Minutes - 06-07-2001 - Laserfiche WebLink

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strong revenue collections, and a healthy fund balance. The primary source of revenue of 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 for education in this proposed budget represents approximately a $4 million increase, which is a 7.5°~ increase overall. There is a trend of widening difference in growth between the Orange County system and the Chapel Hill-Carrboro system. One-half cent has been shifted to current expense from the normal 3-cent earmarking 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 the district tax should be reexamined in the Orange County school system. There is now a school health nurse initiative and this year's budget includes $153,726 far the first year of implementation. The goal is to provide a nurse in every school in both districts within 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 casts, assumption of the urgent home repair program by the County, increased in funding of mental health, and potential increased funding for child care subsidies. The November 2401 bond will also have same 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. Chair Halkiotis said that he does not agree with the projection from DPI of negative 40 students in Orange County schools in the next year. He defended John Link and said that the message came from Raleigh and not the County Manager. He said that these are the numbers that the County Manager was given to work with to come up with the budget. He encouraged those in opposition of the projections from DPI to go and protest at the DPI office. He said that the situation that the County Manager has been put in is dire. He asked the audience to be respectful. Chair Halkiotis also spoke about the district tax that Chapel Hill-Carrboro has and that it has been around for over 50 years. He said that they chose to do that and that he respected that tax and has never envied it, but he respects them for wanting to do that for their schools. He said that this Board of County Commissioners has tried to remedy the equity between the two school systems, but it is not possible when Chapel Hill-Carrboro's district tax generates over 11 million dollars. Commissioner Brown asked the County Manager to make brief comments on the impact fee and the proposed district tax and how these two are implemented. John Link explained how the Orange County School Board would establish the district tax for the Orange County school district. He said that the citizens would have to vote to approve the district tax and it would have to come forth as a recommendation from the school board. The impact fee is used to help address the construction of new schools, which is created as a result of new housing and an increase in student population figures. The impact fee is collected at the time the owner gets the certificate of occupancy. The entire amount goes to the school system for school construction. Commissioner Brown clarified that this Board does not make the rules for the per pupil expenditure. Commissioner Jacobs said that the Orange County Commissioners, for years, have been trying to get legislative authority to change the impact fee to an impact tax.- He said that there were people in the state legislature who do not want Orange County to have an impact tax, and they do not represent this County, but the County is held hostage by them.