Minutes - 05-31-2001 - Laserfiche WebLink

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BUDGET PRESENTATION County Manager Jahn Link made the budget presentation. The highlights of the proposed budget include a general fund budget total of $117.7 million, increases in per pupil funding by $42 per child, 12.5 new positions, tax increase of 3 cents aver the equivalent post-revaluation rate, increase in Chapel Hill-Carrboro City School District tax rate of 2 cents over the equivalent past-revaluation rate. The County remains in strong financial condition due to adoption of and adherence to sound fiscal policies, strong revenue collections, and a healthy fund balance. The primary source of revenue for the County's budget comes from property taxes, followed by sales tax. Orange County ranks #1 in the state in terms of total contributions toward education. The total funding far education in this proposed budget represents approximately a $4 million increase, which is a 7.5% increase overall. The trend for an increasing difference in growth between the Orange County school system and the Chapel Hill-Carrboro system continues, with the Chapel Hill-Carrboro system growing at a significantly faster rate. One-half cent has been shifted to current expense from the normal 3-cent earmarked for recurring capital. John Link then explained the formula that must be used by law to fund two school systems within one county. The recommended per pupil allocation is $2,437. He said that a district tax should be considered for the Orange County school system. There is now a school health nurse initiative and this year's budget includes $153,726 for the first year of implementation. The goal is to provide a nurse in every school in both districts in four years. John Link pointed out that the Board of County Commissioners is faced with other significant cost increases in the budget - $800,000 in increased Medicaid costs, assumption of the urgent home repair program by the County, increased funding of mental health, and potential increased funding far child care subsidies. The November 2001 band referendum will also have some implications. Other issues include Cedar Ridge High School start up casts, the need for alternative solid waste financing, examination of options for EMS transport service delivery, and the update of the County's comprehensive land use plan. The next budget public hearing is June 7th in Hillsborough. Chair Halkiotis said that the Orange County budget process is carried out in the open and not behind closed doors. He said that the process is totally open. There will be many work sessions and two public hearings. He pointed out that there is athree-minute speaking time limit per person. He asked the audience to please remember that the Board of County Commissioners does not do line item approvals far either school system; this is a function far the respective Boards of Education. Money is allocated to the two school systems and the board's wrestle with the issues of how to allocate the money to each program. PUBLIC COMMENT Nick Didow, Chair of Chapel Hill-Carrboro City School Board and Keith Cook, Chair of Orange County School Board spoke jointly since they have very similar interests and messages. The message is that they would like to thank the Board of County Commissioners for the historic good support of the public schools in Orange County. Secondly, Nick Didow said that they continue to try to be good stewards of every penny that is given to operate the respective public schools. Thirdly, they recognize that this is a difficult and challenging year both locally and at the state level. Nick Didow said that he was here tonight to request full funding for the requested budget from the Chapel Hill-Carrboro City schools and for the Orange County schools as well. In his judgement, the Manager's proposal representing a 1.8°~ increase ar $42 in the per pupil funding, is woefully inadequate. He said that, at best, his school district would struggle to stay in place. He said that, in this County, if you are not moving ahead, you are falling behind. Keith Cook spoke and said he did not have much to add except that they are just not getting enough for schools to make any kind of advancement that must be done in order for children to be successful. He said that the 1.8% increase would not allow them to do the mandated things. He does not know how more funds could be allocated, but he does know that the children will suffer because of