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3 <br />• <br />FY 2010-11 School Budgets <br />Budgetary and financial actions in order for the State to have sufficient funds to pay its bills and balance <br />its budget have continued in this fiscal year. This action included the State seizing Public School Building <br />Capital funds (ADM) in FY 2009-10, and to date these funds have not been restored. The General <br />Assembly has not met and has not balanced the State budget. It is important to note, in past years, the <br />State has balanced its budget by withholding monies to which counties are entitled, such as Public <br />School Building Fund monies. <br />During early part of the Manager's/Superintendent Meetings, the County Manager advised both School <br />Superintendents of the budgetary issues and deficits facing the County in the preparation of the <br />FY2010-11 Budget. Additionally, the County Manager informed each of the School Superintendents to <br />prepare for a reduction in funding due to the anticipated reduced budget of the County. During tonight's <br />presentation, each system will share their FY 2010-11 operating and capital budgets with the Board of <br />County Commissioners. <br />FINANCIAL IMPACT: Preliminary FY 2010-11 revenue projections anticipate the County's General <br />Fund revenues would be $174.2 million, a reduction of $3.4 million from FY 2009-10 General Fund <br />revenues. Staff has assumed no receipt of Public School Building Fund monies in this projection for the <br />County's General Fund. (Note: NC Education Lottery proceeds are revenues budgeted in individual <br />• capital projects and not considered General Fund Revenue.) <br />Assuming the Board's funding target of 48.1 % of County General Fund revenues, the County's total <br />allocation to schools for current expense, recurring and long-range capital, debt service and fair funding <br />would be $83.8 million in FY2010-11, a reduction of $1.6 million. Attachment 4 outlines revenue <br />available for appropriation to school related functions. <br />RECOMMENDATION(S): The Manager recommends that the Board discuss the issues noted <br />and provide direction to staff, as appropriate. <br />• <br />