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16 <br /> 1 Commissioner Dorosin asked if there is an advantage to budgeting by purpose and <br /> 2 function. <br /> 3 Paige Worsham said without budgeting this way, boards of education have full discretion <br /> 4 as to how to spend funds, once the funds have been appropriated by the BOCC. <br /> 5 Commissioner Dorosin asked if there is a reason why counties do not budget by purpose <br /> 6 and function. <br /> 7 Paige Worsham said she did not know the reason, but guessed it may be a cumbersome <br /> 8 way to budget, and require a greater amount of micromanaging by the BOCC. <br /> 9 Paige Worsham continued the presentation: <br /> 10 <br /> 11 Appropriating Capital Funds: <br /> 12 A county board may appropriate moneys for Category I expenditures for a specific capital <br /> 13 project or projects. Moneys appropriated for Categories II and III expenditures, however, are <br /> 14 allocated to the entire category, not to individual expenditure items. <br /> 15 <br /> 16 Category I - Acquisition of real property and acquisition, construction, reconstruction, <br /> 17 enlargement, renovation or replacement of buildings and other structures for school <br /> 18 purposes. <br /> 19 Category II - Acquisition or replacement of furnishings and equipment. <br /> 20 Category III -Acquisition of school buses, activity buses, and other motor vehicles. <br /> 21 <br /> 22 If the board of commissioners allocates all or part of capital funding by project, the school board <br /> 23 must get approval to change specific Category I expenditures. The school board has full <br /> 24 discretion to reallocate funds within Categories II & Ill. [County and Municipal Government, <br /> 25 UNC Sch. Of Gov't] <br /> 26 ➢ The board of education may amend the budget to transfer money to or from the capital <br /> 27 outlay fund to or from any other fund, with the approval of the board of county <br /> 28 commissioners, in emergency situations. <br /> 29 ➢ Board of commissioners must act on school board's request within 30 days <br /> 30 <br /> 31 Other Types of Board of Commissioners Authority: <br /> 32 Continuing Contracts for Capital Outlay <br /> 33 § 115C-441(c) <br /> 34 ➢ A school administrative unit may enter into a multi-year contract for capital outlay <br /> 35 expenditures, without the budget resolution including an appropriation for the entire <br /> 36 obligation, provided: <br /> 37 a. The budget resolution includes an appropriation authorizing the current fiscal year's <br /> 38 portion of the obligation; <br /> 39 b. An unencumbered balance remains in the appropriation sufficient to pay in the <br /> 40 current fiscal year the sums obligated by the transaction for the current fiscal year; and <br /> 41 c. Contracts for capital outlay expenditures are approved by a resolution adopted by the <br /> 42 board of county commissioners. The resolution binds the board of county commissioners <br /> 43 to appropriate sufficient funds in ensuing fiscal years to meet the amounts to be paid <br /> 44 under the contract <br /> 45 School Sites and Property <br /> 46 § 115C-518 <br /> 47 ➢ The board of commissioners is afforded the first opportunity to obtain property held by <br /> 48 the school board if the school board determines the property no longer suitable or <br /> 49 necessary for public school purposes <br /> 50 § 115C-521 <br /> 51 ➢ School board has duty to provide adequate classroom facilities <br />