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

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8 1 Michael Talbert said full funding would be $314 per pupil. 2 Commissioner Gordon said she believes a 2 cent tax increase is needed. 3 Clarence Grier clarified that a 2 cent tax increase, plus the manager's recommendation, 4 and $1,148,000 would fully fund the higher request of$7.3 million, and the increase of$314 per 5 pupil. 6 Commissioner McKee said he has a problem with this, because this is above the amount 7 that the CHCCS superintendent recommended to his board and what Orange County asked for. 8 He said this sets a bad precedent. He said the total amount needs to be set for what is needed, 9 and some money can be set aside. 10 Discussion ensued regarding the amount of funding per pupil for the different proposed 11 scenarios. A break was taken to calculate these numbers for further discussion. 12 Michael Talbert said the $7.7 million requested by the CHCCS includes $2.2 million to 13 help re-build their fund balance. 14 Tom Forcella said, with the requested amount, CHCCS's fund balance would be at the 15 minimum that it needs to be, but it would not be at $2.2 million over the minimum. He said the 16 $2.2 million would be for positions that are being paid for in the current year, and there would not 17 be additional money in the fund balance. 18 Todd Lofriese said the estimated year end fund balance would be below the 5.5 percent 19 target, which would equate to $3 million. 20 Commissioner Gordon said CHCCS has a policy regarding this 5.5 percent, and there is 21 no flexibility to go into this money. 22 Chair Jacobs said the goal of these policies is for the school systems to be able to cover 23 their bills, and any shortfall would be up to the County. 24 Clarence Grier reviewed the above chart regarding the different scenarios for tax 25 increases and funding. 26 27 Commissioner McKee made a motion, seconded by Commissioner Price to go with a 1.75 28 cent tax increase; $1 million from fund balance, and $2.8 million from the manager's 29 recommendation. 30 31 Commissioner Gordon said additional revenue is needed for both school districts. She 32 would argue for a 2 cent tax increase to generate more revenue. 33 Commissioner McKee said a 2 cent tax increase is a psychological barrier for many 34 people who live on modest incomes in Orange County. 35 Commissioner Rich said the 1.75 cent or the 2 cent tax increase make the most sense. 36 She leans toward the 2 cent increase since it seems the most prudent to avoid coming back to do 37 this again next year. 38 Commissioner Dorosin said he feels it would be best to do a 2 cent tax increase. He said 39 a general property tax increase has not been done in several years, and this is where the weight 40 of addressing the funding should be. He said it is important to note the extraordinary moment 41 that the County is in, and he does not think that this sets a precedent. 42 Commissioner Pelissier agreed with Commissioner Dorosin's comments. She said she 43 agrees that there are lower income residents in the County, but there have been additions to the 44 social safety net to address this. She noted that the state has also decreased the income tax, 45 and there are gaps that need to be filled. 46 Commissioner Price said she wanted to start lower and raise the tax incrementally if 47 needed next year. She said there are already people leaving the County due to the expense of 48 living here. 49 Chair Jacobs said there is not a lot of difference in the 1.75 cent and 2 cent tax increase, 50 but he does understand the psychological implications. He thinks the County has been very