Agenda - 09-28-2017 - Attachment A - Chapel Hill Carrboro City Schools

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1 A EL „III 4, al a 11 , / , CITY SCI-100LS Date: September 20, 2017 To: Paul Laughton, Deputy Director, Orange County Finance and Administrative Services From: Todd LoFrese, Assistant Superintendent for Support Services Re: Joint Boards Meeting Materials On the September 28, 2017 Joint Boards agenda meeting there are items related to class size reduction legislation, living wage costs associated with contracted services, school bond project updates, school resource officers, and mental health collaboration. Attached please find information and documents related to these topics as described below. Projected Impact of State Mandated Class Size Reductions A capacity analysis shared last year has been updated with current numbers and in accordance with the passage of House Bill 13. The Chapel Hill-Carrboro City Schools received a waiver from class size requirements until 2020 due to Project ADVANCE being part of a state teacher compensation pilot study. Unless the state makes revisions to the current law in 2018-19 the district's level of service will exceed the threshold for when a new elementary school is needed. The Lincoln Center project completion will create an additional 189 elementary school seats and will provide a buffer should class size levels remain unchanged at the conclusion of the pilot. See page 3 Cost Impact of Paying Living Wage for Service Contracts or Internalizing Positions The Board of Education began paying a living wage in 2015-16 and formally adopted a living wage policy in January 2017. All district employees are paid at or above the living wage rate. The district requested an additional $700,000 expansion during the 2017-18 budget process to pay a living wage for employees of contractors that have displaced or may displace district staff. This was also a goal of our living wage policy. The district has two service contracts that fall into this category, custodial evening cleaning services and our child nutrition program. In June 2017, bids were opened for custodial cleaning services that included an option to pay a living wage. As highlighted in the attached materials, the additional cost for paying a living wage was approximately$300,000. We also conducted an analysis on the cost to internalize the positions. That analysis required an even more sizable increase of over$1.6 million. Ultimately it was decided that we could not proceed with either a living wage or internalizing positions as the additional local funding received for 2017-18 was only sufficient to cover our continuation expenses, not expansion requests. See pages 4-21 1