Minutes 06-12-2014 - Laserfiche WebLink

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3,276,482.00 911,124.00 Michael Talbert said if taxes were raised 1.5 cents, it would bring in $2,457,000, which would equate to an additional $121 per pupil. He said a full 2 cent tax increase would generate $3,276,483, which would add an additional $162 per pupil. Michael Talbert said if the County wants to fully fund schools, it would equate to a tax increase of 2.71 cents. He said the County could levy a tax and put the funds into a reserve account (similar to the social justice fund) until the legislative budget is adopted and then come back in September to allocate all or part of this to the schools. He said he would not recommend using the $1.9 million in unassigned fund balance, as this is a safety net for dealing with emergencies during the year without violating the 17 percent goal. Chair Jacobs said he wanted to clarify that this Board has not had a discussion on how to fund schools yet. Discussion ensued regarding clarification of the above spreadsheet. Commissioner Gordon suggested fully funding the original request from the schools, and then putting money aside in reserves to deal with the unknown. Commissioner porosin clarified that any funds generated by a tax increase would be split equitably between the two schools systems. Clarence Grier said at some point in time, the County will need to generate revenues to replace the general fund revenues that are used. He said $9.1 million is approximately 6.5 cents on the current tax rate, which would be hard to make up through under spending in future years. Clarence Grier responded to Commissioner porosin's concerns about equitable distribution of funds. He said whatever is done, all funds will be divided on an ADM basis between the Chapel Hill Carrboro City Schools (CHCCS) and Orange County Schools (OCS). Commissioner Gordon said that it is almost certain that the school districts are going to take a hit from the state budget, so even if the County "overfunds," it is almost certain the funds will be needed. Commissioner McKee suggested that the Board start with the $2.8 million recommended by the manager, proceed with a 1.5 cent tax increase, and take $1 million out of the fund balance. Commissioner Pelissier proposed a 2 cent tax increase, to be directly allocated, with additional money reserved from the fund balance to use as needed, based on what happens in the general assembly. Commissioner porosin proposed either a 2 cent tax increase, with $1.5 million being taken from the fund balance, or a 2.5 cent tax increase, with $1 million taken from the fund balance. Commissioner Gordon said she believes the County needs more revenue, and she would support a tax increase of at least 2 cents. She said the original requests of the school system should be fully funded. She would support a tax increase up to 2.5 cents. Commissioner Rich said she is not in favor of raising taxes more than 2 cents. She likes the combination of using some of the fund balance, but she is wary of using too much, as this money needs to be available for other emergencies. Chair Jacobs said he is comfortable with a 2 cent tax increase, and he would be comfortable taking as much as $1 million from the fund balance, but this can be discussed.