HomeMy WebLinkAboutMinutes 05-14-2026-Budget Work Session 1
APPROVED 6/16/26
MINUTES
ORANGE COUNTY
BOARD OF COMMISSIONERS
BUDGET WORK SESSION
May 14, 2026
7:00 p.m.
The Orange County Board of Commissioners met for a Budget Work Session on Thursday, May 14, 2026,
at 7:00 p.m. at the Whiffed Human Services Center in Hillsborough, NC.
COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and Commissioners
Marilyn Carter,Jamezetta Bedford, 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
Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below)
Chair Hamilton called the meeting to order at 7:00 p.m. All commissioners were present.
1. Discussion Regarding Outside Agencies Funding for FY 2026-27
BACKGROUND: The County Manager presented the FY 2026-27 Recommended Budget at the Board of
Commissioners' May 5, 2026 Business meeting. Since that time, the Board has conducted one public
hearing to receive residents' comments regarding the proposed funding plan. This is the first opportunity
for the Board to discuss next year's recommended funding plan related to Outside Agency and Education
funding.
Outside Agency Funding: The recommended Outside Agency Funding can be found on page 218 of the
Manager's Recommended Budget.The recommended budget for FY 2026-27 is$693,953.
Caitlin Fenhagen made the following presentation:
Slide#1
_4Q=`
ORANGE COUNTY
NORTH CAROLINA
FY2026-27
COUNTY MANAGER
RECOMMENDED BUDGET
Outside Agencies
May 14,2026
BOCC Work Session
2
Slide#2
FY2026-27 PROCESS PRIORITIES
• Alignment with County Strategic Goals and Objectives
• Strategic Plan Manager Reviewed Submitted
Applications, Completed Scorecards and Provided
Feedback to County Manager
• Outside Agencies Coordinator, Relevant Department
Director and Deputy Manager Attended Joint County and
Towns Agency Presentations and Completed Scorecards
• No New Changes to the Application or Review Process
• In Challenging Budget Year, Strong Priority for Safety
Net and Direct Services
• Manager Received Scorecards and Finalized
Funding Decision with a Focus on County Needs.,
z ORAN HE�AROLI COUNTY
Slide#3
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
• i i - i iVisitors Bureau
i Approved ..
Funding
Agencies Funded 39 35 29 3
Total 1 $899,439 1 $ 800,1461 $ 693,953 $ 143,545
• .A.total of 45 outside agencies applied for FY 26-27 funding.These requests
totaled$1,310,203,which is$510,057 above the current FY appropriation.
• Nine(9)agencies applied for the first time requesting a total of$174,940.
Twenty-nine(29)agencies are being recommended for FY 26-27 funding in the
amount of$693,953.
Two(2)outside agencies will be moved to the Visitors Bureau Fund for
tourism-related programming;one(1)outside agency is being
moved to a department for funding
ORANGE COUNTY
NORTH CAROLINA
3
Slide#4
FY2026-27 RECOMMENDED BUDGET
NEW OUTSIDE AGENCIES
Nine(9)agencies applied for the first time requesting funding totaling
$174,940;two(2)new agencies are recommended to receive funding;two
(2) new agencies are being recommended for department support
services;three(3)new agencies determined ineligible:
1.Justice United—Request$25,000—Received funding
2.Unlocking Access—Request$10,000—Not funded/Aging referral
3.Uplift Laundry—Request$1,500—Not funded
4. SKJAiA Fund—Request$5,000—Not Funded
5. Chapel Hill Historical Society--Request$900—Not funded/Aging
referral
6.Millie Dunn Veasey Chapter 100—Request$15,000—Ineligible
status/Referred to VSO
7.UNC—Chapel Hill(FFORC)—Request$50,262—Ineligible status
8.OWASA—request$42,278—Ineligible status/referred to DSS for pilot
proposal planning for FY 27-28 budget
9.Piedmont Health—Request$25,000—Received funding ORANGE COUNTY
NORTH CAROLINA
Caitlin Fenhagen described the nine new applicants for outside agency funding and gave a brief
description of each applicant's proposal. She said three agencies were ineligible because they lacked
501c3 status.
Commissioner Portie-Ascott asked what Justice United requested for funding.
Caitlin Fenhagen said they requested funding for tax relief education and workshops.
Slide#5
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Funding Formula
Application
95—100(Existing Agencies) Up to$5,000 plus base
90—94(Existing Agencies) Up to$2,500 plus base
80—89(Existing Agencies) Reduce 10%from base
79 or Below(All Agencies) $0
*Funding for existing agencies is based on the requested amount
over or below last year's award(base). For new agencies,the base
is$0.For new agencies with scores between 90-100,they
received the amount requested up to$7,500.For new
agencies with scores between 80-89,they received the
amount requested up to$5,000.All agencies scoring 79 or Idgm—;1_1
below are not recommended for funding. ORANGE COUNTY
NORTH CAROLINA
4
Slide#6
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Transferred to Visitors Bureau Fund
FY2. Request' • '
Historic Hillsborough $10,800 $12,000 $9,720 80
Commission
(Burwell School)
Historical Foundation $29,250 $32,500 526,325 87
of Hillsborough and
Orange County
(;Museum)
ORANGE COUNTY
NORTH CAROLINA
Slide#7
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Transferred to Housing Department Contract
FY2026-27 Recommend I Application
26 Award Score
Habitat for Humanity $107,500 $107,500* 98
*All department contracts
remained flat
1
ORANGE COUNTY
NORTH CAROLINA
5
Slide#8
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Strategic Goal: Housing for All
Award Request Recommend Score
Marian Cheek
Jackson Center:
Northside $50,000 $50,000 $50,000 9
Initiative
Hope Renovations 15 000$ $50,000 $17,500 93
Justice United N/A $25,000 $7,500 93
(New)
EmPOWERmenL
$75,000 $85,000 $77,500 92
Reentry House $25,000 $50,000 $27,500 92
Plus
Community
Empowerment $37,500 $45,000 $40,000 90
Fund
Slide#9
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Strategic Goal: Housing for All
FY2025-26iFY2026-27
Award Request Recommend
Preserving Home $13,500 $20,000 $12,150 85
Pee Wee Homes $12,600 $13,000 $11,340 80
Oxford House $8,100 $9,000 $7,290 80
mmmm
ORANGE COUNTY
NORTH CAROLINA
6
Slide#10
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Strategic Goal: Healthy Community
FY2025-26iFY2026-27 Application
Award Request Recommend Score
PORCH-Chapel Hill $25,000 > O j)i i() 3U,000 99
El Centro $44,133 $48,546 $48,546 99
Table Ministries $27,500 $35,000 $32,500 97
Rape Crisis Center $53,000 $51,000 $51,000 97
OC Meals on Wheels $75,000 $80,000 $80,000 95
Chapel Hill Farmer's
$5,000 $40,000 $10,000 95
Market
ORANGE COUNTY
NORTH CAROLINA
Slide#11
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Strategic Goal: Healthy Community
FY2025-26i
Award Request Recommend Score
Swim for Charlie $8,227 $21,000 $10,727 93
Refugee Community
$15,000 $20,000 $17,500 92
Partnership
PORCH-Hillsborough $22,000 $30,000 $24,500 92
Refugee Support Center $7,500 $7,500 $7,500 91
Exchange Club $16,186 $16,200 $16,200 91
��
ORANGE COUNTY
NORTH CAROLINA
7
Slide#12
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Strategic Goal: Healthy Community
FY2M Award 1 iApplication,
Recommend
re
Volunteers for Youth $11,500 $11,500 $11,500 90
Piedmont Health(New) N/A $25,000 $5,000 88
Planned Parenthood
South Atlantic $18,000 $20,000 $16,200 80
ORANGE COUNTY
NORTH CAROLINA
Chair Hamilton asked what the Exchange Club does.
Melissa Allison, Business Officer in the County Manager's Office, said they are a child abuse
prevention organization, and work with at risk families in Orange County schools.
Caitlin Fenhagen said they also provide services in the home.
Slide#13
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Strategic Goal: Public Education/Learning Community
YMCA—Chapel Hill $7,500 $10,000 $10,000 95
Orange County Partnership
$8,000 $8,000 $8,000 95
for Young Children
Family Reading Partners
$15,000 $25,000 $17,500 94
Boomerang $35,000 $47,000 $37,500 90
Marian Cheek Jackson
Center:Learning Across $7,500 $10,000 $6,750 89
Generations
Empowering Excellence
through Explorations(E3) $2,500 $3,000 $2,250 85
8
Commissioner Portie-Ascott asked if Boomerang still had a presence in northern Orange County.
Melissa Allison said that the office was in the Churton Grove shopping center in Hillsborough.
Commissioner Portie-Ascott said she thought they'd moved out of the space.
Caitlin Fenhagen said they would confirm Boomerang's current location.
Slide#14
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Agencies Not Funded
Recommend Application
Score
Orange County
Disability Awareness $0 $30,000 $0 64
Council
Transplanting $0 $15,000 $0 78
Traditions
Big Brothers/Sisters $0 $5,000 $0 70
Piedmont Electric
$0 $25,000 $0 53
Helping Hands
Uplift Laundry N/A $1,500 $0 53
Truck(New)
ORANGE COUNTY
NORTH CAROLINA
Slide#15
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Agencies Not Funded
Recommend
Unlocking Access $0—Referred
(New) N/A $10,000 to Aging for 60
support
Early Years $0—referred
$0 $25,000 to DSS for 65
support
SKJAJA(New) N/A $5,000 $0 65
Hillsborough
$2,500 $7,017 $0 68
Community Garden
UNC-CH(FFORC) N/A $50,262 $0-Ineligible 74
(New)
ORANGE COUNTY
NORTH CAROLINA
9
Caitlin Fenhagen said UNC-CH (FFORC) is a program from the Gillings School of Public Health that
works in Fairview with food and fitness education, and a community garden. She said they were not
eligible, but also a significant portion of their request involved overhead as with any UNC research
program.
Slide#16
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Agencies Not Funded
FY20 , i
Award
Charles House
$23,400 $28,000 $0 9
Chapel Hill $0—referred
Historical Society N/A $900 to Aging for 81
(New) support
$0—
Millie Dunn Veasey Ineligible-
Chapter 100 (New) N/A $15,000 referred to 83
VSO for
support
$0—referred
OWASA (New) N/A $42,278 to DSS for 93
Pilot proposal
for next FY TY
NORTH CAROLINA
Caitlin Fenhagen said Charles House did not receive funding, but they receive funding for
scholarships from the Department on Aging and DSS. She said they are also serving a significant number
of people from outside of the county.
10
Slide#17
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
In Department Budgets
..
Recommend
Habitat for $107,500 Housing
Humanity
Community $308,476 Housing
Home Trust
IFC PSH $18,640 Housing
IFC Shelter $274,453
IFC Food $100,000 DSS
Services
OCIM $154,915 DSS
�1
ORANGE COUNTY
NORTH CAROLINA
Slide#18
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
In Department Budgets
iDepartment
Recommend
Diaper Bank $20,000 DSS
Soltys Place $50,000 DSS
Senior Care of
OC
Dispute $107,200 CJRD
Settlement
Center
Compass Center $104,700 CJRD
�1
ORANGE COUNTY
NORTH CAROLINA
11
Slide#19
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
In MOE Contracts
FY2026-27 Recommend
OE Enterprises $80,650
Club Nova $191,750
Freedom House $242,449
Triangle Disability and $33,200
Autism Services
Haven House $19,000
El Futuro $106,048
�1
ORANGE COUNTY
NORTH CAROLINA
Slide#20
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
In MOE Contracts
FY2026-27 Recommend
Caramore $116,433
UNC Dept of Psychiatry $36,341
(for Detention Center)
ORANGE COUNTY
NORTH CAROLINA
12
Slide#21
FY2026-27 RECOMMENDED BUDGET
OUTSIDE AGENCIES
Total FY 26-27Awards
General 1 SourceTotal1Awards
Outside Agencies $693,953
Department Contracts $1,245,884
MOE Funds $825,871*
*Additional 21/1ois also provided to
Alliance Health for administrative
assistance(Total$842,388)
ORANGE COUNTY
NORTH CAROLINA
Slide#22
Questions?
ORANGE COUNTY
NORI-H CAROLINA
Commissioner Carter asked if agencies that scored lower than others are taking steps to raise their
scores and how that process works.
13
Caitlin Fenhagen said agencies were informed prior to the work session that they were not
recommended for funding, and several have already asked how they can improve their applications. She
asked Melissa Allison to describe the application process.
Melissa Allison said they have a kickoff in December, and a few virtual workshops to answer any
questions before applications are due in December. She said agencies are always trying to figure out how
to increase their scores.
Caitlin Fenhagen said that applicants can also request their score cards after recommendations
are made.
Vice-Chair Fowler asked what the reason is for not having a funding tier that is flat funding.
Kirk Vaughn, Budget Director, said it is related to budget constraints. He said rewarding agencies
that score the best means there must be a reallocation to keep the total amount flat.
Chair Hamilton asked where people can view the score cards and the details in the budget
document.
Caitlin Fenhagen said that people can request the score cards.
Chair Hamilton said she would like to see this information in the budget document as well as on
the website.
Caitlin Fenhagen said that could be done.
Melissa Allison said that there is a page on the County Manager's section of the website about
outside agency funding.
Chair Hamilton said it would be helpful for the community to have those details in the budget
document.
Vice-Chair Fowler reminded the Board that the information used to be in the budget document,
but was removed due to concerns about conflicts of interest if there were any commissioners connected
to the agencies. She said now there is just the total amount because it is the County Manager making a
recommendation rather than the Board making individual award decisions.
Kirk Vaughn said the change was made in response to a change in state law, but he said the Board
has made other changes to meet that requirement so it may be no longer necessary to keep the
information out of the budget document.
2. FY 2026-27 Operating and CIP Budget Discussions, regarding Durham Technical Community College,
Chapel Hill-Carrboro City Schools, and Orange County Schools
BACKGROUND: The County Manager presented the FY 2026-27 Recommended Budget at the Board of
Commissioners' May 5, 2026 Business meeting. Since that time, the Board has conducted one (1) public
hearing to receive residents' comments regarding the proposed funding plan. This is the first opportunity
for the Board to discuss next year's recommended funding plan related to Outside Agency and Education
funding.
Education Operating Funding:The Manager's Recommended Education Funding can be found starting on
Page 159 of the Recommended Operating Budget. Per-pupil Current Expense funding is recommended to
increase from $5,877 to $6,171.
Durham Tech Funding: Durham Tech's recommended funding is also found in the education section of the
Recommended Operating Budget, on Page 159.The Manager is recommending a 3% increase to Durham
Tech's current expense,as well as additional funds to support six months of the operations of the expanded
facility. Durham Tech also receives additional funds through the Article 46 sales tax.
14
Education Capital Funding: The Manager's Recommended Capital Investment Plan details the School
Funding Summary on Page 132. There are $526.7 million of school capital projects in the 10-year capital
window.
JB Buxton, President of Durham Technical Community College, made the following presentation:
Slide#1
DURHAM
AZW TECH
Orange County Budget Request Briefing
JB Buxton said that they were pleased with the County Manager's recommended budget for
Durham Tech.
15
Slide#2
Enrollment Summary (2024-2025)
Summary for Students Who Reside in Orange County(OC)
Curriculum (CU),
2,677 Continuing Education (CE),
StudentsDurham Tech & Basic Skills
Reside in Orange County(OC) All Campus Locations
(Out of 17,429)
Of
415/2,677 677 2,677
Career&College Promise
Students
201/2,677 .CU •CE .Basic Sldlls
Durham Tech Promise Recipients Note:The extra 3%percent is due to
(for at least one semester.) duplication.83 students were enrolled in
both CU and CE/BSP.
•........................................:
JB Buxton shared information from the recent graduation ceremony at Durham Tech. He said that
they gave an honorary degree to Steve Farmer,who was the director of admissions at UNC. He said Steve
Farmer launched the C STEP guaranteed admissions program twenty years ago this year, which has now
served 1,400 students.
Slide#3
Orange County Resident Enrollment —Over Time
Orange County Residents Taking Courses at Durham Tech-Any Campus
Curriculum Students Continuing Education Students(8SP not incl.)
1800 1200 1107
1572
1600 1448 1000 995 g81 9fi2
1900 1362 1339
1200 1140 900 7V
1000
600
800
600 400
400
200
200
0 D
2020-2021 2021-2022 2022-2023 2023-2024 2024-2026 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025
Percent 19% -2% 8% 9% Percent 30% -1% -2% 15%
Change Change
=. D U R H A M T E C H durhamtech.edu
16
Slide#4
NCCCS PERFORMANCE MEASURES: Curriculum Completion
80.0%
70.0%
60% 62%
60.0% 55% 56% 58% 57%
a
� 64%
51% 52%
a 48%
40.0% 45%
30.0%
20.0%
2016FA 2017FA 2018FA 2019FA 2020FA 2021FA(SU
pending)
Four-year Cohorts
tDurhamTech --@--NCCCS
I�durhamtech.edu -
17
Slide#S
Median Quarterly Earnings of Curriculum CTE Exiters by College
C rr-Wrers:S fudenis who successfully compiefed a[least 9 cuffPculum cmW hours on a(least one C rf prefix
and did mr enroff in furthes,posts E-condary educatron for 3 years after exit
Medtan Quarterly Earnings:Median quarterly earnings of wage-matched erifers in 3rd year after exit
Couege NCCCS.Ezrt Year 18-19-►20-21(3-Year Aggregate)
Age Range All.R,gresl Credential on Exit Year All
$17136 511,284
510,626 511,394512, $11,773 510,120 $9891_
512,065 L,0
S13,007 11,297 S1 59,a43
11,7 s13,464 51�546 521,240 Qn
6
• 0.660 11.439 1l,502
10.91$13.903 2 1$1 12,063 St2,864 511,570
1
$1LM$ 117 11,62 11•
$1R756 $I1.471 1,312 11! $11,267
59;6d5 ]1.69 511.520
S12.360 S11,127
S11,736 10,565 S9.SG'r
$12,579 S10,149 .�
$12,094
S11.524
10,642
=+ D U R H A M TECH durhamtech.edu
JB Buxton said Durham Tech is one of the highest performing colleges who send their students
on to transfer. He said that students who enter UNC with an associate's degree have better outcomes.
18
Slide#6
MANAGER'S RECOMMENDATION V COLLEGE REQUEST
Budget Item Base Request Manager Rec.
Current Expense 973,724 1,187,296 980,579
Recurring Capital 75,000 100,000 75,000
Article 46
Innovation Hub 20,000 20,000 20,000
Apprenticeship Coordinator 9,083 9,475 9,475
Promise 200,000 200,000 200,000
Back to Work 100,000 100,000 100,000
Small Business Grant 70,000 70,000 70,000
Unfunded Items
College Liaison 0 90,438 0
Sworn Police Officer 0 88,500 0
Police vehicle 0 25,000 0
durhamtech.edu own"o
JB Buxton acknowledged the difficult budget situation this year and that while some of their
requests were unfunded,they understood the reasons.
Commissioner Portie-Ascott asked how many sworn police officers the college has.
JB Buxton said they have one sworn officer, and they would like another during second shift to
improve safety and security. He said their buildings are open access, and they would like to get more
personnel down the road.
Travis Myren made the following presentation:
Slide#1
ORANGE COUNTY
NORTH CAROLINA
Budget Work Session #1
Education
Outside Agencies
Board of Commissioners Work Session
May 14, 2026
19
Slide#2
Durham Technical Community College
• Operating Costs (non-instructional) — page 159
Durham Tech Funding Approved Request Recommend FY 26
Current Expense $973,724 $1,187,296 $980,509 $6,785
Recurring Capital $75,000 $100,000 $75,000 $
Debt Service $191,318 $782,082 5782,080W $590,76
General Fund Subtotal $1,240,042 $2,069,378 $1,837,591 $597,549
rticle 46 Subtotal $443,462 $443,854 $489,913 $46,451
• Current Expense increase of 3%plus$22,301 added to cover six months of new facility
— Offset by moving existing College Liaison position to Article 46
• Debt Service increase-$590,764
2 ORANGE
RrH COOUNA Y
Slide#3
Durham Technical Community College
• Article 46 Investments — page 81
2026-27 Recommend
Durham Tech Promise Scholarship $200,000 $200,000
Back to Work Initiative $100,000 $100,000
mall Business Program $70,000 $70,000
arolina Innovation Hub Rent $20,000 $20,000
fkpprenticeshipCoordinator $9,083 $9,475
FY 2026 Operating Gap $44,379 $0
olle a Liaison 0 $90,438
otal $443,462 $489,913
3 ORANGE
COUNTY
NA
20
Slide#4
_ducation Work Session Agenda
• Terminology
• Total Budgeted Students and Enrollment Trends
• Per Pupil Amount
• Impact of the Special District Tax
• Funding Recommendations
• Undesignated Fund Balance Policy and Amounts
ORANGE COUNTY
4 NORTH CAROLINA
Slide#5
Terminology
• Average Daily Membership(ADM)
— Based on Department of Public Instruction's composite best of 20th or 40th day average daily membership
• Out of District Students
— Students from outside of the district attending a traditional Orange County public school
— County is not responsible for funding Out of District Students
• Charter School Students
— Students living in one of the Orange County school districts but attending a charter school including charter
schools in other counties
— School districts must transmit the local per pupil amount to the charter schools serving Orange County students
— County provides funds to the District to pay for those Charter Students through the Current Expense Budget
— If a student transfers from a Traditional School to a Charter School, the amount is prorated for the time the
student spends in each location
• Total Budgeted Students
— Number of students for which Orange County government provides funding on a per pupil basis
5 ORARNGE�COUNTY
21
Slide#6
Total Budgeted Students FY2O26-27
W-chapel Hill-Carrboro City SchoolsOrange County Schools
Average Daily Membership 10,773 6,733
Out of District Deduction (260) (139)
Charter Students 228 1,157
Total Budgeted Students 10,741 7,751
%of Total Budgeted Students 58.08% 41.92%
• The number of total budgeted students dictates the amount of current expense funding each District
receives. The County must provide the same amount per pupil to each District.
• The percentage of total budgeted students influences how capital and recurring capital funding has
historically been divided between the Districts.
6 ORANGE
RrH COOUNA Y
Slide#7
Student Enrollment History
Total Budgeted Students by District
13,000
12,115 12,242 12,339 12,239 12,160 12,387 12,274 12,236 12,351
11,820 11,993
u,000 1,442
11,382 11,253
11,141 11,018
11,000 10 741
20,000
9,000 �CHCCS
7,863 7 g01
7,966 8,072 8,011 8,134 8,15fi 8,110 8,023 8,003 7,936 7,925 fOCS
7 751
8,000
7227 7,357 7,487
7,148 , 7,172
7,000
6,000
5,000
2007-08 2M" 2W0 10 201 h 2011-12 2012-13 2013-14 201415 201516 201F17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 202425 2025-26 202F27
CHCCS Budgeted Student Decrease of 277 Students
Budgeted student percentage decreases from 58.16%to 58.08% r
OCS Budgeted Student Decrease of 174 Students ORANGE COUNTY
7 Budgeted student percentage increases from 41.84%to 41.92% NORTH CAROLIWA
zz
Slide#8
Student Enrollment with Projections
CHCCS Past and Projected Enrollment
14,000
12,004 12,126 12.266 12,305 12,303 11 764
12000 11,411 11,352 71,200 77,099
10,758 10,619 10,438
�0,328-10,161 103084 9,997 9,882 9,823 9,783 9,688
10,000 —— ——
8,000
6,000
4,000
2,000
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2036 2036
—CHCCSADM ——CHCCS P.pded ADM
8 ORANGE
RrH COOUNA Y
Slide#9
Student Enrollment Over Time
Chapel Hill-Carrboro City Schools
Out of District and Funded Charter Students
400
350
3s0
309 318
300
241 241 242
250 251 253 260
250 231
210
oN mo'N
200
167 162 169
155 205
166 156
150
117 117
100
50
0
2007.06 2W&09 2W310 201P11 2011-12 3012-13 2013-14 301415 201516 301F17 zm7-]e 201&19 2019.20 202P21 2031.22 202323 2023.24 202425 202526 202E27
Bed®el
Out of District Students decreased by 58
Charter Students increased by 6 ORANGE COUNTY
s Charter Students Represent Z l%of Budgeted Students NORTH CAROLINA
Commissioner Carter asked what the contributing factor was for the peaks and declines in the
graph in slide#9.
Travis Myren said they asked and there was not a policy change. He said it was likely due to
personal decisions. He said it is a corollary to what is happening with enrollment in general. He said there
are more choices available to families.
23
Slide#10
Student Enrollment with Projections
OCS Past and Projected Enrollment
8,000 7,513 7,435
71339 71300 7,365
7,108
7,031 6,914 6,978 fi,908 6.722
7,000 `6,672 6.64 y 6,._6. fi,477 4390 4 6-300 1,211 V U_6-129
6.000
5,000
4,000
3,000
2,006
1 oao
6
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
—OCS ADM ——OCS Projected ADM
ORANGE COUNTY
10 NORTH CAROLINA
Slide#11
Student Enrollment Over Time
Orange County Schools
Out of District and Funded Charter Students
1,400
1,200 1,157
1,091
999
1,000 951
885 �c artr
843
769
800
617 amour al oin�t
600
400 364
254 254 254 254 254 254 254 254
200 89 89 89 89 89 89 89 104 89 103 97
6 1 0
0
2007-08 200-1 200410 201041 2011-12 201243 2013-14 201415 2015-16 20-7 2017-18 201-9 201420 2020-21 2051-22 2022-23 2023-24 20-5 202— 2-7
eutlget
Out of District Students increased by 24
Charter Students increased by 21 ORANGE COUNTY
1 Charter Students Represent 14.9%of Budgeted Students NORTH CAROLINA
Commissioner Carter asked how the percentage of budgeted students in charter schools compares
to other counties.
Travis Myren said they would look into it.
24
Chair Hamilton wondered how the chart would look if the state voucher program was mapped on
to the changes in the charter schools, and if it might explain why there may be an increased number of
charter students.
Travis Myren said they should be able to find it on the Department of Public Instruction website.
Slide#12
Per Pupil Allocation
Per Pupil Allocation
Total Current Expense Budget $114,114,132
Total Countywide Budgeted Students 18,492
Per Pupil Amount $6,171
Each budgeted student funded at the same per pupil amount
Budgeted
District
Students Per Pupil Allocationg
7OCSHCCS 10,741 $6,171 $66,282,711
7,751 $6,171 $47,831,421
12 ORARNGECAROLINA COUNTY
Slide#13
Per Pupil Allocation Over Time
County Per Pupil Funding Amount History
$7 000 $2941ncreos f—FY2025-26
$6,171
$6 000 $5 877
55,346
$5,000
$4,166 $4,352 $4,367 $4,367
$4,000 $38� $3,991
$3,571
52,957 $3,069 $3,100 $3,096 $3,102 $3,167 $3,269
$3,000
$7,000
$1,000
S-
°4 5§1 ,�� titi yti ti� ,�P y5 ti� ti� ',0 y9 ry0 ,y1 titi ,1'y p .y5 N" .y'1
4�ryoO1 yry�4 FJ� t��o~a F°ryo1v ��°titi 4��o~ro �ry°tiP Fyry°yy �h°tiK �M1°ti1 ��°ti4 �ry°.yA t��°•yo 41�ory� 1C141 Fttio~�~ F��o�¢ t�~oryy Ferry°rye
ORANGE COUNTY
13 NORTH CAROLINA
25
Slide#14
Impact of the Special District Tax
Chapel Hill Carrboro City Schools District Tax Rate History
25.00
23.00
zz.av zz.00
20.35 30.84 30.84 20.89 20.&1
20.20 20.00 2 uu ]0.18]0.18 20.16-18 19.80 19.80
20.00 ]836 18.30 f8.30
1].]5 1].]5 17.35 17.35 1].90
15.00 15.75 15.40 15.40
]4.]6 14.16
10.00
5.00
0.00
3 °o
ORANGE COUNTY
14 NORTH CAROLINA
Slide#15
Impact of the Special District Tax
CHCCS Per Pupil History with District Tax
$10,000
$8,978
$9,000
$8,217
$8 000 $7,811
$7,001
$7,000
$5,769 $5,890 $6,085 56,329
$6,000
$5,000 $4,793 ■District T.Per Pupil
Equivalent
$4,000
■County Per Pupil
$3,000
$2,000
$1,000
f
FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2019-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23FY2023-24 FY2024-25 FY2025-26 FY2026-27
R-
15 OR NG COUNTY
NA
26
Slide#16
FY2026-27 Funding Recommendations
School.Total Recommended
FY2025-26 FY2026-27 $Difference %Increase
Approved Recommended
Current Expense $111,328,011 $114,114,132 $2,786,121 2.5%
Capital Pay-Go $3,621,200 $6,683,624 $3,062,424 84.6%
Debt Service $20,840,115 $23,297,056 $2,456,941 11.8%
Health &Safety Contracts
+Enrollment Projections $4,160,806 $4,284,550 $123,744 3.0%
TOTAL $139,950,132 $148,379,362 $8,429,230 6.0%
Calculation of Percentage of General Fund Revenues Dedicated to K-12 Education
Total School Funding Rec. $148,379,362=46.65%
Total General Fund Revenue $318,074,591 �y
ORANGE COUNTY
16 NORTH CAROLINA
Vice-Chair Fowler asked if the capital pay-go was the amount originally there for maintenance and
not the new pay-go.
Travis Myren said it's both. He said the county had $3.1 million in existing pay-go that was going
to schools and they added $500,000 last year, and this year they are recommending an additional $3
million to get up to a total of$6 million.
Commissioner Carter clarified that the recommended amount vs.the previous fiscal year amount
did not also show the continuation request. She confirmed that the recommended amount did not meet
the continuation amount.
Travis Myren said that is correct. He said the bottom of the chart shows what the funding
recommendation is compared to total general fund revenue. He said historically, they've had a target of
48.1%, but the recommended amount is 46.65%
27
Slide#17
FY2026-27 Funding Recommendations
Education Expenses by Category
lzD,00p,opo
111328,011 114,114,132
lO6,p9p,282
102,M,5)6
100,pp0,pOp
68,820,]ZO 86,829,119 89,353,16]
69,95],6]0
HD,)45,81]
��� ]],2p1,412 Total O.ment Eapense
�Total0.ecurrirg[ap[al
60,pp0,p00
Total Deb[Sem�e
TSCM1opI He Ith-4Safety
90,ppD,p00 fa�rtraRs
23,]36,296 218P/,353 21,3z2,130
1$6Q/,336 ]9,182,2�
20,pp0,p00 15,646,915 ]5,3R,3fli y5,p]4,91p
D
H2 26 FY 20 7 FY201]-1B FY20— FY20]?N Ftt021F21 FY202]-22 FYZD22-23 FYZU}3-24 FYZ@425 FYxns-26 FY2@G278e[.
ORANGE COUNTY
17 NORTH CAROLINA
Vice-Chair Fowler asked if the formula for the percentage of funding compared to general fund
revenue is consistent with previous formulas.
Travis Myren said it uses total general fund revenues, which includes revenue generated by
departments.
Vice-Chair Fowler said one of the strategies this year was to increase fees. She asked how much
that went up by.
Kirk Vaughn's response was inaudible.
Slide#18
FY2026-27 Funding Recommendations
Operating Budget Funding as a Percentage of General Fund Revenue
Funding Target-48.1%
s2m%
50.68% 5p.58%
50.00%
4 49.69 50.05%
48.91% 48.99%
48.10% 48.10% 48.06% 48.22% 48.07%
48.00%
47.09%
46.74% 46.81% 46.65%
46.00%
44.00%
42.00%
40.00%
oq 'lam titi M1ti 'y) ti� '1f'! 16 11 �0 9 'f� ry1 titi ry" ;IQ tih ,yb
eyryoo$ ¢'`v� �votia ��otiti �votiti �vo1� �votis �ryoti5 eyvoe °o Joy�ti ��1� �vo�o �0�1 Jo °ryo �vo�6 ��oryy pery^��.
4
ORANGE COUNTY
18 NORTH C,t_ROLINA
28
Slide#19
FY2026-27 Funding Recommendations
Total General Fund Revenues include revenues generated by departments to offset
their costs
Another way to view the County investment in Education is to compare that investment only to the revenue
generated by the county's taxing authority
• Total General Fund Revenue -$325,130,721
$275,868,111 Generated by Taxes—Property Tax,Sales Tax and Licenses—85%
$49,262,610 Generated by County Operations—Grants, Fees, Donations, Fund Balance, Interest, etc.—15%
• Total Revenue Generated by Taxing Authority- $275,868,111
Total K-12 Education (Operating +Debt Service)$148,379,362 or 54%of County Tax Revenue
Net County (Operating +Debt Service—Dept Revenue) $127,488,749 or 46%of County Tax Revenue
ORANGE COUNTY
19 NORTH CAROLINA
Commissioner Greene said she didn't recall seeing the net county figures for a percentage of
county tax revenue generated by taxing authority.
Travis Myren said they may have talked about it before, but they specifically included it this year.
Slide#20
FY2026-27 Capital Funding Recommendations
BudgetFY2026-27 Capital
SchoolTotal Recommended
Article 46 Sales Tax $3,323,839 Proportion of Budgeted Students,less
Charter Students
Debt Financed—High Priority Needs $4,608,678 Project Based
Debt Financed—Bond Projects $102,383,000 Elementary School Construction
Carrboro Elementary
OCS Elementary
Lottery Proceeds $1,807,908 Proportion of Budgeted Students
Recurring Capital & Pay-Go $6,683,624 Proportion of Budgeted Students
Represented in Transfer from General
Fund
TOTAL $118,807,049
�1
20 ORAoN HE COUNTY
29
Slide#21
FY2026-27 Funding Recommendations
School Budget Requests and Manager's Recommended Budget
6FY2025-26 Budget ■Continuation Request •Manager's Recommended •Expansion Request
$eo,aoo,000
$71,538,023
$70,aoo,000 $64,752,786 $67,838,023 $66,282,]11
$60,0w,000
$50,a00,0o0 $46,575,225
$48,544,086 $47,831,421 $50,489,041
$40,000,000
$30,000,000
$20,000,000
$10,aog000
S
Chapel Hill carrbaro atysrhools orange County Schools
• CHCCS Orange County Schools
Recommended Budget-$66,282,711 Recommended Budget-$46,575,225
$1,555,312 below Continuation Request $712,665 below Continuation Request
$5,255,312 below Expansion Request $2,652,620 below Expansion Request
21 ORANGE NRTH C_:AROL COUNTY INA
Slide#22
FY2026-27 Funding Recommendations
Top 15 School Districts in Actual Per-Pupil Funding in SY 2025
Chapel Hill-Carrboro City Schools
Asheville City Schools
Durham Public Schools
Orange County Schools
Dare County Schools
Chatham County Schools
Charlotte MecklenburgSchools
Weldon City Schools
Mooresville Graded School District
Transylvania County Schools
Buncombe County Schools
Wake County Schools
New Hanover County Schools
Hyde County Schools
Guilford County Schools
$- $1,0oo $2,000 $3,0w $4010 $5,000 $6,o00 $7,000 $s,000 W000
Sources NC Department o1Pubhc Instruuion,Table 30 Link to Data
22 ORANGE
R-FH COOUNA Y
Commissioner Carter asked what fiscal year the information in slide#22 compared.
Travis Myren said it was for FY 2024-25.
Travis Myren said that the General Assembly seems to have reached an agreement on a budget,
and staff spoke with the schools today to determine how their budgets will be impacted. He said that they
will bring back recommendations to the Board.
30
Commissioner Carter asked if the legislation has passed.
Travis Myren said it hasn't yet.
Vice-Chair Fowler asked if the average salary increase of 8% is retroactive.
Travis Myren said no. He said no salary tables have been released, but it appears most of the
raises will be heavily weighted towards starting teachers.
Chair Hamilton asked if the salary assumption in the budget was 7%.
Travis Myren said it was 7% over two years in the schools' continuation request, but his
recommendation was 2.5%which cumulatively is 5%with the previous year's increase. He said they will
have more information for the Board at a future budget work session. He said the state budget likely won't
be approved until after June 30.
Slide#23
Fund Balance Policy
• Joint policy between the County and the School Districts
— Last amended in 2018 to increase Orange County Schools undesignated fund balance target from
3%to 5.5%
— Each District has targeted undesignated fund balance target of 5.5% of budgeted expenditures for
"cash flow purposes only"
— Undesignated fund balance may exceed targeted amount for"unseen events or opportunities" and
other non-recurring purposes
— Extraordinary emergency needs may exhaust fund balance
• School Districts will take appropriate action to address the problem
• County will reimburse the Districts for the necessary expenditures to address emergencies
ORANGE COUNTY
23 NORTH CAROLINA
31
Slide#24
Fund Balance Results
• Audited undesignated fund balance amounts for FY2024-25
— Does not represent fund balance appropriations made during FY2025-26 Year to Date
— Chapel Hill-Carrboro City Schools -$294,028 -.3%of FY2024-25 actual expenditures
— Orange County Schools $5,456,494 12.4%of FY2024-25 actual expenditures
ORANGE COUNTY
24 NORTH CAROLINA
Vice-Chair Fowler asked how the fund balance currently looks at CHCCS.
Travis Myren said the district has done a lot of cost cutting and they will have an improvement in
the next audit.
Kirk Vaughn said because the raises won't be retroactive, both school districts held funds in
reserve, so they will be adding to their fund balance.
Commissioner Carter asked if we know what the fund balance currently is.
Travis Myren said they are expecting several million dollars in CHCCS. He said for OCS, as Kirk
Vaughn noted, there should be funds that roll into fund balance because of the raises that were not
retroactive.
Commissioner Bedford said that CHCCS is predicting $4.5 million in unassigned fund balance at
the end of the fiscal year.
Chair Hamilton clarified that the raises are not retroactive, and teachers got no raises last year.
She said the average is 8%, but the raises will be front loaded to newer teachers, and how that will look is
unclear. She confirmed that the County Manager will get back to the Board to see how that impacts their
continuation budget request.
Commissioner Carter asked how supplements for school staff are paid.
Travis Myren said they are paid out of current expense and are ongoing expenses, so must be
matched with revenues.
Chair Hamilton said the state is paying a basic wage and the districts use the funds given to the
county to determine the supplements that are given above the state's wage. She said usually it's a
percentage of what the state gives. She said that that the school districts decide what the supplement
schedule looks like, and the Board does not make that decision.
Commissioner Greene said that the county won't know how to calculate the impact of the raises
since they are more heavily weighted towards newer teachers, and the county doesn't have that
information.
Chair Hamilton said the districts will come back to the county with that information. She said the
county doesn't fund the supplements and the schedules.
32
Commissioner Bedford said there are also salary steps that affect the schools' continuation
budget, including the locally paid portions. She said the state allotments weren't adjusted.
Adjournment
A motion was made by Vice-Chair Fowler, seconded by Commissioner McKee, to adjourn the
meeting at 8:28 p.m.
VOTE: UNANIMOUS
Jean Hamilton, Chair
Recorded by Laura Jensen, Clerk to the Board
Submitted for approval by Laura Jensen, Clerk to the Board