Agenda - 03-03-2015 - 6a - Laserfiche WebLink

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5 1 He noted the change in the state collection of motor vehicle taxes and the corresponding 2 increase in revenue. He said it is anticipated that the collection rate will increase from 89 3 percent to 99 percent in the next couple of fiscal years. 4 Clarence Grier noted that the largest source of general fund revenues is property tax, at 5 72.8 percent, followed by sales tax at 9.7 percent. 6 Clarence Grier said the largest component of expenditures is education, at 48.7 percent, 7 with the next highest being Human Services at 16.8 percent. 8 Clarence Grier noted that current property valuations are assessed 5.5 percent higher 9 than sales. He said if a revaluation were to happen now, a property tax increase of 4.2 percent 10 would be needed to generate the same revenues for the general fund. 11 He said fund balance revenues have been used over the past 5 fiscal years to balance 12 the budget, but this is unsustainable moving forward. He said additional revenues or cuts in 13 expenses are needed. 14 Clarence Grier reviewed the projections for 2015-16 and said the expected fund balance 15 for this year is $4.5 million. He said the projection shows the budget at $3.9 million short, which 16 equals 2.5 cents on the current property tax. 17 Commissioner Gordon asked for clarification on the unassigned fund balance. She 18 asked if the $36.7 million is after the $8.5 million has been removed. 19 Clarence Grier said after the $8.5 million is removed, this will generate some fund 20 balance, and it will be a little higher than $36.7 million. He said it will not be less than this 21 amount. 22 Commissioner Gordon asked about the goal of maintaining 17 percent. She asked what 23 percentage these projections will be and what amount would equal the 17 percent. 24 Clarence Grier said 17 percent would be $31.5 million, and the goal is to maintain this 17 25 percent. He said the early projections show the percentage to be 20.17 percent. He said this 26 includes any increases, less the $8.5 million and the $3 million for OPEB. 27 28 3. Public Comment 29 Todd Lofriese said he is here to speak on behalf of CHCCS. He said the Senate 30 approved their budget, and it will have drastic effects if enacted. He said there is a long 31 overdue need for teacher raises, and this proposal provides a raise, but it has strings attached. 32 He said this proposal places a large increase in exchange for giving up tenure. He said the 33 district proposal was 3 percent, and the state proposed average increase is 11 percent. He said 34 the financial impact of this proposed raise would be $3.1 million, which is $1.7 million above the 35 budget estimate. He said the senate proposal pays for this by cutting state funding for teacher 36 assistants in half. He said this would cause a district funding loss of$1.8 million. He said a 37 reduction of 22 assistant positions has already been considered, but the state reduction would 38 result in the loss of an additional 57 assistant positions. He said central office and 39 transportation cuts from the state would result in the loss of an additional $100,000. He said the 40 total impact of the Senate proposal to the district could be as high as $3.6 million. He said this 41 current scenario would mean a reduction of over $6 million would be needed to balance the 42 budget, and the district feels it is important for the Commissioners to know this. He said both 43 school districts are under a tremendous amount of pressure, and they need the Board's 44 continued support. 45 Jeff Hall is President of the CHCCS PTA Council, and up until a few hours ago he had 46 planned to read an official statement from the council, asking for full funding of the budget. He 47 said it was a great statement, but he has changed it up. He said he was recently asked where 48 he would cut the budget to fund the schools. He said this body has historically shown their 49 support for schools, but this year is different because things are different in Raleigh and in the 50 district. He said there is no more fund balance, and grant monies have been spent. He said 51 failure to fully fund schools means a loss of teaching jobs and a loss of educational