Agenda - 06-14-1988 - Laserfiche WebLink

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. . . • , - . 6/q2/ri . . . . . . . _.... • . - . . 'MEMO TO: • Board of Commissioners • FROM: John Link, County Manager ?O.- • SUBJECT: Alternatives for School Funding DATE: June 17, 1988 Based n individual Commissioner comments made during the course mbf this week's budget discussions, you have shared concerns about the following: 1) Finding ai budget alternative which would reduce the Chapel Hill/Carrboro School district tax. . 2) Meeting the needs of the Orange County system. 3) Narrowing the gap in percentage increases for the two school systems. . . • . 4) Keeping tax rate increases down for all citizens of Orange County, given the upcoming bond issue. . :4k.,, • - . With these concerns in mind, we have-formulated the • following draft alternative for tunding education in FY 1988-89. 1) Increase the per student allocation tram $950 to $967 This would provide an additional $87,000 to Orange County and an additional $93,000 it County funds to Chapel Hill/Carrboro. • 2) Increase the 'approoriation from fund balance In the Chapel Hill/Carrboro system from $515,000 to $644,000. This would leave an estimated undesignatea fund balance of $511,000, or 4.5% of the current - - expense fund. (Per present Connissioner Policy, .Tnmeimun. undesignated Fund balance is 5.5%) 3) Decrease the district tax tram 18.75 cants ( a 2.25 cent increase) to 17.75 cents (a 2.25 cent increase) . • This decrease in the recommended tax rate could be • accomplished without reducing the original _ reconnuended funding level available to Chapel Eill/Carrboro schools because of the additional $93,000 from County funds and the additional $129,000 - appropriation from fund balance. • • The above scenario would cost the County's General Fund • $179,707. This is equivalent to .54 cents on the County's . • property tax rate. . ' . .• . . . . . . . . . . . . . . . - . .. • . _