Agenda - 05-18-2006-1 - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 18, 2006 SUBJECT: 2006 -07 Major Budget Drivers DEPARTMENT: Manager /Budget ATTACHMENT(S): OCS Approved Budget 2006 -07 CHCCS Revised 2006 -07 Budget Request 2006 -07 Student Enrollment Projections 2006 -07 Estimates — One Cent of Property Tax Equivalent Table - $1 Per Pupil Equivalent CHCCS 2005 -06 Fund Balance Projection Table — OCS Fund Balance Action Agenda Item No. 1 PUBLIC HEARING: (YIN) No INFORMATION CONTACT: .John Link or Rod Visser, 919 - 245 -2300 Donna Coffey, 919 - 245 -2151 PURPOSE: To discuss various issues related to development of the Manager's Recommended Budget for FY 2006 -07, BACKGROUND: As part of the fiscal outlook presentation during the Board's annual planning retreat in January 2006, and at a number of work sessions since, the Budget Director has provided a table of major budget drivers that will have a significant impact on the formulation of the County's FY 2006 -07 operating budget. This work session will provide an update to the Board regarding the most significant elements of the Manager's Recommended Budget and their estimated impacts on the 2006 -07 budget. The Manager is scheduled to formally present the 2006 -07 operating budget at 7:30pm on Thursday, May 25, at the Battle Courtroom in Hillsborough. a. Debt Service The net increase in debt service payments exceeds $3 million in 2006 -07 for elements of the 2001 voter- approved bond referendum and the BOCC's associated plan for funding other major School and County capital needs. Staff will briefly review the changes in the County's budget related to debt service and will recap the School, County and Town projects from which citizens will benefit that are associated with the debt increases. b. School Funding Both school systems have presented requested operating budgets with funding increases that exceed $5 million. The Governor has recently revised his proposal for funding school salaries to include an increase in teacher pay of 8% for FY 2006 -07. This proposal, if funded, would have significant impacts on Orange County's budget, as both school systems have sizeable numbers of locally funded teachers whose pay increases would not be funded by the State.