $8.5 million right now because the Board assigned additional fund balance for expenditure. He said that it is kind of an arbitrary number right now, but they allocate some to balance the budget. He said that is $5.5 appropriated now, but he does not anticipate spending all of that. He said he is anticipating $12 million available at year end of 2022. Commissioner Hamilton asked if at the end of the current fiscal year, given what they know now, is the unassigned $8.5 million. Jonathan Scott said he thinks at the end of the year it will be $12 million unassigned. He said that some of that will be allocated to balance the budget. 14 Commissioner Hamilton asked what gets the fund balance from $8.5 million to $12 million. Jonathan Scott said that out of the $5.5 million they have appropriated, he thinks they will only spend $1.5-2 million. He said they are required to pass a balanced budget. Commissioner McKee asked what the minimum fund balance is supposed to be. Jonathan Scott said it is 5.5% or roughly $4.5 million. Commissioner McKee asked if the required amount Is $4.5 million, what is the purpose of having a fund balance projection of$12 million. Jonathan Scott said the purpose of the $12 million is where they will end at the end of the year, and it gives his Board direction on what will be needed to balance the budget. Commissioner Bedford said that part of the fund balance issues is just timing. She said that the school system received federal allotments, but they did not know how much beforehand. She said that you do not have to spend all the money in one year, but the timing does allow the use of future fund balance that is from the federal dollars. Commissioner McKee said that is logical, but his concern is that it is a trend of very high fund balances of the Chapel Hill Carrboro City Schools systems to have above what is required. He said that by carrying more than what it is needed, they are not addressing concerns and they are losing teachers and are unable to recruit new ones. He said the county has allocated more cumulative increases per student than the 20th funded in the state and he is trying to understand it. He said if it is funded, it will require a 1 cent tax increase. He said that it will not affect a lot of people but there are thousands that it will. He said that he needs to be able to understand why the system needs to carry the fund balance. Dr. Nyah Hamlett said the Board uses fund balance to balance the budget and to address non-recurring expenses. She said they used fund balance for bonuses. Jonathan Scott said they also purchased shade structures with it. He said that if they appropriated $8 million to balance the budget, then they would have $4 million in unappropriated fund balance and if they spend it all, they will have an $8 million reoccurring expense and he would have to request $8 million next year from the county. He said that would just be a request to cover the costs from the previous year and would not even begin to address continuation costs for the next year. He said that if they do that, he will have an $11 million request and only have $4 million in fund balance. He said that using fund balance for recurring expenditures is dangerous because they can quickly find themselves at a significant funding cliff. Chair Price said teachers said they are still using their own funds to fund school supplies. She asked if fund balance could be used for that. Dr. Nyah Hamlett said they used ESSER funds to allocate $20 per student across the district so they could use that funding for instructional materials and supplies so there have been funds allocated for those purposes. She said there are other sources that provide support for those services. Dr. Monique Felder, superintendent of Orange County Schools, made the following presentation: 15 Slide #1 1ON Orange FY 2023f Budget Ggpnty4t Request SOh041S Dr McnIqwFeIkr,$wpermTft-dent Slide #2 OCS at a Glance ell ^. K-IZRArEf ETHM 36.3 % •.sw ■wrc ■..wr.r :.Ira. ■:. Free&Redilced. QL...i.J Pricc d Meals i..M sq 14 7,292 students schools d I�ni.q�n�A;alEm�einarY aclaale 1 paaf-wad dflwmin&Yy 9dwol 3 rniddlr■c]loa� 4*++ aLff_m L.. 1,104 employees at hwnr olLor lh-E gu h 91 waGo 3I waya commed 06d{hm ENGAGE. CHALLEHOE. INSPIRE. Slide #3 Strategic Plim v Dr. Monique Felder said that in order to serve students well, the district must have a plan--a strategic plan. She said they launched a new five-year strategic plan to serve as their north star and road map for improving outcomes for students. She said by leveraging pre- 16 pandemic "Listen & Learns," the district asked what the community's hopes and dreams are for students, what their concerns were, and what they already love about the district. She said they analyzed more than 1,000 comments from families, students and staff members. She said they asked stakeholders to share their thoughts about what they want to see reflected in the plan specifically. She said they received hundreds of entries. She said they also received feedback from the school board, staff, students, families, and across the entire community. She said the new district plan explains the district's mission and vision, how they will achieve their goals, and how they will measure our progress. She said it includes their belief statements. She said the plan has four goals and each is inextricably aligned to their equity plan. She said each goal has its own equity emphasis. She said that because accountability is important in the district, they defined how they will measure success for each of the four goals. She said that over the next five years, the district will collect and analyze data on progress. She said they will publish the results in a public scorecard. She said that through this strategic plan, the district will remain focused and accountable as they strive toward greatness for our students. Slide #4 OCS VISION i Preparing every learner for lifelong service and success Dr. Monique Felder said the vision statement answers the question: "If our school district fulfills its mission, what will OCS look like in the future?" Slide #5 • MISSION Educating students in a s6fe, environmentAwl inclusive . rt we engage, challenge, and inspire - • reach their \� maximum potential 17 Slide#6 STATEMENTSBELIEF 2- Put Students First 4. Prioritize Equity Eli 1. Value Diversity 6- Serve the • - Child Accou atabillity Collaborate To Do G reat Work Slide#7 F Strategic Plan Go Dr. Monique Felder introduced the districts four strategic plan goals. She started with goal 4. She said that goal four is about cultivating supportive partnerships among families, schools, and community stakeholders to support students' well-being and academic growth. She said the focus of goal 3 is to recruit, hire, support, and retain culturally proficient and high- quality staff committed to providing all students with an excellent education in a welcoming environment. She said the focus of goal 2 is for the district to provide exemplary operational support to schools, staff, and the community to ensure a focus on student learning. She said that goal 1 is the whole purpose for goals 2, 3, and 4—teaching tomorrow's leaders. 18 Slide #8 Multi-Tiered Syst-arn of Support 4tOrange (MTSS) County Learni ng Reaa,rery� sSchods e. Acc*leration Plan E r EUSACE. CHA4LNaE. INSCI A 'k t: 'r Core Inutrucon i Dr. Monique Felder asked rhetorically how the district will recover and accelerate learning, and said it will be when everything they do is rooted in equity to ensure all students receive what they need to succeed. She said that when they: • Focus on the four strategic plan goals; • Start with good core instruction; • Provide data analysis so that teachers are able to personalize and differentiate instruction to support students' needs whether through enrichment or remediation through tiered intervention and instruction; • Ensure that teaching and learning is mindful of the social and emotional learning of students and staff in order to develop the whole child/person; then they will recover learning and accelerate growth for every student. Slide #9 A -Goal 1: Teaching Tomorrow's Leaders 19 Slide #10 Goal 1 : End of Grade (EOG) Literacy Data Grades 3-8 End d�fx�rai�y�sls Gaic+3b do _ ------- -- ,Crum - - - - - — - -- 7YNm• NM44"61 Thia is tread dam pme- w CCNICI 46 P s owgcl ih was a - n vrrw•r m swep decteaaewmea all glaups. 0 ro tiPIA 41h-15 rtryF If,w 4740 mFs Ecmum m:mAVGu Nmgm 51,dm1% L�lrq hh Lwgdago L� SW13t mckdm mmd►DIu Mim m ENGAGE. CHALLENGE" INSPIRE. Slide #11 Grade Reading Data 07�- GLP - Rd GCadi� Reading PC Composite 15 an average of the grade `'' level pruki-anoy for all E0 's that had data provided for th et year, 020-21 is only dat1a frorn bO(Ore rO-tests, a MB-ki M446 #Ous-li 20lo- GMy M -16 �M%116 2ML21 vow 20-21 Prew InarV Data ENGAGE. CHALLENGE. INSPIRE. 20 Slide #12 INCREASE EMOTIONAL SUPPORTS Indleabom of ShadenhS At-Rnk ■ GKI— _l ■ MI.= * Referrals up in ail �vo areas ■ All Marital Health referrals increased IdLot — by more main 100% 'm • SWipide referral$, specifically up by ENGAGE. CHALLENGE. INSPIRE. Slide #13 Multi-Tiered Sysfl6p of Support Orange (M County :n nd,r •} •nxr,rnllor � Linnning Rccoveryr$ schoodsCCi li n5lion Plan r rt• EHG,iCI' CHd,LLFNCE. IWSPirif Ckme �i Ins1rucdon F. STRATEGIC PLAN Dr. Monique Felder said that goal 1 is important because it focuses on the whole child. She said it requires the district to provide tiered supports based on where children are with social/emotional as well as academic needs. 21 Slide #14 CREATINGGoal 1 : a CLIMATE . SUCCESS PANORAMA SURVEY DATALd WINTER 2022 Percerr Feuomble The Mast majority cif of Orange C-ounty ■ r—:m.xi ■ m.:b.t r Schools sumd-Ents feel supporter In their m sch.aok ■ SC H0OL GUmATe: Perceptions of m the overall Eudal and learning ell mate of the schoai_ ■ SlJRR4RTkV E R E ILM IGUSH IRS: I Inw supported students feel thmugh their relationships with filerrds,faml tyr,a nd adults at schnot. W SF N5r=OF B5 LoWQWri- How much students feel that theyr are valued membeis of the schoai aammunity_ ENGAGE. CHALLENGE. INSPIRE. Dr. Monique Felder said that to better understand where children are social/emotionally, one of the tools they use is the panorama survey that allows administrators to ask students in grades 3-12 for feedback and perspectives on specific topics. She said that based on responses, staff creates personalized supports and strategies. She said that slide #14 represents the improvement in students feeling supported by their schools. She said that in a prior survey, students shared that they did not have supportive relationships at their schools. She said that school teams worked on building relationships with students to address this need. Slide #15 Multi-Tiered System of Support Orange (MTS }, County Lfidr ni ng Ru aoYa ryr& Schools Aece Ie relivn Plan k• ELICACr' CHALLENCE. IIJ<.i c 22 Slide #16 • Beginning of a of Year(MOY) Literacy Data -+. . ......I ■r..L.l-...11-. .., 7�..,.n., ... ■hl.l-. . v.. ■Al.nr w,.n ..L I.n wl-.. \ Grad.II pJ+�I— I-r raY^h RYF+4 IL J JAY 1.1W l,,S.LYIJM1 prangp rlJl. y o�ari $I,, 14i di 8 Ab-we&nrb—.v ith—I,I JC4 . .. ,x,*.y ,Lyl ;.p,4ti• 346 Ai&Ahaea 6ondrrLlc s 4rartlol le.r.:,w[w•[--L.r.L..rr�:,,,s JrJ^:L+L,_� :L::w.,rr Oran¢o{nJ.lnq avc ichoals INC; 19a Ai&Atlanr&nobmaLk — .. ES Ai A Aban band [Iran XL'[ounly 7aF ieheel>.IwC4 U�}�!4 AhvL'e$anr+w.rk . 243 AiS AhaLv9anA rk u Grade 3n n.r. -�. ••.. Oranpt<mmq• � Sahois 7]]208 Aboob 9+fnd k LU 31G A[S Ahhvrt6an&mwk Dr. Monique Felder said that they are starting to see the results of strengthening core instruction. She said that by providing teachers with research and evidence-based strategies and instructional resources as well as professional development, the tide is starting to shift. She said that after just a few months of specific and direct skills instruction aligned to the North Carolina Standard Course of Study, students in early grades are moving from below benchmark to above benchmark in literacy. Slide #17 E . : 4Y) & M iddle F r Moth Data Y Mash at MO1'Math at BOY hJial h% MOY Mal h 9e � Bey MA�i Muy Math High Risk High Rink i.,,�� at Moderate at Madera;ehare ys 4a RA at 4prr 61iskharlc 01Adr- Risk Risk k MIN 19% 11% 27% 16% 9% 43% 65% 23% MIX 24% 12% 18% 15% A 46% 61% 159: 28% 27% 19L 22% 15% fs 50% 5&% g% { 29% 21% 15% h:L 50% 62% 129: 4 25% 19s6 17% 1Y4 58% 66% �? 5 23% 16% 16% 101. bic -61% ]4% ]' 6 1A 29% IN 19% 17% 1% 63% 54% x 22% 18% 4% 1" 113% 5% 59% bBy, 8 24% 23% 1% 22% 18% 5W 59% 5% 23 Slide #18 Goal : Exemplary tafl• Slide #19 Goal 3: Exemplary ,+r ;L fi r' t 4 f 11 } Dr. Monique Felder said that while classroom teachers are the most important in-school factor for increasing student achievement, they are not the only employees who impact student learning. She said that it takes all staff, including child nutrition staff, counselors and social workers, bus drivers, custodial staff, media specialists, coaches, administrative assistants, bookkeepers, etc., to develop the whole child. Rhonda Rath, Chief Financial Officer, continued the presentation: 24 Slide #20 Budget . a • 19raoWlionaAbwrhwd*ru Alm rftwn Since the 201&M17 schaal year,OCS has decreased ICs adaited postcnsW29 statff. 1 G pasrllons were the result Df AIUM reductoons and 19 Here an ef3rl io balance the iacal budget dfrareb�ed a&s siza In Gtadts 4-B Credes*S da53 size inoreat#■ Pon 125 w 1 27 • {s�rwrra+I�tl4cvRa■du�fasta a FY 21)1 d,depstrnentl budgets mere rekoed 10% a FYMIKJ.725poelknaoRrinatedrIdepenrrremele6oegenlmlane c Cwraf Cftca wr,canciaa froze 91Ydiya o HRDlrmio-l3Drmondnwwed • Tpm"h"view d+f ertaff fllrimg Efileh?A yrolewwahSchoolEftiancgconadtanteIdentdyederasnreestaleiurrdINCouldbeleWagedmoreeffeCllru?r • TovM@F As"gFU wwv rip bungv ponnfttW-W work Tva0wrftrkdwv In aneifarlla balance lheFY2019budgel.and not cut pasAlons�leacher assiswdswerenalorqff paid norpQnvtbed1, . non•suudvA"S. 202L 1he.dWrism woo Wetofeinetwron-ab.rdera fteiorlaechareaeiatants Rhonda Rath said that over the years there were budget cuts that resulted in loss of staff, changes to working conditions, and increases in class sizes that only increased student needs, while taking away resources from our staff and students. Slide #21 RECLASSIFIED POSITIONS i m in istratio n ed Orange Courtly Schools has RECLASSMl=,ll POSITIONS reela sslfled posll Ions to atlig n our ,uy 2020 organization to the gals a ryd key = WpLrj SwEfirmerrdent Curricukrn and Irnslructi4p t R Gedfrml the ChiefAcaderric Meer stralegias of our new stratogle pl Gin my 2021 a i;hef of Sd)5 a end A[hIamfled ■ Rwmz9fied from The Diradar of Adhlabcs arrd T6sbrg Gaordinaltor a EmculMB Dreefor of l-K&Urp % RKInsifiedfiun Diredorof Literacy Eovecullw nreefor 8f S tern 5jppnrt&5&iacl Irnprcivernani ■ Eliminated * AVJA 21321 Nputlr Gwerirhendent Dperalions a Redassinedfrml Chlef0pudan9 OFlI[ef + Seplerllber21]Q1 Enecuthm UFWgr IrrslWon91 &Infarmalion Techmko ■ Re€dmfieditw GhiefTeci-moo Officer 25 Slide #22 CAPITAL:HUMAN : EMPLOYEE RESIGNATIONS • Overal re5igrwtiom Irt mAsed by 30. from 2020-2021to 1-2022 �aa The biggest Inc rease was with certified employees where re%iynalions 13 Iltor�a#ed by�3% 9 _ r -.,•ir -a ,.i- r a.ru Rhonda Rath said that COVID-19 put more strain and stress to an already over extended staff. She said that additionally, the competition in the job market increased and staff now have much more choice for better pay and more appealing working conditions within miles of Orange County Schools. She said the district began thinking about what they could do to increase competitiveness. She said they learned through a classified salary study is that they have a compressed salary scale that is underpaying the lowest paid staff. Slide #23 Who is Funded Clsssroorn Teachers 442.5 57 6 B.2 47B.1 4&0% Teacher A9e19hents 39.6 7.7 505 1178 12.0% 1d1"1 cileoal Support-Lltedsed 55.4 51.2 10.9 117.5 12.09b OperaWns IMarft-oxeSTransporthon) 7B.7 25.0 0.0 103.7 IQS% Schod Level Orrice Supped 5.0 32.5 1.0 3B.5 3.9% GairemmTeehnical E&estlrn Imudi+ 33.5 0.0 0.0 33.5 3 4% Tdmhem PacpaIVA5slsta t Principals 20.0 10.7 1 0 31.7 3 2% D19=1 Orllce Support 6.5 20.7 08 26.0 2.8% Central CM5co Adrnlrmsrahan 3.5 17.B 1 5 173 1.8% Hsln,enonal Swart-Mon L,eanead 1S.0 5.0 00 1B.0 1.8% T&W 677.E 233.2 73.9 N4.6 106.Dr% Rhonda Rath said they began to consider who is funded, and where they are funded from. She said they determined the positions highlighted in blue in slide #23 were the specific positions that were compressed. She gave an example of two teacher assistants, one with 22 years of experience and one with no experience, who would be compensated at the same rate. She said that while the district was focusing funds on meeting the needs of students and making appropriate staffing changes, they did not realize the depth of the impact on the classified salaries, especially when they are funded for those positions by the state based on average salaries for the whole state. She said that the average salary was not increasing at a 26 rate proportional to the increase in the cost of living in the area. She said this heightened the financial needs for our staff. She said the district's limited salary scale did not keep up. She said that the district is now working to correct this inadequate compensation of staff. She said that the district is requesting funding in the amount of $2.5 million dollars to decompress the classified salary scale. Slide #24 FY 2023 Student Membership 019) FY 2022 FY 0Change Projected ADM 7,299 7,182 (117) Av&a.ge Usk Wmb&sW Charter School 919 951 :32 ;less) Out of Dlstriet 108 110 2 Total Student Billing Base $.7I 8,023 (8,1) ENGAEF. CHALLENGE. INSPIRE Rhonda Rath said the district is funded based on projected ADM, or average daily membership, which represents the actual number of attending students. She said that the projection for FY 2023 shows a decrease of 117 students, while charter schools are projected to increase by 32 and out-of-district by 2. She said this results in a net decrease by 87 students compared to the previous year. Slide #25 OVERALL - RELIEF •" as,v a�.de CRF•Cam mi&ra a h,,,Rolm Furd s 1,234ms Sale Fle[al 9exmery Fantle 51.471.590 or- 3mlb 4o.id-14 QppWffwml F1Ml $ 22f�fdfi - ■asNre.�r-,NM EGGER c 9 I.DKM .MENI - — ■cun caw GEER s 26i.m ■eaeii ESSERu s 419 N7 UGER ur $'A343.W 7eW COVIbftW $,7,M"!11' Rhonda Rath said that federal funds provided to the district were designated for specific areas most impacted by COVID-19, such as making up for unfinished learning, meeting the 27 social and emotional needs of students, and keeping students and staff safe. She said they are allocating much of these funds to building capacity of teaching staff through research-based curriculum and professional development so that once the funds are gone, they will still benefit from them. She said that those funds do not address the needs that they are requesting the county support in FY23. Slide #26 BudgetA large porlion of the disirict's budget,U%.goes directty to achoob and 4%of the budget is a pass Through to oharler schools. 11%of Iho talal b udgel support&Operallom which Includes trartls.porlawn, ulllllles, maintenance and operawns wllh the remaining 3%suppar* adinmistratrre sernaes (Le. Flname, FMrrran capllal, T&dwlogy, Office of Superinlerldenl a& Equly) 4 0% 3 Q% rya 1y _ .................. , .8[haxs Fun4sfollovy the atudent. Therefore when art OGS student iLVaaIKrs enrolls in a charter schoor.Ocs -Chader5choaPss is required,by law,to pass the Ti-vmpn local per pupil allocation to the • Gh-a Fier Schwl as os Slide #2 y7 FY 7 LOCAL BUDGET SUMMARY Oki F121U2 QLffrty ftprared,!pprQpr1ACC $4 N71po PrAWed FY2MA0M r yi r'in5 5 374.#z+: $4.3 Vpp Fy201mMicip teacoure'ParPuPRp4mixil? $35,036,441 $4,3$7111)p Total Mumma to Furkd bwad 5alarias aM Benehrs $ 1,100.n7C- $ 137Jpp '-U.-,W-R-fwn tirR! q— •Mµ"", Tyninw tw�urg lest birppal ror mar1341 LCUPF110n Weargs fllmw S 4A,481. WA Total Local curreryl Operations Continustion9udget Ufir"fir1121 "504pp i�larnerNallarolLYaaalflepETRIarTr+'�t5ludk 33,1CU,aaa S3�PP RemnIng sales tax revenue mmmitied by EIDM Budgetneetl M Mvieroff"reMMffl&`ded Study S208150d Provide Years of serr.ce uWrt forwpplarnem based on sta s S` m ofservwe Ms,loyal 9 851,DGD $ Bum Mrs of ser ke is OerMed alaff i�&_TeacMna) IAaaGer Pay Tor iMsecsUried SlattlraldiMga masiff degree relMM 101heir ODS010M 51 200.WD 615WW GR►IHD TOTAL LOCAL OPERA7INGBUDGEi 840r455,941 $51-043rpp Rhonda Rath said that taking into account the decrease in projected ADM, the district anticipates local funding of $35 million, which is a decrease of $380,000 in comparison to the previous fiscal year. She said that the state budget enacted into law in November 2021 an average 2.5% increase for licensed staff and a 2.5% increase for non-licensed staff. She said that the per pupil funding received in FY22 remained constant with FY21 and did not account for the legislative increases in the state budget bill. She said that as a result, the district had to 28 appropriate local fund balance of approximately $500,000 in order to implement the legislated increases. She said that in order to fund the legislated salary increase for FY22 and the projected salary and benefit increases for FY23, an additional $1.1 million is needed. She said this would require a $137 per pupil increase, taking the district from $4,367 per pupil to $4,504 per pupil. She said that in order to leverage local funding to further meet the needs of students, they are requesting that the county provide additional funding of $40,000 for the technical support needed to use the Whitted Building for bi-monthly board meetings. She said this brings their continuation budget request to $36 million, or $4,504 per pupil. She said that in an effort to address the years of salary compression currently in classified pay scales, and to recognize the numerous staff that have gone as many as eight years without an increase from the state, the district is seeking expansion funding from the county to support implementing the classified pay scales recommended from the HIL consulting group compensation study. She said that the recommendation includes implementing 30 step pay scales with a 1.5% increase for each year of experience. She said it is projected this initiative will cost approximately $3.1 million. She said the county has already committed recurring funding of $631,500 from online sales tax revenue to be applied to this initiative, which leaves $2.5 million in additional funding needed to implement the study as recommended. She said factoring in the additional online sales tax revenue committed by the county beginning this year and going forward, this leaves a need of $2.5 million, or $308 per pupil, to fully fund the recommended classified pay scales. She said it is also a priority to recognize certified staff and the years of experience they bring to Orange County Schools. She said that certified staff currently receive a local supplement based on their years of service in Orange County Schools. She said the board would like to change this method and give certified staff local supplement credit for years of experience in the state. She said in order to implement this practice, an additional $651,000, or $81 per pupil, is needed. She said the final expansion item is masters pay for certified staff holding a master's degree relevant to their position. She said this encompasses certified staff, such as those paid as teachers, social workers, or counselors, who the Department of Public Instruction does not recognize masters pay on their license. She said that because of the lack of recognition, they are not compensated for higher degrees. She said that the budget request reflects the district's values, people, and is aligned with the strategic plan, specifically Goal 3 of recruiting and retaining exemplary staff which is critical to achieving Goal 1, "Teaching Tomorrow's Leaders, Our Students." She said that district staff have proven themselves invaluable and as essential staff during the pandemic. She said they stepped up and went above and beyond when children, their families, and the community needed them the most. She said the district must be there for them now. Slide #28 SHANK YOU far supporling Orange County's Futures] -=r .} u 29 Slide #29 QUESTIONS, rB • i Commissioner Hamilton asked about staff not being compensated for holding master's degrees. She asked for the positions that includes. Rhonda Rath said it includes teachers, instructional facilitators, social workers, and counselors. She said that in 2013, state legislators voted to take away master's pay for that population. She said that those holding the degree at that time were included, but those that earned since 2013 do not receive the pay. Commissioner Bedford asked what the estimated fund balance is. Rhonda Rath said the estimated unassigned fund balance is about $2.1 million. She said the 5.5% would be $2.2 million. Commissioner Richards said that Governor Cooper's proposed budget would reinstate master's pay. She asked if classified employees were given any raises last year. Rhonda Rath said that classified staff were given bonuses using fund balance. She said that ESSER funds were used for the items to implement professional development and curriculum after the funds are gone. Commissioner Richards asked about the cost of bonuses and how much fund balance was used. Rhonda Rath said $1.3 million. Commissioner Richards asked if certified and uncertified staff received bonus pay. Rhonda Rath said it was given to all staff. Commissioner Greene asked how Chapel Hill-Carrboro City Schools used their ESSER funding. Jonathan Scott said they received $19 million in total recovery money. He said that about $12 million has been used. Commissioner Greene asked if it was being used to its full extent. Jonathan Scott said early on they realized it would be available for 3-4 years and they wanted to spread the money out. He said that a majority of money was used for COVID mitigation and feeding students, transportation, MiFi's, and money for technology. He said the first allocation of CARES Act was used primarily used for COVID mitigation and remote learning. He said that moving out of pandemic phases into in-person learning, their first allocation of ESSER funds were around $4.5 million and ESSER 2 was around $7.5 million. He said that one of the requirements was that they provide a summer school program. He said they spent $2 million on those efforts. He said that additionally, the board recognized there were problems with recruitment and retention. He said that they are being used for signing bonuses and additional recruitment strategies. He said that ESSER 3 requires that funds be spent on unfinished learning, so they must go directly into the classroom. He said they provided 30 a virtual learning for high school but no virtual option for K-8 students. He said they found that although they could not stand up a virtual academy, they could provide an alternative learning arrangement. He said that teachers were paid an additional amount of money to teach the students that did not want to return, online. He said that will cost about $900,000. HE said from there they determined there was a significant problem for bus driver recruitment and retention. He said they adopted a half-million strategy for bus driver recruitment. He said that they also provide food for them once a month. He said that moving forward, in November, the Board adopted a bonus compensation structure that included $1,000 this year and $500 next year if they stay. He said they allocated just under $1 million of local funds for that. He said they allocated $600,000 for tutoring. He said that there is $1.7 million in unallocated ESSER 3 funding, and they have until fall of 24 to spend it. He said the other pockets of money are very targeted for specific needs. Commissioner Richards asked about Jonathan Scott's statement that the actual increase to Chapel Hill-Carrboro City Schools will only be $200,000. Jonathan Scott said the Board of County Commissioners funding is based on DPI's estimates for the next year. He said that last year, they had a held harmless provision, and they were projected at 12,227 students. Rhonda Rath said they were projected at 7,299. Jonathan Scott said that the county puts those two numbers together and arrives at a percentage allocation between the two districts. He said that Orange County's stayed flat and their's decreased by 785 students and that changed the proportion by about 2%. He said that was enough so that the 3% increase in County Manager's budget, which is $4 million to education, he said that their share was $1.1 million. He said that part of that increase included the amount of money the BOCC appropriated in grants to the school districts of$1.5 million. He said that the $1.1 million and deduct the $800 thousand for social emotional learning and mental health, which leaves them of about $200,000 in absolute dollars. Commissioner McKee said the projected numbers have historically been high. He said the county never asked for the money back. He said once they settled on a per-student allocation, which was the end of it. He said that created a higher per student allocation than what is shown in the budget. He asked what rationale they would use to now go in the opposite direction because there is a lower projected number than last year, why would they stay at the high projection. Jonathan Scott said it is not his intention to alter the county's funding formula. Commissioner McKee said there is a perception that the county is not funding at a high amount or at the level they were funding. He it is a reality that there is a decrease in the projected number of students. He said he would like to know where the children went from Chapel Hill-Carrboro City Schools. He said did they go to home school, charter, or did they move away. Jonathan Scott said he is also very curious about where they went. He said that kindergarten numbers are down and that accounts for part of it. He said charter numbers are not materially high. Commissioner McKee said he realizes that it creates a change in the percentage, but the reality is that they fund on projected numbers. Dr. Nyah Hamlett said specifically to the mental health and achievement grant, their expansion budget was full of social and emotional learning support. She said they would have likely used the mentally health funding because they know that mental health supports are necessary. She said they may have looked at a different formula. Chair Price asked if they are able to track how many students changed grade levels or if it was possible some students just graduated. She asked if you could tell if they left or graduated out. 31 Dr. Nyah Hamlett said they can analyze that, but they do not have that number on hand. She said that it is happening across the country. Chair Price said she wondered if they graduated. Dr. Nyah Hamlett said they can look to see if numbers are greater at specific grade levels. Commissioner Fowler said SAPFO had about 500 in elementary, level in middle school, and an increase in high school. She said that she thinks it was about folks that needed guaranteed childcare went to private schools. Commissioner Richards asked if there is a breakdown of the budget that shows the percentage of the budget that goes to administrative support. Jonathan Scott said it is available in the budget document and he will forward that. Commissioner McKee said he is interested in that information from both school systems. Commissioner Richards said that Orange County has 3% reflected in their report. Chair Price asked Orange County if recruitment to HBCUs is included in the recruitment budget. Rhonda Rath said that there is a line item for recruitment in their human capital budget and that would support reaching out to those universities. Commissioner Bedford asked what the summer programs will be for each district. Dr. Monique Felder said there will be a summer learning academy for students in grades K-12, specifically for students who need remediation. She said this year they are targeting students who need remediation. Dr. Nyah Hamlett said they will provide enrichment and accelerated learning, and those that are transitioning from elementary to middle and middle to high school. 2. FY 2022-23 Orange County Recommended Operating Budget— Education The Board reviewed and discussed the Chapel Hill-Carrboro City Schools and Orange County Schools FY 2022-23 Operating and Capital Investment Plan Budgets. BACKGROUND: The County Manager presented the FY 2022-23 Recommended Budget on May 3, 2022. Since that time, the Board has conducted one public hearing to receive residents' comments regarding the proposed funding plan. This discussion is the first opportunity the Board has had to discuss next year's recommended funding plan related to Education funding. Total K-12 Education funding as included in the FY 2022-23 Manager Recommended Budget is $120,324,620, or 47.1 percent of General Fund revenues. This includes funding for current expense, school related debt service, and school health and safety service contracts. Total Funding for Local School Districts: 2018-19 2019-20 2020-21 2021-22 2022- 23* Original Budget $109,141,519 $113,480,859 $113,939,715 $116,721,030 $120,324,620 *Recommended Budget Student Enrollment Projections: Based on North Carolina Department of Public Instruction (DPI) projections, the Chapel Hill- Carrboro City School District enrollment for fiscal year 2022-23 totals 11,442, for an overall decrease of 909 budgeted students when compared to FY 2021-22. 32 Based on DPI projections, the Orange County Schools district enrollment for fiscal year 2022- 23 totals 8,023, for an overall decrease of 87 budgeted students when compared to FY 2021- 22. March March March March CHCCS 2021 DPI 2022 DPI Difference OCS 2021 DPI 2022 DPI Difference #s #s #s #s DPI Enrollment 12,448 11,466 -982 DPI Enrollment 7,299 7,182 -117 Less: Out-of-District 253 229 -24 Less: Out-of-District 108 110 2 Subtotal 12,195 11,237 -958 Subtotal 7,191 7,072 -119 Plus: Current Charter 156 205 49 Plus: Current Charter 919 951 32 Students Students Total Budgeted 12,351 11,442 -909 Total Budgeted 8,110 8,023 -87 Students Students % Distribution By District 60.36% 58.78% -1.58% %Distribution By 39.64% 41.22% 1.58% District The North Carolina General Assembly requires school systems to pay a per pupil allotment to support charter students within their districts. School Districts Budget Requests Both School Districts requested increases in per pupil funding for FY 2022-23 as detailed in the tables below. FY 2021-22 FY 2022-23 FY 2022-23 Total Total OCS Approved Continuation Expansion FY 2022-23 FY 2022-23 Increase Increase Increase Request ADM 8,110 8,023 8,023 8,023 8,023 Current Expense $35,416,370 $1,100,000 $4,319,500 $5,419,500 $40,835,870 Per Pupil Equivalent $4,367 $137 $538 $675 $5,090 FY 2021-22 FY 2022-23 FY 2022-23 Total Total CHCCS Approved Continuation Expansion FY 2022-23 FY 2022-23 Increase Increase Increase Request ADM 12,351 11,442 11,442 11,442 11,442 Current Expense $53,936,817 $2,370,000 $5,795,000 $8,165,000 $62,101,817 Per Pupil Equivalent $4,367 $207 $506 $714 $5,428 Current Expense The recommended appropriations for Chapel Hill-Carrboro City and Orange County Schools increases the current expense funding by $4,225,596 in FY 2022-23 as detailed in the tables below. This includes per pupil funding to increase to $4,808 for each of the 19,465 students in the two school systems. Local Current Expense funding supplements State and Federal funds received by each district for the day-to-day operation of schools. Examples of expenses paid from these funds include salaries and benefits for locally paid teachers and utilities. North Carolina statutes mandate boards of county commissioners to provide local current expense monies to school districts. Counties having more than one school administrative unit, as is the case in Orange County, are required to provide equal per pupil appropriations to each system. 33 F TotalY 2021-22 Total FY 2022-23 OCS Approved FY 2022-23 Recommend Difference Request ADM 8,110 8,023 8,023 0 Current Expense $35,416,370 $40,835,870 $38,570,900 $2,264,970 Per Pupil Equivalent $4,367 $5,090 $4,808 $282 FY 2021-22 Total Total FY 2022-23 CHCCS Approved FY 2022-23 Recommend Difference Request ADM 12,351 11,442 11,442 0 Current Expense $53,936,817 $62,101,817 $55,007,882 $7,093,935 Per Pupil Equivalent $4,367 $5,428 $4,808 $620 Recurring Capital Recurring capital for both School districts remains the same as the prior year appropriation of $3 million dollars. The budget for FY 2022-23 includes $1,763,400 for Chapel Hill-Carrboro City Schools and $1,236,600 for Orange County Schools. For FY 2022-23, a mix of debt financing (see page 95 of the Capital Investment Plan (CIP)) and pay-as-you-go funding (see page 132 of the Operating Budget) is recommended for Recurring Capital. Recurring capital pays for facility improvements, equipment, furnishings, and vehicle and bus purchases. State statutes mandate counties to fund recurring capital. However, the amount of money counties allocate to this function is discretionary and varies from county to county. Note: These amounts have been revised (represented by yellow highlighting on Attachment 2-E) from the Original Recommended Capital Investment Plan to reflect the revised average daily membership (ADM) percentage, as included in the FY 2022-23 Manager Recommended Operating Budget. Long Range Capital The County plans and programs long-range school capital funding through the County's Capital Investment Plan (CIP). The recommended CIP budget for FY 2022-23 includes $2,502,680 for Chapel Hill-Carrboro City Schools and $1,755,026 for Orange County Schools, as detailed on Attachment 2-E, which is an updated version of page 95 of the CIP using the most recent ADM for each district. This combines to a total of $4,257,706, which represents an increase of $83,484 from FY 2021-22. A 2% annual growth rate is included throughout the years of the CIP related to Long Range Capital. For FY 2022-23, as was the case in FY 2021-22, debt financing will be utilized, instead of pay-as-you-go funds for Long Range Capital projects. Similar to Local Current Expense funding, the amount of money counties allocate to long-range capital expenditures is discretionary and varies from county to county. School Debt Service The recommended budget provides for $21,807,353 in School Related Debt Service, which represents repayment of principal and interest on School related debt, including general obligation bonds and private placement loans. This is a decrease of $1,930,893 from FY 2021- 22. North Carolina statutes require counties to pay for school related capital items, such as acquisition and construction of facilities. In instances where counties borrow funds to pay for such items, the State mandates counties to repay the debt. The amount of money counties borrow for school related projects is discretionary and varies from county to county. 34 Health and Safety Service Contracts The recommended budget includes $3,738,485 for the Health and Safety Service Contracts for both school districts to cover the costs of School Resource Officers in every middle and high school, and a School Health Nurse in every elementary, middle, and high school in both school systems. This represents a 3% increase over the FY 2021-22 funding amount. Capital Investment Plan The FY 2022-23 Manager Recommended Capital Investment Plan includes funding of $18,088,811 in FY 2022-23, and a 10-Year total of $101,939,541, for Chapel Hill-Carrboro City Schools. Funding of $9,925,349 in FY 2022-23, and a 10-Year total of$64,380,719, is included for Orange County Schools. The new split of funding per school system is detailed on Attachment 2-E. Supplemental Deferred Maintenance Program The FY 2020-21 CIP introduced a supplemental funding program for deferred maintenance and life and safety improvements in schools. The program would involve an expenditure of $30 million over a three-year period to expedite each School District's backlog of deferred maintenance projects in anticipation of a potential general obligation bond referendum in future years. The total amount was divided between the districts on the basis of average daily membership in FY 2020-21. As a result, Chapel Hill-Carrboro City Schools was allocated 59.99% or $17,997,000 of the $30 million total while Orange County Schools was allocated 40.01% or $12,003,000 of the total amount. The FY 2022-23 CIP recommends a second round of $30 million over two years for additional school funding. These funds are split between the districts on the basis of the average daily membership in FY 2022-23. As a result, Chapel Hill-Carrboro City Schools will be allocated 58.78% or $17,634,000 of the $30 million total while Orange County Schools will be allocated 41.22% or $12,366,000 of the total amount. These funds are split so that 10% or$3 million can be spent in FY 2022-23 for planning and professional services, so that the remaining 90% or $27 million can be "shovel ready" immediately in FY 2023-24. The two rounds of funding can be combined by the schools to complete larger projects as detailed in the tables below. CHCCS FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Total Original FY 2020-21 Allocation $ 1,800,000 $ 10,000,000 $ 6,197,000 $ 17,997,000 Recommended FY 2022-23 $ 1,763,400 $ 15,870,600 $ 17,634,000 Allocation Total Funding $ 1,800,000 $ - $ 11,763,400 $ 22,067,600 $35,631,000 35 OCS FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Total Original Allocation $ 4,150,000 $ 3,600,000 $ 4,253,000 $ 12,003,000 Recommended Additional Allocation $ 1,236,600 $ 11,129,400 $ 12,366,000 Total Funding $ 4,150,000 $ 3,600,000 $ 5,489,600 $ 11,129,400 $ 24,369,000 The expenditures to date for CHCCS and OCS from the FY 2020-21 Allocation are $849,308 and $320,400 respectively. Board members have the opportunity to discuss County funding and anticipated State funding for schools next year with Chapel Hill-Carrboro City Schools and Orange County Schools. Attachment 2-A provides additional information of how Orange County compares with other counties within North Carolina related to Current Expense funding per pupil and other educational related funding issues. Attachment 2-B provides a history of the Per Pupil Appropriation. Attachment 2-C provides a history of the Chapel Hill-Carrboro City Schools District Tax. Attachment 2-D represents the School Districts Local Current Expense Fund Balance Policy. Attachment 2-E presents the revised Capital Investment Plan Schools Projects Summary to reflect the revised ADM%, as included in the FY 2022-23 Manager's Recommended Operating Budget. Travis Myren, Deputy County Manager, made the following presentation: Slide #1 ORANGE COUNTY NORTH CAROLINA Budget fork Session #1 Education May 12, 2022 Board of Orange County Commissioners 36 Slide #2 Total Funded Students Total Student Enrodlment FV2021.22 .t FY2033-23 BudgK Dlfferaon %Ctmrw verage Date RAeroberslrp(ADldl n School FmAmeea Off Prq#&cLLmj 19,747 18 64 d1 II99 5.6% ofDletrkt5tudent ed u-wr 351 (339 22 6-196 haaefstudeat droop hfurchSnapsno 1,075 1115 all 7.5 M20,45L 19,055 996 4.096 Dapsrtmentaf Pubic Instruction(DPI)Pr*ctinnaforAversge Datly Membership Eiralledir School Facilities + Ovl of Dlsknci Slumnts De&Kl dDue.loTu@an Re"mue- Charter StudarilsAddad bFund disc ict Students Ennlledin any Chmtm School • Messw-edbySn4mps'"o#adendarxeascfM&wh • Ov6ral4A 00.creaminPundbd:Bludenls ORANGE COUNTY MOR71 I CAROLINA Travis Myren said that total they are down about 4.8 percent of students for next year. Slide #3 Chapel Hill- arrboro Funded Students oaprrl m0urdooro "schools Funded Studarh3 PY2021•226vdertt FY2022.2SIIkKh t Ddh %chanzo verage Da&V Wroberslrp(ADMI 12,44& 11,46 (9a2 {7.8% n 5chvol Fw-&biea Off Pr eerlarr ofDletriet5tudent rWiFtilt on (253 (229 ($d 0.5% studeat 15 2 31,e n hAQrt�5napslFa T,tai U.351 IXM2 000 (Lo% ercentajeolTatalStudenF.s 6&369d 5&799 {LSa%} Pn jectedAvarageDaly Membe•s--p Dec reasedbyM2Students • Chartr SWdents Increaeed b6)49 Sludents and comprise l.79%olTctal Forded Stt OMS PereortngeofTotalErrrolYnentD&creeraedby1.99percentage points law+erfioyard�a+'�of�a�dar�fdaeafadbl`+Lve�a4gUedf�1�er�a�5�h��wrynaed�v�Y2p2i-22 ORANGE COUNTY WORT]I CARDLEWL 37 Slide #4 Chapel Hill- arrboro Funded Student History CHCCS Funded Student History ]a om Lx11G Lx3!16 Lx8512,ZM 17AL7 LLN9 Lx+7*UA55 13a1L 12A+8 =PM L3,ME L1.74B iUM R.718 6 ]6/IlL 4� �kMNLlimrr: �px M LhFa x� 1LI L17 L17 1LI .1 117 L17 1L7 167 ZU L61 L65 1A9 id6 U4 .ECG 1 *� .1111-1111-6 — ZNIM In-%]OOM5 30M9U 1 HLdY 2M2-0 30U-7 3MAS Yk"ZdGIR nu•LL 30U4 L,30"271.1E ML-U 1hn,27 ORANGE COUNTY MOFf3 E CARDLENA Slide #5 Orange County Funded Students oran j.corm Schaal: ,bW Funded SwdeRtii FY21321-22[4udRet FY2022-23"et,llaPFercere %chmnp vefage Dare Membership(AI)Mt n Schcd Pm*bles(00 Prgiectlarj �,29 },1a (11 {I 60lri --yyo-f�D-istrict StuderLt (ioe (11U (z 1.ras eduction harter5tudert 91 95 3 3.49 rn March Sna od 4urcomweuMtalStudents M64* 4L2294 1,3E9K • Prop ctedAwns Dad Mw*emho DscrMas 4bd 117Sp oos CA*-I*r Swents 1"assd 4 a.0%and Oomp•o+d 1$2%orToto FwWad St..der%is Percentageof TatalEnrolkneMLn creased 41.59 percentage pAnls rA+yfiar�rognmarnr�wrds.au�ix�aUoyaL+er�ene��y.lssnx�slirpcn,r�usreaao- FY201-22 ORANGE COUNTY MOF I E CAROLINA i 38 Slide #6 Orange Count} Funded Student History 4CS Funded 5"en#HivWrV Y YOY ROW 7.L92 7�T3 7' .v�rvc 57Y Y!W x3+15 79■ 7381 nw Fr.ax 6.DM s YOY ohs M mn¢ •.YOY S.dOd mo PLY LpOB 7� Y17 YYa %1 32* 3M 3M 23f 354 3rA 3M 32& 264 c �omu�a 3aeo-ia 3aao-a rnaa�„,,,u�K 3ca+.s""Y xtlFi7 xd7aY nlFu nu,n 3aaY1L 3euax aan,al ORANGE COUNTY MOR711 CARDLEWL Slide #7 Budgeted versus Actual Enrollment C4 oN OA-W elSV OIHerc.ca 2{Q122 l2ai� 1029 2=41 12312 17,515 657 2D 19-1p 12 35S 12,27D 85 201B iB 12A74 12.M 17a 2017-16 12 2N 12.299 0 2131G17 12,317 12.113 hii"1,^,wda M1["ewiei"hwk16365iL88hI�LdasTA iI L,�I.]nd L�lai{.S81n L8i11 A11( ']ahL^.p nd.M 3M1[iilsp,dhn-s[ta Wln a. d n]C]a l5d C-d]�y4,118 ffO013h N M1 dal 18 fi 1'81 ih f-I SC I�h Na I C3.]611—MI d Mwal �IRarre r 20221-22 7.299 ww`}7A. r 226 2020,21 7.381 7 007 374 201920 ?M 7 N 30 2016-11 TM5 7.276 dB 2017-16 :.5ai 7 Jl5 229 2015-17 7,5S1 7 413 13B 7 39 Slide #8 Recommended School Funding • Operating Budget School Funding — page 132 Operating DistrictTatal Recommended School Current Expense S93,57a,752 A-rage❑airy 1Aemberahlp Recurring Capital $1,200,000 Awra9a Dai►r M rnwship+51.9 Melon in r P Debt Service $2 t,807,353 Hot Rlccaied by Dori❑ Health & Safety Contracts $3.731}_485 Q,e Soma Hurse per Fadirp One Wets Olhoar fpr Mdoeand[+9h&=cis TOTAL $120,324,620 Calvvifation oF Pvrrvntag@ of General Fund Revenues Dedlcaled to K-12€ducatoon Total School Fundlna $120.324.620 =47.1% Total General Fund Rev. $255,600.591 ORANGE COUNTY a MOOT][CARDLEWL Commissioner McKee asked if the safety officers were for both school districts. Travis Myren said it was for both districts. Commissioner McKee asked if Chapel Hill-Carrboro City Schools is intending to discontinue their school resource officer contract. Dr. Nyah Hamlett said they would vote on the various safety options on June 16tn Commissioner McKee said he is interested in that conversation. Travis Myren continued the presentation. Commissioner Hamilton asked about the note that recurring capital is based on average daily membership plus $1.8 million in CIP. Travis Myren said that it is allocated by average daily membership and there is an additional allocation for the CIP that does not show up in the operating budget table. Commissioner Richards said they heard they were not funding schools at the target percentage. She asked how much that would cost to get to the target. Travis Myren said subsequent slides would help answer the question. 40 Slide #9 Recommended School Funding Operating Budget Funding as a Percentage W Genera I Fund Revenue Funding Target-48.1% i47M i4GX• Giti i X JaiA +7 P4 xr.aw K.flK — 44 n% flM - i� ORANGE COUNTY 9 i►OK71 I CrkROLINA Travis Myren said that this shows the funding target and where the county has funded. He said they are 1% point below the target for this fiscal year. Chair Price asked what the impact on funding would be to bring it up to the target of 48.1%. Travis Myren said it would be $2.5 million. Chair Price asked about the effect on other allocations. Travis Myren said they would have to look at expenditure reductions or additional taxes. He said 1 penny generates about $2.2 million. Chair Price asked when the management team was working on the budget if they considered decreasing expenses to get $2.2 million. Travis Myren said they start by looing at resources available and then manage to that target. Chair Price asked if they went back to look at the budget to see if there were ways to bring it to the $2.2 million. Travis Myren said at that point it is late in the process and numbers are locked in. Commissioner Fowler asked how the school funding is decided and if it is based on the schools' ask. Travis Myren said it is a timing issue. He said they do not know what the schools funding is sometimes until late in the process. He said that sometimes it is even after the County Manager's recommended budget is presented. He said they set a goal of 3% across the board. Commissioner Fowler said that capital needs are skyrocketing and asked if that was considered. 41 Travis Myren said there are a lot of other capital funds available in the CIP and this is the amount of cash that could be fit into the operating budget model. Commissioner McKee asked if the $2 million drop-in debt service would account to the below the 48.1%. Travis Myren said most of it. Commissioner McKee said this is a generalized conversation over the past 15 years that they want to try to hit. He said they have met or exceeded in all but 1 year since 2008-2009. He said on several occasions it has exceeded the 50%. He said that if they are talking about increasing to hit the target then next year should they discuss decreasing. Chair Price said that seeing that it had been exceeded other times. She said that this year, coming out of the pandemic, with all of the needs that had been identified, it seems there is a greater need. She said she is not saying they must hit the target. Commissioner McKee said it would require another penny on the tax rate. Chair Price said yes, or they could look at other options. Commissioner Greene said both numbers are flexible. She said they are always in flux. She said that there is pressure from all sides and the schools, and the community have needs. She said that 48% is not a fixed percentage. Chair Price said understands and she just wanted to get clarity and did not want to suggest anything. She said in the past when they have gone above then that money was added after the fact. Commissioner Richards said she had heard so much about it on Tuesday night and wanted to understand it better. She said that the chart showed the targets, and she understands that the whole budget, none of it is fixed. Commissioner McKee said they heard a lot about other counties allocating a greater percentage of their budget to schools and he speculates that is Wake County due to their high rate of growth. He said that per student, they are below Orange County. He said the comments indicated that Wake County was giving more. Commissioner Hamilton said she is not a fan of an arbitrary target. She said they need to be looking at the needs of the schools. She said investing in children is the most important thing they can do. She said the county has been spending a lot of money dealing with the social inequities later in life but have not done an adequate job as a society to prevent that. She said investment needs to be at the beginning. She said that current numbers targeted a 3% increase to schools, but general funds have increased 7%. She said that they are looking at a better economic situation and got through the pandemic better than expected. She said that they should think about what the needs are now, and they need to focus on what they need to do now and set priorities. She said really hard choices need to be made but those should not be made on the backs of children. Commissioner Greene said she is concerned that they are being compared to Wake County and she speculates that so much of Wake County is urban. She said that is not a good comparison to Orange County. Chair Price said that in the past, they have used half of their budget for schools. She said they should prioritize children and examine what would need to be sacrificed to reduce expenditures. Commissioner Fowler asked if county level recommendations were reviewed based on what the departments requested or if they set a 3% increase for them. Travis Myren said the budgets come in department specific and are examined on a case-by-case basis by policy. He said that he would need to look at the percentage increase in county department spending. He said the 3% started with what do we want to give employees. Commissioner Fowler said if the county got a revenue increase of 7%, and they are only putting 3% in for the schools, then it means that some are getting more than 7%. 42 Commissioner McKee asked if the 7% is a projected number and the 3% is an allocated number. He asked how they can have an assurance that there will be 7% increase in the county. Travis Myren said that both are budget numbers and they are both projections because the budget has to be balanced and based on something. Commissioner McKee asked if the 3% recommended allocation to the schools is a solid number is. Travis Myren said yes. Commissioner McKee said that once they pass the budget, then that number is solid. He said that the 7% income is a projection and is not a static number. He said he understands the rationale. Commissioner Hamilton said that is why there is fund balance. She said that is probably why the schools want to hold on to a fund balance as well. She said they have the ability to adjust with taxes, but the schools do not. Commissioner McKee said they either need to reduce other areas of need or add a tax increase above the 1 cent. He said he does not want to be where they were in the 1990's with tax increases. He said that he could easily justify exceeding the request of the schools but he can't justify the taxing side of it. He said that there isa balance for him. Travis Myren said he would review the percentage changes in revenues and expenditures and get back with the Board. Slide #10 Recommended School Funding • Changes in the Operating Budget for Srhaols Operating Budget . : Appro ved BudgM Current Expense $4,225.595 Three percert;3%JIncrease (Recurring Capital $1.200.000 cash Finding incapiNll Bude gt.plot Now Rewurces Debt Serwoce ($1.93003) Cerrees,e ta9ed an e,cD-nI pra)Lm nuanced School Health and Safety $108.868 Three perce"{3%I In[rgase TOTAL $3,603,690 Three percent;3%1 Increase Target=Total School Srendlna t3%Inereasel General Fund Revenue (7%Increase) ORANGE COUNTY 10 W-)R7]I CAROLINA 43 Slide #11 Recommended Capital Investment Plan • Capital Budget School Funding—page 28 CIP FY2022-23 Capital Budget Total Recommended S rh. .I w Article 40 Sales Tax $2.101.099 A-rage 0%Ay Membemhip(ADM) Debt Financed School Improvements 54,257,706 Average Daffy Memberehip(ADM) LotteryProce-eds $1,402,354 AwageDa&VWmborshlp(AD#A) ReturrIng Gaplta1 $3,000,_000 A4rag4 chary hiamlwshlp[AD ) Supplamental Deferred Mai nt, $17.253.000 Average Daffy Membership(ADM) a1 bme of appmp"Ic.1 TOTAL 328,014,159 ORANGE COUNTY 11 MOR711 CARDLEWL Slide #12 Recommended School Funding Opebrating and Capital Budget Expendlures 5!6aDXD0) — !]N�J7. S:+aG06.G}} .YSl,lO+Jt I11a,m�n 5LMDMDW s LmlR9J! S3Q,Ii AT fa07Fb1Fr. •[4i�.N.RTv� "MMMPM _■q(raLtilW�Tao 5e6.GCC.CW SkattCA[Q — R LILSL+rfmL�u re=-16 r.111LQL7 r.3I17-r.rFZnM-29 r-e3UPW rUND-1L F=1.22 Fe=2,75 Ru. .:ram ORANGE COUNTY 12 NOFUI[CARDL[NA 44 Slide #13 Recommended School Funding County Per Pupil Fu nd Ing Amount History seJDm 19 nm f�,ifi5 r-0.3S2 3430 U357 rd Dd7 3�.996_$9.B91 S3lfiJ1 sYacr 330M S320a $9.i06 $9.192 MAYs32® 53 DD3 y2yp} S�O00 — f- * -1P Ile Cwnnt x"nsa 03.57a.782 ToW Pr*ctedShidents 19,46S ORANGE COUNTY TOM NrPupYAlocatfoli $41B08 MOVrl I CARDIAWL Slide #14 Recommended School Funding • Annual Changes in Per Pupil Allocation Change in Per Pupil Allocation J.ai,Lo MM(O 52MDO i18J.t5 $112m$i9100 HainSYLfi Sp $]3Sm 5LGO.G3 �6.W SYS75 $. a. 51iaaaop 51>oa.m� 51m�uop ORANGE COUNTY MOWr]I CAROLIN 3 Chair Price asked if the figures on slide #14 were adjusted for inflation. Travis Myren said no. 45 Slide #15 Recommended School Funding CHCCS Per Pupil History with€listrict Tax s7� SF.pOa 5F.]a ls�a F ar}i'ti FF6 FF� _ $4mo s{2Fa lSADP SS�Gri s+su� rro 51.�7P i OFFst rF.PF10.Fd i{up Fr1 F.Fd —h1rlPr P.r� SLM — — F'+MW-8 F+MEM0 Pf2DU-LI Pf URL FUMS•16 RIDL7-LB RQDLB2M FY3 -22 ORANGE COUNTY 1. MOR71 E CARDLEWL Travis Myren said that the last time this changed was in 08-09. Commissioner Bedford said that is when Northside Elementary was opened. Slide #16 Per Pupil Counter Comparison Top Twenty County Per Pupil Appropriationsfor School Education Year 2021 bV Local Educational Agency(LEA) [h WtN;V(WrbF C{F S]1wk Fyn Ad—+hCA, h S%41) a.1*c rke sci _ 'rs,1F4 ovh—c—LT21—a f��a ChFlKn C Wrtp SToak j+,231 T+rqk L3 cwr Sdhwo- Falco O1b#{Ira11e A'Krhwl Cr, {hwk Iir� � X wvH—_Cwrke oY e1u—a {c—tpMF�{wrtF>yoc6WIa{FUFSF 5Y[UpP Ct}'Siruo-6 MXIE?k Ctv SQUGE 6u IrDAd Cwr{F S]1u7k WA C the Sd—Pm,{yam 5d 1�lc-.d.TSd-6 Nv M—Flm{y�� $kMD PAM $3 m $+.cob Om MAW VFom WAM Sr.. FiC D&padalasr dFuGY.Sssls.{das. 7aulc 30 ORANGE COUNTY 1B MOFM E CAROLINA 46 Slide #17 Public Hearing Follow-Up • School District Estimated Unassigned Fund Balance at FY2021-2 bear-End CW81II& M.5"Non 312.0milion 97.56hon carrboro clrx SOW s 6.g 1451 flr"acaurry S2.2mlllm S2.3mlllm S1D],R76 Sthwb Wg 1721 ORANGE COUNTY 1 MOR711 CARDLEWL Slide #18 Recommended School Funding • Discussion and Questions ORANGE COUNTY 18 MORT][CARDLEWL Commissioner Fowler asked about the 3% and 7% and if any capital projects would have an impact on those projections. Travis Myren said not really. 47 Commissioner Hamilton asked about the Governor's proposed budget and the increase for schools. She asked what it would do to the continuation budget and is there a way to get those numbers. Travis Myren said this is common that the state budget is approved after the county budget is adopted. He said they oftentimes have to use fund balance to make up the difference because you can't go back and change the tax rate. Commissioner Hamilton asked if that impact could be given to the Board. Chair Price said it is the Governor's proposed budget but that it will go through some changes. Commissioner Bedford said that staff, students, and everyone has been incredibly flexible. She said she did not recognize a year ago that there would be a personnel crisis. She said that it is eye opening to see how little people make. She said that the classified staff studies are very important. She said that there are options depending on the amount that gets budgeted. She said she likes seeing the continuation budget and the other increases. She said it did not seem like they were in priority order, but she could see that personnel was important. She said that she very much supports the manager's recommendation to increase tax, but she recognizes that is a burden. She said that they could use $4 million to try to make sure they can sustain folks that need assistance. She said they will still be below the national average for pay due to the general assembly. She said they are at a time where they need to increase the tax rate in order to meet needs. She said she took a tour of the schools and she is glad there is a capital work group. She said the $3 million has been the same since 2005. She said that they will need to take a look at what it takes to maintain day to day and what it will take to deconstruct the schools. She said that focus on social and emotional growth and focusing on staff is important. She said that she is glad to try to support but acknowledges that it may not be enough to fund the whole request. She said that they need to be ready for future emergencies to help. She said that Orange County Schools does not have a cushion in the fund balance. She said that the teachers and families that came to talk at the public hearing seemed demoralized. She said they seem that they feel that because they have to cover the other classes and can't do the best they can do, being able to give them more money should help. She said that she appreciates the focus on students. She said that Chapel Hill-Carrboro may need to take a look at if they can do social and emotional learning with the balance of all of the other needs. She said the manager is certainly looking for funds to give to the schools. She said she has never liked the 48.1% but before becoming a Commissioner she did not understand the depth of poverty in the county. Chair Price said she has enjoyed the superintendents being very frank about needs. She said she is very pleased that everyone is working together to educate children and she is looking forward to getting beyond this period we are in. She said that trying to navigate beyond COVID is the goal. She complimented the schools and their staff and said it is obvious how caring everyone is. She said that centering equity must be done so that we can move forward as one people. She wished those graduating well. Dr. Nyah Hamlett thanked the Commissioners for time to share their needs and champion their people. She said that most importantly, to center the work on the children. She said that today was the first time that she and Dr. Felder had ever met in person. She said that they are colleagues and partners. Dr. Monique Felder echoed Dr. Hamlett's sentiments. She said that she really appreciates the opportunity to share the needs of Orange County Schools. She said they are all sitting there with a common focus on children. She said that is encouraging to know we are all focused on the children. 48 3. Closed Session (added at the beginning of the meeting) A motion was made by Commissioner Hamilton and seconded by Commissioner Bedford to enter into closed session pursuant to G.S. § 143-318.11(a)(3) "to consult with an attorney retained by the Board in order to preserve the attorney-client privilege between the attorney and the Board" and to approve closed session minutes. VOTE: UNANIMOUS RECONVENE INTO REGULAR SESSION A motion was made by Commissioner Fowler and seconded by Commissioner Bedford to reconvene into regular session at 9:35 p.m. VOTE: UNANIMOUS Adjournment A motion was made by Commissioner Fowler and seconded by Commissioner McKee to adjourn the meeting at 9:35 p.m. VOTE: UNANIMOUS Renee Price, Chair Laura Jensen Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board.