Agenda - 06-04-2015 - 1 - Laserfiche WebLink

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61 Both Boards of Education presented their budget requests to Commissioners in April 2015. In consideration of those requests and other funding needs, this recommended budget includes the following appropriations for the Local School Districts. • Per pupil funding for the County's two local school districts increases to $3,652. This funds the North Carolina Department of Public Instruction (NCDPI) projected 322 decrease in student enrollment between both school districts, and increases funding to an additional 160 charter students. This represents a $1.438 million increase in current expense funding for both school districts combined. Local Current Expense funding supplements State and Federal funds received by each district for the day -to -day operation of schools. Examples of expenses paid from these funds include salaries and benefits for locally paid teachers and utilities. Noah Carolina statutes mandate boards of county commissioners provide local current expense monies to school districts. Counties having more than one school administrative unit, as is the case in Orange County, are required to provide equal per pupil appropriations to each system. The funding level, however, is discretionary and varies from county to county. • Recurring capital for both School districts remains the same as the prior year appropriation of $3 million dollars. Recurring capital pays for facility improvements, equipment, furnishings, and vehicle and bus purchases. State statutes mandate counties to fund recurring capital. However, the amount of money counties allocate to this function is discretionary and varies from county to county. • The long range/pay-as-you go capital expense for the local school districts remains the same as the prior year appropriation of $3.7 million. Long -Range Capital supports school capital projects through the County's Capital Investment Plan (CIP). Capital projects are funded through a combination of State and local bonds, non -bond financing and pay -as- you-go funding sources. Pay -as- you -go funding includes dedicated half -cent sales tax revenues and property tax earmarked under the Board's April 5, 2011 Capital Funding Policy. The Capital Policy also allows School Construction Impact Fees to offset School related debt service. Similar to Local Current Expense funding, the amount of money counties allocate to long -range capital expenditures is discretionary and varies from county to county. Per the April 5, 2011 Commissioner approved County Capital Funding Policy, it is the intent of the Board of County Commissioners to continue a capital funding policy that reflects the implementation of the Board of Commissioners' resolution of November 16, 2444 that the Board "does hereby adopt in principle a policy of allocating a target of 60 percent of capital expenditures for school projects and 40 percent of capital expenditures for county projects over the decade beginning in calendar year 2005" The Policy further states, "However, there will be times when the County will be bound fiscally and unable to achieve full funding. During those times, Commissioners may find it necessary to depart from the Policy." • The recommended budget provides for $15,646,916 in School Related Debt Service, which represents repayment of principal and interest on School related debt, including