Agenda - 05-25-2017 - 1. FY2017-18 Budget Work Session with DTCC, OCS, and CHCCS

Browse Search

Recurring capital for both School districts remains the same as the prior year appropriation of $3 million dollars. Recurring capital pays for facility improvements, equipment, furnishings, and vehicle and bus purchases. State statutes mandate counties to fund recurring capital. However, the amount of money counties allocate to this function is discretionary and varies from county to county. Long Range Capital The County plans and programs long-range school capital funding through the County's Capital Investment Plan (CIP). The recommended budget for FY 2017-18 includes $2,317,658 for Chapel Hill-Carrboro City Schools and $1,538,678 for Orange County Schools, for a total of $3,856,336, which represents an increase of $56,990 from FY 2016-17. For FY 2017-18, instead of funding the long-range capital from pay-as-you-go funds, two-thirds net debt bond financing will be utilized in FY 2017-18. Similar to Local Current Expense funding, the amount of money counties allocate to long-range capital expenditures is discretionary and varies from county to county. Per the April 5, 2011 Commissioner approved County Capital Funding Policy, it is the intent of the Board of County Commissioners to continue a capital funding policy that reflects the implementation of the Board of Commissioners' resolution of November 16, 2004 that the Board "does hereby adopt in principle a policy of allocating a target of 60 percent of capital expenditures for school projects and 40 percent of capital expenditures for county projects over the decade beginning in calendar year 2005". The Policy further states, "However, there will be times when the County will be bound fiscally and unable to achieve full funding. During those times, Commissioners may find it necessary to depart from the Policy." School Debt Service The recommended budget provides for $15,074,910 in School Related Debt Service, which represents repayment of principal and interest on School related debt, including general obligation bonds and private placement loans. North Carolina statutes require counties to pay for school related capital items such as acquisition and construction of facilities. In instances where counties borrow funds to pay for such items, the State mandates counties to repay the debt. The amount of money counties borrow for school related projects is discretionary and varies from county to county. Health and Safety Service Contracts The recommended budget includes $3,354,000 for the Health and Safety Service Contracts for both school districts to cover the costs of School Resource Officers in every middle and high school, and a School Health Nurse in every elementary, middle, and high school in both school systems. School Districts Budget Requests Both School Districts requested increases in per pupil funding for FY 2017-18. Orange County Schools requested an increase of $417.00, plus funding for an additional 192 charter students. This requested increase in the local per pupil allocation for current expenses would increase the per pupil allocation to $4,285. This funding level would represent an increase in the current expense for Orange County Schools of$4,182,015.