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27 EXECUTIVE SUMMARY Page 14 Summary of the Board of Education's FY 2021-22 Recommended Budget The following narrative details the requests for increases to the FY 2021-22 Board of Education's budget which will be presented to the Board of County Commissioners in April 2021. It is broken up into two sections to provide details on the budget increases related to Continuation Costs and Expansion Requests. Student Data The District's budget process begins by carefully considering enrollment projections for the upcoming year. State enrollment projections ultimately determine both State and local funding levels. As of this writing, initial State projections indicate a student enrollment of 12,448. The District estimates 253 students are from out of district,therefore they cannot be counted for funding purposes. The District also estimates 156 students in charter schools within the District. These students must be added in for funding purposes. For this request's purposes, the estimated enrollment, net of these adjustments, is 12,351 Average Daily Membership (ADM). Continuation Budget The COVID-19 pandemic has created a high level of uncertainty in our economic future regarding federal, state, and local funding. Strong local funding support is required for CHCCS to improve upon high levels of service for all students. The foundation of that local support is found in the continuation portion of the Local Operating budget. This portion represents the expenses required to be able to continue providing the same level of services and quality of education in the upcoming fiscal year. Salaries and Wages $2,224,000 On March 24th the Governor released his proposed biennial budget that included several potential changes that would impact the District's budget. The Governor's budget included salary increases of 5.7% for Certified Staff and 5% for Classified Staff, which are both higher than the original 3%that the District included in the Superintendent's proposed budget. These increases will amount to a$818,615 increase for Certified salaries and a $814,600 increase for Classified salaries. This would also cause a needed increase of$590,000 to cover the Local Supplement. These potential changes create a total increase of$2,224,000 for salaries and wages in the Continuation Budget. Benefit Increases $1,87400 Federal and State legislation establishes employer-required matching rates and annual employer health insurance premiums. Together, these changes require adjustments to our local operational plan as the District must match salary increases for the local portion of teacher salary increases and for all locally-paid employees. The FICA rate is expected to remain at 7.65%,but to account for the 5%projected increase in classified salaries, the 5.7%projected increase in certified salaries, and all corresponding supplements, an increase of$125,000 is included for FICA matching. Using a simple linear regression on data from the previous 5 years, the District projected increases in the State Retirement Matching and Employer Health Insurance Costs for each employee. The regression projected an increase to 22.64% from 21.68% in the matching retirement rate and an increase to $6,791 from $6,647 for the Employer Health Insurance Cost of each employee. The resulting budget increases were $1,471,000 for State Retirement Matching and$278,000 for Employer Health Insurance Cost. Together, these combined increases matching benefits total $1,874,000. 00 Chapel Hill—Carrboro City Schools—FY 2021-22 Recommended Budget empower inspire