Orange County NC Website
99 <br /> EXECUTIVE SUMMARY Page 15 <br /> Estimated Local Operating Fund Revenue Changes <br /> The District's projections account for anticipated changes in revenue sources, including the <br /> Special District Tax. Current estimates indicate a $591,153 increase in revenue from this tax, <br /> reflecting a 2% growth in the tax base while assuming no changes to the current tax rate. <br /> Budgetary Consideration Impact <br /> Total Continuation Costs before Revenue Changes $ (3,676,390) <br /> Inflationary Special District Tax Revenue Increase 591,153 <br /> Total Continuation Need after Local Revenue Changes $ (3,085,237) <br /> Continuation Budget Summary <br /> The District's FY 2026-27 continuation budget reflects the cost required to maintain current <br /> service levels and educational standards prior to any structural or programmatic changes. Total <br /> continuation costs are estimated at $3,676,390, driven primarily by projected salary and wage <br /> increases of$1,837,274, which assume a 4% increase for all staff in the absence of an adopted <br /> State biennial budget. Required benefit adjustments total $1,115,633, including increases for <br /> FICA, Teachers' and State Employees' Retirement System(TSERS)matching, and employer- <br /> sponsored health insurance premiums. An additional $723,483 is attributed to a 4% inflationary <br /> adjustment for non-salary operating costs. After accounting for an estimated $591,153 increase <br /> in Special District Tax revenue, the net continuation need is reduced to $3,085,237. <br /> This continuation amount reflects a 5.5% increase in the County Appropriation for FY 2026-27, <br /> compared to an average annual increase of 3.91% over the past five fiscal years. With a <br /> conservative estimate of the county's appropriation increase of 3%, or an increase of$1,942,584, <br /> the remaining continuation need would be approximately $1,142,653. <br /> Expansion Request <br /> The Strategic Pivot for Realignment, Reinvestment, and Long-Term Sustainability <br /> The 2026-27 budget reflects CHCCS's commitment to Innovation and Reinvestment as a <br /> strategic lever for long-term strength and sustainability. In a rapidly changing educational <br /> landscape, incremental adjustments are not enough. We must intentionally reinvest in models, <br /> programs, and systems that expand opportunity, strengthen enrollment, and position our district <br /> to thrive,while remaining grounded in our shared values of equity, sustainability, and <br /> excellence. <br /> Innovation and Reinvestment is not about isolated initiatives; it is about setting direction. This <br /> lever focuses on how we design future-ready learning environments, modernize instructional and <br /> operational practices, and strategically reallocate resources to areas of highest impact. It <br /> challenges us to examine current investments, discontinue approaches that no longer meet our <br /> goals, and redirect funding, staffing, and time toward strategies that better serve students and <br /> families. <br /> Through thoughtful reinvestment, CHCCS commits to elevating student experience, <br /> strengthening community confidence, and ensuring that every dollar advances both immediate <br /> needs and long-term opportunity. By aligning innovation with fiscal responsibility, this budget <br /> Chapel Hill—Carrboro City Schools—FY 2026-27 Board of Education's Budget Request <br />