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Agenda Item #1 <br /> Attachment D <br /> Continuation Budget Requests <br /> The Board of Education recommends the continuation budget to include anticipated State salary increases <br /> for teachers and other public-school employees, costs related to matching employer benefits, and <br /> operational costs. Due to the renovations at Chapel Hill High School,the square footage will increase; <br /> therefore, operational costs for 2020-2021 will increase. Due to the current economic climate and the <br /> excepted downturn, some of these costs will remain like the increase in matching employer benefit costs, <br /> salary increase for Orange County's Living Wage Rate, and operational costs. <br /> Total Continuation Requests <br /> 2% <br /> op <br /> sts <br /> 18k,Benefits <br /> Certified Salary <br /> St Benefits <br /> Benefit Increases <br /> The Board of Education recommended budget includes amounts for anticipated State salary increases for <br /> teachers and other public-school employees, as well as increases to costs related to matching employer <br /> benefits, such as Social Security and Medicare, State retirement employer, and health insurance premiums. <br /> There will be an increase in the employer State retirement matching from 19.70%to 21.44%(based on <br /> guidance from NCDPI). The 1.74% increase must be applied to all covered local operating fund employees; <br /> therefore,the incurred cost will be about$905,000. Furthermore,there will be a 5.4% increase to the <br /> employer-paid health insurance premium, increasing it from $6,306 to $6,647. This will incur a cost of <br /> $279,500 for all locally funded employees participating in the State Health Plan. <br /> Estimated Calculated <br /> Actual 2019-20 2020-21 Rate Increase Local Increase <br /> Retirement 19.70% 21.44% 1.74% $905,000 <br /> Hospitalization $6,306 $6,647 $341 $279,500 <br /> Potential State Salary Increases <br /> We have collaborated with peers from surrounding districts to gain the best estimates of the budget drivers <br /> in this request. We anticipate a 5% increase in certified staff and a 2% increase in classified salaries. An <br /> increase in salary results in increased locally paid supplement costs. Due to the salary increases,the <br /> employer matching Social Security, Medicare, and retirement associated costs increases. The anticipated <br />