Minutes 12-07-2015 - Laserfiche WebLink

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Commissioner Burroughs referenced the required funds for local school administrative unites, and asked if there are any optional funds. Paige Worsham said she could not think of anything, but will research this. Neil Emory, NCACC Outreach Associate, said most counties do not use purpose and function budgeting because it does not allow line item discretion, but rather function. He added that the functions are usually so broad that the required effort is not worth it. He said only the Board of County Commissioners can issue debt for the County, and for what it is utilized. Commissioner Dorosin said this is a lot of information tonight. He said Orange County is one of the few counties left with multiple school districts, and he asked if that fact makes a difference with these state statutes. Paige Worsham said the one that comes to mind is the difference between the current expense appropriation and the capital needs (slide 115c-429) in budget process. She said the current expense would be appropriated by the BOCC on an ADM basis, but the capital funds need not be. She said there are issues of fairness and relationships that the BOCC would likely need to consider but there is no requirement of equality in the division of capital outlay. Commissioner Dorosin clarified that once the BOCC allocates funds to the schools, the Board of County Commissioners has no control over the spending of that funding. He gave the example of schools wanting to build a football stadium, against the wishes of the BOCC. He asked if the BOCC approved a budget, but denied the monies for a football stadium, could the schools still use the funds that were received to build a football stadium, at the cost of not funding another need within their district. Paige Worsham said that particular example would fall under category one. Commissioner Dorosin offered another example of giving the superintendent a large bonus, which the Board of County Commissioners does not support but the school does it anyway out of the funds that are received. Paige Worsham said the money would have to come from some part of a budget previously approved by the BOCC. Commissioner Dorosin said it was his understanding from the PowerPoint presentation that once the check is written to the schools for their budget, the BOCC no longer has any control over how the money is spent. Paige Worsham said if the BOCC is not funding by purpose and function, then yes that is correct. Chair McKee said the purpose of this presentation is to help clarify details as Orange County approaches the bond process. He said the BOCC is learning from this presentation just as much as community members who are watching the meeting this evening. He said there will be meetings with both school boards in the coming months and the BOCC needs to understand the state statutes in order to provide the best for the children of Orange County. He stressed that no further meaning should be read into any of the questions or comments made by the BOCC. Commissioner Jacobs said he asked for this type of presentation so that all members of the BOCC could understand the exact opportunities and obligations to make the Board's will manifest in the process with the schools. He said sometimes the BOCC is pushed out of school discussions, when the statutes give permission for the BOCC to be involved in such business. He referred to Commissioner Dorosin's hypothetical situtation and said under Orange County policies a school board could spend the $1 million fund balance in defiance of BOCC wishes. He said the Board may want to think about going forward. Commissioner Dorosin said he wished the Board had received the presentation earlier in order to study it. 5. Public Hearings NONE