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16 <br /> 1 Commissioner McKee said that he would not want to follow the report simply because of <br /> 2 how much it cost. <br /> 3 Commissioner Richards said the definitions are clear. She said if they end up using the <br /> 4 money for regular maintenance or smaller projects, that is not in line with the principles or <br /> 5 definitions. She said the sequencing could change but they must agree that the definition of a <br /> 6 high priority project is necessary. <br /> 7 Commissioner Fowler said Woolpert were the experts, and they were engaged with school <br /> 8 staff and went to every site. She said it is not about sunk costs, but the schools should have been <br /> 9 engaged in the process. <br /> 10 Chair Bedford asked for information on how lottery proceeds are distributed to the school <br /> 11 districts. <br /> 12 Kirk Vaughn said there are three funding streams from lottery proceeds and each have <br /> 13 their own rules. He said that 2 of 3, the state allocates to the school districts by average daily <br /> 14 membership (ADM). He said there is a third that is needs based, and each project is applied for <br /> 15 to the state. He said they do not usually score well on the state need application, but they do try <br /> 16 to pull as much lottery funds as they can. <br /> 17 Commissioner Hamilton said she likes seeing the high level of detail on funding sources <br /> 18 and asked that they be included. <br /> 19 Kirk Vaughn said those referred to sales tax articles and are used to pay down debt. <br /> 20 Commissioner Hamilton said it would be helpful to include that detail, so it is clear where <br /> 21 the revenue goes. <br /> 22 Travis Myren said it would not currently show that some portion of Article 42 is dedicated <br /> 23 to school debt service although far more is dedicated than required by law. <br /> 24 Kirk Vaughn said that Orange County easily exceeds the amount required by the state. <br /> 25 He said that in Durham County, they used a fund strategy. <br /> 26 Travis Myren said they can look into that but if the budget book is opened today, it would <br /> 27 not show sales tax dollars to education. <br /> 28 Commissioner Hamilton said that the policy states that article 42 and the half cent sales <br /> 29 tax is a source of funds for county and school debt service. <br /> 30 Commissioner Richards said it would have to be parsed out and shown as part of the <br /> 31 source of funds. <br /> 32 <br /> 33 Slide #5 <br /> ALLOCATION BETWEEN DISTRICTS <br /> • Based on June 4th Adopted Funding Framework. <br /> Major Projects R High Priority Needs-Collectively <br /> funded at 59.86% to CHCCS and 40.14% to OCS over <br /> 10-year period. Funding in individual years could vary <br /> based on project needs. <br /> — Future Boards could decide to continue this allocation percentage, <br /> commission an updated needs assessment to update percentage,or <br /> revert to ADM. <br /> • Other Capital Uses- Both funded on variations of <br /> budgeted ADM each year,Article 46 excluding Charter <br /> Students, Recurring Capital including them. <br /> OPANGE COUNTY <br /> NOWF H(AROLINA <br /> 34 <br />