Minutes 06-11-19 Budget Work Session

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9 Commissioner Dorosin said he will vote against the higher up front rate, given the economic uncertainties. Chair Rich said this is one of the reasons why Bonnie Hammersley recommended the 1.5-cent tax increase. She said doing yearly increases may result in greater costs over the long run, but that is just part of the reality. Commissioner McKee said he would not support the upfront tax. Commissioner Price said she would support the Manager's recommendation. Commissioner Marcoplos said he thinks there are potential net savings with the upfront tax, but given the things that have been mentioned already, he would support the Manager's recommendation. Chair Rich said there is consensus to go with the Manager's recommendation. Bonnie Hammersley said then there is no need for Amendment#10. Commissioner Dorosin suggested doing all of the school amendments next (Amendments #3-8). Bonnie Hammersley said the Board needs to vote on amendments # 9 & 10 first. A motion was made by Commissioner Dorosin, seconded by Commissioner McKee to reject amendments #9 and #10. VOTE: UNANIMOUS Amendment 003 - (Decrease the CHCCS special district tax by 1.00 cent. The purpose of this amendment is to address the funding inequity in the two school systems.) Commissioner Dorosin said this amendment seeks to accomplish two goals: maintain a high level of education funding, and try to address funding inequities and distribute funding and resources more equitably throughout the County. He said this amendment takes a small step toward addressing the inequitable distribution of resources, while maintaining a high level of funding for education. Commissioner Dorosin said this is a one-cent increase on the ad valorem tax, bringing in over$2 million, all of which will be dedicated to education. He said the Board will increase the County's contribution to the per pupil allocation, which will go up, and at the same time the Board will reduce the special district tax in Chapel Hill Carrboro City Schools (CHCCS) by 1- cent. He said there is no reduction in educational spending, and CHCCS will receive the same amount of money proposed by the Manager's budget, but this would change the pots from which the money comes. He said CHCCS will get a bigger chunk of money from the ad valorem pot, and an offsetting smaller chunk from the district tax pot. He said there is no net loss of funding, and there is no proposal to determine how the funds are used, but rather is designed to recognize long-standing disparities between the school districts. He said school funding decisions should be based on what it costs to provide the quality of education that the students in Orange County should receive. He said if this is $6000 per pupil (which is what is received in CHCCS), then the County should work towards every child getting this amount. He said he does not believe it costs $2000 more to educate a child in CHCCS, as opposed to the Orange County Schools (OCS Commissioner Marcoplos applauded Commissioner Dorosin for bringing this forward. He said it is a complicated issue, and for the Board to address this properly there needs to be a more in-depth process and involve all of the stakeholders. He said Commissioner Dorosin's suggestion is great for the schools, but the burden will fall on the OCS taxpayers Commissioner Marcoplos proposed to take this seriously, but to discuss this process in more detail. He said making a quick action right now would not be in the best interest of the County.