Agenda - 05-06-1997 - 3 - Laserfiche WebLink

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2 Recently, the Finance Directors from the two School systems and the County Budget Director met to determine the best approach to determine funding equity. To ensure that a fair comparison between the two School systems is made, staff determined that the audited actual revenues should be adjusted. The following programs were subtracted from the revenues: (1) Community Schools (2) Transportation Garage (since funds for both schools pass only through the Orange County Schools) (3) Outreach (This is a pass through federal program administered by the Chapel Hill/Carrboro City Schools for students not in the Chapel Hill/Carrboro City School District.) The annual audit was the source of the information, with School Staff providing the adjustment numbers and enrollment numbers. Capital was not included in the snapshot. Enrollment is based on the State's allotment, which for 1991-92 through 1995-96 was the average of the three highest enrollment months out of the first four months of the school year. Beginning in 1996-97, the State is using the higher enrollment month of the two months of the school year for allocating funds. As you will see from the tables and graphs on the following pages, the difference between the two school systems in per pupil expenditures in 1991-92 was $383. The Orange County School District's actual per pupil expenditure was 92.3 percent of the Chapel Hill/Carrboro City School District expenditures. In 1992-93 the difference in the actual expenditures between the two schools dropped to $173 with the Orange County Schools' actual per pupil expenditure at just over 96 percent of the Chapel Hill/Carrboro City Schools expenditure. This dramatic change was a result of an unusually large amount of Orange County Schools fund balance being expended in that year. The Orange County Schools audit shows that the District spent $862,327 in fund balance, or $166 per student. The Chapel Hill/Carrboro City Schools spent no fund balance in 1992-93. A separate graph shows the current budget for both school systems. Note that the difference between budgeted numbers is larger than the actual expenditures for each of the five years prior. I caution you that these are budgeted numbers. These numbers may change by the end of the fiscal year depending on the actual percentage of the budget spent. Also note that there was a 3.6 cent increase in the district tax rate, effective July 1, 1996, changing the tax rate from 15.4 cents to 19.0 cents. This increase was due to the operating costs of East Chapel Hill High School. This increase in the district tax rate equals approximately $144 per student. Recommendation The Manager recommends that the Board of County Commissioners receive this equity snapshot as information only.