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

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7 1 2 Michael Talbert said if taxes were raised 1.5 cents, it would bring in $2,457,000, which 3 would equate to an additional $121 per pupil. He said a full 2 cent tax increase would generate 4 $3,276,483, which would add an additional $162 per pupil. 5 Michael Talbert said if the County wants to fully fund schools, it would equate to a tax 6 increase of 2.71 cents. 7 He said the County could levy a tax and put the funds into a reserve account (similar to 8 the social justice fund) until the legislative budget is adopted and then come back in September 9 to allocate all or part of this to the schools. He said he would not recommend using the $1.9 10 million in unassigned fund balance, as this is a safety net for dealing with emergencies during the 11 year without violating the 17 percent goal. 12 Chair Jacobs said he wanted to clarify that this Board has not had a discussion on how to 13 fund schools yet. 14 Discussion ensued regarding clarification of the above spreadsheet. 15 Commissioner Gordon suggested fully funding the original request from the schools, and 16 then putting money aside in reserves to deal with the unknown. 17 Commissioner Dorosin clarified that any funds generated by a tax increase would be split 18 equitably between the two schools systems. 19 Clarence Grier said at some point in time, the County will need to generate revenues to 20 replace the general fund revenues that are used. He said $9.1 million is approximately 6.5 cents 21 on the current tax rate, which would be hard to make up through under spending in future years. 22 Clarence Grier responded to Commissioner Dorosin's concerns about equitable 23 distribution of funds. He said whatever is done, all funds will be divided on an ADM basis 24 between the Chapel Hill Carrboro City Schools (CHCCS) and Orange County Schools (OCS). 25 Commissioner Gordon said that it is almost certain that the school districts are going to 26 take a hit from the state budget, so even if the County "overfunds," it is almost certain the funds 27 will be needed. 28 Commissioner McKee suggested that the Board start with the $2.8 million recommended 29 by the manager, proceed with a 1.5 cent tax increase, and take $1 million out of the fund balance. 30 Commissioner Pelissier proposed a 2 cent tax increase, to be directly allocated, with 31 additional money reserved from the fund balance to use as needed, based on what happens in 32 the general assembly. 33 Commissioner Dorosin proposed either a 2 cent tax increase, with $1.5 million being 34 taken from the fund balance, or a 2.5 cent tax increase, with $1 million taken from the fund 35 balance. 36 Commissioner Gordon said she believes the County needs more revenue, and she would 37 support a tax increase of at least 2 cents. She said the original requests of the school system 38 should be fully funded. She would support a tax increase up to 2.5 cents. 39 Commissioner Rich said she is not in favor of raising taxes more than 2 cents. She likes 40 the combination of using some of the fund balance, but she is wary of using too much, as this 41 money needs to be available for other emergencies. 42 Chair Jacobs said he is comfortable with a 2 cent tax increase, and he would be 43 comfortable taking as much as $1 million from the fund balance, but this can be discussed. 44 Chair Jacobs and Clarence Grier discussed the financial responsibility that the County has 45 shown in building up a substantial fund balance that has been used in lieu of a tax increase for 46 several years now. 47 Clarence Grier said a 2 cent tax increase, plus the manager's recommendation and $1 48 million from the fund balance should be enough to fully fund schools. 49 Commissioner McKee asked what the $7.1 million in funding will equate to in per pupil 50 funding increase.