HomeMy WebLinkAboutAgenda - 09-19-2000-5bORANGE COUNTY
BOARD OF COMMISSIONERS
_. ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 19, 2000
Action Agend
Item No. 5•
SUBJECT: Support of Cammunity College and University State Bond_,Issue
DEPARTMENT: Board of County PUBLIC HEARING: (Y/N) No
Commissioners
ATTACHMENT(S): INFORMATION CONTACT:
Moses Carey, Jr., ext 2130
Resolution
Community College Bond Information
Community College Bond Funding
Information
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968501
Durham fi88-7331
Mebane 336-227-2031
PURPOSE: To consider a resolution supporting the Community College and University state
bond issue.
BACKGROUND: The November, 2000 ballot includes a measure for approval of a state bond
to provide funding for North Carolina's community colleges and universities. The North Carolina
Association of County Commissioners passed a resolution in support of the community college
bond issue during its Business Session on Saturday, August 12 at the NCACC Annual
Conference in Durham County. As part of the its ongoing support of the community college
bond issue, the Association has asked each County to pass a resolution of support as soon as
possible. Orange County, through its Community College Task Force, is considering the
feasibility of locating a branch of Durham Technical Institute in Orange County. The passage of
the bond issue is an important component of the process in the possible location of a
community college campus in Orange County.
FINANCIAL IMPACT: None at this time.
RECOMMENDATION(S): The Manager recommends that the Board approve and authorize the
Chair to sign a resolution supporting the Community College and University state bond issue.
2
ORANGE COUNTY BOARD OF COMMISSINERS
RESOLUTION
- IN SUPPORT
OF
COMMUNITY COLLEGE AND UNIVERSITY BONDS
WHEREAS, The North Carolina General Assembly has approved Senate Bill 912,
signed by the Governor and enacted as Session Law 2000-2, placing on the ballot a
proposal to issue $3.1 billion in general obligation bonds, proceeds from which are to be
used to improve facilities within the state's university system ($2.5 billion) and
community college system ($600 million); and
WHEREAS, higher education has historically played a tremendous role in building the
State of North Carolina into the thriving economic, cultural, and social leader it is today;
and
WHEREAS, North Carolina's community colleges and universities allow citizens of this
State to team the skills necessary to compete in today's and tomorrow's competitive
economy; and
WHEREAS, in the next decade, our community colleges expect more than 57,000 new
students to enroll, and enrollment in our universities will grow by more than 48,000
students; and
WHEREAS, our higher education campuses must upgrade and construct academic,
residential and administrative facilities, including critical laboratory and classroom space,
to accommodate the growing numbers of students; and
WHEREAS, the $3.1 billion bond package approved by the General Assembly will assist
our community colleges and universities in meeting their significant facility needs; and
WHEREAS, proceeds from the band issue will provide great assistance to North
Carolina counties in improving these community college facilities and in assuring quality
facilities for our citizens attending the state's universities.
NOW, THEREFORE, BE IT RESOLVED that the Orange County Board of
Commissioners strongly supports the passage of the community college and university
bonds on the; ballot November 7 because it will enable our systems of higher education
to better educate tomorrow's students and maintain North Carolina's place as the
national leader in higher education teaming and training.
This the 1f!"' day of September. 2000.
Moses Carey, Jr. Chair
._._ 3
Talking Points for Community College Bonds
Why are community colleges importaet to local communities?
Community colleges are a main economic engine in local communities, providing
training and retraining for 700,000 students (150,000 of them full-time) at 59 campuses
across the state. It is a fact that one of the first things a new or expanding industry looks
at is the. ability of the local community college to provide specialized training for
employees. The health of the local economy is directly linked to the health of the local
community college.
Why does the community college system need the $GDQ million bond issue?
Since 1' 963 when the system was established, community colleges have provided
accessible, affordable education to students who either choose not to attend or can't
afford to attend aforr-year university.
However,. for the first time in their history, North Carolina community colleges
have had t4 cap enrollment and limit classes because of deteriorating facilities, lack of .
classroom space aad increasing enrollment. - .
This situation comes at a time when North Carolina is depending on ~ educated
workforce to ensure its prosperity and its ranking as one of the best places in the country
to da business.
The overcrowding at community colleges has meant that some businesses have
delayed expansions or taken their investments elsewhere because workers could not be
trained. The situation will only get worse. The community college system projects a 30
percent increase in enrollment by the end of the decade. That is the equivalent of SS,000
new students. Bonds would pay for needed upgrading, repairs, renovations and new
construction to keep community college education accessible for North Carolina's
citizens.
How would the money be allocated?
The bond package for community colleges is $600 million. The money is split into two
pots. One pot is far repairs and renovations and the other pot is for construction.
4
• All 59 community colleges would receive a minimum of nearly $113 million for
repairs and renovations without having to provide matching money.
+ 30 community colleges would receive an additional $2$7 million for construction and
modernization without the local community being required to put up matching
money. There are two reasons for exempting counties from having a match
requirement.
• The county is considered a low per capita income county;
• The county has already spent a great deal of money on community college
facilities in the past.
By statute, counties are financially responsible for 100 percent of the facility costs for the
community colleges. Counties have risen to the challenge but other funding burdens on
counties (such as Medicaid, public education, jails) have stretched their ability to pay.
• 29 community colleges would split the remainder of the band money, These 29
counties would have to pay a match if they chose to accept the money. But that miatch~ -
would be no more than 50 percent. The majority ofcounties would play less than 50
percent. (See,the attached spreadsheet for detailed information.)-
. _. _ Will passage of the bond package mean tan increases at the state or lacal level?
- _ ... . _ _ -State Treasurer Harlan Bo 1 ~y .
yes has examined the issue thorn and sazd that the
state would not have to raise taxes to pay o$the bonds. This is because normal.
economic growth is expected to continue and. that growth should be mare than adequate
-- ~ ~ -
-_ _._~. ~ to handle the debt a ' --
P yments. - - - - - - - - -- _...
. ~ As for focal taxes, the bond package does not mean an antamatic increase for these
- --- reasons: _ - - . _
A county could pay the matching share out of existing resources; .--
Acounty does iiot~need to spend its entire bond allocation, thereby reducing its.
match; _ .
A county does not have to accept any fixuds requiring a match and could use only
those funds not requiring a match. (Remember the repairs and renovation money does
not require matching funds from any county); ~ __
5
• A county could finance the match with a local band in an amount that doesn't require
raising taxes;
Of course, in budget matters, the choice lies with the county. A county could choose
to raise taxes if necessary to pay the match and reap the benefits of up to 50 percent
savings on costs of funding community college construction. All of the choices aze mare
cost effective than counties being required to pay the normal 100 percent of facilities cost
as mandated by law.
Why should counties support the bond issue and work for its passage?
Economic growth and prosperity depends on a trained workforce. The community
college system is the key to that educated workforce as people move out of traditional
farming, manufacturing and textile jobs and into a more high-tech environment. The
future of community colleges and counties are intertwined. If overcrowding continues
and facilities aze allowed to deteriorate, growth and business development will suffer.
If the bond issue fails, it is very possible that the community college system will
decide to approach counties for money to upgrade, repair, and build facilities. That would
be a faz more costly situation for counties. -
NORTW CAROLINA COMMUNITY COLLEGE SYSTEM
3600 Million Capital Improvement Request
2000-2001
With Local Match Required
Local
Local
Adjusted
for Ability
to P
Overmatch
A r-00
Local
Match
Re uired
50.00% 1,279,536 3,766,311
50.00% 0 0
50.00% 0 405,524
50.00% 0 295,980
50.00°k 13,308,683 0
37.45°,6 21,073 0
41.39°k 3,296 574 1,950,839
39.18°k 1,825,489 0
39.18% 0 0
50.00% 1,487,990 0
50.00% 787,276 1,014,339
50.00% 4,899,522 0
50.00% 0 0
50.00°~ 348,648 0
50.00% 0 0
41.81 % 7,287,968 0
50.00% 246,507 2,169,943
50.00% 0 0
50.00% 0 254,060
50.00% .50,979,692 0
50.00% 0 0
50.00% 1,447 0
50.00% 0 0
50.00% 3,030,948 2,614,776
50.00% 10,504,538 0
47.91 % 2,789,083 4,469,74D
49.97% 78,225 368,49D
32.68% 175,120 0
47.91 % 0 673,190
49.97% 0 1$0,430
50.00°r6 31,513,167 0
50.00% 6,530,615 0
50.00% 4,533,241 0
50.00% 17,887,868 0
50.00% 535,683 0
50.00°~ 3,833,442 0
50.00% 1,440,726 0
41.80% 38,884 2,763,793
33.85% 6,048,405 0
37.36% 745,913 0
38.88% 0 0
50.00% 81,442 661,282
37.36°k 0 D
43.03% 4,239,143 458,704
43.03% 0 1,098,435
45.66% 4,256,498 102,983
50.00% 858 706 0
50.00% 2,603,289 10,672,031
50.00% 0 0
37.85% 593,994 0
37.85% 0 0
44.41% 9,502,953 13,807,714
44.41 % 0 89,100
44.41 % 0 6,454,174
50.00% 6,779,140 3,905,679
p6111t~aRev
1°fal °t~h rCgWred
°5Ji?1200° 2:02 PM
NORTH CAROLINA COMMUNITY COLLEGE SYSTEM
3600 Million Capital Improvement Request
2000-2001
With Local Match Required
Local
Local °h
Adjusted
far Ability
to P
Overmatch
A r-00
Local
Match
R uired
i 50.00% 0 448,575
>' 50.00% 0 260,414
3 50.00% 0 3,251,213
a 50.00% 10,215,731 0
I 45.59% 1,44$,912 0
I 50.00% 20,197,109 0
50.00% 0 0
i 50.00% 3,182,836 2,322,874
I 50.00°~ 0 2,397,563
I 50.00% 0 0
I 33.55% 1,547,095 0
! 47.48% 3,449,205 0
1 47.48% 0 0
I 47.48% 217,598 0
I 47.48% 0 0
I 42.24% 3,1$6,618 0
I 50.00% 7,305 0
41.75% 332,163 1,040,385
! 41.96% 9,590,250 0
I 41.60% 3,771,493 3,172,538
I 41.60% 0 0
I 35.01% 2,261,284 0
I 39.47% 0 0
I 35.01 % 0 0
41.60% 0 18,744
i 36.59% 6$9,534 0
~ 30.07% 490,542 0
i 42.63% 151,161 1,653,091
50.00% 0 355,617
42.04% 0 53,064
40.02% 284,321 1,237,002
40.02% 0 0
50.00% 3,851,785 0
50.00% 216,851 0
37.98% 103,444 0
40.76% 613,101 2,525,232
40.19% 12,897 1,461,286
47.81% 270,023 1,$99,187
34.07% 11,328 0
43.58% 8,255,911 6,285,464
44.18% 4,737,893 0
44.18% 106,773 0
32.71% 3,8$8,698 0
32.71 % 0 0
32.71 % 0 0
36.78% 0 0
32.75% 214,597 0
29.76% 5,910,155 0
29.76% 0 0
29.76% 0 0
29.76% 0 0
42.34% 7,173,935 0
44.91% 718,275 3,659,365
50.00% 791,888 3,565,141
50.00% 0 0
n~~n~~
~i gym, ~,~r~
05/1212000 2:02 PM
NORTH CAROLINA COMMUNITY COLLEGE SYSTEM
SB00 Million Capital Improvement Request
2000-2007
1Mth Local Match Required
Ahiliry-Rev
local makh rcgWred
OSI122000 2;02 PM