Minutes 05-14-2020 Virtual Budget Work Session

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12 Chair Rich asked if the per pupil amount for the continuation budget is $81.29, and $501 for the expansion budget. Jonathan Scott said the continuation, as presented, was $80 per student, which only covers state mandated increases to cover personnel costs. Commissioner McKee said the CHCCS unassigned fund balance is $11.1 million, and the continuation request is $3.7 million. He said based on these numbers CHCCS could operate out of its fund balance for 2 '/2 years. Jonathan Scott said yes but CHCCS would probably run into some cash flow issues. Commissioner McKee said he does not anticipate the schools having to burn all of its fund balance, but it can cover its continuation budget, as Orange County does out of its own fund balance. Jonathan Scott said yes, and was present in the 2008 financial crisis, when this was done. Superintendent Felder said while OCS has a fund balance of$2.2 million, GCS's monthly payroll is roughly $2.2 million. She said if there was any other crisis or incident, OCS would not be able to make payroll. Commissioner McKee said he understood that, but Orange County is the ultimate backstop for the schools. He said he and the County are not going to let the schools run out of money. He said there is a state requirement for fund balances, but using these funds for one year does not burn out the fund balance, as there is excess above the required state mandate. He said the salaries are covered through the per pupil appropriation, not fund balance. Commissioner Price referred to the hazard pay to bus drivers, and said she thought transportation was shared between the two schools. She asked if the pay for bus drivers could be explained. Jonathan Scott said the transportation allotment is split between the two districts, but there is also local funding. He said the drivers are currently delivering meals to 30 sites, and the CHCCS Board of Education (BOE) increased the drivers' rate of pay for hazard pay, as they put themselves at risk during COVID-19. He said these funds are mutually exclusive to OCS transportation funds. Commissioner Price asked if there is a timeline for how long hazard pay will go on. Jonathan Scott said the BOE committed to this pay through June 30. Commissioner Dorosin asked if the actual dollar difference, between the continuation budget and the Manager's recommended budget, could be identified. Jonathan Scott said to fund the continuation budget would require $3.8 million more than what was allocated. He said CHCCS budgeted 2% and 5% increases. Commissioner Dorosin said the CHCCS continuation request was $3.6 million, but the Manager has allotted $135,000 less than last year. He said in order to fund the continuation budget, it would take $3.6 million plus $135,000, which is not $3.8 million. Commissioner Dorosin referred to fund balances, and said this money is like a savings account for emergencies. He said this is an emergency, and this is the time to dip into these accounts. He asked if the schools agreed with this assessment. CHCCS Superintendent Baldwin said the current situation is an emergency, but no one knows how long it will last. She said it may be premature to use emergency funds immediately, if it is possible to fund the continuation budget. OCS Superintendent Felder agreed completely. Commissioner Dorosin said he appreciates those comments, but he believes that this is a critical time. Rhonda Rath said it is important to keep in mind that the schools' federal budget is on a different schedule, and is not typically approved until December or later. She said this can lead