Agenda - 05-24-2012 - 1 - Laserfiche WebLink

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nurses, school social workers and school resource officers) totals $86.1 million which equals 48.2% of the County's FY2012 -13 Recommended General Fund Budget. During tonight's work session, the Board plans to discuss the following budget related topics: Durham Technical Community College, Orange County Schools and Chapel Hill Carrboro City Schools FY2012 -13 Operating Budgets Sportsplex County Departmental budgets, including any fee schedule change requests County Support of Local Boards of Education In previous meetings and discussions with the County Manager, the Board of County Commissioners decided the funding for schools for FY2012 -13 should be as close to the 48.1% target of County General Fund revenues. The target is exclusive of the County's share of Durham Technical Community College funding and is consistent with the school funding target endorsed by Commissioners in May 2000. The following school related components are included in calculation of the target percentage: Local Current Expense - supplements State and Federal funds received by each district for the day -to -day operation of schools. Examples of expenses paid from these funds include salaries and benefits for locally paid teachers and utilities. North Carolina statutes mandate boards of county commissioners provide local current expense monies to school districts. Counties having more than one school administrative unit, as is the case in Orange County, are required to provide equal per pupil appropriations to each system. The funding level, however, is discretionary and varies from county to county. • Recurring Capital — pays for facility improvements, equipment, furnishings, and vehicle and bus purchases. State statutes mandate counties to fund recurring capital. However, the amount of money counties allocate to this function is discretionary and varies from county to county. Equal per pupil allocations required by law for current expense appropriations are not applicable to this category of local school funding. Per the April 2007 Commissioner approved County Capital Funding Policy, it is the intent of the Board of County Commissioners to dedicate the equivalent of four cents on the annual ad valorem property tax to funding recurring capital expenditures — 3 cents for school projects and 1 cent for county projects. The Policy further states, "However, there will be times when the County will be bound fiscally and unable to achieve full funding. During those times, Commissioners may find it necessary to depart from the Policy." The FY2012 -13 General Fund Budget recommends that the County depart from the Policy to fund County Capital and the School District Capital at less than one cent and 2 cents respectively. Long -Range Capital — supports school capital projects through the County's Capital Investment Plan (CIP). Capital projects are funded through a combination of State and local bonds, non -bond financing and pay -as- you -go funding sources. Pay -as- you -go funding includes dedicated half -cent sales tax revenues and property tax earmarked under the Board's April 2007 Capital Funding Policy. The Capital Policy also allows for North Carolina Public School Building Capital funds and School Construction Impact Fees to offset School related debt service. Similar to Local Current Expense funding, the amount of money