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2 <br /> 1 • Orange County Schools <br /> 2 <br /> 3 Superintendent Patrick Rhodes said that the school board would like the County <br /> 4 Commissioners to support the County Manager's Recommended budget, which is to maintain <br /> 5 the same per-pupil allocation as last year. <br /> 6 Commissioner Jacobs asked about the letter regarding lottery proceeds. Patrick <br /> 7 Rhodes said that he signed a letter requesting that lottery proceeds not be held for a year, but <br /> 8 be distributed. <br /> 9 Frank Clifton said that the County Commissioners will be recommending after the <br /> 10 budget is adopted to allow the schools to spend the lottery proceeds as they become available. <br /> 11 <br /> 12 <br /> 13 • Chapel Hill Carrboro City Schools <br /> 14 Michael Kelley, Chair of the CHCCS Board, summarized the handout, shown below: <br /> 15 <br /> 16 TO: Orange County Board of Commissioners <br /> 17 Orange County Manager <br /> 18 <br /> 19 FROM: Michael Kelley, Board Chair <br /> 20 Neil G. Pedersen, Superintendent <br /> 21 � <br /> 22 RE: Budget Work Session on May 27th <br /> 23 <br /> 24 DATE: May 27, 2010 <br /> 25 <br /> 26 Since we already had an opportunity to present our budget request to the County <br /> 27 Commissioners at the Joint Meeting on April 27th, we would like to take this opportunity to <br /> 28 respond to the County Manager's recommended budget. <br /> 29 <br /> 30 Local Operating Budget <br /> 31 Although the Manager did not support the $62 increase in the per-pupil appropriation that our <br /> 32 School Board requested, we are relatively pleased that his recommendation maintains the per- <br /> 33 pupil appropriation and applies it to the 279 additional students expected in the two school <br /> 34 districts next year. This will leave a shortfall in our local operating budget request of$732,840 <br /> 35 that is attributable primarily to rate increases for the employer's share of retirement system <br /> 36 contributions and health insurance. We believe that it's reasonable to expect us to make <br /> 37 budget reductions of this magnitude in light of the County's financial challenges. <br /> 38 <br /> 39 State Budget <br /> 40 Unfortunately, we are faced with reductions not only at the local level but at the state level as <br /> 41 well. Under the Governor's recommendation, we stand to lose $2 million from our anticipated <br /> 42 state appropriation. Under the Senate proposal, we would lose approximately $1.1 million. We <br /> 43 are still analyzing the House's budget proposal, but at first glance it appears to be very similar <br /> 44 to the Senate's budget except that it diverts some excess lottery revenues. <br /> 45 <br /> 46 Reduction in Pay as you go funding <br /> 47 At its meeting on May 20�', the School Board did express concern that, under the Manager's <br /> 48 recommendation, the operating budget was being supported by a major reduction in our Capital <br /> 49 Pay-as-you-go budget. This has two negative implications. One concern is that this is a one- <br /> 50 year fix that uses capital funds to support the operating budget. Presumably, this is not an <br />