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K <br />Some of the funding issues confronting both Boards of Education are as follows: <br />♦ Proposed salary increases by the Governor <br />♦ Reduced State Appropriations <br />♦ Increased Charter School enrollment and payments <br />♦ Increasing Employee Benefits <br />♦ Local Expansion Budget Request <br />Orange County Schools is requesting an increase in the local per pupil allocation of $175. This <br />requested increase in the local per pupil allocation for current expenses would increase the per <br />pupil allocation to $3,444. This funding level would represent an approximate increase in the <br />current expense for Orange County Schools of $2 million and an increase for both school <br />districts of $4.5 million, which would represent 2.8 cents of the current property tax rate based <br />on the projected Average Daily Membership provided by North Carolina Department of Public <br />Instruction. <br />Chapel Hill Carrboro City Schools is requesting an increase in the local per pupil allocation of <br />$314. This requested increase in the local per pupil allocation for current expenses would <br />increase the per pupil allocation to $3,583. This funding level would represent an approximate <br />increase in the current expense for Chapel Hill Carrboro City Schools of $4.2 million and an <br />increase for both school districts of $7.3 million, which would represent 4.55 cents of the current <br />property tax rate based on the projected Average Daily Membership provided by North Carolina <br />Department of Public Instruction. <br />During tonight's presentation, each system will share their FY2014 -15 operating and capital <br />budgets with the Board of County Commissioners. <br />FINANCIAL IMPACT: Preliminary FY2014 -15 revenue projections anticipate the County's <br />General Fund revenues will be approximately $187 million. Staff has assumed no receipt of <br />Public School Building Fund monies in this projection for the County's General Fund. (Note: NC <br />Education Lottery proceeds are revenues budgeted in individual capital projects and not <br />considered General Fund Revenue.) <br />Based upon the County Commissioner's funding target of 48.1 %, the funding to the two school <br />systems would be approximately $89.9 million, based on the preliminary FY2014 -15 revenue <br />projections. <br />RECOMMENDATION(S): The Manager recommends that the Board discuss the issues noted <br />and provide direction to staff, as appropriate. <br />