Minutes 06-12-2014 - Laserfiche WebLink

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Chair Jacobs and Clarence Grier discussed the financial responsibility that the County has shown in building up a substantial fund balance that has been used in lieu of a tax increase for several years now. Clarence Grier said a 2 cent tax increase, plus the manager's recommendation and $1 million from the fund balance should be enough to fully fund schools. Commissioner McKee asked what the $7.1 million in funding will equate to in per pupil funding increase. Michael Talbert said full funding would be $314 per pupil. Commissioner Gordon said she believes a 2 cent tax increase is needed. Clarence Grier clarified that a 2 cent tax increase, plus the manager's recommendation, and $1,148,000 would fully fund the higher request of$7.3 million, and the increase of$314 per pupil. Commissioner McKee said he has a problem with this, because this is above the amount that the CHCCS superintendent recommended to his board and what Orange County asked for. He said this sets a bad precedent. He said the total amount needs to be set for what is needed, and some money can be set aside. Discussion ensued regarding the amount of funding per pupil for the different proposed scenarios. A break was taken to calculate these numbers for further discussion. Michael Talbert said the $7.7 million requested by the CHCCS includes $2.2 million to help re-build their fund balance. Tom Forcella said, with the requested amount, CHCCS's fund balance would be at the minimum that it needs to be, but it would not be at $2.2 million over the minimum. He said the $2.2 million would be for positions that are being paid for in the current year, and there would not be additional money in the fund balance. Todd Lofriese said the estimated year end fund balance would be below the 5.5 percent target, which would equate to $3 million. Commissioner Gordon said CHCCS has a policy regarding this 5.5 percent, and there is no flexibility to go into this money. Chair Jacobs said the goal of these policies is for the school systems to be able to cover their bills, and any shortfall would be up to the County. Clarence Grier reviewed the above chart regarding the different scenarios for tax increases and funding. Commissioner McKee made a motion, seconded by Commissioner Price to go with a 1.75 cent tax increase; $1 million from fund balance, and $2.8 million from the manager's recommendation. Commissioner Gordon said additional revenue is needed for both school districts. She would argue for a 2 cent tax increase to generate more revenue. Commissioner McKee said a 2 cent tax increase is a psychological barrier for many people who live on modest incomes in Orange County. Commissioner Rich said the 1.75 cent or the 2 cent tax increase make the most sense. She leans toward the 2 cent increase since it seems the most prudent to avoid coming back to do this again next year. Commissioner porosin said he feels it would be best to do a 2 cent tax increase. He said a general property tax increase has not been done in several years, and this is where the weight of addressing the funding should be. He said it is important to note the extraordinary moment that the County is in, and he does not think that this sets a precedent. Commissioner Pelissier agreed with Commissioner porosin's comments. She said she agrees that there are lower income residents in the County, but there have been additions to the