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Education Funding in Orange County Figure 16. M odel 6: Education Funding Increases at County D e artment H is toricaI Trend $100,000,000 - - -- $80,000,000 $60,000,000 -- - _ -- $40,000,000 - $20,000,000 - -= O [__ 00 Ols O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N Chapel Hill Carrboro City Schools Special District Tax Staff recommends that the Board of County Commissioners continue to address increases or decreases in the special district tax each year. Over the past few years, Chapel Hill Carrboro City Schools have used the district tax mainly to address start up costs for new facilities or new programs. When submitting their annual budget request, the Board of Education should make a separate proposal for use of the district tax proceeds. While this is a suitable use of the special district tax, the Orange County Schools does not have a district tax upon which they can rely. One alternative would be as follows: • For the start-up year, the Board of County Commissioners could chose to increase its General Fund commitment to schools and reduce Chapel Hill- Carrboro's special district tax. While Orange County could use the increase to pay for one -time start -up costs, Chapel Hill - Carrboro could supplant lost district tax revenue with the increased General Fund appropriation. Conclusion As the Board considers future education funding concepts, it is reasonable to look at models that closely align themselves with historical trends. Of the models presented in this report, model four appears to be the formula that keeps public education funding at the high level with which Orange County prides itself. The Board may be aware of other formulas that could be considered. Page 9 of 9