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3 <br />Durham Technical Community College, Chapel Hill Garrboro City Schools and Orange • <br />County Schools FY2014 -15 Operating Budgets <br />Sportsplex <br />County Departmental budgets, including any fee schedule change requests, and associated <br />non - departmental items <br />County Support of Local Boards of Education <br />In previous meetings and discussions with the County Manager, . the Board of County <br />Commissioners decided the funding for schools for FY2014 -15 should be as close to the 48.1% <br />target of County General Fund revenues. The target is exclusive of the County's share of Durham <br />Technical Community College funding and is consistent with the school funding target endorsed by <br />Commissioners in May 2000. The following school related components are included in calculation of <br />the target percentage: <br />Local Current Expense - supplements State and Federal funds received by each district for <br />the day -to -day operation of schools. Examples of expenses paid from these funds include <br />salaries and benefits for locally paid teachers and utilities. North Carolina statutes mandate <br />boards of county commissioners provide local current expense monies to school districts. <br />Counties having more than one school administrative unit, as is the case in Orange County, <br />are required to provide equal per pupil appropriations to each system. The funding level, <br />however, is discretionary and varies from county to county. <br />• Recurring Capital — pays for facility improvements, equipment, furnishings, and vehicle and <br />bus 'purchases. State statutes mandate counties to fund recurring capital. However, the <br />amount of money counties allocate to this function is discretionary and varies from county to • <br />county. Equal per pupil allocations required by law for current expense appropriations are not <br />applicable to this category of local school funding. <br />Long -Range Capital — supports school capital projects through the County's Capital <br />Investment Plan (CIP). Capital projects are funded through a combination of State and local <br />bonds, non -bond financing and pay -as- you -go funding sources. Pay -as- you -go funding <br />includes dedicated half -cent sales tax .revenues and property tax earmarked under the <br />Board's April 5, 2011 Capital Funding Policy. The Capital Policy also allows School <br />Construction Impact Fees to offset School related debt service. Similar to Local Current <br />Expense funding, the amount of money counties allocate to long -range capital expenditures <br />is discretionary and varies from county to county. <br />Per the April 5, 2011 Commissioner approved County Capital Funding Policy, it is the intent <br />of the Board of County Commissioners to continue a capital funding policy that reflects the <br />implementation of the Board of Commissioners' resolution of November 16, 2004 that the <br />Board `does hereby adopt in principle a policy of allocating a target of 60 percent of capital <br />expenditures for school projects and 40 percent of capital expenditures for county projects <br />over the decade beginning in calendar year 2005" The Policy further states, "However, there <br />will be times when the County will be bound fiscally and unable to achieve full funding. During <br />those times, Commissioners may find it necessary to depart from the Policy." <br />School Related Debt Service — repayment of principal and interest on School related debt, <br />including general obligation bonds and private placement loans. North Carolina statutes • <br />