Orange County NC Website
Browse       Search
Revenues <br />Staff continues to be cautious and fiscally conservative with regard to County revenues for <br />next year. Each day brings news that the State plans to reduce its support to county and <br />school functions. During tonight's work session, staff plans to provide additional information <br />regarding anticipated revenues for the upcoming fiscal year including the most up-to-date <br />information regarding state support. <br />Scenarios for Possible Modifications to the FY 2009-10 Manager's Recommended <br />Budget <br />The Board directed the Manager to develop funding scenarios for decreasing the <br />recommended budget in order to attain a tax rate lower than the revenue neutral tax rate. A <br />chart outlining possible modifications to the recommended budget is attached for the Board to <br />review. The Manager plans to discuss the information in more detail during tonight's <br />presentation. <br />County Support of Local Boards of Education <br />At their March 24, 2009 budget work session, the Board of County Commissioners decided <br />the funding target for schools for FY 2009-10 would be 48.1 % of County General Fund <br />revenues. The target is exclusive of the County's share of Durham Technical Community <br />College funding and is consistent with the school funding target endorsed by Commissioners <br />in May 2000. The following school related components are included in calculation of the target <br />percentage: <br />Local Current Expense -supplements State and Federal funds received by <br />each district for the day-to-day operation of schools. Examples of expenses <br />paid from these funds include salaries and benefits for locally paid teachers <br />and utilities. North Carolina statutes mandate boards of county commissioners <br />provide local current expense monies to school districts. Counties having <br />more than one school administrative unit, as is the casein Orange County, are <br />required to provide equal per pupil appropriations to each system. The funding <br />level, however, is discretionary and varies from county to county. <br />Recurring Capital -pays for facility improvements, equipment, furnishings, <br />and vehicle and bus purchases. State statutes mandate counties to fund <br />recurring capital. However, the amount of money counties allocate to this <br />function is discretionary and varies from county to county. Equal per pupil <br />allocations required by law for current expense appropriations are not <br />applicable to this category of local school funding. <br />Per the April 2007 Commissioner approved County Capital Funding <br />Policy, it is the intent of the Board of County Commissioners to dedicate <br />the equivalent of four cents on the annual ad valorem property tax to <br />funding recurring capital expenditures - 3 cents for school projects and <br />1 cent for county projects. The Policy further states, "However, there <br />will be times when the County will be bound fiscally and unable to <br />