HomeMy WebLinkAboutMinutes 04-30-2026 Joint Meeting With School Boards 1
APPROVED 5/19/26
MINUTES
ORANGE COUNTY
BOARD OF COMMISSIONERS
JOINT MEETING WITH
CHAPEL HILL-CARRBORO BOARD OF EDUCATION AND
ORANGE COUNTY BOARD OF EDUCATION
April 30, 2026
7:00 p.m.
The Orange County Board of Commissioners met for a joint meeting with the Chapel Hill-Carrboro
Board of Education and the Orange County Board of Education on Thursday, April 30, 2026 at 7:00
p.m. at the Whitted Human Services Center in Hillsborough, NC.
COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and
Commissioners Jamezetta Bedford, Marilyn Carter, Sally Greene, Earl McKee, and Phyllis Portie-Ascott
COUNTY COMMISSIONERS ABSENT: None.
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin Fenhagen,
and Deputy Clerk to the Board Tara May (All other staff members will be identified appropriately
below)
CHAPEL HILL-CARRBORO BOARD OF EDUCATION PRESENT: Chair Riza Jenkins, Vice-Chair Barbara
Fedders, and Board Members Meredith Ballew, Rani Dasi, Vickie Feaster Fornville, George Griffin, and
Melinda Manning
CHAPEL HILL-CARRBORO BOARD OF EDUCATION ABSENT: None.
CHAPEL HILL-CARRBORO SCHOOLS (CHCCS) STAFF PRESENT: Superintendent Rodney Trice (All other
staff members will be identified appropriately below)
ORANGE COUNTY BOARD OF EDUCATION PRESENT: Chair Will Atherton, Vice-Chair Wendy Padilla, and
Board Members Carrie Doyle, Bonnie Hauser, Anne Purcell, Andre Richmond, and Sarah Smylie
ORANGE COUNTY BOARD OF EDUCATION ABSENT: None.
ORANGE COUNTY SCHOOLS (OCS) STAFF PRESENT: Superintendent Danielle Jones (All other staff
members will be identified appropriately below)
Chair Hamilton called the meeting to order at 7:00 p.m. All commissioners and school board
members were present.
WELCOME, CALL TO ORDER,AND AGENDA OVERVIEW
Chair Hamilton welcomed the elected officials and staff from Chapel Hill-Carrboro City Schools
and Orange County Schools.
Chair Hamilton reviewed the agenda for the meeting. She shared that the agenda was
developed collaboratively at the School Collaboration Meetings. She acknowledged that all elected
boards are facing difficult times and stressed the importance of working collaboratively and
communicating openly with the public.
Commissioners, school board members, and staff introduced themselves.
1. Budget with Performance/State Accountability Data and Career Technical Education (CTE) Update
a. Orange County Schools
OCS Superintendent, Danielle Jones, began by thanking the OCS Board of Education for their
continued support, the trust they had placed in her, and their commitment to always put students first.
2
She said that their shared commitment guides every decision the district makes and keeps the needs of
children at the center of their work.
Danielle Jones said that the presentation would begin by showcasing great work happening
across OCS, which represents a collective effort from every educator in the district. She stated that the
effort begins with her and her leadership team, but is carried out every day in the classrooms, cafeterias,
buses, front offices, athletic fields, and school buildings by hardworking administrators, teachers, and
staff. She emphasized that OCS educators are passionate about ensuring that every child in this
community graduates with options — options to attend college, enter the workforce, serve in the
military, pursue technical training, or follow whatever path matches their gifts and aspirations.
Danielle Jones acknowledged that the district is not perfect and does not shy away from its
challenges. She cited chronic absenteeism and student discipline as two areas of ongoing focus, noting
that staff would discuss efforts to combat absenteeism with limited resources and during a time when
many families were and, in some cases, still are hesitant to send their children to school for reasons
beyond their control. She noted that despite those circumstances, OCS educators continue to build
relationships, remove barriers, and do the difficult work they're called to do.
Danielle Jones also addressed the financial environment. She said the district understands the
reality of the financial environment and acknowledged these are challenging times and public resources
must be managed responsibly. She expressed hope that the BOCC would find OCS budget requests
reasonable, thoughtful, and aligned with the needs of students. She said their presentation is not simply
a funding request, but is an investment in children and the families that OCS serves in the workforce
development and in the future of Orange County. She then turned the presentation over to OCS Chief
Finance Officer Rhonda Rath.
Rhonda Rath began the following presentation:
Slide#1
Attachment B
FY 2027 Local Operating Budget Request
April 30, 2026
1 i Orange
Mrs.Rhonda Rath,Chief Finance Officer Count/
Dr.Danielle Jones, Superintendent Schools
3
Slide#2
DISTRICT HIGHLIGHTS
Slide#3
District Highlights "
OCS IS TOP IN THE STATE as one of only three
districts in North Carolina where every school met '
or exceeded growth in 2024-2025!
• 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"B,"up from three in 2023-2024. SCHOOL GRADES ,.'
TIME
SINCE 201�.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)
exams. This composite performance (all grades and all tested
subjects)is 3.4 points above the state average(55.0%).
• OCS four-year cohort graduation rate increased by eight points.
Rhonda Rath shared that for the first time ever, 100% of OCS schools met or exceeded growth
for the 2024-2025 school year. She said that for the first time since 2017, five schools earned a school
performance grade of B or higher, and that grade-level proficiency increased to 58.4%, which is 3.4
percentage points higher than the state average. The four-year cohort graduation rate increased by
eight points.
4
Slide#4
District Highlights
• 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.
c This is the highest GLP performance for Black students since 2013-2014.
• OCS EL progress increased by 6.4 percentage points.
c 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.
C2
rr
ENGAGE. CHALLENGE. INSPIRE.
Rhonda Rath reported that five schools ranked in the top 12% in the state for growth, and that
all subgroups in Orange County Schools grew in grade-level proficiency. She highlighted that Black
students were the highest-performing subgroup for growth, at seven percentage points. EL progress
increased by 6.4 percentage points. She also noted that in partnership with Durham Tech, the district
increased the number of students pursuing dual enrollment courses to earn a degree or certification
before graduation.
Julie Pack, OCS Chief Academic Officer, continued the presentation:
Slide#5
District Highlights
Career&Technical Education
• 90+CTE courses available
• 40 Industry Recognized Credentials La
w
1100+student credentials earned
a
• 73.1%concentrators earned a credential y
• 50+work internship partnerships ]
• 95%graduation rate
• 74.5%of Middle School Students and 69.34%of
VOWS
,ito
High School Students participated in a CTE
course for the 2023-24 School Year
• In the fall issue of the Association of CTE
Afth (ACTE's) Techniques magazine, GCS's work was
nationally highlighted ENGAGE. CHALLENGE. INSPIRE
Julie Pack said that CTE provides students the opportunity to explore potential careers while
developing durable, real-world skills needed to be future-ready. She noted that OCS offers over 90 CTE
5
courses across seven program areas: agricultural education; business, finance, and marketing; career
development; computer science, information technology, and technology education; family and
consumer sciences; health sciences; and trade and industrial education. She reported that the district
offers over 40 industry-recognized credentials, and that last year OCS students earned more than 1,100
of those credentials. She said that CTE concentrators — students who have taken multiple levels of CTE
— earn credentials at a rate of 73%, and that the cohort graduation rate for CTE concentrators is
regularly 95% or above. She added that approximately 75% of middle school students take at least one
CTE course, and almost 70% of high school students have taken at least one. She noted that the district
was recognized by the National Association of CTE in their national publication Techniques, highlighting
OCS's work.
Sheldon Lanier, OCS Chief Equity and Student Achievement Officer, continued the presentation:
Slide#6
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.
IN I
dGAr^. CHALLENGE. INSPIRE.
Sheldon Lanier said that chronic absenteeism is defined as a student who is enrolled in a public
school for at least 10 days and whose total absences — excused or unexcused or for disciplinary reasons
— equal or exceed 10%of the total days enrolled.
6
Slide#7
Chronic Absenteeism Rate
July 1,2025 to January 1,2026
40%
30%
20%
10%
Subgroup Subgroup
,30 <30
0%
vfhife Black Hispanic Multiracial- Asian- Amer.Indian Nat.Hawaiian/ Total District
Am /Alaska Native Pac.Islander
ENGAGE. CHALLENGE. INSPIRE.
Sheldon Lanier noted that the district's chronic absenteeism rate was 21.1% as reported to the
Board of Education in January and stated that this figure is below the state average. He noted that the
timeframe begins in July due to the district having one year-round school.
Slide#8
OCS Efforts to Improve Attendance
Attendance Works.PreventativelTargeted 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/i ndivid ual parent/student conferences with school social
workers
• SchooUdistrict progress monitoring
• Attendance notifications to families
• Referrals to community agencies and school-based programming
• Home visits (school social workers)
ENGAGE. CHALLENGE. INSPIRE.
Sheldon Lanier outlined the preventative and targeted strategies used by school professional
counselors, social workers, and MTSS teams.
7
Slide#9
"Attendance Matters: Be Here to Get There!" (Link)
OCS ATTENDANCE WEEK
#BeHereToGetThere! #OCSAttendanceWeek ■
► psiWEEK OF
D
0
SCHOOL COLORS MENTAL HEALTH/ ENLISTMENT ENTREPRENEURSHIP/ COLLEGE
DAY SEL DAY DAY CAREER DAY ENROLLMENT DAY
wow wheal a 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 whh pride,
healthawareness ourtroops you seek W
III,
• ENGAGE. CHALLENGE. INSPIRE,
Sheldon Lanier described the district's "Attendance Week" initiative. This year's theme is "Be
Here to Get There." Attendance Week consists of daily videos aimed at educating students and families
on the importance of attendance, the mental health supports available, and the connection between
attendance and "the three E's": enlistment, entrepreneurship, and enrollment. He noted that the
Eastern Regional Outreach Director from CFNC would be featuring one of the district's videos on their
social media as a model for other districts.
Slide#10
Attendance and Mental Health Research
• 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
AM resources are available for districts to target root causes of absenteeism and
support students.
s El!f T,f,E. CHALLENGE. INSPIRE.
Sheldon Lanier thanked the commissioners for their funding and support for students and
families. He cited research from the Education Policy Initiative at UNC Chapel Hill, linking mental health
support to a reduction in absenteeism rates, and warned of the risks of avoiding funding cliffs if this
work is to continue.
8
Slide#11
STUDENTS/ENROLLMENT
Rhonda Rath continued the presentation:
Slide#12
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 115 139 24
Total Student Billing Base 7,925 7,751 (1
no
- CHALLENGE. INSPIRE.
Rhonda Rath reported that for fiscal year 2027, OCS would be funded based on 6,733 students,
representing a decline of 182 students from the prior year. With charter school enrollment slightly
increasing and out-of-district students also slightly increasing, the net impact is a total decrease of 174
students.
9
Slide#13
Average Daily Membership 10-Year Trend
9000
8,313 8,168 8,239 9,764 5.218 8,;81 8.121 S,082
8,040 i.890
8000 7,544 7,345 7,38B 7,381
7,299 7,182 7,122
6,990 6,915
6,733
7000
6000
5000
4000
3000
2000 —
850 883 919 999 999 1,092 1,125 1,157
2000
0 - 46
2017.18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
Total —0-OCS -0—Charter
Rhonda Rath noted that over the last 10 years, the district has lost approximately 811 students,
while charter enrollment increased by 388, for a net decrease of 423 students.
Slide#14
OCS Student Enrollment Demographics Trend
8000
7118
7000 6399
6000
5000
4000 3601
3181
3000
2060
2000 1860
0D0 say
1000
114
]] 15 112 =151IIIII
17
0
INDIGENOUS ASIAN HISPANIC BLACK WHITE PACIFICISLAND TWO.,MORE TOTAL 2026 reflective of month 4
■2022 ■2023 ■2024■2025 ■2026 actual student enrollment
PACIFIC TWOa,
Year INDIGENOUS ASIAN HISPANIC BLACK WHITE ISLAND MORE TOTAL
20M 11 112 180D 1000 3601 534 7118
2023 10 129 1932 9% 3533 - 552 7115
2024 17 132 19M am 3388 52D 6981
2D25 19 142 2063 890 3324 503 70* ENGAGE. CHALLENGE. INSPIRE.
20M 15 151 20M S85 3181 507 6M
Rhonda Rath noted that the main decrease has been in the white student population, down
approximately 12%, which is consistent with state trends.
10
Slide#15
Statewide Change in ADM by Grade
FY 2025 and 2026
6wo Most LEXs saw an ADM
5,346
decrease and will
therefore see a decrease
in FY27 allotments.
amo Overall,ADM decreased
3,350 35,554 statewide
2WO
I o
ffl d. Tat 4th sib C loth # 12th
(4S3) 1 (222)
(873)
1,2791
-M00
(2,480) 12,313) (2,745) (2,840)
(3,0691
Qom
(4.067)
(4,662) Source:NCDPI Dart
B12.Fiscal Ye r M 022026 Be t l of 2 Average. mkr
Rhonda Rath noted that the state lost 35,554 students over the prior year, with decreases in
every grade except 4tn and 12tn
Slide#16
ORANGE COUNTY SCHOOLS FINANCIAL TRENDS
11
Slide#17
TEACHERS VS. STUDENTS
550 7500
545 543 7400
540 737
7300
535
7200
530
7100
525
7000
520 518
6900
515 6915
510 6800
505 6700
Represents all funding sources
500 6600
09 21120 2021 2022 2023 2024 2025
-Teachers -ADM
Rhonda Rath said that teacher counts have been aligned with student enrollment.
Slide#18
EXPENDITURES BY FUNDING SOURCE
60.OM 58.OM
56.dM
53.3M 53.OM
48.7M 49.9M
5o.OM 46.3M �17.1 M
43.9M
40.9M
40.0M 36.6M 38.2M
LOCAL BUDGET IMPACTS FY 2023 EV2024 FV2025 FY2026
30.0M Menlal Health 9,6T1 641U13 93,223 94,333
Enceptional Children 1,710,105 2122955 2.267,327 2311.215
Limited English Proficiency 274,123 387,104 595,656 649,998
TOTAL 1,993451 2,.578082 2,956,206 3,055,546
9.3M 9.1M
• 6.3M 5.9M
4.2M
2JM
70" 2021 2022 2023 2024 2025
0 ♦State —0—Lcea1 fFede,1
Rhonda Rath said that federal funding is decreasing, and that state funding is not increasing
enough to keep up with the impacts that the district is seeing. She highlighted that over the last four
years, the district had to shift over $1 million more to its local budget to cover mental health,
exceptional children, and limited English proficiency services.
12
Slide#19
EMPLOYER BENEFIT COSTS
$9.000 $8,812 25.50%
$8.500 25.15% 25.00%
24 50%
$8.000
24,00%
$7.500
23.50%
S7,019
$7.000
23.00%
$6.500 22.89%
22.50%
$6.000 22.0045
2022 2023 2024 2025 2026 2027
*Projected
—Hospiralirati— —Retirement
Rhonda Rath noted that retirement and employer hospitalization rates have been significantly
increasing year over year.
Slide#20
STATE BUDGET
13
Slide#21
Projected State Reductions due to Enrollment Decline
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 Al(otment) $(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) $(118,416) --(5.50) -(55.0)
Academically la Intellectually Gifted(Dollar Allotment) $(11,725)
Transportation (Dollar Allotment) $(625,253)
OVERALL: OCS State Funding is projected to decrease:
8.0 - Positions
6.0 - Months Of Employment
$ 1,659,450 - Dollars
Rhonda Rath reported that the district is in line for approximately a $1.7 million cut to its state
budget because of, primarily, enrollment decline, equating to roughly 14.5 positions. She stated that the
district's focus remains to recruit and retain a high-quality workforce and to grow students.
Slide#22
CONTINUATION
14
Slide#23
Budget Priorities
V
• Recruit and retain a high quality
workforce ,vt o
`,
• Student proficiency and growth ` r-. o j' 46
• Allocate resources to best meet
the needs of students and staff
AM
ENGAGE. CHALLENGE. INSPIRE.
Slide#24
Unfunded State Mandate = $700K Local Impact
• Ir Unfunded 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
• \FY2026 reserves reduced $700K to fund state requirement
• \Future state action may increase local cost burden
'ilk" NGAGE. CHALLENGE. INSPIRE.
Rhonda Rath addressed an "unfunded state mandate" this year, noting that the state mandated
a step increase for all certified staff but did not provide any state dollars to fund it. She said, as a result,
the district had to rely totally on the local allocation to fund that, amounting to approximately $700,000
drawn from reserves. She cautioned that if the state were to now pass a budget and award one-time
bonuses,the district has already expended $700,000 of its reserve.
15
Slide#25
Unfunded State Mandate = $700K Local Impact
• _ .,If Legislators pass a FY2026 budget implementing a retroactive 3%
salary increase for all staff
• i OCS anticipates state funding to support state allotted positions
• i $I.bM 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.
Slide#26
FY 2027 Continuation Budget
2026-27 Continuation Estimate:
FY 2026
Annualized 4%raise next year
Salaries $14,017,822 $14,578,534
Supplement 6,943,211 $7,220,940
Continuation Item 4%raise 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
Social Security 66,727
Hospital(proj.$8,812) 2,031,840 2,106,408 Retirement(proj.25.68%) 307,245
Other Salary Items 2,170,140 $2,256,946 Hospital(proj.$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 $48,765,078
Estimated Continuation Need $1,968,861
<
ENGAGE. CHALLENGE. INSPIRE.
Rhonda Rath presented the continuation budget request of approximately $2 million, which
includes a 4% salary increase and projected increases in retirement benefits and employer-provided
hospitalization.The total continuation budget would bring the district to $48.8 million.
16
Slide#27
EXPANSION INITIATIVES
Slide#28
FY 2027 Expansion Requests
• Teacher Local Supplement increase
o Increase current certified supplements 3% 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
ENGAGE.CHALLENGE.INSPIRE.
Slide#29
Li
CERTIFIED LOCAL
SUPPLEMENTS
:_Nc.\,,, CHALLENGE. INSPIRE.
17
Slide#30
Current Certified Supplements
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%
Total 626
ENGAGE. CHALLENGE. INSPIRE.
Slide#31
2025-2026 Local Supplements for Certified Teachers& Instructional Staff
o�c:•,�-i�,c��=�iv sa,��is cNccs wcPSS u; AHSIs
1
18 19 9 19 18
15
74 14
13
12
10 10 10 10 10
AML 6-13 years 14-19 years 20-years
ENGAGE. CHALLENGE. INSPIRE.
Rhonda Rath noted that OCS's certified supplements, which currently range from 12% to 18%,
lag significantly behind surrounding districts.
18
Slide#32
LOCAL SUPPLEMENT CHALLENGES
Vacancy Rate and Avg Local Supplement
18.0% Local Teacher Vacancy
16.0% LEA Supplement Rate*
14.0%
Chapel Hill-Can-born City $11,612 5.2%
c Orange Gounry Schools
0a.0% C Schools
�s.0% Wake County Schools $11,493 2.2%
4.0% Chatham County Schools $9,649 9.3%
2.13% Person County Schools $9,475 6.1%
0.0%
$0 $2,000 $4,000 $6,000 e8,000 $10,000 $12,000 $14,00o Durham Public Schools $8,904 5.6%
Avg Local Supplement
Orange County Schools $8,254 9.8%
Data Sources NC DPI Statistical Profrie(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%
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.
ENGAGE. CHALLENGE. INSPIRE.
Rhonda Rath observed that vacancy rates tracked at the state level appear correlated with
supplement levels.
Slide#33
Certified Supplement Possibilities
Su ler5ent-621 Certified Instructional S linq S.S.&FICA=32.67%
56.884.924.08 $8,219,879.40 $9,119,096.70 $9,153,698.39
50.00 $1,334 955.32 $2 172.62 52,268,774.31
Additional Additional • -
Supplement Supplement to CHCC
0-5 ears=12% I 0-5 ears=15% 1 0-5 years=17% 1 0-19 years=18%
6-13 ears=14% 6-13 years=17% 6-13 ears=19% 20-24 years=22%
14-19 years=16% 14-19 years=19% 14-19 years=21% 25+years=27%
20+ ears=18% 20+ ears=21% 20+ ears=23%
✓Jmi . ,
"1$�' i aM SYwwiNG uY
III
AM SiRµiiN / -
1 I' YEAR
- YEAR AS AN EDLICATORI
- in Drsanaals! IrMY.1D8!
Rhonda Rath stated that a 3% increase per tier to the certified supplement would cost
approximately$1.3 million.She said OCS is trying to retain teachers.
19
Slide#34
T
CLASSIFIED LOCAL
SUPPLEMENTS
NG A GE. CHALLENGE. INSPIRE.
Slide#35
Current Classified Supplements
Supplement Staff
ssified Employees 7% 2
Classified Coordinators 9% 18
Classified Directors 13% 20
ENGAGE. CHALLENGE.INSPIRE.
Slide#36
Classified Supplement Recommendation
a Focus on classified staff receiving lowest
percentage - 7%
Includes:
■ Teacher Assistants
■ School Bookkeepers \
■ School Receptionists
■ Office Support
■ Custodians i
■ Technicians
■ Child Nutrition —
ENGAGE.CHALLENGE. INSPIRE
-
20
Slide#37
Classified Supplement Possibilities
• 2% Local Supplement increase wo,
(from 7% to 9%)
■ -$3001000 •.
■ 250+ Employees
■ Average annual %
increase $617
AGE. CHALLENGE. INSP11,.
Rhonda Rath said the proposed increase to 9% supplement for classified staff would cost
approximately$300,000, representing an average increase of$617 per employee.
Slide#38
BUS DRIVER PAY
Y
21
Slide#39
2025-26 Bus Driver Hourly Pay
$40.00
2025-26 Hourly Pay Scales
Level Person Orange Co.Durham Chatham Chapel Hill Wake AB55
$35.00 0Exp $16,30 $17.6B $19.43 $18.00 5 $20.00 $18,34
SYrs Exp $17.40 $20.43 $20.27 $19.18 $ 22.63 $21.25 $18.81
"Yrss EExp $18.09 $20.85 $2113 $20.35 $ 24.968 $232.50 $19.21
$30.00 15 Yxp $18 55 $21.28 $225 $2153 261 $275 $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 $ 84.91 $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
$o.o0 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 Hill ■Wake ■Chatham ■AB55 ENGAGE. CHALLENGE. INSPIRE.
Slide#40
Bus Driver Hourly Pay Increase
Current OCS Match Durham atch CHCCS
TOTAL $1 ,052,625 + $93,282 + $304,773
A
r
� ENGAGE. CHALLENGE. INSPIRE.
Rhonda Rath said the last component of the expansion budget request would be an increase to
the bus driver hourly rate to match Chapel Hill-Carrboro City Schools, at a cost of approximately
$305,000, with the goal of enabling shared driver pools between the two districts.
22
Slide#41
Local operating Continuation Budget
FY 27
PROJECTED ENROLLMENT 6,733
CHARTER SCHOOL Funded 1,157 14' -
less out of district county estimate 139 — —
TOTAL STUDENT BILLING BASE 7,751
rIBMFines&Forfeitures/Interest 270,300 W
Local County Appropriation 46,525.917
Grand Total Revenue 46.796.217 �
Continuation rM
Non Personnel Increase 595,073 (*)Reflects:
4%State salary increase and anticipated retirement
State Mandated Increases 1,373,788 and health insurance premium increases
Total Continuation Budget r)48,765,078 Total per pupil need of$6,131(-$254/pp increase)
ENGAGE. CHALLENGE. INSPIRE.
Slide#42
Local operating Expansion Budget Request
Additional Continuation/Expansion
Certified Teacher Supplement Increase 1,334,955
Classified Supplement Increase for lowest band 300,000
Bus Driver Hourly Increase to match CHCCS 305,000
Total Expansion Request 1,939,955
Continuation -$254/pp increase t"
Expansion -S250lpp increase w1
Total -$504/pp increase
A I i
23
Slide#43
Local Operating Fund Balance
7,00,000
6,610,000
6,120,002_
6,000,000 \, -
5,456,494 �' ±
5,000,000 4 930,000
4,340,000
4,000,000
420,00
3,000A00
2,000,000
1`I
1,000,00a
02020 2021 2022 2023 2024 2025
0 actual ENGAGE. CHALLENGE. INSPIRE.
Rhonda Rath presented the district's last audited fund balance of $5.5 million. She cautioned
that this figure looks good on the chart, but if there is an emergency or if something comes up, it won't
be enough. She noted that current operating expenses run between $3.4 and $3.5 million per month
and that best practice calls for three to six months of operating expenditures held in reserve.
Slide#44
Capital Improvement Update
• Community Engagement
• Gallery Walks (April 7, 9 8t 10)
• Survey: 236 Responses (March -April 8)
• "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
An
11107 ENGAGE. CHALLENGE. INSPIRE.
24
Frederick Davis, OCS Chief Operations Officer, began presenting here. He provided an update on
the new elementary school project, which is a high-priority project. He said the district has been
engaged in extensive community engagement, including gallery walks covering sustainability, physical
activity, and lighting; surveys with over 200 respondents; and a "Draw Your Dream School" event on
April 15th at Grave Hill, adjacent to the Greenfield site. He stated that the district is currently working
with the county under an MOU to begin initial site surveying to identify opportunities and challenges,
such as wetlands. He described monthly meetings with Orange County Schools, the City of Mebane, and
Orange County, expressing confidence that the early collaboration would lead to a successful school
opening in 2029. He noted that the school is currently in a pre-design and programming stage and that a
design committee has been formed, including maintenance operations and academic liaisons.
Slide#45
Capital Improvement Update
New K-5 Elementary, Greenfield Site near Gravelly Hill MS
Scheme I Scheme 2
---- -
1
Detail Detail
--°.
ENGAGE. CHALLENGE. INSPIRE.
25
Slide#46
Capital Improvement Update
Summer CIP Projects (High Priority)
o Cedar Ridge Agricultural Learning Lab
o New Hope Roof Replacement
41 Cedar Ridge
E� New Hope
fly CHALLENGE.
Frederick Davis highlighted two completed high-priority capital projects: the New Hope
Elementary roof, a $2 million project completed in December 2025, and the Cedar Ridge Agricultural
Learning Lab. He said the latter would wrap up its punch list this month and hoped for a ribbon-cutting
invitation to be sent out toward the end of May.
Slide#47
ENGAGE. CHALLENGE. INSPIRE.
Chair Hamilton thanked OCS for this presentation.
Commissioner Carter expressed appreciation for the detailed CTE presentation and the focus on
mental health in addressing absenteeism and said she looked forward to updated data in June. She also
appreciated hearing the capital updates.
Commissioner McKee offered congratulations on the achievement data, saying he believed the
academic performance improvements would help alleviate losses to charter schools by changing public
perception. He was glad to hear about the Cedar Ridge Agricultural Learning Lab, and noted he had
received many calls about it.
Commissioner Portie-Ascott congratulated OCS on their student growth metrics. She
commended the eight-point rebound in the graduation rate and the work being done to address chronic
absenteeism.
26
Chair Hamilton invited CHCCS to begin their presentation.
b. Chapel Hill-Carrboro City Schools
CHCCS Superintendent, Rodney Trice, opened by thanking the commissioners for the
opportunity to present CHCCS's local operating budget request for fiscal year 2027. He acknowledged
the challenging times others mentioned, and offered a quote from Henry Ford he keeps in his office:
"When everything seems to be going against you, remember the airplane flies against the wind, not with
the wind". He said it serves as a reminder that tough times will test us, but it also represents an
opportunity to reimagine, rethink, and innovate the work that we do.
Rodney Trice began the following presentation:
Slide#1
Local Operating Budget
Request
•
Est.1949
STRATEGIC
2022-2027
Slide#2
27
StudentOutcomes Drivin • LT
Our •
CHCCS continues to see stronQ student outcomes, includi�g poacrademic growth, 4C
and career pathways. Progress in earl�literacy, and attendance and among
multilingual learners reflects the impac of targeted supports and high-quality z
programming, reinforcing the need to sustain and invest in what is working. <
Slide#3
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 Hllbcarnboro clay schools i chacs.arg THINK (AND ACT) MUMMUM
Rodney Trice said that student outcomes are at the core of the district's daily work and its
budget requests. He acknowledged that, while time has passed since, the pandemic had a real impact on
students. He reported that 5 out of 11 elementary schools have either returned to or exceeded pre-
pandemic levels of proficiency. He highlighted that Northside Elementary School exited TSI (Targeted
Support and Improvement) status this year, a federal designation given to schools when certain
subgroups fail to meet expectations, noting it was largely due to the hard work of district leadership and
the staff over a two or three-year period, which demonstrated significant growth. He described it as a
difficult lift and said it deserves to be highlighted. Rodney Trice noted that the district's three
comprehensive high schools earned AP designations, including a platinum AP honor roll and an AP
28
access award recognizing the district's equity focus in making AP opportunities available to all students.
He highlighted that kindergarten cohorts have exceeded expected growth on the mCLASS assessment
for the past couple of years, and that first graders have met or exceeded expected growth on in-class
assessments. He credited high-quality curriculum resources, particularly literacy resources at the early
grade levels, for this progress.
29
Slide#4
CHCCS Multilingual Learners
English Learner Proficiency
50.00%a
From NC School Report Cards Website:
40.00% ,
English Learner Proficiency: Percent of
students who met North Carolina's '
30.00
r.i
definition of progress toward English
language attainment, as demonstrated on 20.00
the state's English language proficiency
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-Corrboro City Schools i chccs.org Prepared by the Office of Assessment&Research THINK (AND ACT) FITNOMM
Rodney Trice reported a proficiency rate of 41% for multi-language learners. He noted that
multi-language learners often come to the district with gaps in their education, and teachers and
administrators work hard filling in those gaps.
Slide#5
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."
Culbreth Middle: McDougle Middle:
80%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+
more than doubled, increasing 122%(from 9 to 20) of+0.30
On average, AVID Excel scholars achieved more 9 58%of AVID Excel students
growth in one year than in the prior three years demonstrated measurable growth
combined
AVMCone
Readiness
6e
fpr
English
Chapalhill-Corrboro City Schools I chccs.org ® Learners THINK (AND ACT)
Rodney Trice described the AVID Excel program, a middle school elective for multi-language
learners piloted by several principals and the Chief Academic Officer, designed to help with language
30
acquisition, literacy skills development, and readiness for college-level coursework. He said at Culbreth
Middle School, 80% of AVID Excel students demonstrated or exceeded expected growth on the ACCESS
test. He highlighted that these scholars achieved more growth in one year than they had demonstrated
in the past three years combined. He said at McDougle Middle School, 60% of enrolled students
experienced measurable growth.
Slide#6
Career and Technical Ed: Expanding Student Pathways
• Over 105 CTE courses offered across the district mmAN^�
• 42 industry-recognized credentials available to "
students
• More than 1,491 student credentials earned I
• 67.2%of concentrators earned a course credential p
• 94 work-based learning partnerships supporting
real-world experience
• 95%graduation rate
• CTE participation includes 55.67 of middle school
students and 65.9%,of high school students during ii,
the 2025-26 school year ='
Chopel Hill-Corricoro City Schools I chccs.org THINK (AND ACT)
Rodney Trice provided CTE highlights, noting that CHCCS offers over 105 CTE courses, with 42
recognized credentials available to students. He said the graduation rate among CTE students is 95%. He
noted that just over 55%of middle school students and just over 65%of high school students participate
in CTE and expressed confidence that more students would participate if additional space and
opportunity were available.
31
Slide#7
SY24-25 Career and Technical Ed Credentials
CHCCS 2024-2025:All Credentials Credentials Earned:2021-2022 through 2024-2025
ALL MG 0 PAHS ECHHS CHHS CHS 5D00 —
1250 1 090
922 4000 3661
CCC
2773 2917
50 659 667 3000 2316
69 soC 323 2-0
250 1DOD
0 11
D
credentials As Reported Non- Non-Reported Noll-Reported Nor-Reported
POL P.O.of Credentials Credentials- Credentials- 2021-2022 2022-2023 2023-2024 20242025
Learning Aligned WorkKey. Mid tlIll Academic rear
Credentials Credentials
chapel Hill-canboro city schDols i chccs.Drg THINK (AND ACT)
Rodney Trice highlighted that between 2022 and 2025, there was a 1,300-credential increase in
the number of credentials earned by students
Slide#8
SY25-26 Career and Technical Ed Enrollment Profile
SY2526:Enrollment Count By Cluster By Campus CampusTotal
71 ■HS ■ceo ■FCs ■Cs177 ■Co ■SFM ■AG Carrboro High 138 13 302 93 5 3 1 620
loova g
School
1 h.65% goes Chapel Hill High
h4h, za. 1 176 20 716 186 24 349 147 1619
15.ag% 2156% School
East Chapel Hill
1.,a, High School 1 345 1 727 110 68 384 5 1641
11.49%
Phoenix Academy 19 1 1 21
High School
CMlbreth Middle 0.06 School 125 163 171 479
12a McDougle Middle School 217 223 197 837
.%
Caabhoil Chapel Hill EHil Chapel Phenix CUIbre1M1 Mdli Phil cps Mitltlle Smschoolb Phillips Middle 198 193 177 568
School High School HIII High Aeetlemy Hlgh Mktlle School Mitlale School Schad Schaal Sf�1n01
School Schaal
Smith Middle 109 205 194 508
—p— School
2 1 1327 1 34 j 2649 1 1129 97 736 219 6093
chapel H01-canboro city SchDol6 i ohoos.Drg THINK (AND ACT)
Rodney Trice credited the school board's support in shifting the high school schedule to better
accommodate CTE courses and other opportunities.
32
Slide#9
College and Career Pathways: CCP Enrollment at Durham Tech
_rm Number of •- of DTCC is our largest Career and
Students Courses College Promise partner with a
dedicated liaison who works in our
schools 4 days per week.
SY 2025 124 213
4�%%AM r�Z
Fa 112025 239 362
Spring 2026 157 322 .Oo �"at
Chapel Hlu-carrbara city schools I anaas.or9 THINK (AND ACT)
Rodney Trice reported significant growth in the Durham Tech dual enrollment partnership. In
school year 2025, 124 students took 213 courses. In the current year, the number of students nearly
tripled. He praised Durham Tech as a full partner in this effort.
Slide#10
LU
LLJ
Attendance Trends
Overview ot cnronicattendance cn• •- • • the intentional
33
Slide#11
Average Daily Attendance Trends (August-December,
2023-24to 2025-26
g9a
a9
An intentional focus on
60
improving attendance has led ii
to higher Average Daily
0
Attendance from August through 40
December across all levels since
2023-24.
2tl
9
Elementary Mktlle High
•202324 94.9 94.7 90.7
•202425 95.] 95.0 93.9
•202526 ..a 95.1 &l.a
Chapel Hill-canb..city Schools i cncc ug Prepared by the Office of Assessment&Research THI NK (AND ACT)
Rodney Trice reported that average daily attendance has remained high across elementary,
middle, and high school levels, consistently in the 90% range.
Slide#12
Chronic Absence Trends by Student Group (August-
December, 2023-24 to 2025-26)
30
25
For six of eight student groups, the
20
percentage of students with _
Chronic Absences(207.or more of 15
days missed)dropped by
approximately 5 percentage points x 16
over three years;among Latinx
students,it decreased by 1.8 5 III
percentage points, and among III Multilingual Learners, it declined in ° al Asian Back Latinx Multiracial White ML sWD
2024-25 but increased in 2025-26. .2023-24 17.6 1L3 27.1 25.4 172 1411 23.3 29.4
■2024-25 14.5 8.8 24.9 20.8 15.0 13.0 19,3 26.4
•2025-26 12.7 5.8 21.1 23.6 10.6 8.4 24.8 23.5
Chapel HII6Carrboro city Schools chccs.org prepared by the Office of Assessment&Research THINK (AND ACT)
Rodney Trice noted that chronic absenteeism has shown a downward trend from 2023-24
through 2025-26 but called attention to an increase in the 2025-26 year among Latinx students and
multi-language learners. He believes this is due to federal immigration policy, noting that for those two
34
populations, the positive trend had held in prior years, but that something disrupted the work and the
trust of parents. He said the district still has work to do to win back the trust of parents and students.
Slide#13
Student Enrollment Trends
Overview of enrollment changes and projections used to guide
staffing, resources, and planning.
Jonathan Scott, CHCCS Chief Financial Officer, continued the presentation:
Slide#14
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 ) a' �Q
projections _ y
• Preliminary out-of-district enrollment is I
projected to be 260
i
• Preliminary charter school enrollment is i
projected to be 228
• 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
THINK (AND ACT)
Jonathon Scott explained that DPI moved to a funding-in-arrears model as enrollment began to
drop statewide, to stabilize funding for public schools. He reported that the district's average daily
membership for the second month of the current year came in at 10,773 students — approximately a
350-student drop from the prior year. He said after reconciling through the county funding formula, the
budget enrollment for the coming year is 10,741 students, a decrease of 277 students. He noted that
35
charter school enrollment has remained relatively constant, with only about a two-student increase
projected.
Slide#15
Average Daily Membership 10-Year Trend
171 BO 12,390 12,390 12.462 12478 12.604
11,683 12,000 11,568 11,445
12,017
12.23 72,296 12312 1' ll.Oa1
7 466 34 11,219
10,000 70,773
8 000
6,000
4,000
2,000
l63 l51 7 l66 166 l 247 234 i� 226
0
2016-17 2017-18 2018-19 201:}20 2020-21 2021-22 2022-23 202324 202425 2025-26
Total � Enrollment � Charter Stutlents
Chapel Hill-Canboro City THINK (AND ACT) STUOUM
Jonathon Scott noted that in in 2021-22, approximately 12,600 children were enrolled between
charter schools and CHCCS combined.That figure is now projected to be around 11,000.
Slide#16
CHCCS Student Enrollment Demographic Trends
12000
1043
Since 2021-22, two groups had 10000
increased enrollment: Latinx and 6000
Multiracial students. 5829
e000
E 5199
The group with the largest decline
was White students, down 2.7 4000
percentage points from 2021-22 to 200 211B 2197
p 0 1543 1488 9 p u 11 11 �� ��5 1111 �� so
the present. � 63, 645
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
Source:Mergedemo FDS 2021-22 to 2024-25,Infinite •2024-26 1548 1353 2234 841 5304 11386
Campus 20th Day 2025-26 •2025-26' 1488 1295 2197 845 5199 11043
chapel H ll-canboro City schools i THINK (AND ACT) ■
36
Slide#17
Statewide Change in ADM by Grade FY 2025 and 2026
c+000 5,348
Most LEAs saw an
Qooa ADM decrease and
3,350
will therefore see a
reduction in FY27
allotments.
Overall, ADM
w.a. ffid +�, $+r wn +� decreased by
35,554 students
zap t1•2�1 statewide.
t 2.4-8 VO)
(2.745) (2.840)
".'.9)
,4.Ds,)
(a,662) Source'NCDPI 6H
B 12,Fiscal Vear 2025-2026 Best 1 of 2
Average Daily MembeMNP
Chapel Hill- (AND ACT)
Jonathon Scott noted the statewide context, saying he understood only about five school
districts in the entire state gained any enrollment going into this year.
Slide#18
- i
Financial Trends Over Time
Over the past five years, CHCCS has experienced rising costs
alongside shifts in State and Federal funding, with increasing reli.ance
on local resources to sustain core services. These trends underscore <
the need for continued strategic planning to maintain financial he
stability while supporting ongoing student success. z
37
Slide#19
Staffing Levels vs. Student Enrollment: Five-Year Trend
Total Staff Vs.ADM Trends Last Five Years Total Student:Staff Ratio Last Five Years
,?ao lass rzsoo ss
taste ,a�9 ,
1,eao � 66
i,sro 65
1,TJo ,.aie i,,aoe ' z 64
00o B 2 53
1,600 62
00 62 6.1
10
zozo zoz, ma mz3 mza zoza B.0
Horn iaei scan 2020 M21 2022 2023 2024 2025
Fiscal Year 2020 2021 20221 12025
ADM 12,333 11,807 1 11,424 11,408 11,262 11,114
Total District Staff 1,834 1,829 1,828 1,866 1,821 1,772
Chapel Hill-carrboro City schools I chccs.org THINK(AND ACT)
Jonathan Scott said that the district has been reducing staff following a peak in 2023, which he
attributed to a large amount of ARPA money coming from the state and federal government. He noted
that a significant portion of the third tier of a three-tiered reduction in force did not take effect until July
1, 2025, so its full impact would not yet be visible in the graphs presented. He said when the district
returns in a year,the slope of the first graph would turn down sharply, estimating approximately 60 FTEs
in that third tier.
Slide#20
Expenditures by Funding Source: Five-Year Trend
$125.OM
S105.7M $103.8M
S96.1 M
$100.OM $92.3M LOCAL BUDGET$81 0M S85.OM IMPACTS FY 2023 FY2024 FY 2025 F72026
.
Exceptional $6,508,435 $10,832.719 $11,344,595 $12,094,955
$75.01M $86r1M $86:4M Children(032)
$84.1M OM
$76.1M $78.5M $81. Other EC
Teachers i0011 368,158 383,044 392,114 356,733
$50.OM EC 5ch"ioral
Support i029) 173,352 206,882 185,411 304,550
TOTAL $7,324,068 $n,809,749 $12,517,776 $13,406,236
$25.OM $I I,sm
510.6M $65M
S2.9M $4.1M S5.2M
Over the last five years,the gap between State
$0.0M and Local funding has increased from$4.9m in
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 0 Federal 0 Local which expenditures have nearly doubled in the
local fund since FY 2020.
Chapel Hill-CarrbomCity Schools I chccs.org THINK(AND ACT)
38
Jonathon Scott noted that the gap between state and local funding has grown dramatically. He
said that in 2020 there was a difference of about $S million between the district's state and local
budgets, and now it's approaching$17 million five years later. He attributed this to both lower per-pupil
state allocations due to reduced student enrollment and the state's failure to keep pace with actual
operating expenses. He also highlighted that Exceptional Children's needs have grown, with the local
cost of EC nearly doubling since 2023, from $7.3 million up to a projected $13.4 million for the current
year.
Slide#21
LU
LU
LL
State Budget Impact
• - funding is driven primarily by studentenrollment, as
declines, reduces resources ■ • • - Public School
These reductions cl�rectly impact available fundirg and require <
adjustments to maintain current staffing and services. he
Slide#22
39
Projected State Reductions due to Enrollment Decline
DollarsState Allotment Category
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(MOEAllotment) (184,895) (6.0)
Teacher Assistant(Dollar Allotment) (189,561)
Academically&Intellectually Gifted(Dollar Allotment) (26,148)
Transportation(Dollar Allotment) 154,385
Chapel Hill-C—b..City Schools I chccs.org THINK (AND ACT)
Jonathon Scott explained that the district anticipates approximately a $1.98 million reduction in
state funds due to the 350-student enrollment decline.
Slide#23
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-Corrbaro City Schools I chccs.org THINK (AND ACT)
Jonathon Scott said that through careful position control and allotment management, the
district was able to offset approximately $1.93 million of the anticipated $1.98 million reduction in state
funding by not allotting nine elementary teachers, six elementary teaching assistants, eight high school
general education teachers, and two high school EC teaching assistants.
40
Slide#24
Continuation Budget
Jonathon Scott noted the difficulty of planning without a state budget. He acknowledged that
we are now in April of the first of two budget years in the state of North Carolina, where we were
supposed to have a biannual budget and we still do not have a budget from the General Assembly. He
said he has been doing this work a long time and it is very difficult to plan for the following year when
there isn't a budget at this point in the year.
Slide#25
Key Continuation Drivers and Cost Pressures
Budget Driver Description Percentage increase
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 4.00%
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 24.67%.Also needs to account for the
4%salary increase
Employer Portion of State Health 5-year regression analysis projects an 3.67%
Insurance Premiums increase to$8,812,up from$8,500.
Non-Salary Budget Items 4%Inflationary adjustment included for non- 4.0017o
salary items
Chapel Hill-Carrboro City Schools I chccs.org THINK (AND ACT)
Jonathon Scott presented the continuation budget, noting the district is planning for a 4%salary
increase, a 6% increase in state retirement, and approximately a 3.7% increase in health insurance. He
41
included a 4% inflationary adjustment for all non-personnel expenditures, which represents about 15%
of the local budget.
42
Slide#26
Key Continuation Budget Cost Drivers
Continuation Item Cost
Base Salaries
Base Salaries $ 1,294,864
Lxal Supplements
Local Supplements 542,410
State Retirement
State Retirement Matching 731,335 Matching
Paid
Employer Paid Health Insurance Employer
236,515 Heap P n .
a
Premiums remin°""
9ocia1 S—rityF117,7M
Social Security(FICA) 147,783 (FICA)
Non-salary Operating Costs 723,483 Ncn$a yMOM
Operating Costs
Total Budgeted Continuation Costs 1
$o $500,000 $1,000,000
chapel Hill-Canberra city schools chccs.arg THINK (AND ACT) L:'l[ _["1 k.'L."
Slide#27
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 HllF-canbara city schools I ahaas.or9 THINK (AND ACT)
Jonathon Scott noted that the district benefits from a special district tax, from which it
anticipates approximately $600,000 in additional revenue from annual inflationary growth in property
values. He indicated that a 3% increase in the county appropriation would generate approximately$1.95
million in additional revenue.
43
Slide#28
Impact of Estimated Revenue Changes
Budgetary Consideration Impact
Total Continuation Costs before Revenue Changes $(3,676,390)
Inflationary Special District Tax Revenue Increase 591,153
Total Continuation Need after State and Local Revenue Changes $(3,085,233
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
cnapel Hill Carrt,r City Scnools I—cs org THINK(AND ACT)
Jonathon Scott said, accounting for the special district tax, the continuation need is
approximately$3.1 million.
Slide#29
Forward Together
An expansion budget that reflects our commitment to moving
forward together by investing in opportunity and long-term success.
Chapel Hill City Schools I chccs.org
Jonathon Scott said CHCCS firmly believes that the district budget reflects its values, and it
would be disingenuous not to advocate on behalf of district employees and students.
44
Slide#30
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 9.57v by experience.
• A 3%increase in the local supplement percentages beginning in FY 2028.
• Estimated cost per 1%increase:-$1.05 million(including benefits).
• Designed to address equity and competitiveness across experience bands.
Note:assumes stable staffing and no staffing reductions.
ch.p.lHiu-canboroCity I& rg THINK (AND ACT)
Jonathon Scott said the expansion budget request included a 3% increase in certified
supplements at an estimated cost of approximately $1.65 million, including benefits, and a 3% increase
in all classified supplements at an estimated cost of approximately$1.05 million.
Slide#31
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.
ch.p.1Hio-canboroclty5chooI,I ohoos g THINK (AND ACT)
Jonathon Scott said the expansion request also proposes establishing a sustainable, recurring
curriculum investment fund of$1 million, explaining that state funding for textbooks has been declining
45
and that the district is starting to struggle with providing a robust curriculum across the board. He
described curriculum resources as core to student achievement.
Slide#32
Local Operating Expansion Budget Request
Expansion Item Budgetary Impact
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 3.70 million
Chapel Hill-ca bozo city schools I chaas-9 TH I N K (A N D ACT)
Slide#33
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)
P.•. -
Chapel Hill-Canbara City Schools I chccs.ar9 THINK (AND ACT)
46
Slide#34
Fund Balance Historical Analysis and FY 2026 Forecast
$20.OM
S15-5M
$15.OM
511.3M $12.OM
$1 D.DM
$5.am S5.5M
$5.01M S5.3M
$3.6rv1 $3.5M
S0.3M
-S0,1M-S0.6M -S0.4M
-$5_DM
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.
ChapeIHIII-Carrboro City Schools I chccs.org THINK (AND ACT)
Jonathon Scott presented an update on the district's fund balance, noting that the last audited
financial statements showed an increase in fund balance of approximately $350,000. He said the district
is now three-quarters through the fiscal year and estimates it will end the year with approximately $5.5
million in fund balance. He noted that the school board's priority in the coming years is to grow that
fund balance to a more sustainable level, expressing hope that the district would end the following year
closer to $10 million. He said this indicates the structural deficit has been resolved.
Slide#35
of
Our • • Our Future : LL
Strategic Budget Response
Addressing current financiaJ • - •- • •h strategic ••
while creating capacity to reinvest in innovation, strengthen
academic programs, • • develop future-ready •• ••- ,
expand opportunities for students and support long-term enrollmenf
growth, z
47
Rodney Trice continued the presentation:
Slide#36
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
ChapeiHiu-carrb..City schools I ohoos q THINK (AND ACT)
Rodney Trice said the district has talked a lot about strategic budget levers that they can deploy
to make sure money is being spent effectively and efficiently, and that they're providing the level of
service and programs for students that the community expects. He noted that over the past year, the
district has held more than 25 community engagement sessions around the budget.
Slide#37
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
ChapelHlll-Carrbaro City Schools I chccs.org THINK(AND ACT)
Rodney Trice outlined actions taken across several categories. He said regarding organizational
structure, the district conducted a central office reduction in force to the tune of approximately $2
48
million. He said regarding staffing,the district developed a multi-year staffing plan and is holding schools
to staffing formulas based on actual enrollment, including at the high school level — having held high
schools harmless during the transition to a block schedule but now confident enough to apply the
formula there. He said the district anticipates between $350,000 and $500,000 in savings from a review
of software spending. He said the district is having serious conversations about school closure, and part
of that is because of the number of students lost since the pandemic. He said he is proud of the way that
the community has shown up and supported the district administration.
Slide#38
LU
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LL
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Questions?
A� ►� ;
Est.,909
STRATEGIC
2022-2027
Al Ciarochi, Deputy Superintendent for Operations, continued the presentation:
Slide#39
LU
LU
LL
LL
Capital Update
I� Itz: —'—'I_kj ., L�W;entory School repi�_ement project is progress�i i�j
through the schematic design phase, with continued coordination
between • s Orange • • align scope, budget, •
49
Slide#40
d
r
1
Al Ciarochi described progress on the replacement of Carrboro Elementary School, noting that
since the Joint Meeting in the Fall, the project has advanced significantly. He said the district has
engaged in numerous listening sessions with school staff, community members, central office staff, and
design professionals, and has toured comparable schools.
Slide#41
t
Y
CARRBORO ELEMENTARY SCHOOL-CONCEPT
400 SHELTON ST.CARBORRO�NORTH CAROLINA,03252026 TIMMONS GROUP
Al Ciarochi explained that the plan is to build the replacement school on-site, behind the existing
elementary school while children remain in session. He described Carrboro Elementary as one of the
greatest internal residential schools in the CHCCS district. He noted the community's deep investment in
the school, and appreciated being able to walk to it from far distances.
50
Al Ciarochi shared preliminary renderings of the new school, emphasizing they are not final
designs:
Slide#42
1st FLOOR .
EC :.l PRE-K
INTERVENTIONIST
�E '
1''GRADE K FOREIGN MfDIA 'Y -ART
LAN& ADMIN-»
GYMATORIUM \ - MUSIC
DINING \y
Slide#43
2nd FLOOR -
?w GRADE
r� .
MAKE.R
'•.............:•..............: •.................... SPACE
T
PGRADE 4'"GRADE rGRADE
Al Ciarochi described the plan as a 90,000 square foot, two-story facility brought up to modern
DPI NC educational standards, within a $53 million budget funded through the 2024 bond referendum.
He noted the school will feature a core area with a cafeteria and gymnasium on one side, and academic
spaces on the other.
51
Slide I I
. �IL III `l IiI� I N v
Al Ciarochi said design features include earth-tone materials reflecting the
school's
.. prominent
Slide� .,
s f
'Y #
tR�
�6�
52
Slide#46
yi r � T pa i
i�41 R �_
a
i 1
Slide#47
ZARR
.I
:•.• ELENIC�TARY SCHOOL
ow
t� R
Milestones:Tentative
Listening• Sessions - Thru May 2026
Design• Schematic • • • 2026
Begin• • •n - Spring 2027
• O • - • 2028
Al Ciarochi reviewed the site plan, noting it addresses long-standing community concerns about
vehicle and bus queuing on public streets. He described two recent community meetings during which
neighbors raised concerns about traffic, outfall, noise, and wetlands, all of which the design team is
working to address. He outlined the tentative project timeline, with continued listening sessions through
the end of May, followed by schematic design approval by the school board, then design development,
53
and then construction documents. The goal is to begin construction in spring 2027, with an opening in
fall 2028 or 2029. He said the project team has been meeting with the Town of Carrboro and NCDOT and
remains on target.
Vice-Chair Fowler congratulated both school districts on their numerous successes. She noted
that as a pediatrician, she frequently hears from students that AVID is their favorite class, and said it is
transformational for them. She expressed appreciation for all the fiscal tightening, acknowledging it took
a lot of work and was not fun. She described the current financial climate as a panic-inducing situation in
terms of financial realities at both the state and federal levels, but said the county would do everything
possible to try to help schools continue to thrive. She added that continued advocacy at the state and
federal levels is necessary. She was excited to see updates on the planned new schools.
Commissioner McKee congratulated the districts on their focus on CTE. He congratulated
Rodney Trice on acknowledging the possibility of school closures based on the declining student
numbers.
Commissioner Carter echoed gratitude for all the hard work taken on by both school districts to
take on structural changes that have been and will continue to be painful. She said she appreciates them
thinking strategically and looking forward. She agreed it was exciting to see the new school designs.
Commissioner Bedford congratulated Principal Jason Johnson on being named National Principal
of the Year, noting a proclamation would be forthcoming. Commissioner Bedford also commended the
superintendents on their honesty with the community and their staff regarding student enrollment and
upcoming changes. She recounted attending the recent community meeting about the Carrboro
Elementary footprint and praised the detailed engagement with neighbors on issues including flooding,
multimodal paths, and bicycle safety. She asked about the continuation budget figures and whether
they reflected a cumulative 7% increase over two years, given that the prior year's approximately 3%
raise had not been distributed and was being held in reserves.
Jonathan Scott responded that while no raises beyond step increases had been applied, the
funds had been partially consumed by increases in benefit costs, including state retirement and health
insurance costs. He said he could not recall the exact prior year continuation figure, but noted it was
somewhere around $3.2 million. He stated that if the district had to implement the full 3% salary
increase today, it would cost $2 million for the year. He clarified that in planning the current budget,
both he and Rhonda Rath had to do their due diligence and assume worst case scenario and plan the 4%
on top of the 3% increase.
Commissioner Bedford asked what NC House of Representatives' proposed budget includes.
Chair Hamilton invited, Brian Link, President of the CHCCS Association of Educators to the
podium to answer Commissioner Bedford's question.
Brian Link stated that there are three proposals currently outstanding: the House proposal
averages 8.7%, the Governor's latest proposal (his third) is at 11% across the board, and the Senate
proposal is closer to the House but still higher than the 3-4% being assumed by the financial officers. He
said if there's action, it's going to be larger than the conservative estimates that the district financial
officers have proposed.
Commissioner Portie-Ascott offered additional kudos to CHCCS for its AVID program and CTE
programming, referencing a tour she and Commissioner Carter had taken. She also shared that during a
Black History Month read-in at Carrboro Elementary, one student made sure she knew he did not want
his school closed.
Sarah Smylie, OCS School Board member, clarified that the money received by the districts in
the prior budget year — which fell short of the full 3% request — was being held in anticipation of a
possible retroactive state action, but noted that OCS already spent $700,000 of it on the mandated step
increases, and that inflationary increases and rising insurance costs had consumed additional portions.
54
2. Capital Update
a. County Manager's Recommended Capital Investment Plan
Kirk Vaughn, Orange County Budget Director, made the following presentation:
Slide#1
ORANGE COUNTY
NORTH CAROLINA
School Capital Investment Plan
FY 2026-36
April 30, 2026
Joint Meeting
Slide#2
What has changed from prior School CIPs
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 NORTH CAROLINA
Kirk Vaughn described the CIP as organized into three sections: major projects (new builds), high
priority needs for existing facilities, and other capital uses (less restricted funding). He noted that in
55
recent years, the CIP format was changed based on new policies from the Board of Commissioners
around funding and expectations for major project planning. He also noted that all parties have signed a
Core Team Interlocal Agreement, providing updates to each representative organization on construction
and design progress for major projects. He said the recommended budget includes a Pay-Go phase-in of
$3.5 million in the coming year, $6.5 million in the following year, and then $10 million per year by fiscal
year 2029, generating approximately$94.8 million over 10 years due to slight inflation.
Slide#3
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 NORTH C:ARC),LINA
Kirk Vaughn explained that the Woolpert Report had assessed the condition and educational
adequacy of both school districts' facilities and made recommendations for replacements and
renovations across multiple bonds requiring more funding than the Board of Commissioners believed
the county could afford. He noted that those recommendations assumed flat enrollment and did not
factor in school closures. He said the county funding policy requires major projects to replace old
buildings and improve educational adequacy, but does not dictate which schools are selected. He said
the county reflects only what the school boards have approved, and amendments can be made during
the year.
56
Slide#4
Major Projects — Projects and Sequencing
rr , 032-33
Carrboro Design Construction
Chapel Hill-Elementary
Carrboro Estes Hills Design Construction
City Schools Elementary
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 COUNTY
4 NORTH CAROLINA
Kirk Vaughn presented the sequencing of projects by district, explaining that the county
attempted to borrow within the first seven years of the referendum, noting there is a possibility of a
three-year extension with the Local Government Commission. He explained that once funds are
borrowed, they must be drawn down with actual expenses within three years, and that the county tried
to ensure projects were fairly allocated between the two districts so neither had to wait
disproportionately.
Slide#5
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
Estes Hills Elementary Orange Middle
$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 NORTH CAROLINA
57
Slide#6
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 Mlyear 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 NORTH CAROLINA
Kirk Vaughn described how Pay-Go funds support the bond program by absorbing soft costs like
design and project management, and noted that without Pay-Go, the current set of major projects
would not be possible.
Slide#7
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
Use of Pay-Go By Project Year 1 Year 2 Year 3 Year 4 Year 5 Year6 Year7 YearB Year9 Ten Year
i i r r r r r r i r205-36 Total
CS Major Projects 2.500 OOC 600.0IX 4,000.00 5.468.700 2 331,30C 14.800001
L.Stanback-HVAC Replacement 2,180,937 2,160,93
CS-Remaining Bond and Pay-Gc 2,878,81 2,000,00 W9.51E 3.028,786 3,C07,947 6,090.00C 17,066,064
rojects
HCCS Major Projects 3,319,063 3,771.300 4280,937 900,00C 12.271,30
HCCS-Remaining Bond and Pay-Go 6,121,164 5,000,00 867,76 8,250,48E 6,931,214 7,192,063 4,120,OOC 38,462,69
Projects
Major School ConstructionProject 1.000.60 t_o00.00 1,000,00 1,000,00 ", ,O,,00 P_000,00 9,000.00 t000,00 7,000,00 1pD0,00 10,000,0
anegement
TOM 3,500,00 6,500,00 10,000,00 10,000,00 10,240,00 10,480,00 10,720,00 10,960,00 11,200,00 11,200,00 94,800,00
7 ORAN GE COUN-Y
rZC)Kirk Vaughn noted that the goal of the recommended Pay-Go phase-in is that there's no
increase larger than a cent on the tax rate in any given year. He said a phase-in was applied to years five
through nine of the plan but not to year 10, pending further discussion.
58
Slide#8
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
Kirk Vaughn observed that the current Pay-Go phase-in is just sufficient for the district bond
plans with small margins. He explained that if the board chose to reduce or delay Pay-Go
implementation, it would likely require returning to the school districts and asking for revised plans with
a smaller budget. Alternatively, spreading projects out into the seven-to-ten-year window could lower
near-term and cumulative tax rate increases but would reduce the amount of Pay-Go available for
maintenance of remaining school buildings.
Slide#9
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
7Ch.pelill High Roof Replacement $3.0 million
Roof Replacement $1.2 million
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
9
59
Kirk Vaughn presented the high priority needs bucket of$6.4 million across four projects, noting
that the county uses borrowing, lottery proceeds, and remaining bond and Pay-Go funds to support
these needs.
Slide#10
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 NORTH C:AROLINA
Kirk Vaughn said other capital uses are covered using recurring Pay-Go and Article 46 funds,
mainly for technology equipment replacement.
Slide#11
Questions?
ORANGE COUNTY
NORTH CJAROLINA
60
Vice-Chair Fowler asked Kirk Vaughn to clarify whether the current Pay-Go plan would be
sufficient as presented in the recommended CIP.
Kirk Vaughn said yes.
Commissioner McKee asked how closing schools would impact the need for the bond funds.
Kirk Vaughn said the bond money is being used for new schools and renovations.
Commissioner McKee said that total county borrowing over the next 10 years is approximately
$900 million, with schools representing about $300 million of that, and that debt service costs are
projected to reach 19% of expenditures. He asked how the county and school systems planned to
contain costs given that the $300 million bond and $100 million in Pay-Go may not be sufficient to
complete all the originally planned projects. He also asked what would happen if the capital plan began
to fold up.
Chair Hamilton responded by noting that it was always understood when the bond was placed
before voters that inflation could mean not all projects would be completed within the $300 million. She
noted that OCS had already determined they could only complete two of their originally planned three
projects due to cost increases. She acknowledged Commissioner McKee's broader point about the
county's total capital obligations, and said it is an issue for the commissioners to address collectively.
Commissioner McKee expressed concern about the burden of tax increases on lower-income
residents, referencing six pages of tax delinquency listings in local papers during previous high-tax-
increase periods of the 1980s and 1990s. He acknowledged that the bond was passed with full
transparency about tax implications but said it does not help those people who are wondering how they
are going to pay their tax bill.
Chair Hamilton acknowledged that the information the Board has received indicates there needs
to be a tax increase, and that that will be a burden on residents. She agreed the Board has work to do to
address those two realities.
Commissioner McKee said the school systems' decisions will impact the Board's ability to keep
tax increases low.
Rani Dasi noted concern and wanted to add proper context to the conversation. She said that
the schools are being looked at as the primary driver, but there are $600 million in other county costs in
the CIP. She said that the voters came to the ballot understanding that the schools had significant unmet
needs that had existed for decades, and they agreed to absorb a tax increase to make sure the schools
are in proper condition. She emphasized that school facilities contribute to economic development,that
many families receive healthcare services in schools, and that children eat in schools. She said schools
are hugely valuable community facilities and didn't want that to get lost in the conversation.
Chair Hamilton raised the possibility of delaying a second project, in the context of smoothing
the tax rate, and asked whether the school boards would be open to that conversation.
Riza Jenkins said that the districts have been planning with the 10-year timeline in mind and that
any shifts in the schedule would mean more money.
Commissioner Bedford shared that when looking at CIP increases, moving projects out one or
two years helped smooth the tax increase. She said the bigger concern long term is whether the Board
will stick with the plan for the Pay-Go.
Will Atherton, OCS School Board member, stated clearly that OCS has had no discussions about
closing schools at this point, and did not want to cause panic in the community over that point. He
emphasized that while OCS would be willing to engage in that conversation, they do not want the cost
pressures to be placed solely on the school systems. He reiterated that OCS would work together with
the county but wanted to do with clear understanding regarding the financial impacts. He also noted
that the CIP is a 10-year plan, but the commissioners adopt it one year at a time, meaning the Board
would revisit all of this annually.
61
Riza Jenkins said she wanted the county to balance fiscal reality while considering the need to
get students and staff into adequate school buildings as quickly as possible. She acknowledged the point
about constituents'financial hardship, saying that both things are true at the same time.
Commissioner McKee said he will be analyzing county projects just as much.
Commissioner Greene said, to Riza Jenkin's point, the Woolpert Report identified about $1
billion worth of capital needs for the schools. After a lot of discussion, the Board settled on $300 million
hoping that the voters would approve that, which they did by a wide margin. She said she doesn't think
they can be thinking about some of that $300 million not being spent because of school closures,
because the need is much larger than $300 million.
Sarah Smylie said these projects are almost all new schools and that pushing projects out
decreases the value of the projects and value the community gets for their money.
Bonnie Hauser asked how much flexibility there really is with Pay-Go. She asked if all Pay-Go
must go towards capital expenses.
Travis Myren confirmed that there is no legal restriction between a Pay-Go dollar and an
operating dollar.
Bonnie Hauser noted that when Pay-Go was reduced the prior year, it did not benefit the
schools' operating budgets but rather prevented a larger tax increase.
Rani Dasi asked how this decision about pushing out projects will be made.
Chair Hamilton described the budget adoption process for the benefit of all participants. She
noted that the County Manager would present the recommended operating budget on May 5th; public
hearings are scheduled for May 12th and May 28th; budget work sessions are scheduled for May 14th,
21st, and 26th, and June 4th; and the budget adoption is expected at the June 16th meeting, with the
prior meeting serving to lock down the intent to adopt. She also noted that the public cannot speak at
work sessions, but that email is always available, and public hearings are the designated forum for public
comment.
George Griffin expressed concern about the pattern of revisiting the Pay-Go component. He
recalled that when the Pay-Go amount was reduced in the prior year, it was a bait-and-switch situation.
He said the school boards were selling a $300 million bond issue to build new schools to the community,
and they voted 65% in favor of it, and then out of the gate, the amount was reduced. He said he had
been assured at that time that the money would simply be pushed to year 10. He said it caught him and
likely some others by surprise that less than 12 months later, the school boards were again being asked
if they could back off on timing.
Chair Hamilton acknowledged his concern directly, saying she understood how it can feel like
the situation keeps changing. She said it is not intentional but reflects the fiscal realities and how the
Board is trying to manage the many needs. She said the intent of raising the subject at the joint meeting
was to be transparent early in the process, noting that there is only about a month for the Board to
figure out how to fund the whole county. She noted the pressures that all parties face.
Commissioner Bedford shared her own view, saying she believes Pay-Go is at risk, and that
based on increasing construction costs and the current financial environment, she does not anticipate
three major school construction projects ultimately being completed. She acknowledged this could
change in three or four years but pointed to the costs of new federal and state mandates, including
SNAP administration and Medicaid re-enrollment, as additional pressures on the county budget.
Bonnie Hauser acknowledged the Board is in a difficult spot, but said that OCS certified
supplements have not increased in 10 years. She said the capital discussion, while important, felt a little
limited and called on commissioners to hear the operating budget requests with equal compassion.
Commissioner Portie-Ascott asked staff to review the dates for budget information sessions.
Wil Glenn, Orange County Community Relations Director, announced the dates for the budget
information sessions on May 14th, May 20th, and May 21'
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Vickie Feaster-Fornville, CHCCS School Board Member, offered broader remarks about the
interconnected challenges facing Orange County. She said the county must come together and figure
out a way to do more with less so that the people who have not had the less, who are the less than, can
feel that they are respected, they are seen, and they are given an opportunity to live in the county that's
theirs. She noted that the displacement of long-time residents, particularly those who have been in the
county for generations, is not a new problem and that many students have been lost not to charter
schools but because their families could no longer afford to live in Orange County. She said, if they don't
look at the housing epidemic and realize the same students served in the school districts are the same
children that are being served by social services,then they are missing the mark.
Chair Hamilton offered closing remarks with a summary of the presentations and discussion.
She returned to Rodney Trice's quote he shared earlier in the meeting. She committed to
communicating the Board's thinking throughout the upcoming budget process and invited school board
members and the public to attend, listen, and engage over the following month.
Rani Dasi expressed appreciation for the commissioners and noted that the choices before them
are not easy. She said the difficult conversation is occurring largely because the state is not doing what
it's supposed to do. She invited everyone listening to attend Kids Over Corporation Advocacy Day in
Raleigh the following day from 11 AM to 2 PM. She also publicly recognized Rodney Trice for his steady
leadership, noting that he has spent many hours going to Raleigh and talking to the House Oversight
Committee about the books in school libraries. She said he is a hero for his temperament, knowledge,
and leadership under pressure.
Adjournment
Being that there was no further business,the meeting was adjourned at 9:24 p.m.
VOTE: UNANIMOUS
Jean Hamilton, Chair
Recorded by Tara May, Deputy Clerk to the Board
Submitted for approval by Laura Jensen, Clerk to the Board