Agenda 04-23-2019 Attachment B - Chapel Hill - Carrboro City Schools Board of Education FY2019-20 Operating Budget Request and CIP

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CHCCS Superintendent's Budget Request 2019-2020 projected 30 student increase of$123,780. The CHCCS only projection used is the DPI projection and that is 3 below the county's SAPFO projection of 12,358. Local Continuation Funding Requirements The incremental local continuation budget requirement for Chapel Hill-Carrboro City Public Schools is $3,598,872, which is a 7.0% increase to maintain current operational services — AS IS. This is comprised of three main sections: Student Growth impacts, Operational/Inflationary impacts, and Salary/Benefit legislative impacts. The highlights of our base budget requirements to sustain our current level of operations are as follows: A) Net funding required for students at the current per-pupil funding of$4,126 would be a net increase of funds of $123,780. That is comprised of a projected increase CHCCS students from the prior year of 20 and an increase in charter school students of 10. The net change in students for CHCCS is projected using the state projection at this time for consistency from year-to-year. Overall the district has relatively stable student numbers from year-to-year(see prior section). B) The requirement for operational costs is a net increase of $237,715. Operational costs include items for utilities, maintenance, supplies, and others required for district facilities as well as supplies & materials for classrooms funded from local resources. We used the Consumers Price Index (CP1 Dept. of Labor — Dec 2018) for our projections. This section reflects the following: 1) Inflationary costs for operations from FY 2018-19 are $198,613 that reflects the application of the CPI increase of 1.9%applied to our local non-salary expenditures. 2) Projected increase in utility/energy costs are projected at $39,102 and reflect the CPI average increase in this category of 1.1%. 3) The district has no new square footage coming on-line in FY 2019-20. As such we are not requesting any continuation funds for operational costs this year. 4) We continue to work on our sustainability initiatives related to being good stewards of our resources and environments. As we achieve savings in these areas they are reinvested towards our sustainability efforts. C) Salary and Benefit requirements for local staff (est. 888 FTE) total $3,237,377. This breaks down as follows: • The state appears intent to increasing salaries this next year for teachers and for classified staff. Teacher's average increase is projected at 5.0% and classified staff at 3%. This impact on locally paid staff would be $1,821,339 with the FICA benefit portion being 139,332. This also includes the impact on the local teacher supplement. This request also ensures the district meets the requirements of providing a living wage for its employees under policy 6424/7061. • There is currently projected to be a 4.0% increase required for employer's hospitalization. This will increase that cost by $250 per person to $6,354, for a total additional cost of$222,175 for local staff. • The other portion of the benefit increase is related to the impact on the state's retirement rate increasing by 1.5% to 19.34%, which is a percent of salary. The retirement rate impact is an increase of$1,054,531 for local staff.