CFE agenda 01102022 - Laserfiche WebLink

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Budget Message We are currently experiencing unprecedented times in public education. The origins of this budget began in late 2019 while under significantly different economic conditions. Now, the economic landscape continues to shift underneath us. What we thought we could rely on is no longer, certain except for our unified commitment to quality education driven by our strategic plan as we work to empower, inspire, and engage our students. 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. This budget was developed using an adjusted enrollment projection of 12,227. The initial enrollment projection provided by the North Carolina Department of Public Instruction for the Fiscal Year(FY) 2020-21 was 12,312, a decrease of 43 from the prior year. As of March 2020, 166 students from the Chapel Hill - Carrboro City Schools area attended charter schools. Projections indicate an additional 251 students will attend CHCCS from other neighboring districts. In total, the estimated student enrollment differs from the State's estimate of 12,312 to 12,227 for the fiscal year 2020-2021. Continuation Budget Salaries and Wages The local budget resolution includes funding to provide for the Governor signing NC Senate Bill 818 on June 26, 2020. The adopted budget includes $587,500 to provide State mandated teacher step increases for locally funded teacher salaries and matching supplements. Step increases are pay scale levels which are based on teacher experience. For most teachers, the step-increase will equate to $1,000 annually. In order to reaffirm the District's commitment to compensate classified employees in compliance with the Orange County Living Wage, $230,000 is also allotted to address Orange County Living Wage compliance. This will ensure all District employees are paid at minimum in accordance with the updated FY 2020-21 Orange County Living Wage Rate of $14.90 per hour. The combined effect of these items will result in a net increase in salaries and wages in the local operating budget of$817,500. Benefit Increases 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. As a result of the salary increase of$817,500 the budget must also contain an increase of$62,500 in employer Social Security and Medicare matching expenses. For the FY 2020-21,legislation established the NC State retirement employer matching rate at 21.68%, increasing from the FY 2019-20 rate of 19.70%. This 1.98% increase in the matching rate must be applied to all covered local operating fund employee's wages. The incurred expense will be $466,000. Additionally, there will be a 5.4% increase to the employer-paid health insurance 2 empower inspire