HomeMy WebLinkAbout1 & 2 - FY 2023-24 Budget Work Session – Discussion Regarding Outside Agencies, Durham Technical Community College, Chapel Hill-Carrboro City Schools and Orange County Schools 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 11, 2023
Action Agenda
Item No. 1 & 2
SUBJECT: FY 2023-24 Budget Work Session — Discussion Regarding Outside Agencies,
Durham Technical Community College, Chapel Hill-Carrboro City Schools and
Orange County Schools
DEPARTMENT: County Manager
ATTACHMENT(S): INFORMATION CONTACT:
Bonnie Hammersley, (919) 245-2300
Travis Myren, (919) 245-2308
Kirk Vaughn, (919) 245-2153
PURPOSE: To review and discuss:
• Outside Agency Funding;
• the Durham Technical Community College — Orange County Campus FY 2023-24
Operating and Capital Investment Plan Budget;
• the Chapel Hill-Carrboro City Schools FY 2023-24 Operating and Capital Investment Plan
Budget; and
• the Orange County Schools FY 2023-24 Operating and Capital Investment Plan Budget.
BACKGROUND: The County Manager presented the FY 2023-24 Recommended Budget
(https.//www.orangecountync.gov/budget) on May 2, 2023. Since that time, the Board has
conducted one public hearing to receive residents' comments regarding the proposed funding
plan. This is the first opportunity for the Board to discuss next year's recommended funding plan
related to Outside Agency and Education funding.
Outside Agency Funding: The recommended Outside Agency Funding can be found on page
198 of the Manager's Recommended Budget. Six (6) major outside agencies are being funded in
departmental budgets to provide better accountability, coordination and client outcomes. This
amounts to $937,656 funded outside the outside agency pool of funding. This lowers the outside
agency target to 5.6% of General Fund Expenditures, less education. The recommended budget
allocates $1,037,016 to the remaining forty-two (42) agencies, or 7% above the target.
Additionally, there is $45,000 in outside agency funds outside of the General Fund in the Visitors
Bureau Fund. Those agencies will be managed by the Visitors Bureau and the Arts Commission.
Education Operating Funding: The Manager's Recommended Education Funding can be found
starting on Page 134 of the Recommended Operating Budget. The budget provides $130,852,731
2
to both School Districts, an increase of $10,510,111 from FY 2022-23 funding. Per-pupil Current
Expense funding is recommended to increase from $4,808 to $5,346. This will provide Chapel
Hill-Carrboro City Schools (CHCCS) $60,158,538 and Orange County Schools (OCS)
$42,784,038. In addition, the Manager's Recommended Budget includes a 1.5 cent increase to
the CHCCS District Tax, which will provide an additional $2,095,301 to support the district's
continuation request.
Current Expense for Durham Tech Community College is recommended to increase by 10% or
$80,941. In addition, Durham Tech is recommended to be funded $390,000 from Article 46 sales
tax proceeds. The total funding for Durham Tech Community College is $1,544,379 from all
sources, including debt service payments.
Education Capital Funding: The Manager's Recommended Capital Investment Plan details the
School Funding Summary on Page 114. There are $303.6 million of school capital projects in the
10 year capital window. The largest investment is a planned $130 million Bond Referendum, with
a planned referendum date of November 2024.
The year one funding will provide $11,492,243 to the school districts in regular allocations. After
being adjusted to the FY 2023-24 Recommended Average Daily Membership (ADM) split,
CHCCS will receive $6,716,067 and OCS will receive $4,776,176. In addition, CHCCS will draw
down $4 million of its Supplemental Deferred Maintenance.
Durham Tech has $10,500,000 in year one funding to expand its Orange County Campus. The
project is referenced on page 144 of the Recommended Capital Investment Plan, and has
$500,000 of available planning funds authorized by the Board in FY 2022-23.
FINANCIAL IMPACT: Information on the financial impact is included in the above Background
section.
SOCIAL JUSTICE IMPACT: There are no Orange County Social Justice Goal impacts
associated with this item.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts associated with discussion of this item.
RECOMMENDATION(S): The Manager recommends that the Board discuss the topics noted
and provide direction to staff, as appropriate.