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I using a formula or guidelines to determine school funding. He said that 48-49% of the total 2 County budget is being dedicated to school funding. Over the past ten years, the total 3 education budget has gone from $18.1 million to $48.4 million. The reasons for this increase 4 are as follows: 6 ? three bond referenda 7 ? 10% increase in current expenses each year 8 ? increases in recurring capital, and 9 ? the creation of the capital reserve fund for School/Park projects 10 11 John Link explained five possible funding scenarios. He said that the staff sees scenario 12 four, where the school systems receive a designated percentage of the total General Fund 13 budget, as the most appropriate scenario for education funding. Based on historical increases, 14 by the year 2010 scenario four would produce an education budget of $106.7 million. If the 15 County continues to provide a 10-11 % increase each year, the education budget would be $150 16 million by the year 2010. He said that the Commissioners still need to make a decision as to the 17 use of the Chapel Hill-Carrboro Special District Tax. The tax has been used, in recent years, to 18 start up new schools or programs. Orange County Schools do not have a Special District Tax. 19 He said that one mechanism that could be used is to increase the general fund commitment to 20 schools that could provide some additional funding for the Orange County School system as 21 part of the per capita appropriation, and reduce the Chapel Hill-Carrboro Special District Tax. 22 He welcomed any questions at this time. 23 Chair Carey said that he remembered receiving a letter from both school boards asking 24 the Board of County Commissioners to appoint a task force to study these recommendations 25 before making a decision. He said that the Board has not had an opportunity to discuss the 26 letter nor the scenarios for education funding. 27 Elizabeth Carter said that she would appreciate the County Commissioners giving 28 consideration to appointing a committee to study the different scenarios. 29 Susan Halkiotis said that the value of having a committee is that there are a number of 30 variables that the school system is facing that simply defies projections. The school systems 31 are wrestling with an increasing rate of growth. The value of the committee would be to bring 32 some of the issues to the table and make sure that whatever is done with the budget would take 33 care of the needs. 34 Susan Halkiotis said that the Orange County School Board's perspective is that there are 35 issues that need to be discussed with the Board of County Commissioners and the school 36 boards. 37 Keith Cook said that the school boards should have some buy in and sit around the table 38 and have some input to take back to the citizens who depend on the school boards to do their 39 job. 40 Roger Waldon mentioned that he would like the County Commissioners to be sensitive 41 to the differential nature of the capital expenditures. Capital expenditures such as opening a 42 new school tend to be lumpy. 43 Chair Carey said that one point made by John Link was that even though other counties 44 have guidelines, there is flexibility built in to address those other issues that come up. He said 45 that all of the scenarios show an increase in funding and hold harmless the issue of population 46 growth. 47 Nick Didow said that theoretically the scenarios assume that the starting point is a fully 48 established, fully funded, fully developed organization. He told Commissioner Gordon that he 49 would find it interesting in the process if the committee could address the question of what 50 would be a fully funded, fully developed school system in Orange County and Chapel Hill- 51 Carrboro. He thinks that it might be interesting for everyone to see how close or how far the two 52 school systems are from being fully funded. He would like for this committee to look at the