Agenda - 02-12-2004-6 - Laserfiche WebLink

Browse Search

GDfA0(\ A PROPOSAL CONCERNING THE FUNDING DIFFERENCE BETWEEN THE ORANGE COUNTY AND CHAPEL HILL- CARRBORO CITY SCHOOL DISTRICTS AND THE ISSUE OF POSSIBLE MERGER Alice Gordon — December 9, 2003 After listening to discussions of the possible merger of the two school districts, I believe that compelling reasons have been offered to address the funding disparity between the two districts. The difference should at least be reduced or even totally eliminated. To eliminate the funding disparity, taxes in the Chapel Hill- Carrbom City School (CHCCS) district might go up a little. However, in the Orange County School (OCS) district, there would be a huge tax increase in comparison to the usual tax increases. This past year, for example, taxes went up 1,5 cents per $100 valuation, If the funding disparity had been entirely eliminated on July 1, 2003, countywide property taxes would have risen 20.8 cents per $100 valuation. That means the owner of a $200,000 house would have paid $416 more per year if the tax had been assessed all at once, Of course the more likely event would be that a countywide tax increase would be phased in over a period of years, while the CHCCS district tax would be reduced proportionately, It should be noted that the CHCCS district tax does not decrease the amount of funding allocated to the OCS. Each year the county allocates the same amount per pupil to both school districts and then the CHCCS district receives additional money from the supplemental district tax. Right now it appears that the majority of people in the OCS district would not want to pay significantly higher taxes than they are already paying. For example, the results of the November 2001 bond referendum showed that people in the CHCCS district voted 2 to 1 in favor of the bonds, while people in the OCS district voted 2 to 1 against. It would appear that a major obstacle to raising taxes in the OCS district is that a majority in that district would be opposed. However, in a merged system, a majority of people in the entire county might be in favor. The major reason for merger seems to be achieving equity in funding for the two school systems, a result that would require a huge tax increase in the OCS district, Moreover, there are significant tasks besides increasing OCS funding that must be completed in any merger plan, including decisions on the cornposition and election of a new school board. Therefore I support addressing the funding disparity, but I do not support merger. I also support voluntary collaboration between the two school districts to enhance educational programs and services. Before merger is contemplated, we need analyses of what is best for the children and how both systems would improve in a larger district. Right now both districts are among the best funded in the state and both offer very good educational programs under local control. Let us assume we can correct the funding disparity. Apart from the benefit to the OCS from increased funding, I am not aware of any studies or demonstrations that there would be increased educational benefits to the '/11