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Budget Work Session

Orange County · Board of County Commissioners
Thursday, May 15, 2025

Work session Budget and appropriationsSchools and educationBonds and debtGrants and outside fundingHealth and human servicesParks and recreationTax rate and revaluation

Agenda document Minutes Watch Meeting recap

What's on this agenda

Orange County commissioners took up outside agency and education funding at their 15 May 2025 budget work session, the first look at those parts of the manager's recommended budget. Outside agency funding is recommended at $800,146. Per-pupil current expense funding would rise from $5,666 to $5,877, Durham Tech's current expense by 3 percent, and the ten-year capital window carries $549.9 million of school projects.

Summarized from the published agenda. Read the agenda itself before acting on it.

Meeting recap

What happened, drawn from the records published after the meeting. Minutes

School capital dominated the evening because of what it does to the tax rate. Staff put the pay-go and debt effect of the recommended plan at about 3.5 cents on the rate before operations are considered: 1.07 cents plus 2.42 cents, funding $10 million a year of school capital starting next year rather than this one. Under an alternative that delays three major projects, $15.8 million would not be available for high priority school needs. The vice-chair said she did not want pay-go in year one because of the revaluation, calling it a perfect storm of tax situations, while saying plainly that investing in schools requires higher taxes.

Both districts are projecting enrolment decreases, and the recurring capital formula no longer counts charter students, though the districts still have to pass per-pupil money to charters. Chapel Hill-Carrboro remains $1.8 million short on its continuation budget; the recommended figure assumes a 3 percent raise against the state senate's 2.3 percent, and staff did not have the difference to hand.

On a school board proposal at Millhouse Road, commissioners were broadly open to expanding soccer facilities and to joint use of a larger gym with a recreation department, while noting it would take $5 million out of the capital plan. The county holds a right of first refusal on surplus school land, which currently generates no tax. Members of the Orange County school board present said the site is inside the Mebane city limits.

On outside agencies, a commissioner raised Chapel Hill's decision to change its process and drop in-person interviews with agencies, saying he wanted to avoid siloing the review of agencies that draw money from several sources.

How the votes went

No votes beyond adjournment, which was unanimous. This was a work session.

From the published minutes.

Speaking at this meeting

Orange County's own rules for public comment — check them before you rely on anything here.

Agenda items (4)

Discussion item · 4
  1. 1 Discussion Regarding Outside Agencies Funding for FY 2025-26
    Discussion item Budget and appropriationsGrants and outside fundingHealth and human services
    Outside agency funding recommended at $800,146. Chapel Hill took part in the human services recommendation but changed its process and did not interview agencies in person, which drew a commissioner's concern about a fragmented review.
  2. 2 Durham Technical Community College - Orange County Campus FY 2025-26 Operating Budget
    Discussion item Budget and appropriationsSchools and education
    A 3 percent increase to current expense, alongside Article 46 sales tax money.
  3. 3 Chapel Hill-Carrboro City Schools FY 2025-26 Operating and Capital Budget
    Discussion item Budget and appropriationsSchools and education
    Per-pupil current expense rises from $5,666 to $5,877. The district remains $1.8 million short on continuation, and the figure assumes a 3 percent raise against the senate's 2.3 percent. Enrolment is projected to fall.
  4. 4 Orange County Schools FY 2025-26 Operating and Capital Budget
    Discussion item Bonds and debtBudget and appropriationsParks and recreationSchools and educationTax rate and revaluation
    The ten-year window holds $549.9 million of school capital. Pay-go and debt together imply about 3.5 cents on the tax rate before operations. Commissioners discussed a Millhouse Road proposal to expand soccer facilities and share a larger gym with a recreation department, which would take $5 million out of the capital plan.

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