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Paige Worsham said in the statute, it applies to both; but practically, it applies to <br /> operating expense as the purpose and function codes deal mostly with operating expense. <br /> She said not many counties budget by purpose and function. <br /> Commissioner Dorosin asked if there is an advantage to budgeting by purpose and <br /> function. <br /> Paige Worsham said without budgeting this way, boards of education have full discretion <br /> as to how to spend funds, once the funds have been appropriated by the BOCC. <br /> Commissioner Dorosin asked if there is a reason why counties do not budget by purpose <br /> and function. <br /> Paige Worsham said she did not know the reason, but guessed it may be a cumbersome <br /> way to budget, and require a greater amount of micromanaging by the BOCC. <br /> Paige Worsham continued the presentation: <br /> Appropriating Capital Funds: <br /> A county board may appropriate moneys for Category I expenditures for a specific capital <br /> project or projects. Moneys appropriated for Categories II and III expenditures, however, are <br /> allocated to the entire category, not to individual expenditure items. <br /> Category I -Acquisition of real property and acquisition, construction, reconstruction, <br /> enlargement, renovation or replacement of buildings and other structures for school <br /> purposes. <br /> Category II -Acquisition or replacement of furnishings and equipment. <br /> Category III -Acquisition of school buses, activity buses, and other motor vehicles. <br /> If the board of commissioners allocates all or part of capital funding by project, the school board <br /> must get approval to change specific Category I expenditures. The school board has full <br /> discretion to reallocate funds within Categories II & Ill. [County and Municipal Government, <br /> UNC Sch. Of Gov't] <br /> ➢ The board of education may amend the budget to transfer money to or from the capital <br /> outlay fund to or from any other fund, with the approval of the board of county <br /> commissioners, in emergency situations. <br /> ➢ Board of commissioners must act on school board's request within 30 days <br /> Other Types of Board of Commissioners Authority: <br /> Continuing Contracts for Capital Outlay <br /> § 115C-441(c) <br /> ➢ A school administrative unit may enter into a multi-year contract for capital outlay <br /> expenditures, without the budget resolution including an appropriation for the entire <br /> obligation, provided: <br /> a. The budget resolution includes an appropriation authorizing the current fiscal year's <br /> portion of the obligation; <br /> b. An unencumbered balance remains in the appropriation sufficient to pay in the <br /> current fiscal year the sums obligated by the transaction for the current fiscal year; and <br /> c. Contracts for capital outlay expenditures are approved by a resolution adopted by the <br /> board of county commissioners. The resolution binds the board of county commissioners <br /> to appropriate sufficient funds in ensuing fiscal years to meet the amounts to be paid <br /> under the contract <br /> School Sites and Property <br /> § 115C-518 <br />