Orange, Chapel Hill-Carrboro schools seek $8M more, as county braces for COVID-19 hit
Orange County taxpayers won’t see a tax increase next year, but the county’s two school districts are hoping the county can find over $8 million to hire teachers and staff, cover pay raises and parental leave, and offer breakfast to more students.
That’s not likely, at least two Orange County commissioners told members of the Chapel Hill-Carrboro and Orange County school boards Tuesday night. The districts are seeking extra money in their budgets for coronavirus-related needs, pay increases and more work to narrow the student equity gap. Orange County Schools also wants money to improve literacy.
The requests followed an update from County Manager Bonnie Hammersley, who said the county could lose at least $8 million in new revenues because of the coronavirus shutdown. The loss, if it doesn’t get worse, could leave the county with enough money to pay its current bills, she said, but little else.
Deputy County Manager Travis Myren clarified Wednesday that the pending county budget also will require some cuts to help pay for higher expenses that the county can’t control. These include the increased cost of employee retirement benefits, a $3 million increase in debt payments and maintenance contracts that already have been signed.
Commissioner Earl McKee said the county could be facing another 2008 recession at best and a 1929-style depression at worst. He and Commissioners Chair Penny Rich asked the school boards to consider how to get by with less money.
“Whether we are a wealthy county or not, we’ve got thousands of people out of work, and we have absolutely no idea what our sales (tax) figures are going to come in at. Right now, it looks pretty zeroed out,” Rich said.
“I also think what Earl is saying is when we talk about this (is) it’s not going to be months ... it’s going to be years, so we all do have to work together to make sure that we can get what we need,” Rich said. “But we also know that we cannot, in just good faith, at all, ask our residents to pay a five- to seven-cent increase in taxes right now.”
The county’s current tax rate is 86.79 cents per $100 of assessed property value, not including additional taxes paid by property owners in the towns and the Chapel Hill-Carrboro school district. Each additional penny on the tax rate would cost the owner of a $300,000 home another $30.
The coronavirus-related shutdown will take the largest chunk from sales taxes and property taxes, Hammersley said, but occupancy taxes and fees that help pay for salaries, services and programs also will take a hit.
County staff have been working since March to trim department budgets and sock away money for the new fiscal year that begins July 1, she said. The county also has a hiring freeze in place through next year. She will present her proposed 2020-21 budget to the commissioners on May 5.
Chapel Hill-Carrboro School Board member Rani Dasi and Vice Chair Amy Fowler said it will be easier to adjust their district’s budget after seeing the county’s proposal.
Hammersley expects next year’s budget to keep county spending at its current levels — roughly $225 million for county operations and construction needs. She dropped a 1.63-cent property tax rate increase that was expected to help repay school construction debt.
Orange County Schools
The Orange County Schools wants an additional $1.3 million to expand universal breakfast to every school, meet expected state-mandated pay increases of 5% for certified staff and 2% for other staff; pay increasing costs for employer benefits; and fund additional work to narrow the student achievement gap.
The district also has asked for another $1.4 million, in part, to help support student learning related to COVID-19; to support a pre-K dual language program; and to add four maintenance technicians; two school counselors, academically/intellectually gifted elementary school teachers and equity facilitators; and a Spanish translator, literacy director, and social and emotional learning coordinator.
An additional, one-time $1 million request would give all school staff a $1,000 bonus next year. Superintendent Monique Felder said she would not receive the bonus.
Here are the numbers:
▪ 2019-20 enrollment: 7,388 in-district public school students, 97 out-of-district students, and 843 charter school students
▪ 2020-21 projected enrollment: 7,381 in-district public school students, 110 out-of-district students, and 885 charter school students
▪ 2019-20 local operating budget: $35.4 million
▪ 2020-21 local operating budget request: $38.1 million (including $1.4 million for COVID-19 costs and new staff)
▪ Total requested increase: $2.7 million, or 7.1%
▪ 2019-20 local per pupil funding: $4,352.25
▪ 2020-21 local per pupil funding request: $4,673.25
▪ Total requested per-pupil increase: $321, or 7.38%
▪ 2020-21 capital budget request: $4 million, plus remaining bond money
▪ Special district tax: Orange County Schools does not have a special tax
Chapel Hill-Carrboro City Schools
The Chapel Hill-Carrboro City Schools district is asking for more money next year to cover state-mandated salary increases of 5% for certified staff and 2% for other staff, increased benefit costs, and an extra $78,000 to operate the expanded Chapel Hill High School.
The district is also asking for $2.67 million, in part, to offer paid parental and family leave, and to hire 26 teachers and teacher assistants to meet state-mandated K-3 class size reduction needs.
The school district will use nearly $2 million from its fund balance — money saved from previous budgets — to meet student and teacher challenges related to COVID-19 and to pay teacher bonuses earned through the Project Advance professional development program. The grant funding that paid for Project Advance will run out in June.
▪ 2019-20 enrollment: 12,355 in-district public school students, 250 out-of-district students, and 169 charter school students
▪ 2020-21 projected enrollment: 12,312 in-district public school students, 251 out-of-district students, and 166 charter school students
▪ 2019-20 local operating budget: $53.42 million
▪ 2020-21 local operating budget request: $59.58 million (including $2.67 million for new teachers and other pay and benefits)
▪ Total requested increase: $6.17 million, or 11.53%
▪ 2019-20 local per pupil funding: $4,352.25
▪ 2020-21 local per pupil funding request: $4,852.98
▪ Total requested per-pupil increase: $500.73, or 11.5%
▪ 2020-21 capital budget request: $3.43 million
▪ Special district tax: The tax currently is expected to bring in another $24.27 million each year; the county has the option of raising the school district tax, but no decision has been made
Durham Tech Orange County
Durham Technical Community College President Bill Ingram also presented the commissioners Tuesday night with next year’s operations and capital budget requests for the Orange County campus.
Durham Tech is seeking an extra $54,698 to operate the Hillsborough campus next year, for a total budget request of $777,954, or a 7.5% increase over this year’s budget.
The increase will help pay, in part, for a 2.5% increase in salaries and benefits for Durham Tech employees and higher costs for utilities, contract services, insurance, equipment and repairs.
The college also is asking for $75,000 toward construction needs, and another $200,000 to provide student tuition aid to Orange County students.
What’s next
The county manager will present her draft 2020-21 budget to the commissioners at 7 p.m. May 5.
Virtual public hearings on the budget are scheduled for 7 p.m. May 12 and 7 p.m. May 14. The commissioners are expected to approve the final budget by June 16.
The public can watch and listen to the commissioners’ meetings via real-time video streaming at tinyurl.com/rdyl73m and on Spectrum Cable channels 1301 or 97.6. Information about how to submit public comments or speak during the public hearings will be posted at a later date.
This story was originally published April 29, 2020 at 12:40 PM.
