Agenda - 09-05-2013 - 5a - Laserfiche WebLink

Browse Search

19 1 2 3 3. Overview and Analysis of Education Fundinq Provided to the Chapel Hill 4 Carrboro City Schools and Oranqe County School Districts in Relationship to the 48.1% 5 Fundinq Tarqet 6 Clarence Grier reviewed the history of the 48.1% Funding Target, as listed in the 7 abstract. He said that in 1999-2000 the Board of Commissioners and both school districts got 8 together to decide on consistent funding options. He reviewed the funding information as listed 9 in attachment a. 10 He said that in half of the years since the funding target was implemented, the schools 11 have been funded above the funding target and the other half fell below the target. He said the 12 property tax rate increases in 2000 and 2008 have also been used to fund the school districts at 13 48.1%. He noted that the General Fund Budget has gradually decreased since 2008. He 14 reviewed the inclusions in operational funding and the numbers on attachment B. 15 Clarence Grier reviewed attachment C and noted that even though there may be 16 enough debt capacity to add a school, the debt service has an effect on the operational funding. 17 Clarence Grier said when looking at educational funding by source, it can be noted that 18 ,back in 2000, the state was the largest funder of education. Moving forward to look at 2013, 19 the county portion equates to about $15-16m for school funding. He said that as state funding 20 has decreased the county's portion has increased. 21 CHCCS Board Member Mike Kelly asked Clarence Grier to add the school boards 22 budget to the numbers. 23 Clarence Grier noted that enrollment has increased by 23% since 2000. 24 OCS Board Member Debbie Piscitelli asked if new facilities coming online could 25 negatively affect the 48.1% figure for the opposite school system. 26 Clarence Grier said yes, it could and said this goes both ways. 27 Frank Clifton said he sees a reliance on the 48.1% funding by both school systems 28 growing and he said that school debt impacts operation. He said that the debt comes on one 29 year and then the payments start the next year. He said that the operational dollars are lower 30 once the debt comes into play. This has been lessened by lower interest rates, but this will 31 change as rates rise. He said this needs to be looked at. 32 Chair Jacobs asked Clarence Grier if the annual per pupil allocations can be added to 33 the sheet, and Clarence Grier said yes. 34 35 CHCCS Board Member Jamezetta Bedford asked if it is it still true that residential 36 growth does not pay for itself, and Frank Clifton answered yes. She asked if there has been 37 any progress with economic development, and Chair Jacobs answered yes. 38 CHCCS Board Member Mike Kelly referenced Debbie Piscatelli's comment regarding 39 the impact of new schools and asked how this can be managed. 40 CHCCS Board Member Mia Burroughs said there is growth in CHCCS and building out 41 is not so far away. She said there is more room for growth in Orange County and this is a 42 challenge that can go either way. 43 CHCCS Board Member Jamezetta Bedford referenced the great amount of older 44 schools in both systems and said these needs will be significant and there is not sufficient 45 money to cover them. She said there have been studies about this and it is just now being 46 touched on. She said this needs to be in the back of peoples' minds as it will need to be 47 addressed. 48 Chair Jacobs said there are many forms of equity, and one system should not receive all 49 of the funding while the other district sits and watches. He said that $1 million went to Orange