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Attachments to Joint Meeting Agenda
Board Approved FY 2027 Local Budget Request Orange County Schools 200 E. King Std Hillsborough, NC 27278 2 Board Of Education VISION—Preparing every learner for lifelong service and success. EN F - CHALLENGE . MISSION—Educating students in a safe, inclusive environment where we engage, challenge and inspire them to reach their maximum potential. Will Atherton—Board Chair Wendy Padilla—Board Vice Chair will.atherton.boe@orange.kl2.nc.us wendy.padilla.boe@orange.1<12.nc.us 1 ��a Carrie Doyle—Board Member Bonnie Hauser—Board Member Anne Purcell—Board Member carrie.doyle.boe@orange.kl2.nc.us bonnie.hauser.boe@orange.kl2.nc.us anne.purcell.boe@orange.kl2.nc.us 1illll Andre Richmond—Board Member Sarah Smylie—Board Member Andre.rich mond.boe@orange.kl2.nc.us sarah.smylie.boe@orange.kl2.nc.us 2 3 Table of Contents BudgetMessage. . . . . . . . . . . . . . . . . . . . . . . .... . . . . . . . . . . . . . . . . . . . . . . .... . . . . . . . . . . . . . . . . . . . ..4 Superintendent's Cabinet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . ..6 Orange County Schools Strategic Plan. . . . . . . . . . . . . . . . . . . . .... . . . . . . . . . . . . . . . . .....7 FY 2025-26 District Highlights... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... . . . . ..8 BudgetPriorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 10 Year ADM Trend. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....12 BudgetSummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... . . . . . 13 Continuation Budget Request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Expansion Budget Request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 CapitalRequest. . . . . . . . . . . . . . . . . ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...21 FundBalance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..22 FY2025-26 Budget at a Glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...23 Three Year Budget Comparison by Source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...24 3 4 Budget Message April 23, 2026 Orange County Board of County Commissioners Fiscal Year 2027 Budget Message Through their dedication and perseverance, our students made meaningful aca- demic gains in 2024-25 and are well-positioned to continue meeting and exceed- ing state standards. Their success is a direct reflection of the unwavering support and service of our high-quality teachers and staff, to whom we extend our sincere gratitude. The strategy of consistently supporting investments in students and the profes- sionals who serve them is yielding results that we are proud to report: OCS is Top in the State, as one of only three districts in NC (out of 115) where every school met or exceeded growth. Here are some additional high marks from the 2024-2025 state accountability re- sults: • For the first time ever, 100 percent of Orange County Schools met or exceed- ed academic growth for the 2024-2025 school year. • For the first time since 2017, five schools earned a School Performance Grade of "B," up from three in 2023-2024. • Grade-level proficiency increased by 3.5 points to 58.4% on state mandated exams. This composite performance is 3.4 points above the state average of 55.0%. • OCS four-year cohort graduation rate rebounded by eight points to 87.7%, in line with the state average. In OCS, we put into practice our shared belief that every child can be successful and deserves every opportunity to thrive. We are proud of our efforts and the results from aligning wise stewardship of re- sources with the needs of every child. We are also taking bold steps for the future in our next Strategic Plan, to continue making improvements that ensure every child is supported to reach their maximum potential. In this spirit, we present this Fiscal Year 2026-2027 budget request to the Orange County Board of County Commissioners as partners who are committed to facing the challenge of fully meeting the ever-changing needs of children in our commu- nity's local public schools. 4 5 Our Fiscal Year 2027 (FY 2027) budget request reflects our values of fiscal responsi- bility and operational efficiency, aligned to strategic priorities established by our Board of Education and district leadership: • We will recruit and retain a high-quality workforce trained and focused to sup- port student proficiency, growth, and well-being in all areas — from academics and social-emotional learning, to arts and athletics, and every aspect of our opera- tions. • We will continue allocating resources that most directly meet the needs of stu- dents and staff in every area to help us achieve the highest possible return on eve- ry dollar invested. We have consistently managed our operational strategy to maintain a healthy reserve while accounting for trends in enrollment, the educator preparation pipeline, and budgetary moves at the state and federal level. When we continue to invest strategi- cally in our students and our staff, we expect to sustain the strong academic returns that are helping our students prepare for their next stage in life. We know that Governor Stein has proposed a FY 2027 budget aimed at raising start- ing teacher pay to the highest in the Southeast (13% increase for starting teachers, nearly 6% for teachers overall, on average). By contrast, the continued uncertainty around a final state budget and federal education priorities adds unprecedented chal- lenges as we plan for and begin a new fiscal year. On the heels of a year with no staff pay increases where many experienced a net de- crease in pay due to rising insurance premiums, we are eager to reinforce the com- mitment we share to serving our students and staff and to being sound stewards of the resources provided by the taxpayers of our community. On behalf of our Board of Education and district staff, it will be our pleasure to work with you on this budget to ensure the effective operation of Orange County Schools in the 2026-2027 school year. Sincer Dr. Danielle Jones Superintendent Orange County Schools 5 Superintendent's Cabinet VISION—Preparing every learner for lifelong service and ENGAGE . CHALLENGE . INSPIRE . MISSION—Educating •eenvironment engage, challenge and inspire them to reach their maximum potential Orange Office of SchoolCounty Superintendent Superintendent Ad'minisVative Assistant Dr. Danielle Jones fa the Superin9endent Carta Darden Employee Ombuds and f3aard Specialist Franklin McCune Chief Equity&Student Chief Numan Chief Operations Chief Public Chie4 Academic Officer Achievement Officer Resources Officer Chlef Finance Officer Officer fnfomratian Offtcer Dr.Julie Pack Dr.Sheldon Lanier Jeffrey Koweek Rhanda Rath fredrlck Davis 61 Kevin Smith 7 OCS 2021 -2026 Strategic Plan Priority 1 : `. Teaching 4 Tomorrow's Leaders Priority 2: Exemplary Staff Priority 3: Excellence r and tit At 1 Efficiency Priority 4: Empowering � Culture OCS District Highlights OCS TOPS THE STATE! 1 QF 3 NG OCS IS TOP IN THE DISTRICTS WHERE 100°�° 4F SCHOOLS MET OR EXCEEDED GROWTH IN 2024-2025, STATE FIRST TIME EVER IN QCS! as •Not Met Mat _ Exceeded a0o one of only districts North Carolina where every Of OCS SChOOIsschoolor • ' • • • Met or Exceeded For the first time ever, 100 percent of OCS schools Met or Exceeded Growth for the 2024-2025 school year. For the first time since 2017, five schools earned a School Performance Grade of T," up from three in 2023-2024. 4a Growth vs. 70.7°i° Statewide 70 FIVE OCS SCHOOLS EARN "B" SCHOOL ° NC 2024-2025 DCS 2023-2024 ocs2a24-2a2s PERFQRMANCE GRADES FQR FIRST TIME SINCE 2017, UP FROM THREE IN 2023-2024 www. arangecountyfirst. com F •o a- c •g • a ioa as 60 of aCS Schools Earned C or 4a - - Better vs. 68.5°r° Statewide 20 0 NC 2024-2625 OCS 2023-2024 OCS 2024-2025 www.orangecauntyfirst.com 9 OCS • • OCS State Rankings: Peer Districts 2024-2025 Percent of Schools Meeting + Exceeding Growth Exceeded Met Met District . . 24% 9 3 6 28 Chapel Hill- 90 % 17 6 11 2 0 Carrboro 100% 19 13 6 0 89% 48 23 25 6 • 75% 36 19 17 12 • 82% 9 1 8 2 70% 14 3 11 6 73% 144 58 86 52 • Orange County Schools is in a three-way tie for first in the state for all schools meeting or exceeding growth. • This is the first time all schools in OCS have met or exceeded growth since the state began school performance grades. • 54% of OCS schools exceeded growth. • Both comprehensive high schools exceeded growth for the second year in a row. • Cedar Ridge has consistently exceeded growth since 2015-2016. • Two of the three middle schools exceeded growth. • Four elementary schools met growth while three exceeded growth. • Partnership Academy High School met growth for the second year in a row. 9 10 OCS District Highlights Career & Technical Education • 90+ CTE courses available • 40 Industry Recognized Credentials • 1100+ student credentials earned • 73.1 % concentrators earned a credential • 50+ work internship partnerships • 95% graduation rate • 74.5% of Middle School Students and 69.34% of High School Stu- dents participated in a CTE course for the 2023-24 School Year • In the fall issue of the Association of CTE (ACTE's) Techniques magazine, OCS's work was nationally highlighted 40 �i 3n, +: �r s. 10 11 Budget Priorities • Recruit and retain a high quality workforce • Student proficiency and growth • Allocate resources to best meet the needs of students and staff d, w ! 4 11 12 Average Daily Membership Trend 4000 - 8,3.13 8,168 8,238 8,264 8,218 8,181 8,121 8,082 8,040 7,890 8000 7,544 7,345 7,388 7,381 7,2997,182 a 7,122 61990 6,915 7000 5,733 _ 6000 5000 4000 3000 2000. - 1000 769 ;823 850 883 914 999 994 1,092 1.125 1,157 0 � 2017-18 2018-19 2019-20 2020-21 2021-22 2022-2- 2023-24 2024.25 2025-26 2026-27 oYotal #DCS tCharr- Average Daily Membership (ADM) represents the total number of school days with- in a given term, usually a school month or year, that a student's name is on the cur- rent roll of a class, regardless of his/her being present or absent, is the number of days in membership for that student. ADM for each school month is based on the sum of the number of days in membership for all non-violating students in individu- al LEAs/Charters, divided by the number of days in the school month. ADM is a more accurate count of the number of students in school than enrollment. OCS actual ADM has been relevantly level since coming out of the Covid Pandemic. The district will receive State funding for the 2026-27 school year based on 6,733 students, which was the best month 1 or month 2 actual ADM for the 2025-26 school year. Currently 1,157 Orange County Schools domiciled students are attending charter schools. Per NC General Statute 115C Article 14A: If a student attends a charter school, the local school administrative unit in which the child resides shall transfer to the charter school an amount equal to the per pupil share of the local current ex- pense fund of the local school administrative unit for the fiscal year. The per pupil share of the local current expense fund shall be transferred to the charter school within 30 days of the later of (i) the receipt of monies into the local current expense fund or (ii) the receipt by a local school administrative unit. As a result, the OCS dis- trict passes along the county per pupil funding for 1,157 students to applicable charter schools. 12 13 Budget Summary Budget Priorities The Orange County Board of Education approved a fiscally responsible and balanced budg- et that is committed to the recruitment and retention of a highly qualified workforce; stu- dent proficiency and growth; and the allocation of resources to best meet the needs of all Orange County Schools students and staff. This budget request incorporates continuation and expansion costs that will be detailed in this narrative. Student Enrollment The District's funding is based on the number of students that attend Orange County Schools. Orange County Commissioners provide funding to both school districts located in the county based on the projected number of students provided annually from the NC De- partment of Public Instruction. The total student base of 7,751 is determined as follows: 6,733 - FY 2026 40th day actual ADM 139 - (less) out-of-district students 1.157 - (plus) charter school students 7,751 - total students Continuation Budget Need The District's Local Operating Budget is determined by the per pupil funding approved and appropriated by the Board of County Commissioners every June. The largest component of this budget request is the estimated continuation of the Local Operating Budget. Continua- tion represents the costs to be able to continue providing the same level of service and ed- ucation standards for the upcoming fiscal year before any operational or programmatic changes are prioritized. Salaries and Wages The North Carolina General Assembly establishes staff base salary and benefit cost in it's biennium budget which has yet to be adopted. As a result, the District is esti- mating a 4% salary increase for all staff based on an actual five year trend. A 4% in- crease in salaries supported by the Local Operating Budget would require an addi- tional $1,373,788 which is comprised of $560,713 for base salary and $813,074 for matching local supplement. Adjustments may be necessary when a final budget is adopted by the NC General Assembly. Benefits Until a final NC biennium budget is approved, the District is estimating benefit in- creases based on the rates approved in the FY 2025 biennium budget. 13 14 Budget Summary Benefits (continued) These rates may be adjusted based on evolving news from the General Assembly or State Retirement System. The District is responsible for covering benefit increases associated with staff funded by the Local Operating Budget. The Federal Insurance Contributions Act (FICA) rate is anticipated to remain at 7.65% which would cost the District an additional $66,727. Also included in the continuation budget are cost associated with the Teachers and State Employees Retirement System (TSER) employer matching rate, estimated to increase from 24.67% to 25.68% as well as Employer Sponsored Health Insurance premiums, estimated to increase from $8,500 to $8,812 per employee. These estimated rate increases will cost the District an additional $381,814 Non-Personnel Operating Costs To account for the increasing costs of good and services required for day to day operations, a 4% inflationary adjustment has been included for non-salary related costs. Examples of these costs include utilities, transportation, instructional supplies, technology, maintenance and contracted services. Continuation Summary Description Total FY27 Cost Increase over Salary and Wages $ 24,056,420 $ 925,247 Benefits $ 9,236,755 $ 448,540 Non-personnel $ 15,471,903 $ 595,073 Total Estimated Continuation Costs $ 48,765,078 $1,968,861 A i r 1 s„ r 14 15 Budget Summary Expansion Budget Request The costs included in the District's expansion budget request represent expenses above the base continuation budget funding. These would be recurring costs that would become part of the annual continuation base budget if implemented and funded. It is important to note that these are "REQUESTED" items and not currently included in the budget. Fiscal Year 2027 budget discussions began in November 2025. Administration, Staff and the Board thoughtfully debated and planned a fiscally responsible budget that continues to support the District's Strategic Plan; (1) Teaching Tomorrow's Learners, (2) Excellence and Efficiency, (3) Exemplary Staff and (4) Empowering Culture. Recruiting and retaining a highly qualified workforce continues to be a top priority and chal- lenge. As the number of individuals choosing to enter the education industry declines, eve- ry district across the state is challenged with competing industry salaries. Local govern- ments, Universities and Medical facilities tend to offer higher wages leading school dis- trict's to adjust local supplements to attract talent. In an effort to retain the highly qualified staff already employed with the District and to recruit additional staff, the District requests expansion funding to: • Increase the Teacher Local Supplement • Increase the Classified (i.e. unlicensed staff) Local Supplement • Increase the Bus Driver Hourly Pay -s #F $, 1 y� 1 i o Y 15 16 Budget Summary Expansion Budget Request (continued) Teacher Local Supplement 2025-2026 Local Supplements for Certified Teachers & Instructional Staff Orange County Schools p PCs 25 20 19 19 18 18 18 18 � 18 SII 15 14 14 13 12 10 10 10 1� 5 i 6 1.7 a 10years 20.ycers When comparing Orange County Schools to surrounding school districts, it is quickly seen that OCS is behind in the local supplements provided to certified/licensed staff. As much as a 6% deficit in the beginning teacher range up to a 7% deficit in the veter- an teacher range. Local supplement is a known factor in recruiting and retaining teachers and Instructional staff. Currently, OCS offers the following local supplements based on the number of ser- vice years in the teaching profession. Thanks to the work of the Board of Education, OCS was able to shift from the basis of local years of service to years of service in the profession recognizing experience from other schools districts and states. Service Years Supplement —Staff Percentage 0 - 5 years 12% 146 23% 6 - 13 years 14% 170 27% 14 - 19 years 16% 104 17% 20+ years 18% 206 33% 16 17 Budget Summary Expansion Budget Request (continued) Teacher Local Supplement Vacancy Rate and Aug Local Supplement 18.0 '0 16.0% � 14.0% `t 2.0% aC Orange County a0.0% Schools cc �8.0°rb b4G .0% 4.0% 2.0% � 0.0% — - $0 52.000 $4,000 $6,000 $8,000 810.000 512.000 514.000 Avg LocalSaupplement Vacancy is defined by the NC Department of public instruction as a teaching position in an Local Education Agency (LEA) that is not filled by an educator who holds a qualifying li- cense. NC State statute identifies a qualifying license as a continuing professional license (CPL), initial professional license (IPL), residency license (RL) or a limited license. Teachers holding provisional licenses (who work most of their day in the provisionally li- censed area) or temporary licenses (permit to teach or emergency license) are not consid- ered to be filling a vacancy. Additionally, rehired retirees (regardless of license status) are not considered to be filling a vacancy due to the limited work hours and/or limited duration that they can work (and not jeopardize their retirement status). 17 Budget Summary • . • • • - ' - • • - • 2025-26 Avg 2025 Local Teacher Vacancy LEA Supplement Rate* CountyChapel Hill-Carrboro City Schools $11,612 5.2% Wake •• 4• CountyChatham •• • •, • • Person County •• • • Durham Public Schools $8,904 5.6% Orange County Schools $8,254 9.8% Guilford County Schools $7,282 6.0% Alamance-Burlington •• • • 1 14.0% CountyCaswell •• .11 fl ``e a'. + 1 •I,y,/'.ice. � y�i I it r ' _ 19 Budget Summary Expansion Budget Request (continued) Su IB it-921 Certified Instructionalfs Affected Inc ludina S.S.&FICA=32.07% Current OCSSupplamant Additional 3%SupplorlIMLTotat Additional 5% Supplemant Total Supple ment MatChJ9 CHC 56,884,924.08 58.219,879.40 S9.119.096,70 1 $9,153.698.39 $0.00 $1.334.955.32 52,234.172.62 $2.268,774.31 Current Additional .,it. _10 . , 0-5 years= 12% 0 -5 years=15% 0-5 years=17% 1 0-19 years=18% 6-13 ears=14% 6- 13 years=17% 6-13 ars=19% 20-24 ars=22% 14-19 years=16% 14 - 19 years=19% 14-19 years=21% I 25-y ears=27% 20+ ears=1$°,b 3 20+ ars=21% 20+yopm=230% Local Teacher Supplement Scenarios When looking at the actual data, if the District was able to increase each local sup- plement tier 3%, OCS would be better aligned with Durham, Wake and Chapel Hill Carrboro City Schools in the 0-13 and 20+ years of experience. Implementing this re- quest would require an additional $1 .3 million in local funding for the 2027 fiscal year. Local Classified (Unlicensed) Supplements At this time, the District has three tiers of local supplements for classified staff. The majority of classified staff receive a 7% local supplement with fewer receiving 9% or 13%. Supplement Staff Classified Employees 7% 253 Classified Coordinators 9% 18 Classified Directors 13% 20 The District requests the ability to focus on the classified staff receiving the lowest local supplement percentage of 7%. Included in this tier are Teacher Assistants, School Bookkeepers, School Receptionists, School Data Managers, Office Support, Custodians, Technicians and Child Nutrition workers. 19 20 Budget Summary Expansion Budget Request (continued) Local Classified (Non-licensed) Supplements Increasing the local supplement from 7% to 9% would effect approximately 280 staff and generate the need for an additional $300,000 in local funding. Bus Driver Hourly Pay In comparing OCS to surrounding districts, the data reveals that in order to earn $20/ hour, an individual would require 5 years of experience in OCS, 4 years in Durham and little to no experience in Wake and Chapel Hill Carrboro City. It should also be notes that OCS is responsible for maintaining the fleet of buses for both school dis- tricts in the county. It is envisioned that aligning the District's pay scales with Chapel Hill-Carrboro City schools would better support collaboration between the districts in ensuring bus drivers are available to run routes allowing each district to potentially tap the others sub driver pool when needed. In order to align the OCS District's bus driver pay scale with CHCCS, an additional $305,000 would be needed in local funding. $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 0 Exp 5 Yrs Exp 10 Yrs Exp 15 Yrs Exp 20 Yrs Exp 25 Yrs Exp 30 Yrs Exp ■:Person ■ Orange Co. ■ Durham ■Chapel Holl Wake ■Chatham i ABSS 20 21 Budget Summary Expansion Summary Description Total FY27 Cost Licensed Teacher Supplement Increase $1,334,955 Classified/unlicensed Supplement Increase $ 300,000 Bus Driver Hourly Increase $ 305,000 Total Expansion Request $ 1,939,955 l 607fflNC cauLnauau om \ k7 r TOTAL FY2026 LOCAL OPERATING BUDGET REQUEST Description Total FY27 Increase Cost over FY26 Continuation/Base Budget $48,765,078 $2,189,853 Expansion Budget Request $ 1,939,955 $1,939,955 Grand Total Local Operating Budget Request $50,705,033 $4,129,808 21 22 FY 2027 Capital Request Major Projects—Current Phase In School Activity FY26-27 New Elementary School Pay-Go $2,500,000 Bond $51,500,000 Major Elementary Renovation Pay-Go Bond Major Middle Renovation Pay-Go Bond Major Projects (unspecified) Bond $3,360,000 High Priority needs (unspecified) Pay-Go Project Management Pay-Go $364,000 Total Bond $54,860,000 Pay-Go $2,864,000 • Y -_- �'� L 22 23 Fund Balance 7,000,004 i 6,610,000 6,120,00 6,000,000 5,456,494 5,000,000930,00© 4,340,000 4,000,000 4217,[30 / 3,000,000 2,400,000 1,000,040 fl 2024 2021 2022 2023 2024 2025 �Actual When the District does not expend its local revenue in a fiscal year, the remaining balance is carried forward into the next fiscal year as "fund balance". OCS began the 2026 fiscal year with a fund balance total of approximately $5.4 million. EdNC recently published an article surrounding NC school district fund balances that in- cluded data for every district in NC. It was noted in this article that the Local Government Commission (LGC) stated there is no statutory requirement for a minimum amount kept in fund balance. It was noted that even a fund balance of 8%-which is typically equal to one month of expenditures-wouldn't likely represent sufficient reserves during periods of de- clining revenues, or to be used for emergencies and unforeseen expenses. We unfortu- nately heard this first hand from our colleagues in western NC following hurricane Helene. It is important to keep in mind that school districts with higher fund balances may be bet- ter prepared to fill the gaps associated with federal and state funding uncertainties, but it is no guarantee. Money typically spent from fund balance is not replenished the following year which is why it should only be utilized for one time, non-recurring items. 23 24 90 FY • • Budget at a Glance RestrictedState Public Local -•- •• • School Operating Grants Nutrition Fund Fund Fund Fund Fund Total Revenues 57,330,949 46,796,217 4,883,493 3,486,609 2,763,096 115,260,364 Fund Balance 1,456,591 1,456,591 Total 57,330,949 46,796,217 4,883,493 3,486,609 4,219,687 116,716,955 Expenses Instructional Services 49,698,606 23,764,397 4,449,639 3,727,002 81,639,644 System Wide Support Sev 7,564,329 16,624,570 337,210 467,345 24,993,454 Ancillary Services 68,014 95,350 3,486,609 1,029 3,651,002 Non-Programmed 6,311,900 96,644 24,311 6,432,855 Total 57,330,949 46,796,217 4,883,493 3,486,609 4,219,687 116,716,955 Operating Revenue Sources Expenses by School Nutrition Restricted Charter Schools 3% 4% Ancillary Services 6% Federal 3% 4% System-Wide Support Services 21%l State 49% Local 40% Instructional Services 70% 24 25 Three Year Budget Comparison FY 25 Actual to FY 24 Actual FY 25 Actual FY 26 Budgeted FY 26 Budgeted State Public School Fund Revenue Received 54,699,791 55,613,447 57,330,949 1,717,502 Expenditures Paid 54,699,791 55,613,447 57,330,949 1,717,502 Ending Net Balance - - - - Local Operating Fund Revenue Received 43,148,592 46,554,542 46,796,217 241,675 Expenditures Paid 43,518,524 44,118,035 46,796,217 2,678,182 Ending Net Balance (369,932) 2,436,506 - 2,435,506 Federal Grants Fund Revenue Received 6,346,937 5,935,026 4,883,493 (1,051,533) Expenditures Paid 6,346,937 5,935,026 4,883,493 (1,051,533) Ending Net Balance - - - - Capital Outlay Fund Revenue Received 24,793,609 20,520,935 35,844,045 15,323,110 Expenditures Paid 24,808,588 20,409,863 35,844,045 15,434,182 Ending Net Balance (14,978) 111,072 - 111,072 School Nutrition Fund Revenue Received 3,326,419 3,401,034 3,486,609 85,575 Expenditures Paid 3,349,914 3,408,927 3,486,609 77,682 Ending Net Balance (231495) (7,893) - 7,893 After School Fund Revenue Received 944,068 - - - Expenditures Paid 897,091 - - - Ending Net Balance 46,977 - - - Restricted Grants Fund Revenue Received 3,409,672 3,511,576 4,219,687 708,111 Expenditures Paid 3,083,797 3,106,279 4,219,687 1,113,408 Ending Net Balance 325,875 405,297 - 405,297 25 26 t ! Orange County Schools NORTH, CAROLINA ENGAGE . CHALLENGE . INSPIRE. 27 FY 2027 Local Operating Budget Request April 30, 2026 Orange Mrs. Rhonda Rath, Chief Finance Officer County Dr. Danielle Jones, Superintendent Schools NORTH CAR00NA ORANGE COUNTY SCHOOLS 200 E. King Street- Hillsborough,North Carolina 27278-919.732.8126 WWW.O R A N G E 0 0 0 N T Y F I R S T.C O M OCS TOPS THE STATE! 1 OF 3 �:5: DISTRICTS INHERE 100°r° OF SCHOOLS MET OR EXCEEDED GROWTH IN 2024-2025, FIRST TIME EVER IN OCS! Not Met `i Met Exceeded District Highlights p0 OCS IS TOP IN THE STATEasone of only • districts in Bp North • where every • • - so Of OCS Schools or exceeded • • 2024-2025! Met or Exceeded ap Growth vs. 70.7% • Statewide 20 For - ever, 100 percent of OCS schoolsor Exceeded Growth for the 2024-2025 school year. 0 • NC 2024-2425 OCS 2023-2624 OCS 2024-2025 www.orangecountyfirst.com For - first time since 1 - schools earned a School FIVE OCS SCHOOLS EARN '°B" SCHOOL Performance Gr. • ' of : up from three in 2023-2024. PERFORMANCE GRADES FOR FIRST TIME SINGE 2017, UP FROM THREE IN 2023-2024 • Grade-level proficiency increased by 3.5 points to 58.4% on state-mandated EOC (end-of-course) and EOG (end-of-grade) 700 p exams. . . - performance (all grades and all tested92.3% � of OCS Schools subjects) points above the state average (55.0%). Earned C or 40 - Better vs. 68.5°i° • Statewide OCS four-year • • graduation . ' increased by eight • • 20 NC 20242025 CCS 2023-2024 OCS 2024-2025 www.orangecountyfirst.com ■ ■ 30 DistrictHighlights • Five schools ranked in the top 12% in the state for growth. • All subgroups in OCS grew in grade level proficiency. • Black students were the highest performing subgroup for growth with 7 percentage points. o This is the highest GLP performance for Black students since 2013-2014. • OCS EL progress increased by 6.4 percentage points. o Third consectuve year OCS has made gains. • In partnership with DTCC, OCS increased the number of students pursuing dual enrollment courses with the goal of earning a degree or certification prior to graduation. GAGL. CHALLENGE. INSPIRE. ■ ■ 31 DistrictHighlights Career & Technical Education • 90+ CTE courses available • 40 Industry Recognized nized Credentials F = F - � • 1100+ student credentials earned at p • 73. 1 % concentrators earned a credential 4II • 50+ work internship partnerships - y • 95% graduation rate • 74.5% of Middle School Students and 69.34% of ` High School Students participated in a CTE course for the 2023-24 School Year • In the fall issue of the Association of CTE (ACTE's) Techniques magazine, OCS's work was national ) highlighted � E� "� Y ENGAGE. CHALLENGE. INSPIRE. 32 Chronic Absenteeism Definition A student is defined as chronically absent when they are enrolled in a North Carolina public school for at least 10 school days at any time period during the school year, and whose total number of absences is equal to or greater than 10 percent of the total number of days that the student has been enrolled at any school during a given school year. Student chronic absence differs from both truancy and average daily attendance. Student chronic absence refers to missing so much school, for any type of absence (excused, unexcused, disciplinary), that a student is at risk of falling behind academically. IENGAGL. CHALLENGE. INSPIRE. 33 Chronic Absenteeism Rate July 1 - ""- - 40% 30% 20% 10% a Subgroup Subgroup 0% <30 <30 White Black Hispanic Multiracial Asian Am. Mat. Total District Indian/Alaska Hawaiian/Pac. Native* Islander . INSPIRE. OCS Efforts to Improve Attendance 34 Attendance Works: Preventative/Targeted Tiered Supportive Measures • Attendance lessons and incentives • Small groups to foster a sense of belonging (school professional counselors) • Check in/Check out and mentoring of students by school professional counselor, social worker, or MTSS member • Parent contact/individual parent/student conferences with school social workers • School/district progress monitoring • Attendance notifications to families • Referrals to community agencies and school-based programming • Home visits (school social workers) °� ENGAGL. CHALLENGE. INSPIRE. "Attendance Matters: Be Here to Get There!" (Link) 35 ► f _ mfr -orf G 5 AT ENDAN E C T C W K I eHereTo etThere! #OCSAttendanceWeekX40WEEK ■ . . OF A2 -6, 2026 IDN WEDNESDAY r SCHOOL COLORS MENTAL HEALTH/ ENLISTMENTEI+ITRE C PRENE.URSHIP/ COLLEGE t� DAY SEL DAY DAY AEER DAY ENROLLMENT DAY Wear school or Wear green in Wear red, white, and "Dress to impress" to Wear your !� district colors to support of mental blue in solidarity'with match the profession college gear! represent with pride! health awareness our troops you seek jk orange ` county ch Schools Af - EINGAGL. CHALLENGE. INSPIRE. Attendance and Mental Health Research 36 • Research from the Education Policy Initiative at UNC-Chapel Hill cited student absenteeism and student mental health and well-being tied as the top issues facing schools. o The survey results showed that providing mental health supports for students will reduce absenteeism rates in schools. • Research from the Journal of Education for Students Placed at Risk (JESPAR) published in October of 2024 as well as the National Association of Elementary School Principals directly ties funding for district efforts around addressing student mental health needs (curriculum, training, resources) to a reduction in absenteeism. o Research also cites student mental health as a root cause of high absenteeism rates in schools/districts. • Attendance Works (July 2025) warns of avoiding funding cliffs to ensure adequate resources are available for districts to target root causes of absenteeism and support students. fl ENGAGL. CHALLENGE. INSPIRE. ORANGE COUNTY SCHOOLS 200 E. King Street- Hillsborough,North Carolina 27278-919.732.8126 WWW.O R A N G E 0 0 0 N T Y F I R S T.C O M 38 FUNDED STUDENTS FY 2026 FY 2027 Change Funded ADM 6,915 6,733 (182) Charter School 1 , 125 1 , 157 32 (less) Out of District 115 1391 24 Total Student Billing Base 7,925 7,751 (174) ' 39 Average Daily Membership Trend 9000 8,313 8,168 8,238 8,264 8,218 8,181 8,121 8,082 8,040 7,890 8000 7,544 7,345 7,388 7,381 7,299 7,182 7,122 6,990 7000 6,915 6,733 6000 5000 4000 3000 2000 769 823 850 883 919 999 999 1,092 1,125 1,157 1000 - =--- -- 0 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-.27 Total —40--QCS — Charter OCS Student Enrollment Trend 8000 7118 7000 6899 6000 5000 4000 3601 rA 3181 3000 2060 2000 1860 1000 985 100011111 11111 11111 534 507 11 15 112 151 0 0 INDIGENOUS ASIAN HISPANIC BLACK WHITE PACIFIC ISLAND TWO or MORE TOTAL 2026 reflective of month 4 ■2022 ■2023 ■2024 ■2025 ■2026 actual student enrollment PACIFIC TWO or Year INDIGENOUS ASIAN HISPANIC BLACK WHITE ISLAND MORE TOTAL 2022 11 112 1860 1000 3601 534 7118 2023 10 129 1932 959 3533 552 7115 2024 17 1321 19WI 986 3388 1 520 6981 2025 19 1421 206581 990 33241 503 7046 E N G A G E. CHALLENGE. INSPIRE. 2026 15 1511 20601 985 31811 1 507 6899 � in 41 tatewl a an a Grade FY 2025 and 2026 Most LEA's saw an ADM 5,34° decrease and will therefore see a decrease in FY27 allotments. Overall, ADM decreased 3,350 35,554 statewide 0 Kind. 1st 2nd 3rd 4th 5th 6th 7th Sth 9th 1 ath 11th 12th (493) (222) (873) (1,279) -2000 (2,480) (2,313) (2,745) (2,840) (3,069) -4000 40000 (4,067) (4,662) Source:NCDPI Dart B12. Fiscal Year 2025-2026 Best 1 of 2 Average 6 Daily Membership -6000 ORANGE COUNTY SCHOOLS 200 E. King Street- Hillsborough,North Carolina 27278-919.732.8126 WWW.O R A N G E 0 0 0 N T Y F I R S T.C O M TEACHERS VS , STUDENTS 43 7500 545 543 7400 540 737 7300 535 7200 530 - 7100 525 - 7000 520 ,513 6900 515 6915 6500 510 505 6700 Represents all funding sources 500 6600 2020 2021 2022 2023 2024 2025 Teachers -ADM EXPENDITURES BY FUNDING SOURCE 44 56.4M 53,3M 53.OM1 46.7M 49'91 000-0000 50.0x,-] 46.3 M 47,0aw- C'1 43.9M 40.9 M 40.OM .66,6M 63.2M LOCAL BUDGET IMPACTS FY 2023 FY2024 FY2025 FY2026 30 OM Mental Health 9,623 68,023 93,223 94,333 Exceptional Children 1,710,105 2,122,955 2,267,327 2,311,215 20.0N1 Limited English Proficiency 274,123 387,104 595,656 649,998 TOTAL 1,993,851 2,578,082 2,956,206 3,055,546 9.3M 9,1M 10.0m 4...2 2 1 6.3M 5.9M fi 2..79 yxy��I 0.01 2020 2021 2022 2023. 2024 2025 —dr—State Local Federal EMPLOYER BENEFIT COSTS 45 $8,812 25,50% 58,500 25.15% 25,00% 24..50% 33,000 24.00% $7,500 23.50% $7,019 $7,000 23.00% $6,500 22.89% 22.50% $6,000 22..00% 2022 2023 2024 2025 2026 2027; *Projected Hospilatization -Retirement ORANGE COUNTY SCHOOLS 200 E. King Street- Hillsborough,North Carolina 27278-919.732.8126 WWW.O R A N G E 0 0 0 N T Y F I R S T.C O M Projected State Reductions due to Enrollment Decline 47 State Allotment Category Dollars Positions Months Classroom Teacher (Position Allotment) $(247,741 ) (7.50) (75.0) Central Office (Dollar Allotment) $(74,052) Non-Instructional Support (Dollar Allotment) $(61 ,347) Program Enhancement Teacher (Position Allotment) $(81 ,186) (1 .00) (10.0) School Building Administrator (MOE Allotment) $(63,632) (0.20) (2.0) CTE (MOE Allotment) $(51 ,343) (0.40) (4.0) Exceptional Children (Dollar Allotment) $(282,285) Teacher Assistant (Dollar Allotment) $(1181416) —(5.50) —(55.0) Academically & Intellectually Gifted (Dollar Allotment) $(111725) Transportation (Dollar Allotment) $(625,253) OVERALL: OCS State Funding is projected to decrease: 8.0 - Positions 6.0 - Months Of Employment $ 11659,450 - Dollars ORANGE COUNTY SCHOOLS 200 E. King Street- Hillsborough,North Carolina 27278-919.732.8126 WWW.O R A N G E 0 0 0 N T Y F I R S T.C O M 49 Budget Priorities • Recruit and retain a high quality 'ra �� r`workforce ,� r �� e- UV, • Student proficiency and growth Allocate resources to best meet the needs of students and staff ENGAGE. CHALLENGE. INSPIRE. 50 Unfunded State Mandate = $700K Local Impact • 111Unfunded FY2026 Certified Step Increase • Mini budget legislated step increases for all staff paid on a licensed salary scale • $0.00 received from state resources � • t $700K local funding required to implement for all staff • t FY2026 reserves reduced $700K to fund state requirement • i Future state action may increase local cost burden ENGAGE. CHALLENGE. INSPIRE. 51 Unfunded State Mandate = $700K Local Impact 017 -11'�- 1f Legislators pass a FY2026 budget implementing a retroactive 3% salary increase for all staff • s OCS anticipates state funding to support state allotted positions • s $1 .6M would be needed from local funds to support local and federal allotted positions • ! $700K of local fund balance would be required to implement ENGAGE. CHALLENGE. INSPIRE. 52 FY 2027 Continuation Budget 2026-27 Continuation Estimate: FY 2026 Annualized 4% raise next year Salaries $1400171822 $1415781534 Supplement 6,9431211 $71220,940 Continuation Item 4% raise xt year Social Security 1 ,668,184 $1 ,734,911 Salaries $560,713 Retirement (proj. 25.15%) 5,088,191 5,395,436 Supplement 277,728 Hospital (proj. $8,812) 2,031 ,840 21106,408 Social Security 66,727 Retirement (proj. 25.68%) 307,245 Other Salary Items 2,1701140 $21256,946 Hospital (prof. $8,812) 74,569 Non-Salary Items (4% Inflationary) 14,876,830 15,471 ,903 Other Salary Items 86,805 Non-Salary Items 4% CPI 595,073 Total Projected Spending $46,796,217 $4807650078 Estimated Continuation Need $1 ,968,861 °� ENGAGL. CHALLENGE. INSPIRE. ORANGE COUNTY SCHOOLS 200 E. King Street- Hillsborough,North Carolina 27278-919.732.8126 WWW.O R A N G E 0 0 0 N T Y F I R S T.C O M 54 FY 2027 Expansion Requests • Teacher Local Supplement increase o Increase current certified supplements 3°i in each band • Classified Supplement increase o Increase for lowest paid classified staff currently only receiving 7% • Bus Driver Hourly Pay Increase o Increase hourly rate to align with Chapel Hill-Carrboro City Schools ExGpGt CHALLENGE. INSPIRE. Iyy i ' - i k k L r ` 31:1 ����;g a I � � � ,� �.•t , a � ENGAGE. INSPIRE. 56 CurrentCertified Service Years Supplement NStaff Percentage 0 - 5 years 12% 146 23% 6 - 13 years 14% 170 27% 14 - 19 years 16% 104 17% 20+ years 18% 206 33% Total 626 ENGAGE. CHALLENGE. INSPIRE. 57 2025-202+6 Local Supplements for Certified Teachers & Instructional Staff Orange County Schools 40 CHCCS L CP S DPS PCS A IS 25 o 20 - 19 19 1 " 14 1�+ 13 -` 12 10 13 10 10 10 5 0 0-5 years 5-13 years 14-19 years 20* years r ENGAGE. CHALLENGE. INSPIRE. 58 LOCAL SUPPLEMENT CHALLENGES Vacancy Rate and Avg Local Supplement 18.0'- 16.0% • 14.09/o • Chapel Hill-Carrboro City $11 ,612 5.2% *42.09'0 oC Orange County SCh001S Schools =0.0% e C 8.0 a Wake County Schools $11,493 2.2% 1.0 • i ' • Chatham County Schools $9,649 9.3% 4X% 2.0% ` Person County Schools $9,475 6.1 % 0.09/0 $0 $2,000 84.000 $6,000 $8,000 810,000 $12,000 $14,000 Durham Public Schools $8,904 5.6% Avg LccalSupplennent Orange County Schools $8,254 9.8% Data Sources: NC DPI Statistical Profile (supplements) and NC DPI State of the Teaching Guilford County Schools $7,282 6.0% Profession Dashboard (vacancy rates) Alamance-Burlington Schools $6,630 14.0°i° Caswell County Schools $5,600 15.5% * Vacancy - a teaching position in an LEA that is not filled by an educator who holds a qualifying license. f ENGAGE. CHALLENGE. INSPIRE. ' ' • • • ' � • • ' Current OCS Additional 3% Additional 5% Supplement Match Instructional Certified Staff Supplements Supplement '� upplement To Supplement Total to CHCC CLOKA •a ►�'�T� ■ L` J►* •gra• _ _ !� 'r!�'_ 1"r `i� T Supplement TotalslsL'.C ' ' •w, ■��■t+•r •r� �� ll�!'!•T, '•i• �•ir ■�w �l : ' '�■JL"Z1?� Difference in Total ' Current Additional 3%4 Additonai a% jk!to lement Match Supplement Supplement L Supplement ' u leme CHCC • • , • / , I • • r , • , 0 faa qq r 9 T .1 - 1100, . �• -- 11��IIII��pVlllll . m t 9 g r Vis.<F ENGAGE. INSPIRE. 61 Current Classified Supplements Supplement "Staff �3 sifted Employees 7 % 25 Classified Coordinators 9 % 18 Classified Directors 13 % 20 62 Classified Supplement Recommendation • Focus on classified staff receiving lowest percentage - 7 % 0 includes : mor nclusivel;sn ■ Teacher Assistants ■ School Bookkeepers ■ School Receptionists � — ■ Office Support ■ Custodians ■ Technicians ■ Child Nutrition ENGAGE. CHALLENGE. INSPIRE. 63 Classified Supplement Possibilities • 2% Local Supplement increase (from 7 % to 9 %) ■ $ 300, 000 ` ■ 250+ Employees ■ Average annual increase $ 617 �i ENGAGE. CHALLENGE. INSPIRE. � 7 65 2025 - 26 Driver Hourly Pay $40.00 2025-26 Hourly Pay Scales Leel Person Orange Co. Durham Chatham Chapel Hill Wake ABSS $35.00 0 Exp $16.30 $17.68 $19.43 $18.00 $ - $20.00 $18.34 5Yrs Exp $17.40 $20.43 $20.27 $19.18 $ 22.63 $21.25 $18.81 10 Yrs Exp $18.09 $20.85 $21.13 $20.35 $ 24.68 $22.50 $1.9.28 $30.00 15 Yrs Exp $18.55 $21.28 $22.55 $21.53 $ 26,91 $23.75 $19.77 20Yrs Exp $19.12 $21.73 $23.99 $22.70 $ 29.35 $25.00 $20.27 25 Yrs Exp $19.12 $22.16 $25.69 $23.88 $ 32.01 $26.25 $20.78 $25.00 30Yrs Exp $19.12 $22.43 $28.14 $25.05 $ 34.91 $27.50 $21.30 $20.00 Level Number of (Yrs Exp) OCS Drivers $15.00 0-5 9 $10.00 6-10 8 11-15 7 $5.00 16-20 5 $0.00 20+ 12 0 Exp 5 Yrs Exp 10 Yrs Exp 15 Yrs Exp 20 Yrs Exp 25 Yrs Exp 30 Yrs Exp ■ Person ■ Orange Co. ■ Durham ■Chapel Hili Wale ■ Chatham ■ ABSS ENGAGE. CHALLENGE. INSPIRE. .. Bus Driver Hourly J r 0� Current OCS Match Durham atch CHCCS TOTAL $ ),7 ) ENGAGE. CHALLENGE. INSPIRE. � fi o rh r� f//f(lDp(BUS l 17NI4 R � PPP b 67 Local OBudget 1 FY 27 PROJECTED ENROLLMENT 6,733 CHARTER SCHOOL Funded 11157 less out of district county estimate 139 TOTAL STUDENT BILLING BASE 71751 w. a Avow ow Fines & Forfeitures/Interest 2701300 Local County Appropriation 46,525,917 Grand Total Revenue 461796,217 Continuation Non Personnel Increase 5951073 (*)Reflects: 4% State salary increase and anticipated retirement State Mandated Increases 1,373,788 and health insurance premium increases Total Continuation Budget N48,765,078 Total per pupil need of$6,131 (—$254/pp increase) Estimated Continuation Shortfall $ (1,968,86191 1) ENGAGE. CHALLENGE. INSPIRE. 68 Local OBudget Request Additional Continuation/Expansion Certified Teacher Supplement Increase 11334,955 Classified Supplement Increase for lowest band" 300,000 Bus Driver Hourly Increase to match CHCCS 3050000 Total Expansion Request 11939,955 Continuation —$254/pp increase Expansion $250/pp increase Total —$504/pp increase -. 161, EL EN EM, I - 1 y Y 69 Local O 7,000,000 6,610,000 6,120,00,0_ 6,000,000lot 5,456,494 � - 5,000,000 4x930,000 t 4,34 00000 4,000,000 "-3,420,00-0------ 3,000,000 ,3,420,00-}-r--3,000,000 l 2,000,000 r 1,000,000 0 2020 2021 2022 2023 2024 2025 0Actual ENGAGE. CHALLENGE. INSPIRE. 70 Capital Improvement Update • Community Engagement o Gallery Walks (April 7, 9 & 10) o Survey: 236 Responses (March - April 8) o "Draw Your Dream School" (April 15, Gravelly Hill MS) • Site Survey in Process • Joint Meeting between Orange County Schools, City of Mebane, and Orange County • Programming-Design Guidelines Phase in Process ENGAGE. CHALLENGE. INSPIRE. 71 Capital Improvement Update New K-5 Elementary, Greenfield Site near Gravelly Hill MS Scheme 1 Scheme 2 IF �R ■� " -- F - -^ - - ° ......®.. , Y Y •,fit' �y iSS gg Via. �: __, � - G•� _`l � i i + 1 I � 4 a �a. " 1 _ _ ���J�' Detail „ f. �: �: * Detail . ---------------- w 1 ENGAGE. CHALLENGE. INSPIRE. \ g p ;trio s 73 Questions? ENGAGE. CHALLENGE. INSPIRE. 74 Orange County Schools NORTH CAROLINA ENGAGE . CHALLENGE. INSPIRE. 75 Mid-Year Discipline Data January 26, 2026 Dr.Sheldon A.Lanier Chief Equity and Student Achievement Officer Dr.Jessica Dreher Director of Student Engagement&Support Services 40ebs 61 Kumar Sathy ©range Equity Facilitator County DENG�,t�L CHALLENGE. INSPIRE. Daniel Kearns-Pickett SChOQIS Mental Health and SEL Coordinator "°"T"`°p°""° OCS Strategic Plan ORANGE COUNTY SCHOOLS 200 E.King Street Hillsborough,North Carolina 27278 919.732.8126 WWW.ORANGE000NTYFIRST.COM PRIORITY 1 : Teaching Tomorrow's Leaders PRIORITY 2: Excellence and Efficiency PRIORITY 3: Exemplary Staff PRIORITY 4: Empowering Culture Strategic Plan 2021-26 Priorities 78 Po�� Goal I: By 2026, at least 65% of OCS PRIORITY 1 : students will achieve grade level proficiency. ~ Goal II: By 2026, at least 90% of OCS Teaching prschools will meet or exceed growth as UU Tomorrow's measured by the state model. Leaders Goal III: By 2026, the OCS 4-year cohort graduation rate will be at least 92%. ENGAGE. CHALLENGE. INSPIRE. 79 Strategic Plan 2021-26 Priorities Goal I: By June 2026, OCS will decrease the overall number of out-of-school suspensions in all subgroups by 10% annually. Goal II: By June 2026, OCS will address attendance by reducing the district chronic absenteeism rate from 21 .83% to 19% as a way to improve student readiness, engagement, a Empowering, and academic outcomes by resolving a significant barrier to W Culture student learning. Goal III: By June 2026, OCS will implement and maintain ongoing, effective, and meaningful engagement methods to strengthen communication and relationships between schools, families, and the community. ENGAGE. CHALLENGE. INSPIRE. OCS Core Beliefs Student Expectations ORANGE COUNTY SCHOOLS 200 E.King Street Hillsborough,North Carolina 27278 919.732.8126 WWW.ORANGE000NTYFIRST.COM Core Beliefs Regarding Student Expectations 81 • Students deserve consistency in use, interpretation, and application of OCS policies outlined in the Code of Student Conduct. • Students are more likely to uphold expectations when there is consistency in the application of policy among school staff. • Parents and caregivers are essential in our continued efforts to support desirable school behavior. • School administration should use equitable supportive measures, opportunities, strategies, and interventions for students to solve problems and correct behaviors. • Reasonable and fair consequences should be issued at all times. ENGAGE. CHALLENGE. INSPIRE. First Semester Discipline Data ORANGE COUNTY SCHOOLS 200 E.King Street Hillsborough,North Carolina 27278 919.732.8126 WWW.ORANGEOOONTYFIRST.COM In-School Suspension ORANGE COUNTY SCHOOLS 200 E.King Street Hillsborough,North Carolina 27278 919.732.8126 WWW.ORANGEOOONTYFIRST.COM In-School Suspensions 84 Incidents. T- -- - - ' -- t 7- -- r%---- !7- -- 250 200 150 U C `-- 100 0 43 E 7 z 50 Subgroup Subgroup 0 0 <30 <30 Male Female White Black Hispanic Multiracial Asian Native American Hawaiian/ Indian/ Pacific Alaska Islander Native ■ 2024-25 ■i 2025-26 Duplicated Data ? Out-of-School Suspension ORANGE COUNTY SCHOOLS 200 E.King Street Hillsborough,North Carolina 27278 919.732.8126 WWW.ORANGE000NTYFIRST.COM Out-of-School Suspensions 86 Incidents: July-December Year-Over-Year 250 200 150 100 50 Subgroup Subgroup 0 <30 <30 Male Female White Black Hispanic Multiracial Asian Native Hawaiian/ American Indian/ Pacific Islander Alaska Native 2024-25 0 2025-26 Duplicated Data ENGAGE. CHALLENGE. INSPIRE. Out-of-School Suspension Rate by Demographic 87 10.0% 7.5% 5.0% 2.5% Subgroup Subgroup 0.0% 0% <30 <30 Male Female Black White Hispanic Multiracial Asian Native Hawaiian/ American Indian/ Pacific Islander Alaska Native 202425 0 2025-26 lf� r. CHALLENGE. INSPIRE. Students Repeatedly Experiencing Out-of-School Suspeftsion 2024-25 (36 Total Students) 2025-26 (39 Total Students) 35 30 25 20 15 10 5 Subgroup Subgroup 0 0 <30 <30 0 Male Female White Black Hispanic Multiracial Asian Native American Hawaiian/ Indian/Alaska Pacific Islander Native � ,....-.���... ..... . ,. „ , . .rye. Summary of the Data 89 • Incidents of OSS for Female students increased from 44 to 61 . • Incidents of OSS for Asian students increased from 0 to 1 . • Incidents of OSS for Male students decreased from 204 to 126. • Incidents of OSS for Black students decreased from 83 to 71 . • Incidents of OSS for White students decreased from 74 to 57. • Incidents of OSS for Hispanic students decreased from 58 to 48. • Incidents of OSS for Multiracial students decreased from 45 to 6. ENGAGE. CHALLENGE. INSPIRE. Summary of the Data 90 • 39 students (K - 12) have had 2 or more incidents of out-of-school suspension compared to 36 during the 2024-25 school year. 0 0.6% of OCS students 0 0.3% of White students 0 1 .9% of Black students 0 0.4% of Hispanic students 0 0.2% of Multiracial students 0 0% of Asian students fgl� ENGAGE. CHALLENGE. INSPIRE. 91 Questions? ENGAGE. CHALLENGE. INSPIRE. 92 Orange County Schools NORTH CAROLINA ENGAGE. CHALLENGE. INSPIRE. 93 a MI � x '•fl NIN 100 • ."Alga ow _ •fi FL 1 ;I -- B 1' OR 0 RO; � --- ..►' `� `'� SIU.-'� �Est.1909 DIFFERENTLY 94 Board of Education's Budget Request for the Fiscal Year Ending June 30, 2027 Chapel Hill — Carrboro City Schools Board of Education Members and Principal Officials Riza C. Jenkins, Board Chair Barbara Fedders, Vice Chair Meredith H. Ballew Rani D. Dasi Vickie Feaster Fornville George W. Griffin, Ph. D. Melinda Manning Dr. Rodney Trice, Superintendent Prepared By: Jonathan Scott, Chief Financial Officer Justin Kiser, Assistant Finance Officer Business and Financial Services Division Lincoln Center 750 South Merritt Mill Road Chapel Hill,NC 27516 (919) 967-8211 www.chccs.org April 16, 2026 ii Est.1909-11 EXECUTIVE SUMMARY I 1APEt HILL- kmoRO�- CIT ` ' SCHOOLS Chapel Hill—Carrboro City Schools (CHCCS) 750 S Merritt Mill Road, Chapel Hill, NC 27516 Web Site: chccs.org Prepared by the Business and Financial Services Division (919) 967-8211 BOR 96 C A\Est 1909.>' Distinguished Members of the Orange County Board of County Commissioners, I am pleased to present the Board of Education's Local Operating Budget Request for Fiscal Year 2026-27 for Chapel Hill-Carrboro City Schools. This proposal reflects our ongoing commitment to excellence, equity, and responsible stewardship as we address declining enrollment,uncertainty in state funding,and increasing operational costs. This year's budget is guided by a multi-year strategic approach focused on realignment, reinvestment, and long-term sustainability. As enrollment patterns evolve and financial pressures continue,we have aligned staffing and operational resources with current conditions while preserving our commitment to high- quality instruction and strong student outcomes. The continuation budget accounts for projected increases in salaries and benefits, inflationary impacts, and anticipated reductions in state funding tied to enrollment, while incorporating efficiencies to maintain structural balance. In addition, this request includes an expansion component aligned with our strategic initiative, Forward Together. This effort emphasizes thoughtful reinvestment, operational alignment, and long-term financial stability. Through this approach, we are not only stabilizing our current position but also establishing a clear path for innovation and sustainability in the years ahead. A key priority within this plan is continuing progress in rebuilding the District's local fund balance. Through a disciplined,multi-year financial recovery strategy, we are restoring reserves, strengthening fiscal resilience, and positioning the District for long-term stability. years"The next 25 must look different ♦ Despite ongoing challenges, our mission remains clear. We are committed to ensuring that every student has access to a high-quality educational experience the ♦ ;�ot becausewithin a system that is fiscally sound, responsive, and forward-looking. lost our ♦ but because • ♦ Thank you for your continued partnership and support. around us is changing, Sincerely, ♦ ♦ we owe it to our children • meet that change • ♦ . , Rodney Dr. Rodney Trice Superintendent, Chapel Hill—Carrboro City Schools 97 EXECUTIVE SUMMARY Page 13 Board of Education's Budget Request for FY 2026-27 The following narrative outlines the major elements shaping the District's financial plan for the upcoming fiscal year. It details the continuation costs required to sustain current operations, highlights the District's multi-year strategic budget vision centered on realignment, reinvestment, and long-term sustainability, and explains how these priorities will be reflected in the Board of Education's funding request to Orange County. At its core, this vision centers on aligning resources with current priorities and enrollment realities, reinvesting in high-impact strategies that directly support student outcomes, and establishing long-term structural sustainability within the Local Operating Budget. Central to this effort is a deliberate, multi-year strategy to rebuild the District's diminished fund balance, strengthen financial resiliency, and restore appropriate reserve levels to safeguard against future fiscal volatility. Student Data The District's financial planning process begins with a thorough analysis of enrollment projections for the upcoming year, as these projections significantly influence both State and local funding levels. Each fiscal year, Orange County adopts educational funding levels based on the projected student enrollment for both school districts within the County. The allocation our district receives is determined by the proportional split between our projected enrollment and that of Orange County Schools (OCS). State enrollment funding for next year will be based on the current year's best of 20th or 40th day Average Daily Membership (ADM). For FY 2025-26, the District's 40th day ADM was 10,773. Out-of-district student enrollment was 260, and charter school enrollment was 228. After accounting for the 260 out-of-district students and adding the 228 charter school students, the net projected budgeted enrollment for FY 2026-27 is 10,741 budgeted students. This represents a decrease of 277 students compared to the FY 2025-26 budgeted enrollment. 2026-27 Enrollment Projections CHCCS 40th Day Average Daily Membership 10,773 Less: Out of District Students (260) 10,513 Plus: Budgeted Charter Students 228 Total Budgeted Students 10,741 Continuation Cost Requirement The largest foundational piece that the District considers when financially planning for an upcoming fiscal year is in the estimated continuation portion of the Local Operating Budget. This calculation represents the expenses required to be able to continue providing the existing level of services and standards of education in the upcoming fiscal year before any structural or Chapel Hill—Carrboro City Schools—FY 2026-27 Board of Education's Budget Request 98 EXECUTIVE SUMMARY Page 14 programmatic changes are considered. The following section will detail the major drivers of the continuation cost estimates to include salaries and wages,required matching benefit changes, and inflationary adjustment for non-salary items, and the net effects of the estimated State reductions contained in the budget. Salaries and Wages $1,837,274 The State of North Carolina has not yet provided a biennial budget for fiscal years 2026-27. In the absence of an adopted budget,the District has estimated a 4% salary increase for all staff. These projected increases amount to $1,294,864 for base salaries and $542,410 for the matching local supplement, for a total of$1,837,274. Final adjustments may be necessary once budget details are provided by the General Assembly. Benefit Increases $11115,633 Federal and State legislation determines employer-required matching rates and annual health insurance premiums for employees. These changes necessitate adjustments to our local operational plan, as the District is responsible for covering benefit increases for the local portion of teacher salaries and all locally-paid employees. The Federal Insurance Contributions Act(FICA) rate is expected to remain at 7.65%. However, to account for mandated increases in salaries and corresponding supplements, an additional $147,783 is required for FICA matching. Continuation costs also include adjustments for the Teachers and State Employees Retirement System(TSERS) matching rate, projected to increase from 24.67%to 25.15%, and Employer- Sponsored Health Insurance premiums, which are expected to rise from$8,500 to $8,812 per employee. These rate changes result in continuation needs of$731,335 for TSERS matching and $236,515 for Employer Health Insurance premiums. In total, the combined continuation costs for FICA, TSERS matching, and Employer Health Insurance premiums amount to $1,115,633. Other Non-Salaried Operating Costs $723,483 To address the rising costs of goods and services necessary for District operations, a 4% inflationary adjustment has been applied to non-salary operating costs. These costs encompass a wide range of expenditures essential to maintaining daily operations, such as utilities, transportation, instructional materials, technology infrastructure, facility maintenance, and contracted services. Continuation Costs Summary Continuation Item Cost Base Salaries $ 1,294,864 Local Supplements 542,410 Social Security(FICA) 147,783 State Retirement Matching 731,335 Employer Paid Health Insurance Premiums 236,515 Non-salary Operating Costs 723,483 Total Budgeted Continuation Costs $ 3,676,390 Chapel Hill—Carrboro City Schools—FY 2026-27 Board of Education's Budget Request 99 EXECUTIVE SUMMARY Page 15 Estimated Local Operating Fund Revenue Changes The District's projections account for anticipated changes in revenue sources, including the Special District Tax. Current estimates indicate a $591,153 increase in revenue from this tax, reflecting a 2% growth in the tax base while assuming no changes to the current tax rate. Budgetary Consideration Impact Total Continuation Costs before Revenue Changes $ (3,676,390) Inflationary Special District Tax Revenue Increase 591,153 Total Continuation Need after Local Revenue Changes $ (3,085,237) Continuation Budget Summary The District's FY 2026-27 continuation budget reflects the cost required to maintain current service levels and educational standards prior to any structural or programmatic changes. Total continuation costs are estimated at $3,676,390, driven primarily by projected salary and wage increases of$1,837,274, which assume a 4% increase for all staff in the absence of an adopted State biennial budget. Required benefit adjustments total $1,115,633, including increases for FICA, Teachers' and State Employees' Retirement System(TSERS)matching, and employer- sponsored health insurance premiums. An additional $723,483 is attributed to a 4% inflationary adjustment for non-salary operating costs. After accounting for an estimated $591,153 increase in Special District Tax revenue, the net continuation need is reduced to $3,085,237. This continuation amount reflects a 5.5% increase in the County Appropriation for FY 2026-27, compared to an average annual increase of 3.91% over the past five fiscal years. With a conservative estimate of the county's appropriation increase of 3%, or an increase of$1,942,584, the remaining continuation need would be approximately $1,142,653. Expansion Request The Strategic Pivot for Realignment, Reinvestment, and Long-Term Sustainability The 2026-27 budget reflects CHCCS's commitment to Innovation and Reinvestment as a strategic lever for long-term strength and sustainability. In a rapidly changing educational landscape, incremental adjustments are not enough. We must intentionally reinvest in models, programs, and systems that expand opportunity, strengthen enrollment, and position our district to thrive,while remaining grounded in our shared values of equity, sustainability, and excellence. Innovation and Reinvestment is not about isolated initiatives; it is about setting direction. This lever focuses on how we design future-ready learning environments, modernize instructional and operational practices, and strategically reallocate resources to areas of highest impact. It challenges us to examine current investments, discontinue approaches that no longer meet our goals, and redirect funding, staffing, and time toward strategies that better serve students and families. Through thoughtful reinvestment, CHCCS commits to elevating student experience, strengthening community confidence, and ensuring that every dollar advances both immediate needs and long-term opportunity. By aligning innovation with fiscal responsibility, this budget Chapel Hill—Carrboro City Schools—FY 2026-27 Board of Education's Budget Request 100 EXECUTIVE SUMMARY Page 16 positions CHCCS not only to navigate present challenges, but to build a resilient and thriving future for all students. Expansion Item #1: Certified and Classified Supplement Investment Increase in the Classified Supplement Percentages In fall 2021, Chapel Hill-Carrboro City Schools (CHCCS) commissioned Evergreen Solutions, LLC to conduct a classification and compensation study for non-certified employees, including Teacher Assistants, Custodians, and Bus Drivers. The study provided valuable insights into employee demographics, compensation practices, and market disparities. Due to funding constraints, the district implemented a capped adjustment of three steps, benefiting over 600 employees with a 5.3% average salary increase. While this was an important step toward improving classified employee compensation and market competitiveness, a gap remains between current wages and market rates, especially given rising costs and inflation. As part of ongoing strategic budget planning, CHCCS continues to examine potential approaches to strengthening compensation for classified staff. Classified employees play a critical role in supporting instruction, maintaining safe and effective learning environments, and ensuring the smooth operation of district services. Maintaining competitive and equitable compensation structures remains an important consideration in long-term financial planning. Currently, classified staff receive baseline local supplements ranging from 5.5%to 9.5%, differentiated by years of experience. The estimated cost of a 1% increase is approximately $350,000, inclusive of benefits. Implementation would allow the District to adjust to current fiscal conditions and labor market trends to remain competitive as it works to continue recruiting and maintaining the highest quality staff to serve our students. This expansion requests includes a full 3% increase to each band of the classified salary structure as outlined in the table below: Years of Experience Percent Paid on Base Wages Proposed 3% Increase 0 No supplement No Supplement 1-3 5.5% 8.5% 4-8 6.5% 9.5% 9-13 7.5% 10.5% 14-18 8.5% 11.5% 19+ 9.5% 12.5% The proposed 3% increase to the classified salary structure represents a total estimated cost of $1,050,000,based on an approximate cost of$350,000 per 1% increase, inclusive of benefits. Increase in the Certified Supplement Percentages As part of long-range financial planning, CHCCS continues to explore potential strategies to sustain competitive compensation for certified staff. Teachers and other certified employees are central to instructional excellence and student outcomes, and maintaining a strong compensation framework remains an important consideration in supporting recruitment, retention, and overall district stability. For FY 2026, baseline local supplements for certified staff range from 18%to Chapel Hill—Carrboro City Schools—FY 2026-27 Board of Education's Budget Request 101 EXECUTIVE SUMMARY Page 17 27%, differentiated by years of experience. This structure reflects the district's longstanding commitment to remaining competitive within the region. Looking ahead, the district may consider whether additional phased adjustments to local supplements are warranted to preserve market position and promote continued equity across experience levels. The estimated cost of each 1% increase is approximately $550,000, inclusive of benefits. These projections assume stable staffing levels and approximately 3% annual state-funded salary growth over the same period. This expansion request includes a full 3% increase to each supplement band that would allow the District to adapt to remain competitive in this market amongst evolving fiscal conditions, enrollment trends, and workforce needs. In total this request would cost the District approximately $1,650,000. Expansion Item #2: Instructional Resources Sustainability Fund As part of long-term strategic planning, CHCCS is examining potential approaches to ensure sustainable funding for instructional materials in an evolving curriculum and funding landscape. The North Carolina Department of Public Instruction(NCDPI)regularly updates curriculum standards, requiring districts to periodically refresh and realign instructional resources. At the same time, state funding dedicated to textbooks and instructional materials has declined significantly over time, increasing reliance on local funding sources. The nature of instructional resources has also shifted. Districts have moved away from periodic, large-scale textbook adoptions toward annual digital licenses, subscription-based platforms, and blended resource models. These recurring costs create ongoing budget pressures and often do not include embedded professional development, requiring additional local investment to ensure effective implementation. The proposed investment in instructional materials represents a total estimated cost of$1,000,000, reflecting the ongoing need to support curriculum updates, digital resource subscriptions, and associated implementation costs, including professional development, in a shifting funding landscape with reduced state support. Expansion Request Summary Expansion Item Cost 3% Classified Supplement Increase $1,050,000 3% Certified Supplement Increase 1,650,000 Instructional Resources Sustainability Fund 1,000,000 Total Requested Expansion Costs $ 3,700,000 Fund Balance Analysis The audited local unassigned fund balance for the fiscal year ending June 30, 2023, was $3.6 million (4.07% of total expenditures), down from $5.0 million (5.85%)the previous year. This amount was $1.31 million below the Orange County BOCC's minimum target of 5.5% of local expenditures, or$4.93 million. Results of operations in FY 2023-24 further reduced the District's local unassigned fund balance to essentially zero. This critically low reserve level prompted the District Administration and Chapel Hill—Carrboro City Schools—FY 2026-27 Board of Education's Budget Request 102 EXECUTIVE SUMMARY Page 18 Board of Education to implement a tiered spending reduction plan to restore financial stability, eliminate deficit spending, and rebuild reserves over time. Tiers I and I1 were enacted as immediate, stop-gap measures to stabilize operations and return the District to a structurally balanced position by FY 2025, while Tier III was designed to restore long-term sustainability and rebuild local fund balance reserves in future fiscal years. As a result of the first two tiers, approximately $360,425 was restored to fund balance in FY 2025, demonstrating that the corrective measures were successfully implemented and achieved their intended outcome. During FY 2025-2026, Tier III was specifically designed to rebuild reserves to a more sustainable level. Based on current projections, the District estimates that FY 2026 will conclude with approximately$4.5 million in unassigned fund balance. This represents meaningful progress toward restoring financial stability and moving closer to the BOCC's minimum target reserve level. As a result of these actions, the District anticipates entering FY 2026-27 with a structurally balanced budget that includes an estimated surplus of approximately the same magnitude. This potential structural surplus will allow the District to continue rebuilding fund balance toward a sustainable level in alignment with policy and cash management requirements. FY 2026-27 Board of Education's Budget Request Summary In summary, the FY 2026-27 budget request reflects a balanced and forward-looking approach that addresses both the immediate operational needs of the District and its long-term financial sustainability. The continuation budget underscores the real and unavoidable cost pressures required to maintain current service levels, driven largely by compensation, benefits, and inflationary impacts. Even after accounting for projected local revenue growth, a significant continuation need remains, highlighting the structural challenges facing the District as it works to sustain high-quality educational services in a constrained fiscal environment. At the same time, the Board of Education's expansion request represents a strategic and intentional investment in the future of CHCCS. The proposed enhancements to both classified and certified compensation structures are critical to maintaining competitiveness in a challenging labor market, supporting employee retention, and recognizing the essential contributions of staff across the organization. Similarly, the investment in instructional resources acknowledges the evolving nature of curriculum delivery and the need for sustainable, predictable funding to support both materials and implementation. Together, these targeted investments align with the District's commitment to realignment and reinvestment in high-impact areas that directly support student success. Equally important is the District's progress in restoring financial stability through disciplined fiscal management and a multi-year recovery strategy. The rebuilding of fund balance from critically low levels to a projected $4.5 million demonstrates a strong commitment to structural balance and responsible stewardship of public resources. Maintaining this trajectory will be essential to ensuring long-term resilience, meeting policy targets, and preserving the District's ability to respond to future uncertainties. Chapel Hill—Carrboro City Schools—FY 2026-27 Board of Education's Budget Request 103 EXECUTIVE SUMMARY Page 19 Ultimately, this budget reflects a careful balance between fiscal responsibility and strategic investment. It prioritizes sustaining current operations, rebuilding financial reserves, and making thoughtful reinvestments that position CHCCS for continued success. The Board of Education respectfully submits this request to Orange County as a necessary step to support the District's mission, strengthen its workforce, and ensure that all students continue to receive a high-quality education in a stable and sustainable system. Budgetary Consideration Impact Total Continuation Costs before Revenue Changes $ (3,676,390) Total Expansion Costs before Revenue Changes (3,700,000) Inflationary Special District Tax Revenue Increase 591,153 Total Budget Request after Local Revenue Changes $ (6,785,237) Chapel Hill—Carrboro City Schools—FY 2026-27 Board of Education's Budget Request r 104 EXECUTIVE SUMMARY Page 10 DIFFERENTLYE THINK (AND ACT) T ■ i purpose_fy selected a design for our strategic plan that ■ • +{ _ � wouldoutline R V 4 5 • makes the workto ou r com mu n ity.Theplan a rIdvision offers our schools in collaboration with our district's DMsions a clear and compelling r.d .► to success while helping to meet our r - goals by2027. Estm 1:fly Key Priorities Creating a Culture Instructional Empowering, Equitable and Strengdrening [ of Safety and Excellence: Equipping and Transparent fiscal Family and Wellness Prepar ng Investing in Our Stewardship and Community Students for Life Peaple Operations Engagement 0 � ffill Creating a Culture of Safety and Instructional Excellence:Paeparing Wellness Students for Life(€ontlnded) LU Goal 1:CHCCS will prioritize the social,emotional Goal 3:CHCCS will ensure flexibility in available and physical well-being of every siudent,and staff learning opportunities and that choice programs are mem ber to ensure that everyone has the support accessible For all students. needed to thrive in our learning cornmunitiies,. Ul i Empowering.Equipping and Goal 2:CHCCS will prioritize personatized supe n !' Investing]in Our People For every student with a focus on students' strengths,and their areas of need to ensure that Emery student successfully realizes the best version Gaal 1:CHCCS will recruit a diverse workforce 1f themselves_ representative of our broader community using proven local and national best practices and focus Instructional Excellence:Preparing on the n�nt<on. Students for Life Goal 2:CHCCS will invest in a diverse and highly- qualifiedworkfbrce to ensureCHCCS is the place Goal 1:CHCCS students will be pnavid&d access where talented professionals choose to work and n a chaltenging,diverse and cuttu.ally relevant, g row. standards aligned curriculum which is student centered and wilt propel their educational growth and achiav-arnant. Goal 3:Equip a culturally responsive workforce so our people wil I effectively support students and famil-res.Continue to develop professional learning Goal 2:CHCCS will prioritize opportunities designed thatdewlops a culturally responsive mindsets and _o elevate student voice and access to meaningful, capabilfties with stakeholders so there is an inviting authentic instruction w bile empowwi ng students to and inclusive environment to support student advocate for their own learning_ learning throughout every classroom,school,and central office. Chapel Hill—Carrboro City Schools—FY 2026-27 Board of Education's Budget Request ■ 105 EXECUTIVE SUMMARY Page 111 THINK (AND ACT) DIFFERENTLY Equitable and Transparent Fiscal EFEUM Strengthening Family and Community Stewardship and Operations M Engagement Goal 1:GreSte and maintain safe spaces where Goa 11:Design effective farms of school-to-home and instructional excellence can occur_ home-to-school communications about school programs and student progress_ Goal 2;Provide effective support services for students.. Goal Z Provide information and ideas to families about staff,and the community through equitable allocation hcew to promote the continLiation of Ieamfng at home and distribution of resou-ces using a tiered system of and in the community through learning,service.and support model. enrich ment aci vities. Goal 3;Timety,accurate reporting and transparent Goal 3.Elevate diverse parents and caregivers as communication of Financiat Information to the members leaders and representatives,and include them in school of our community- and district-based decision-making. Portrait of a Graduate Chapel Dill-Carrboro Ci-.y Schools is committed to providing all of its students with the knowledge, experiences and opportunities necessary for them to develop the competencies required for success,in school,the Workforce, 2nd in life. t explore and exchange ideas with others.I grow my understanding by actively SkilledQ� Iis.tening to,honoring,and building on the voices of others.and I express my ovk�understanding,dearly,using a,.variety of formas depending on the purpose, audience,and setting.I continually look for opportr.nities to grow in this area. # f form partnerships with others.I awork with other to achieve common goals by Effective building reladonships,managing team dynamics,making shared decisions,and Collaboratorlearning from and contributing to the learning of others- I analyze and synthesize ideas. I make decisions Dy processing and evaluating 4;' information,seeking patterns and connections,constructing meaningful `fitThinker knowledge,and applying knowledge in authentic cantexrts. t adjust to challenging conditions with agility and flexibility. I work effectively + .■ ■.r_ ■ in a climate of ambigufryarld changing priorities.. Individual I d emonstrate sensitivity,concern,and resp"t for the experiences a nd rEthical ' feelings of others.I act +;ith key moral principles that include honesty,fairness, . .thetic Citizen equilSr anadignity- Chapel Hill—Carrboro City Schools—FY 2026-27 Board of Education's Budget Request r + 106 EXECUTIVE SUMMARY Page 112 Board of Education The Board of Education is comprised of seven community members elected to set policy and direction for the local school district. The Chapel Hill-Carrboro City Schools Board of Education includes seven members who serve four-year terms. CHCCS School Board's Mission Statement: To facilitate the CHCCS Mission by establishing and maintaining policies that are in the best interests of our students, communicating and engaging with key stakeholders, and hiring and collaborating with the district Superintendent. Riza Jenkins, Barbara Fedders, Chair Vice Chair r'enkins chccs.kl2.nc.us barbara.fedders chccs.k12.nc.us Meredith H.Ballew Rani D.Dasi Vickie L.Feaster Fornville meredith.ballew chccs.kl2.nc.us rdasi chccs.kl2.nc.us vfeasterfornville chccs.kl2.nc.us �F George W.Griffin Melinda Manning riffin chccs.kl2.nc.us melinda.mannin chccs.k12.nc.us Chapel Hill—Carrboro City Schools—FY 2026-27 Board of Education's Budget Request r . 1 EXECUTIVE SUMMARY Page 13 HILL- ARRBORO SCHOOLS Superintendent's • • Employees,Students, Families& Community Members Board of Education Exec.Admin.Assistant Superintendent to the Superintendent Dr.Rodney Trice Board of Education Clerk Tamara Holloway ;; Deputy Chief Chief Chief Chief Human Chief Chief of Staff Superintendent Academic Communications Financial Resources Operations &School °f Officer Officer Officer Officer Officer Leadership Superintendent's designee(s) if/when the Superintendent is out of the office. Revised September 5,2025 Operations' AI Ciarochi Dr.Robert Andy Jenks Jonathan Dr.Ashauna Dr.Andre Brandy Bales Scott Harris Stewart Reeves i` THINK{ANQ ACTI Chapel •• • City Schools • Superintendent'sBudget Request DIFFERENTLY 108 INFORMATIONAL SECTION Page 114 FY 2026-27 Budget Preparation Timeline In accordance with North Carolina General Statute (GS 115C—428), the Superintendent shall prepare a budget for the ensuing year and submit to the local Board of Education no later than May 1. Before submitting the prepared budget, the Board of Education may choose to hold a public hearing at which time any persons who wish to be heard on the budget may appear. North Carolina LEAs are fiscally dependent on the local governing body,which in the District's case is the Orange County Board of County Commissioners. After consideration of the budget and the public hearing, the Board of Education will submit the budget to the Orange County Board of County Commissioners no later than May 15 (GS I I5—429). The following is a summary of the budget preparation process timeline for the upcoming year: November-December • Finance and Facilities Committee holds preliminary budget discussions • Cabinet holds Budget Strategy Work Session • The budget development process for gathering school and department budgets is considered and established January—February • Budget Request Worksheets are distributed to schools and departments • Board of Education holds first budget work session • Schools present budget requests to Cabinet based on school data, identified needs, schedules, and special circumstances • Departments submit budget requests to Business and Financial Services Division • Superintendent presents preliminary budget information to Board of Education March -April • Superintendent submits FY2027 Proposed Budget Request to the Board of Education • Board of Education holds Public Hearing work session • Board of Education holds budget work session for final consideration and review • Board of County Commissioners holds budget work session for consideration and review • Board of Education approves FY2027 Budget Request and submits to the Board of County Commissioners May—November • Board of County Commissioners holds Public Hearing on budget • Board of County Commissioners holds work sessions to review requested budget • Board of County Commissioners holds final Public Hearing and work session • Board of County Commissioners adopts FY 2026-27 Local and Capital Fund budget • Board of Education approves Final Budget Resolution for all Fund Codes Fffmrza�� Chapel Hill—Carrboro City Schools—FY 2026-27 Superintendent's Budget Request ffr 109 INFORMATIONAL SECTION Page 115 Summary of FY 2025-26 Revenues and Expenditures by Fund State Public Local Federal Capital Child Community Other Local Operating Fund Fund Fund Fund Revenues State $79,544,215 $ - $ - $ 175,000 $ - $ - $ 642,821 $ 80,187,036 Local - 95,695,444 22,181,197 2,028,570 2,512,949 3,981,150 127,390,409 Federal - 4,181,505 - 2,844,669 - 3,658,992 9,948,084 Fund Balance Appropriated - - - - 79,017 - - - Total Revenues $79,544,215 $95,695,444 $ 4,181,505 $22,356,197 $ 4,952,256 $ 2,512,949 $8,282,963 $217,525,529 Expenditures Instructional Services $72,005,464 $67,994,809 $3,506,901 $ 185,495 $ - $ - $8,279,463 $151,972,132 System-Wide Support Services 7,538,751 26,248,822 3,000 2,633,865 - - 36,424,438 Ancillary Services - 1,813 - 19,170 4,897,256 2,512,949 7,431,188 Non-Programmed Charges 1,450,000 671,604 - 55,000 - 3,500 2,180,104 Capital Outlay - - 19,517,667 - - - 19,517,667 Total Expenditures $79,544,215 1 $95,695,444 1 $4,181,505 $22,356,197 $4,952,256 1 $2,512,949 1$8,282,963 1 $217,525,529 FY 2026 Revenue Snapshot by FY 2026 Expenditures Snapshot by Source of Funding Type Non-Programmed Federal Charges Capital Outlay $9,948,084 $1,508,500 $19,517,667 i Ancillary Services / $7,431,188 State :0 ,187,036 System-Wide upport Services $3 44348- Instructional Services $127,390,409 Chapel Hill—Carrboro City Schools—FY 2026-27 Superintendent's Budget Request 110 INFORMATIONAL SECTION Page 116 Budget Comparison for Last 5 Fiscal Years All Funds Actual Actual Actual Actual Actual Budgeted 2021 2022 2023 2024 2025 2026 State Public School Fund Revenue Received 77,894,155 83,298,840 80,068,737 82,945,174 83,322,030 79,544,215 Expenditures Paid 77,894,155 83,298,840 80,068,737 82,945,174 83,322,030 79,544,215 Ending Net Balance - - - - - - Local Operating Fund Revenue Received 79,107,165 82,043,514 82,510,304 89,691,391 93,225,544 95,695,444 Expenditures Paid 79,452,398 85,567,860 88,998,975 95,178,035 92,865,119 95,695,444 Ending Net Balance (6,488,671) (5,486,644) 360,425 - Federal Grants Fund Revenue Received 4,083,291 11,517,113 10,588,780 6,449,468 5,233,613 4,181,505 Expenditures Paid 4,083,291 11,517,113 10,588,780 6,449,468 5,233,613 4,181,505 Ending Net Balance - - - - - - Capital Outlay Fund Revenue Received 26,633,955 8,053,522 14,734,818 21,360,791 18,797,310 22,356,197 Expenditures Paid 25,963,878 8,271,620 15,541,522 21,311,808 19,577,370 22,356,197 Ending Net Balance 670,077 (218,098) (806,704) 48,983 (780,060) - Child Nutrition Fund Revenue Received 3,614,095 6,460,340 4,789,055 4,144,450 4,049,056 4,952,256 Expenditures Paid 3,292,046 4,999,109 4,121,174 4,433,586 4,087,269 4,952,256 Ending Net Balance 322,049 1,461,231 667,881 (289,136) (38,213) - Community Schools Fund Revenue Received 245,928 1,653,061 2,871,206 2,122,004 1,973,351 2,512,949 Expenditures Paid 980,672 1,391,178 1,825,543 2,697,723 2,721,017 2,512,949 Ending Net Balance (734,744) 261,883 1,045,663 (575,719) (747,666) - Other Grants Fund Revenue Received 5,830,965 7,454,363 8,541,184 8,054,872 7,881,565 8,282,963 Expenditures Paid 5,527,159 6,807,532 9,193,767 9,681,149 8,957,865 8,282,963 Ending Net Balance 303,805 646,830 (652,583) (1,626,277) (1,076,300) EMEMM= Chapel Hill—Carrboro City Schools—FY 2026-27 Superintendent's Budget Request 111 INFORMATIONAL SECTION Page 117 Budget Forecast for Next 3 Fiscal Years All Funds Linear Regression Linear Regression Linear Regression Budgeted Projection Projection Projection 2026 2027 2028 2029 State Public School Fund Revenue Received 79,544,215 81,978,595 82,298,489 82,618,384 Expenditures Paid 79,544,215 81,978,595 82,298,489 82,618,384 Local Operating Fund Revenue Received Expenditures Paid 95,695,444 95,879,030 99,412,417 102,945,805 Ending Net Balance 95,695,444 97,432,453 100,554,912 103,677,371 - (1,553,423) (1,142,494) (731,566) Federal Grants Fund Revenue Received 4,181,505 5,401,909 4,759,088 4,116,266 Expenditures Paid 4,181,505 5,401,909 4,759,088 4,116,266 Capital Outlay Fund Revenue Received 22,356,197 19,903,852 20,402,954 20,902,055 Expenditures Paid 22,356,197 20,383,432 21,001,979 21,620,526 Ending Net Balance - (479,580) (599,025) (718,471) Child Nutrition Fund Revenue Received 4,952,256 4,583,376 4,549,443 4,515,510 Expenditures Paid 4,952,256 4,734,093 4,902,034 5,069,975 Ending Net Balance - (150,717) (352,591) (554,465) Community Schools Fund Revenue Received 2,512,949 2,721,186 3,051,094 3,381,002 Expenditures Paid 2,512,949 2,916,019 3,273,822 3,631,624 Ending Net Balance - (194,833) (222,728) (250,622) Other Grants Fund Revenue Received 8,282,963 8,606,839 8,979,847 9,352,855 Expenditures Paid 8,282,963 9,554,887 10,146,812 10,738,738 Ending Net Balance (948,048) (1,166,965) (1,385,883) Note:These projections are calculated strictly based on the statistical forecast method called linear regression forecasting using the previous 5 years of actual revenues and expenditures.It does not account for qualitative information.A critical takeaway from this information is that at current spending levels,the deficit in the local budget shows a declining trend when projected out. This highlights the encouraging signs that the District's reduced spending from the enacted tiered RIF plan discussed earlier in the budget narrative is moving the District towards a more sustainable position. EMXEM= Chapel Hill—Carrboro City Schools—FY 2026-27 Superintendent's Budget Request 112 INFORMATIONAL SECTION Page 118 Enrollment Trends and Forecast Over the 10 years prior to the COVID-19 pandemic, the District saw steady enrollment growth, with average growth just under 1% each year. Post-COVID trends and recent political action have created uncertainty for families around the District in the decision of where their children will receive their education. The District has experienced a steady decline in enrollment since the onset of the pandemic. The graph below shows the trend of actual student enrollment across the last 10 years and includes the District's current (40th Day) enrollment for FY 2025-26: 14,000 13,500 G1 13,000 a. 12,500 12,239 12,296 12,270 ani 12,000 1,764 11,510 Q11,500 11,369 11,266 11,065 ao 11,000 10,773 > 10,482 10,500 r 10,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Year *The 10,773 enrollment number is the enrollment recorded on the 40t1i day of the current school year. State allotments are now based on the prior year's recorded ADM. The District uses a cohort-survival method of projection using the final enrollment count of the previous year in its local allotments.It does not reflect actual students in seats as of writing. It is important to note that the District is funded based on the State's projection of enrollment, adjusted for charter school students and out of district students. That adjusted enrollment is the 10,741 ADM number previously discussed in the continuation budget narrative. The breakdown of the FY 2026 40th day enrollment compared to the prior year's actual final enrollment is highlighted in the table below: FY 25 Final to FY 26 40"Day FY 2025 FY 2026 Final 40"Day Enrollment Enrollment Change Percent Elementary School 4,541 4,308 (233) -5.5% Middle School 2,658 2,581 (77) -2.9% High School 3,842 3,860 18 0.5% Other 24 25 1 4.1% Total 11,065 10,773 (291) -2.6% Chapel Hill—Carrboro City Schools—FY 2026-27 Superintendent's Budget Request ffr rd 3 FET4E 113 INFORMATIONAL SECTION Page 19 Enrollment Forecast FY 2026 Actual 40`h Day Enrollment KIND 616 618 616 611 1st 679 700 666 662 2nd 663 667 714 679 3rd 792 713 690 738 4th 747 690 721 696 5th 797 820 701 733 6th 859 768 830 708 7th 860 816 776 838 8th 861 893 833 794 9th 1,020 1,007 1,021 949 10th 980 935 986 1,000 11th 975 953 904 945 12th 926 900 931 865 Total 10,773 10,482 10,389 10,217 *Projections based on a demographic study completed by Carolina Demography Chapel Hill—Carrboro City Schools—FY 2026-27 Superintendent's Budget Request ff griff F-Tikv=- 114 INFORMATIONAL SECTION Page 120 Tax Base and Rate Trends Real property taxes are levied on the assessed value of real estate owned by businesses, individuals, and public service corporations. Personal property taxes are levied on the assessed market value of tangible property such as vehicles, mobile homes,heavy equipment, machinery, and tools. Real property tax assessments are conducted by the County Assessor, while personal property assessments are conducted by the Commissioner of the Revenue. Both real and personal property taxes are levied on 100% of assessed market value. Rates are established per$100 of assessed value. The total tax base and tax rates for Orange County over the last 10 fiscal years are summarized below: Assessed Value as Public- Less Tax- Direct Estimated %of Fiscal Personal Service Exempt Total Assessed Tax Actual Market Actual Year Real Property Property Companies Property Value Rate Value Value 2024 20,399,712,524 2,208,133,210 411,484,411 84,064,353 23,019,330,145 0.8353 31,984,397,417 69.47% 2023 20,915,506,497 1,504,996,150 386,793,191 81,256,223 22,421,502,597 0.8312 27,353,303,156 81.97% 2022 19,776,883,656 1,884,947,740 364,879,155 82,177,022 21,944,533,529 0.8187 22,233,569,938 98.70% 2021 17,333,962,055 1,769,659,485 346,332,873 77,934,293 19,449,954,413 0.8679 21,885,849,476 88.87% 2020 16,974,899,491 1,726,673,593 337,564,917 82,646,419 18,956,491,582 0.8679 21,116,733,410 89.77% 2019 16,603,198,106 1,821,061,820 337,735,426 80,381,765 18,681,613,587 0.8504 20,299,482,328 92.03% 2018 16,385,248,774 1,711,150,366 315,583,138 81,081,408 18,330,900,870 0.8377 19,247,060,972 95.24% 2017 15,168,750,327 1,620,578,558 306,434,830 71,244,631 17,024,519,084 0.8780 19,932,700,016 85.41% 2016 15,020,157,254 1,442,897,338 382,744,805 67,617,005 16,778,182,392 0.8780 19,676,536,170 85.27% 2015 14,863,350,430 1,461,891,252 244,191,811 67,500,359 16,501,933,134 0.8780 19,323,118,424 85.40% Source:Orange County Comprehensive Annual Report for the Fiscal Year 2023-24 $3213 $3013 $2813 $2613 $2413 $2213 $2013 $1813 $1613 $1413 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year --*--Estimated Actual Market Value --0—Total Assessed Value Chapel Hill—Carrboro City Schools—FY 2026-27 Superintendent's Budget Request 115 INFORMATIONAL SECTION Page 121 There are two tax rates that are critical to the funding of our school district. These tax rates are managed and set by the Orange County Government during their annual budget adoption. The first rate to consider is the property tax rate (direct tax). The property rate is levied per $100 of assessed value of the property. It is the primary revenue source for the County comprising of over 70% of revenues in the General Fund. The table below shows the property tax rate trend since 2018: Property Tax Rate 0.90 0.868 0.838 0.85 0.8358 0.8312 0.868 0.86 9 ro cC 0.80 0.818 x F-{ 0 0.70 a 0.6559 0.60 2018 2019 2020 2021 2022 2023 2024 2025 2026 Year The second critical funding source for the school district comes in the form of the Special District Tax. This tax is levied per$100 of assessed property value for tax payers located in the Chapel Hill-Carrboro City Schools District. The table below shows the Special District Tax rate trends since 2018: Special District Tax Rate 0.250 0.2084 0.2018 0.2018 0.2018 0.198 a 0.200 0.1830 0.183 � 0.198 4.1 0.150 U 4.1 0.1476 q 0.100 0 0.050 V) 0.000 2018 2019 2020 2021 2022 2023 2024 2025 2026 Fiscal Year Chapel Hill—Carrboro City Schools—FY 2026-27 Superintendent's Budget Request ffr 116 INFORMATIONAL SECTION Page 122 Changes in Personnel Resource Allocations In the FY 2026-27 Superintendent's Budget Request, there are several previously enacted personnel changes that impacted the development of this budget's adoption. Faced with a difficult financial position, the District implemented a tiered reduction-in-force (RIF)plan to restructure various aspects and allotments across the District in FY 2024-25. Since then, the District has also experienced, and projects to continue to experience, significantly declining student enrollment. Much of the District's core funding is tied directly to student enrollment on a per pupil basis. As a result, the District has had to continue to adjust it's staffing to maintain fiscal health and sustainability in the face of these negative trends. The table below shows historical trends in various employee groups and the projected impact of the declining enrollment on the staffing numbers for FY2027: BudgetedAudited Audited Audited . . . - . Year Ended June 30 2023 2024 2025 2026 2027 Officials, Admins, Mgrs 36 42 42 39 39 Principals 20 20 20 20 20 Asst. Principals, Non-Teaching 27 30 30 25 25 Total Administrators 83 92 92 84 84 Elementary Teachers 378 365 356 345 336 Secondary Teachers 178 192 189 171 163 Other Teachers 359 363 370 352 352 Total Teachers 915 920 915 868 851 Guidance 38 40 40 38 38 Psychological 13 3 11 14 14 Librarian,Audiovisual 37 37 36 30 30 Consultant, Supervisor 19 15 15 15 15 Other Professionals 164 169 185 169 169 Total School-Based Support 271 264 287 266 266 Total Professionals 1,269 1,276 1,292 1,218 1,201 Teacher Assistants 324 302 291 277 269 Technicians 18 18 16 14 14 Clerical, Secretarial 97 101 92 87 87 Service Workers 137 102 59 105 105 Skilled Crafts 20 22 22 23 23 Totals 1,866 1,821 1,772 1,724 1,699 Source:FY2025 CHCCS Comprehensive Annual Financial Report and District Estimates Fffmrza�l Chapel Hill—Carrboro City Schools—FY 2026-27 Superintendent's Budget Request ffr 117 INFORMATIONAL SECTION Page 123 Debt Obligations and Changes The District maintains a very healthy financial obligation position by incurring low amounts of debt only when necessary. During FY 2024 the continuation of an installment purchase from Trinity 3 Holdings, LLC to provide each of our secondary students with Chromebooks resulted in the final payment of this obligation. This was a 4-year agreement totaling $3.44 million. The only remaining debt obligation as of June 30, 2025 was related to a financing contract with the State of North Carolina for the purchase of school buses. As of June 30, 2025, the District's total debt obligation for the buses purchased was $493,263. Year Ended June 30 Installment Purchases Total Debt Obligations Per Capita 2025 $ 493,263 $ 493,263 N/A 2024 134,332 134,332 0.88 2023 885,709 885,709 5.88 2022 1,767,560 1,767,560 11.75 2021 2,621,784 2,621,784 17.61 2020 194,468 194,468 1.30 2019 344,995 344,995 2.32 2018 362,825 362,825 2.48 2017 167,778 167,778 1.16 2016 597,416 597,416 4.21 Source:FY 2024-5 Chapel Hill-Carrboro City Board of Education,North Carolina,Annual Comprehensive Financial Report Note:This table is a ten-year schedule.However,current year county level annual population estimates are not released by the U.S. Census Bureau until the spring of the following year. Therefore,June 30, 2025 population-based information will be shown above as "N/A",and the information will be reported for the year ended June 30, 2024,if applicable. Fffmrza�� Chapel Hill—Carrboro City Schools—FY 2026-27 Superintendent's Budget Request ffr 118 INFORMATIONAL SECTION Page 124 This page is intentionally left blank KRZTTM�� Chapel Hill—Carrboro City Schools—FY 2026-27 Superintendent's Budget Request ffr 119 FY 2026-27 Local O crating Budget Developm nt W rksheet For the Fiscal Year 2026-27 Superintendent's Proposed Board of Education's Draft Local Budget Request Local Budget Request (3/6/2026) (4/9/2026) Per Pupil Per Pupil Total Cost Cost otal Cost Cost STUDENT ENRO LM NT PRO ECTIO S: Projected 2026-27 Budgeted Average Daily M in ership(ADM 10,741 0,741 LO AL CURRENT O ERATIO S CO TINUATIO BUDG T Salary and Benefit Costs: Increase to Salary and Supplem nt Costs Staff Salary Increase(4%all cm loyees) 1,294,864 20.55 294,864 20.55 M tching Local Supplem nt Increase(4% 542,410 0.50 42,410 0.50 Total Increase to Salary and Supplem in Costs 837,274 71.05 837,274 71.05 Increase to Em loyer M tching Benefit Costs M tching Social Security and M dicare(7.65% 147,783 3.76 47,783 3.76 Estim ted M tching State Retirem nt (25.15%proj.,up from 24.67% 731,335 8.09 31,335 8.09 Estim ted Prem um Increase in Health Insurance Cost from$8,500 to$8,812(Fixed) 36,515 2.02 36,515 2.02 Total Increase to Em ]oyer M tching Benefit Costs 115,633 03.87 115,633 03.87 Total Increase to Salaries and Benefits 952,907 74.92 952,907 74.92 O her Non-Salaried O crating Costs 4%Inflationary Adjustor nt to Non-Salary Operating Costs 23,483 7.36 23,483 7.36 Total Local Current O erations Continuation Need 3,676,390 42.28 676,390 42.28 CH NG S IN LO AL FUND REVENUES AND EXPENSES Net Increase in Special District Tax (Inflationary Adjustor nt) 91,153 5.04 91,153 5.04 Total Change in Local Fund Revenues 591,153 5.04 91,153 5.04 Net Continuation Need after Expected Revenue Changes 3,085,237 87.24 085,237 87.24 LO AL CURRENT O ERATIO S EXPANSIO BUDG T Im leor ntation of the Classified and Certified Em loyee Supplem nt Structure Adjustor in (Approach-3%increase to the Classified and Certified Supplem in Percentages) 700,000 51.37 Establishm nt of Instructional Resources Sustainability Fund - 000,000 3.10 Total Local Current O erations Expansion Budget 700,000 44.47 G and Total of Local Current O crating Continuation Need and Expansion Costs 39085,237 87.24 785,237 31.71 Fund Balance Appropriated - Surplus(Deficit)in Local Current O crating Budget $ 3,085,237) (287.24) 6,785,237) 631.71) J H Z W W U. FY 2027 Local Operating Budget Y= Request ° 00-1%U C��ORO Z Dr. Rodney Trice, Superintendent Z STRATEGIC PLAN Jonathan Scott, Chief Financial Officer � 2022-2027 J z W • • W Student Outcomes Driving U. U. Our Work CHCCS continues to see strong student outcomes, including academic growth, ex anded access to advanced coursework, and increased participation in col�le e and career pathways. Progress in earl literacy, and attendance, and C among Multilingual learners reflectsthe impact of targeted su ports and high-qualitygro rammin reinforcing the need to sustain and ivest in what is Z p programming, g < working. Z H Chapel Hill-Carrboro City Schools I chccs.org 122 Celebrating District Successes and Academic Progress • 5 of 11 elementary schools have returned to or exceeded pre-COVID proficiency levels, closing the gap with 2018-19 performance • Elementary ATSI school successfully exited federal designation status • All three comprehensive high schools earned the Platinum AP Honor Roll and AP Access Award (2025) • Kindergarten students exceeded expected growth over a two-year period (mCLASS) • First-grade students met expected growth over a two-year period (mCLASS) Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 123 CHCCS Multilingual Learners English Learner Proficiency From NC School Report Cards Website: 50 .0 0°`° English Learner Proficiency: Percent of 40.00% students who met North Carolina's definition of progress toward English 30.00°'° language attainment, as demonstrated on the state's English language proficiency 20.00% assessment. North Carolina uses the 10.00% ACCESS for ELLs to measure proficiency. 0.00% State of NC CHCCS Orange Durham Wake County Chatham County County County Chapel Hill-Carrboro City Schools I chccs.org Prepared by the Office of Assessment & Research THINK (AND ACT) DIFFERENTLY 124 AVID Excel : Accelerating Multilingual Learner Growth "AVID Excel is a middle school elective for experienced multilingual scholars that accelerates language acquisition, develops literacy, and places scholars on the path to high school AVID and college preparatory coursework." Cullbreth Middle: McDougle Middle: • 800 of scholars met or exceeded expected • Average Reading Growth on ACCESS: growth on ACCESS +0.58 compared to a median growth • The number of scholars reaching a CPL of 4.0+ of +0.30 more than doubled, increasing 122 (from 9 to 20) • On average, AVID Excel scholars achieved more • 580 of AVID Excel students growth in one year than in the prior three years demonstrated measurable growth combined Aff College Readiness ANIDfor English Chapel Hill-Carrboro City Schools I chccs.org Learners THINK (AND ACT) DIFFERENTLY 125 Career and Technical Ed : Expanding Student Pathways • Over 105 CTE courses offered across the district a{ � , • 42 industry-recognized credentials available to ` students • More than 1 ,491 student credentials earned • 67.20 of concentrators earned a course credential � ``- • 94 work-based learning partnerships supporting 04..• a real-world experience : . • 95% graduation rate ;' - -` • CTE participation includes 55.6% of middle school students and 65.9% of high school students during 40 the 2025-26 school year { Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 126 SY24-25 Career and Technical Ed Credentials CHCCS 2024-2025: All Credentials Credentials Earned: 2021-2022 through 2024-2025 0 ALL MG 0 PAHS ECHHS CHHS CHS 5000 1250 1090 922 0 4000 3661 1000 ° a 2773 2917 659 667 E 3000 750 w 2316 500 i 323 2000 250 , ! 114 U 1000 D Credentials As Reported Non- Non-Reported Non-Reported Non-Reported 2021-2022 2022-2023 2023-2024 2024-2025 POL Proofs of Credentials Credentials- Credentials- Learning Aligned WorkKeys Middle Grade Credentials Credentials Academic Year Chapel Hill-Carrboro Cit Schools chccs.or T�..� K © ACT) �r p Y I g 127 SY25-26 Career and Technical Ed Enrollment Profile Grand SY2526: Enrollment Count By Cluster By Campus ' ` AG BFM CD GSITT FCS Gen HS TI Total TI 0 HS Gen FCS CSITT CD BFM AG CarrborD High 131 302 93 3 6 620 100% 0.30% School 4.76 10.65% 9.08°b ` 4.76% Chapel Hill High 0.48% 23.40% School1 176 20 716 186 24 349 147 1619 15.00% 21.56% 75% 4.14% East Chapel Hill 1.48% 6.70% 1 345 1 727 110 68 384 5 1641 11.49% High School 50% r Phoenix Academy 19 1 1 21 •r r High School ,r Culbreth Middle 125 183 171 479 25% 210% School 0 or3�s b.24% r r r McDougle Middle 217 223 197 637 r School 0% Carrboro High Chapel Hill East Chapel Phoenix Culbreth McDougle Phillips Middle Smith Middle Phillips Middle 196 193 177 568 School High School Hill High Academy High Middle School Middle School School School School School School Smith Middle 169 295 194 508 Campuses School 2 1327 34 2549 1125 97 736 218 IBM] Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 128 College and Career Pathways: CCP Enrollment at Durham Tech Term Number of • - of DTCC is our largest Career and Students CoursesCollege Promise partner with a dedicated liaison who works in our schools 4 days per week. SY 2025 124 213 SAM Fa 112025 239 362 i Spring 2026 157 322 10 . ;� gat Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY J z W W LL LL Attendance Trends �3 Overview of chronic attendance changes through the intentional c work of our Student Services Department. z Z Chapel Hill-Carrboro City Schools I chccs.org 130 Average Daily Attendance Trends (August-December, 2023-24 to 2025-26 Percent Average Daily Attendance 2023-24 to 2025-26 (August- December) ■2023-24 2024-25 ■2025-26 100 F 80 m An intentional focus on improving attendance has led to Q 60 higher Average Daily 0 Attendance from August through 40 December across all levels since 2023-24. 20 0 Elementary Middle High ■2023-24 94.9 94.7 90.7 ■2024-25 95.1 95.0 92.9 ■2025-26 95.3 95.1 94.0 Chapel Hill-Carrboro City Schools I chccs.org Prepared by the Office of Assessment & Research THINK (AND ACT) DIFFERENTLY 131 Chronic Absence Trends by Student Group Chronic Absences Since 2023-24 by Student Group (August to December) (August-December, 2023-24 to 2025-j2,6)4 2024-25 m2025-26 35 30 25 - a For six of eight student groups, the 24 percentage of students with g Chronic Absences (20% or more of 15 days missed) dropped by approximately 5 percentage points a 10 over three years; among Latinx students, it decreased by 1 .8 5 percentage points, and among Multilingual Learners, it declined in a - All Asian Black Latinx Multiracial White ML 5WD 2024-25 but increased in 2025-26. ■2023-24 17.6 11.3 27.1 25.4 17.2 14.1 23.3 29.4 2024-25 14.5 8.8 24.9 20.8 15.0 11.0 19.3 26.4 ■2025-26 12.7 5.8 21.1 23.6 10.6 8.4 24.8 23.5 Chapel Hill-Carrboro City Schools I chccs.org Prepared by the Office of Assessment & Research THINK (AND ACT) DIFFERENTLY J z W W LL LL 0 Student Enrollment TrendsH U Overview of enrollment changes and projections used to guide 4 staffing, resources, and planning . 0 z Z Chapel Hill-Carrboro City Schools I chccs.org 133 Student Data for County Education Funding Allocation • NCDPI is utilizing FY2025-26 40th day Average Daily Membership (ADM) of 10,773 for FY 2026-27 membership projections - • Preliminary out-of-district enrollment is projected to be 260 1 • Preliminary charter school enrollment is projected to be 228 x • Projected ADM minus Out-of-district enrollment plus Charter School enrollment \ gives a net estimation of 10,741 budgeted students • This represents a projected decrease of 277 students compared with FY 2025-26 Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 134 Average Daily Membership 1 0-Year Trend 12,180 12,390 12,390 12,462 12,478 12,604 12,000 11,683 11,568 1 1,445 - 12,017 2,239 12,239 12,296; 12,312 12,448 11,001 11,466 11,334 11,219 7 10,000 10,773 8,000 6,000 — 4,000 2,000 163 151 151 165 166, 156 217 234 22b 228 f -- Q 4 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Total Enrollment Charter Students Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 135 CHCCS Student Enrollment Demo � fsTrend 20 -22 ■2022 23 2023-2'4 v■2'02'4-2255 J■2025-26* 14000 12000 11713 11043 Since 2021-22, two groups had 10000 increased enrollment: Latinx and Multiracial students. 0° °° 0 The group with the largest decline E 6°°0 5828 5199 z was White students, down 2.7 4000 percentage points from 2021-22 to 2116 2197 1488 1380 1295 the present. 2000 1543 831 845 0 11 11 11 11 11 11 11 11 Asian Black Latinx Multiracial White All ■2021-22 1543 1380 2116 831 5829 11713 ■2022-23 1529 1413 2145 886 5705 11696 2023-24 1538 1400 2274 839 5585 11653 ■2024-25 1546 1353 2234 841 5394 11386 ■2025-26* 1488 1295 2197 845 5199 11043 Source: Mergedemo FDS 2021-22 to 2024-25, Infinite Campus 20th Day 2025-26 A,�+ Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 136 Statewide Change in ADM by Grade FY 2025 and 2026 6000 5,348 Most LEAs saw an ADM decrease and 4000 3,350 will therefore see a reduction in FY27 2000 - allotments. Overall, ADM Kind. ,st 2nd 3rd 4th Sth i ath „t, 12th decreased by (493) (222) 35,554 students -2000 (873) {1,279} statewide. (2,480) (2,313) -4000 (3,069) (2,745) (2,840) Q*0001 (4,067) (4,662) Source:NCDPI Dart B12. Fiscal Year 2025-2026 Best 1 of 2 Average Daily Membership -6000 Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT)CT) DIFFERENTLY J z W W LL LL Financial Trends Over Time �3 Over the past five years, CHCCS has experienced rising costs c alongside shifts in State and Federal funding, with increasing reliance 0 on local resources to sustain core services. These trends underscore z the need for continued strategic planning to maintain financial < stability while supporting ongoing student success. 'e Z Chapel Hill-Carrboro City Schools I chccs.org 138 Staffing Levels vs . Student Enrollment: Five-Year Trend Total Staff Vs. ADM Trends Last Five Years Total Student:Staff Ratio Last Fine Years 1,900 1,866 12,500 6.8 1,834 1,829 1,828 1,821 33 12,000 1,800 1,772 6.6 1 1207 1 1,500 6.5 1,700 11.- 11.108 6.4 1 11,000 6.2 6!3 1,600 6.2 —II 10,500 6,2 6.1 1,500 10,000 2020 2021 2022 2023 2024 2025 6.0 ADM — Total start 2020 2021 2022 2023 2024 2025 Fiscal Year 2022 2023 ADM 12,333 11 ,807 11 ,424 11 ,408 11 ,252 11 ,114 Total District Staff 1 ,834 1 ,829 1 ,828 1 ,866 1 ,821 1 ,772 L I + Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 139 Expenditures by Funding Source : Five-Year Trend $125.O1VI $105.7M $103.81M $98.1 M $100.OM $92.3M LOCAL BUDGET FY 2023 FY2024 FY 2025 FY2026 $81.OM $85 OM 110IMPACTS Exceptional $6,508,435 $10,832,719 $11,344,595 $12,094,955 $75.0M $84.1 M $81.OM $861 M $86.4M Children (032) $76.1 M $78.5M Other EC Teachers (001) 368,158 383,044 392,114 356,733 $50.aM EC Behavioral 173,352 206,882 185,411 304,550 Support (029) TOTAL $7,324,068 $11,809,749 $12,517,776 $13,406,236 $25.OlVl - $11.5M $10.6M $2.9M $4.1 M $6.5M S5.2N� Over the last five years, the gap between State __6_ and Local funding has increased from $4.9m in $o.oM 2020 2021 2022 2023 2024 2025 FY 2020 to $17.4m in FY 2025. This is most apparent in the Exceptional Children budget in State Federal Local which expenditures have nearly doubled in the local fund since FY 2020. Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY J z W W LL LL State Budget impact �3 State funding is driven primarily by student enrollment, which, as it c declines, reduces resources through the State Public School Fund . These reductions directly impact available funding and require z adjustments to maintain current staffing and services. J g Z Chapel Hill-Carrboro City Schools I chccs.org 141 Projected State Reductions due to Enrollment Decline AllotmentState - . . Dollars Positions Months Classroom Teacher (Position Allotment) $ (1 ,408,533) (17.3) Central Office (Dollar Allotment) (71 ,305) Non-Instructional Support (Dollar Allotment) (60,983) Program Enhancement Teacher (Position Allotment) (103,165) (1 .0) School Building Administrator (MOE Allotment) (88,317) (4.0) CTE (MOE Allotment) (184,895) (6.0) Teacher Assistant (Dollar Allotment) (189,561 ) Academically & Intellectually Gifted (Dollar Allotment) (26,148) Transportation (Dollar Allotment) 154,385 Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 142 Adjustments to Offset State Funding Reduction To maintain current class size allotment levels, the District will reduce the following positions: • 9 elementary teacher positions • 6 elementary teacher assistant positions • 8 high school general education teacher positions • 2 high school Exceptional Children (EC) teacher assistant positions Financial Impact • These adjustments will offset approximately $1 .93 million of the State revenue reduction Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY J z w W LL LL Continuation Budget �3 The budget is driven by state-mandated pay and benefit increases, c enrollment changes, inflation, and the need to maintain current staffing and services. z Z Chapel Hill-Carrboro City Schools I chccs.org 144 Key Continuation Drivers and Cost Pressures N& Budget Driver Description Percentage increase A" included in FY27 estimates Salaries and Supplement 4% Increase calculated across the board 4.00% Social Security Matching (FICA) Expected to remain at 7.65%, but cost 4.0070 increases 4% for salary increases 5-year regression analysis projects an State Retirement Matching increase to 25. 15%, up 1 .96% from the current 6.04% rate of 24.670. Also needs to account for the 4% salary increase Employer Portion of State Health 5-year regression analysis projects an 3.67°J"o Insurance Premiums increase to $8,812, up from $8,500. Non-Salary Budget Items 4% Inflationary adjustment included for 4.00% non-salary items Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 145 Key Continuation Budget Cost Drivers Continuation Base Salaries • •. Base Salaries $ 1 ,294,864 Local Supplements Local Supplements 542,410 State Retirement 8731,335 State Retirement Matching 731 ,335 Matching Employer Paid Health Insurance Employer Paid 236515 Health Insurance , Premiums Premiums Social Security $147,783 Social Security (FICA) 147,783 (FICA) Non-salary Operating Costs 723,483 Non-salary $723,483 Operating Costs Total Budgeted Continuation Costs1 $D $500,000 $1,000,000 Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 146 Projected Local Revenue Changes Special District Tax: • A 2% inflationary increase in the tax base is projected to generate $591 ,153 in additional revenue from the Special District Tax • Projection assumes no change to the current tax rate County Appropriation: • County appropriation levels are determined by the Board of County Commissioners and their staff • A 3% increase in the County appropriation would generate approximately $1 .94 million in additional revenue Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 147 Impact of Estimated Revenue Changes 7TotaV -Miiiil� l • 1!11 . • - • • • • ontinuation Costs before Revenue Changes $ (3,676,390) Inflationary Special District Tax Revenue Increase 591 , 153 Total Continuation - - • after State • • Local Revenue Changes1 Local Revenue Changes: 2% Inflationary increase to the Special District Tax State Revenue Changes: Projected staffing adjustments adequately cover the State revenue deficit indicated by the planning allotments provided by DPI Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY J z W W LL LL Forward Together �3 An expansion budget that reflects our commitment to moving c forward together by investing in opportunity and long-term success z Z Chapel Hill-Carrboro City Schools I chccs.org 149 Overview of Proposed Local Supplement Adjustments Certified Staff: • Baseline FY 2026 supplements range from 18% to 27% by experience. • A 3% increase in the local supplement percentages beginning in FY 2028. • Estimated cost - $1 .65 million (including benefits). • Assumes stable staffing and 3% annual state-funded salary growth. Classified Staff: • Baseline supplements range from 5.5% to 9.5% by experience. • A 3% increase in the local supplement percentages beginning in FY 2028. • Estimated cost per I % increase: -$1 .05 million (including benefits). • Designed to address equity and competitiveness across experience bands. Note: assumes stable staffing and no staffing reductions. Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 150 Instructional Curriculum Fund Investment • NCDPI regularly updates curriculum standards, requiring districts to refresh instructional materials. • State funding for textbooks and instructional resources has declined significantly over time. • Instructional resources have shifted from periodic textbook purchases to annual digital and subscription-based models, often without built-in professional development Proposed Investment: • Establish a Designated Instructional Resources Sustainability Fund . • $1 .0 million total investment. Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 151 Local Operating Expansion Budget Request 1111k,11,11hillaft Expansion Item Budgetary Impac la� Certified Staff (Supplement - 3% Increase) $ 1 .65 million Classified Staff (Supplement - 3% Increase) $ 1 .05 million Instructional Curriculum Fund Investment $ 1 .00 million Total Expansion Request Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 152 Local Operating Budget Request Summary Budget Item Budgetary Impact Continuation Cost $ 3,676,390 Expansion Request 3,700,000 Estimated Inflationary Revenue Adjustment (591 , 153) Total Local Operating Budget Request Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 153 Fund Balance Historical Analysis and FY 2026 Forecast Fund Balance Historical Analysis and FY2026 Projection $20.OM $15.5M $15.OM $11.3M $12.OM $10.OM MOM $S.SM $5.3M $5.0M $3.6M0 $0.3M $O.OM -$0.1 M -$0.4M -$0.6M -$5.OM 2021 2022 2023 2024 2025 2026* Total General Fund Balance Local Unassigned Fund Balance *Based on District estimates that FY2026 will add -$5m to the fund balance as a result of operations. Of that, it is estimated that about $1 .8m would be reserved for various reporting requirements. Actual results will vary once the fiscal year is officially closed and audited. Chapel Hill-Carrboro City Schools I chccs.org TH I III K (A N D ACT) J z W W Our Schools , Our LL Future . LL • 0 Strategic Budget Response U Addressing current financial challenges through strategic adjustment: c while creating capacity to reinvest in innovation, strengthen academic programs, and develop future-ready school models that z expand opportunities for students and support long-term enrollment < growth . 'e z IME Chapel Hill-Carrboro City Schools I chccs.org 155 Strategic Budget Levers Purpose of Strategic Budget Levers: • Set direction for how CHCCS navigates current and future challenges • Focus on strategic lever categories, not individual actions • Ground our work in shared values: equity, sustainability, excellence • Position CHCCS to thrive in a changing educational landscape Budget Lever Categories: • Organizational Structure: How we align roles, teams, and responsibilities • Resource Allocation: How we deploy funding, staffing, and time • Operational Efficiency: How we optimize systems, facilities, and operations • Innovation & Reinvestment: How we build future-ready models that elevate opportunity and enrollment Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY 156 Strategic Actions to Align Resources and Drive Efficiency Potential School Closures to address underutilized facilities Tight Adherence to Enrollment-Based Staffing Formulas Development of a Multi-Year Staffing Plan Central Office Reduction in Force (RIF) • Organizational realignment • -$2.OM in ongoing structural savings Instructional Software Consolidation • Collaborative review and reduction of Software subscriptions • -$500K in recurring savings redirected to curriculum resources High School Staffing Formula Revision • Adjusted after base year of block scheduling implementation • Aligns staffing with actual course demand • Drives ongoing operational efficiency Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT) DIFFERENTLY J H Z W W LL LL D ORO v v' Questions ,, a Z a JOleS = STRATEGIC PLAN ~ 2022-2027 J z W W LL LL Capital Update �3 The Carrboro Elementary School replacement project is progressing 4 through the schematic design phase, with continued coordination 0 between CHCCS and Orange County to align scope, budget, and z schedule. Z Chapel Hill-Carrboro City Schools I chccs.org Carrboro Elementary eIacement .� p f �. �► recent Rendeish 41 `-' `* 1 WIL Ae - ` ow OV ' r ob 160 1 5 f 1 1 � nwrarrtA \ • rr C jr f? Y if i f± i { ff �• fr 7 1 ! ri i CARRBORO ELEMENTARY SCHOOL - CONCEPT ..., 400 SHELTON ST, CARBORRO - NORTH CAROLINA 103/25/2026 TIMMONS GROUP 1.uR V—..—1-0 THROUGH GUR3. 161 Is' FLOOR *; �.,- PRE-K - INTERVENTIONIST q 4w-rt pr • ! Y il......s}...... �i........ 15t GRADE K FOREIGN MEDIA SART LANG. ADMIN=-► � GYMATORIUM �. MU51C a TC, nKl� rPPI 162 2"d GRADE . . MAKER ...��`•............... •.........,......... SPACE 511' GRADE 4I" GRADE 3rd GRADE �r r - _ • ti :�-� s'. - .: i ,4� ����. - � �� �rte' yti i y sc I1 0 MAL5 - ► F1 i-WRI- ! IIS.. FI I? A � E 79, oil 6 6' : f %,bL— 164 LZ t�,u� t �t ME- i � r r 4 Y I t • - '4 r- all • 1 I � R. Ski r MEDIA 1 N14 4 4 �r � r } 5` jj s _ A i •r ea. i ro m Aft Zt AK �.'`"� ��■�_ fur �sr�>s ��y a ■^■ � kL ZARRBORO ELEMENTARY /ray — iL ■ 1� /■r s 7L �2i r a� Tentative Milestones: -- . • Listening Sessions - Thru May 2026 - _ • Schematic Design Approval - May2026 '�.. • Begin Construction - Spring2027 I" ►Qmp i O'KI WN f ' P 167 t ORANGE COUNTY NORTH CAROLINA School Capital Investment Plan FY 2026-36 April 30, 2026 Joint Meeting 168 What has prior chan ed from School CIPs g • Adoption of the School Capital Funding Policy (Page 168) & Major Project Planning Addendum (Page 172). - School CIP has been reorganized into three sections (Major Projects, High Priority Needs, Other Capital Uses) - All parties have also signed CORE Team Interlocal Agreement, which will provide updates to Board on construction progress. • Inclusion of Major Project plans by both school districts, with county staff assisted sequencing. • Phasing in of Pay-Go funds to assist Major Project funding - $3.5 M in FY 27, $6.5 M in FY 28, full $10 M in FY 29. Slight inflation to $94.8 M over 10-year plan. ORANGE COUNTY 2 N©RTH CAROLINA 169 Woolpert Report to Current CIP Plan • Back in 2023, Woolpert did a systematic review of both school districts; both the condition and the educational adequacy of the facilities. • Woolpert also made recommendations for replacements and renovations of facilities over multiple bonds, requiring more funds than the county could afford. - The recommendations assumed each facility would be replaced or renovated over time, and enrollment was flat — no closures for decreased enrollment. • The County funding policy requires schools use the limited bond funds to replace old buildings and improve the educational adequacy of the district. • So long as the projects are in line with that requirement, the county only reflects the school replacements as requested by the district. - The County's CIP can be amended to change which schools are being replaced each year at school district request. ORANGE COUNTY 3 N©RTLI CAROLINA 170 Major Projects — Projects and Sequencing . FY2030-31 I FY2031-32 � FY2032-33� , Carrboro Design Construction Chapel Hill- Elementary Carrboro Estes Hills City Schools Elementary Design Construction Frank Porter p. 133-135 Graham Design Construction Close Out Elementary Orange New Elementary Design Construction County School Schools Orange Middle Pre-Design Design Construction Close Out p. 147-48 Renovation Scope OCS may not be able to fund third major project due to increased cost of Orange Middle School • County used the following rules to sequence these plans - Bonds must be borrowed within 7 years of referendum - FY 2031 . May ask for 3-year extension with LGC. - Once borrowed, funds must be drawn down for actual expenses within 3 years. - Funds are allocated between the districts fairly ORANGE CUlJNT11' 4 N©RTLI CAROLINA 171 Major Projects — Project Costs and Funding Source • Major Projects are funded using a combination of Pay-Go and Bond Funds CHCCS Projects Bond Funds Pay-Go Total Funds OCS Projects Bond Funds Pay-Go Total Funds Funds Funds Carrboro Elementary Elementary $53,000,000 $0 $53,000,000 Replacement $54,500,000 $2,500,000 $57,000,000 Orange Middle Estes Hills Elementary $59,510,937 $3,319,063 $62,830,000 Renovation $67,700,000 $12,300,000 $80,000,000 Frank Porter Graham $61,189,063 $8,952,237 $70,141,300 Contingency+ HPN $1,000,000 $38,482,699 $39,482,699 Contingency + HPN $3,100,000 $19,246,001 $22,346,001 Total $174,700,000 $50,753,999 $225,453,999 Total $125,300,000 $34,046,001 $159,346,001 ORANGE COUNTY 5 N©RTLI CAROLINA 172 Major Projects — Project Costs and Funding Source • Pay-Go funds provide four major uses to support the Bond Program: - Absorb soft costs like Design, Project Management • Project Management included in separate $1 M/year project. - Extend project budgets above what the Bond could support on its own. - Improve County debt metrics once county debt exceeds 15% of GF revenues - Once bond projects are done, support the districts' High Priority Needs ORANGE COUNTY 6 N©RTH CAROLINA 173 Major Projects — Pay-Go Phase-in • To spread out tax burden, the Manager's Recommended CIP splits Pay-Go introduction into three steps, so no increase is larger than 1 cent on the tax rate. • Last year's CIP had incremental increases to offset recommended phase-in, so total increases by $240k years 5-9. Not increased in year 10 pending discussion Year 1 Year 2 Year 3 Year 4 Year 5 Year6 Year7 Year8 Year9 Year10 Ten kse of Pay-Go By Project 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Yeaeq . . OCS Major Projects 2,500,000 500,000 4,000,000 5,468,700 2,331,300 14,800,000 A.L. Stanback - HVAC Replacement 2,180,937 2,180,937 OCS - Remaining Bond and Pay-Go 2,378,816 2,000,000 569,515 3,028,786 3,007,947 6,080,00 17,065,064 Projects CHCCS Major Projects 3,319,063 3,771,300 4,280,937 900,000 12,271,300 CHCCS - Remaining Bond and Pay-Go 6,121,184 5,000,000 867,763 8,250,485 6,931,214 7,192,053 4,120,000 38,482,699 Projects Major School Construction Project 1,000,006 1,000,00 1,000,00 1,000,00 1,000,00 1,000,00 1,000,00 1,000,00 1,000,00 1,000,00C 10,000,00 Management otal 3,500,000 6,500,00 10,000,00 10,000,000 10,240,00 10,480,00 10,720,00 10,960,000 11,200,00011,200,00 94,800,000 ORANGE COUNTY 7 N©RTH CAROLINA 174 Major Projects — Board Options to adjust projects • Current Pay-Go Phase-in structure sufficient for current district bond plans with small margins. • Reducing or delaying implementation of pay-go from this amount would require asking school districts to submit new bond plans with smaller scopes. • Instead of reducing Pay-Go, the County can lower upcoming tax rate increases and the cumulative tax increase by pushing back the upcoming school projects. - Inflationary cost increases from delaying construction projects would reduce the amount of pay-go funds available for High Priority Needs. ORANGE COUNTY 8 N©RTH CAROLINA 175 High Priority Needs High Priority Needs — $6.4 million • Appropriated by Project • Specific Projects Enumerated Annually for Flexibility • Financed Using Annual Debt, Lottery Proceeds, and Remaining Bond or Supplemental Pay-Go High Priority Needs Recommended L pr East Chapel Hill High Roof Replacement $3.0 million Carrboro High Roof Replacement $1.2 million Mary Scroggs Elementary Trailer HVAC Replacement $56,400 AL Stanback Middle HVAC Replacement— Paired with $5.28 M Major $2.1 million Project Funding in FY 2028 based on $7.4 M total project cost TOTAL $6.4 million ORANGE COUNTY 9 N©RTLI CAROLINA 176 Other Capital Uses Other Capital Uses — $6.5 million • Chapel Hill Carrboro City Schools - $3.9 million • Orange County Schools - $2.6 million • Appropriated by Category • Financed Using Recurring Capital and Article 46 Sales Tax Proceeds — Rental Space — Technology Plans — Equipment Replacement — Lifecycle Capital Replacements ORANGE COUNTY 10 N©RTH CAROLINA 177 Questions? ORANGE COUNTY N©RTH CAROLINA