Agenda - 05-26-2016 - 2 - FY2016-17 Budget Discussion with DTCC, OCS, CHCCS

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Health and Safety Service Contracts (Replaces Fair Funding) The recommended budget replaces the Fair Funding program with Health and Safety Service Contracts. The Fair Funding program was created in FY 2006-07 to direct County funds to particular purposes and to provide an equal amount of funding to each District for those purposes. Under this new model, the County will contract with each School District to provide and fund School Resource Officers in each middle school and high school, and provide one public health nurse for each school facility. The Districts currently use a variety of funding to pay for these services. This budget will fully fund each District for health and safety services by adding approximately $1.4 million to the existing $1.9 million formerly used in the Fair Funding program. State Mandates for Retirement and Health Insurance In addition to the funds recommended for Health and Safety Service Contracts and Charter Students, the recommended budget includes a recommendation to fund State mandated retirement and health insurance contributions for school employees. These mandates total $484,562, and are funded through the Current Expense appropriation. Per Pupil Equivalent Based on the structure of the additional funds, recommended for schools, the per pupil amount increases by $24.50, to $3,722. This is because the Health and Safety Service Contracts will be administered outside of the current expense budget, and funding for charter students does not add to the per pupil amount. If the total increase of $2,656,421 were calculated in per pupil equivalent terms, the increase would be approximately $133 per pupil. School Districts Budget Requests Both School Districts requested increases in per pupil funding for FY 2016-17. Orange County Schools requested an increase of $390.50, plus funding for an additional 155 charter students. This requested increase in the local per pupil allocation for current expenses would increase the per pupil allocation to $4,088. This funding level would represent an increase in the current expense for Orange County Schools of $3,786,240. This would represent a tax rate equivalent of approximately 2.26 cents on the current property tax rate. Chapel Hill-Carrboro City Schools requested an increase of $446.76, plus funding for an additional 50 charter students in the district. This requested increase in the local per pupil allocation for current expenses would increase the per pupil allocation to $4,144,26. This funding level would represent an increase of $4,465,203 in the current expense for Chapel Hill- Carrboro City Schools. This would represent a tax rate equivalent of approximately 2.66 cents on the current property tax rate. County Support of Orange County Campus of Durham Technical Community College The recommended funding for the Orange County Satellite Campus of Durham Technical Community College, located at the Waterstone Development in Hillsborough, provides current expense funding of $628,929, recurring capital of $75,000, and debt service payments of $266,001. In addition, the recommended budget includes $50,000 for 50 scholarships (student