Re: School funding: Integrity, accountability and follow-through

[Jamezetta Bedford]

George,

On behalf of the BOCC, I want to clear up some confusion from the posted budget amendment regarding Pay-Go funding plans for schools. 

Stating the basics first:

Pay-Go is not debt income, but rather ad valorem property tax income.  It is also reported in the capital budget since it will be used for large facility costs. 

The county manager's recommended budget includes a 1.94 cent tax increase to fund $6.4Million for school capital expected to for design for the first projects for both OCS and CHCCS.

During the BOCC retreat of January 2024, after receiving the Woolpert study, the agenda included discussion of a variety of options for both county facility and school facility 10 year funding plans with a variety of bond levels and Pay-Go. The minutes reflect Options A through G. http://server3.co.orange.nc.us:8088/weblink/0/doc/72020/Page1.aspx

Pay-Go is much more costly than bond funding, but it provides flexibility. At all times, across many many meetings, the BOCC has valued this flexibility and ultimately adopted a $300 M school bond resolution and a plan to spend $10M over 10 years = $100M of Pay-Go. The Pay-Go would provide design and project management and would be sustained past the 10 year CIP window to fund major projects and maintenance for the schools. 

With the very high property re-evaluations (average about 52% residential), many residents face very high tax bills at the reset revenue neutral rate. (My county taxes go up about $540 before any new tax increase or Pay-Go.) Residents have spoken out at each business meeting and public hearing about their concerns of being displaced and unable to pay their taxes since the property value notices were sent in March. The BOCC is balancing that need with the plan for school facilities, a social safety net, health and safety,  and finds that the Pay-Go option is indeed providing needed flexibility options. 

The BOCC asked the budget director to provide us three additional scenarios to reduce the 1.94 cent increase via the Pay-Go. (note there is also a 1.01 cent tax increase for operations which includes the schools and county. County personnel will receive a 2% wage increase.) 

The proposed amendment reduces the 1.94 cents to .15 cents. 

It does not delay the first projects for either school district. 

It keeps $500,000 vs $6.4 million funded as Pay-Go for design. However there is also $6M of debt funding for design work. There is also a phase in of $6M in year 2 and finally in year 3 Pay-Go attains the desired $10M.   

Overall total Pay-Go is reduced by $9.9Million.

For a total $400 million plan, the reduction is 2.475%.  I believe that the BOCC will pass this amendment next Thursday. 

I believe the BOCC is balancing the needs of the long time residents with our mandatory facility responsibilities for schools as best we can. 

There is no breach of public trust. This has been discussed repeatedly throughout the budget process at the BOCC work sessions. 

I attach minutes from the November 14, 2024 collaboration meeting. See page 2 Questions/Additions. This is the first time that I can find where I specifically, as BOCC Chair, inform you that the BOCC is backing off of promising 6 major projects. I have repeated this numerous times. I suggest strongly that the school board take this seriously and that CHCCS stop promising the public 3 new schools. If any school board members need copies of prior sets of minutes, just let me know. 

We look forward to next steps when each school district will present their first project for approval. If you would like county staff and commissioners to present to your school board about the school facilities plans, the new facilities policies, etc, we would be glad to do so. You can call me on my cell at 919-360-9498 at most hours. Other commissioners have their phone numbers on the county website. Call us when you have questions, please. 

Others, teachers and parents, spoke last night about the need to increase the operating budget for CHCCS and for OCS. Some residents spoke about the need for home repairs for the elderly with low fixed incomes. Some spoke about funding for conservation easements and environmental protection. I had tears in my eyes when a daughter spoke about how it took 9 months to get a ramp installed for her elderly mother. The BOCC is balancing the needs across the county. 

Sincerely,

Jamezetta  

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From: George Griffin <ggri...@chccs.k12.nc.us>
Sent: Thursday, May 29, 2025 3:43 PM
To: ALL_BOCC_MANAGER_CLERK <OCB...@orangecountync.gov>
Cc: All Board Members <allboar...@chccs.k12.nc.us>
Subject: School funding: Integrity, accountability and follow-through

 

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Dear Chair Bedford and Members of the Board of County Commissioners:

As Chair of the Chapel Hill-Carrboro City Schools Board of Education, I am writing to express strong opposition to the proposed amendment (CIP-B14A sponsored by Commissioners Carter, Portie-Ascott, Hamilton and McKee) that would significantly cut nearly $10 million in school capital Pay-As-You-Go (Pay-Go) funding within the FY 2025-2035 Capital Investment Plan. This is, frankly, a stunning development that has not been properly communicated to our Board or the public, after years of productive collaboration and community engagement to address our school needs.

The proposed amendment, which delays full funding until Year 3, results in a net reduction of $9.9 million over the ten-year life of the plan. Such a shift, impacting both CHCCS and Orange County Schools (OCS), undercuts the collaborative planning and design timeline necessary to implement the 2024 school bond projects efficiently and equitably. What’s worse, it erodes public trust. 

As you know, the plan communicated to Orange County voters in the summer and fall of 2024 set forth a critical commitment to phasing-in $10 million annually ($100 million total) in Pay-Go funds to support the planning, design, and project management of essential school construction projects and ongoing major maintenance needs. This investment, when paired with the $300 million of bond financing to build new schools, represented a forward-thinking and fiscally responsible approach to address the urgent and growing facility needs of CHCCS and OCS. Unlike bond funds, which are finite and designated for specific new school construction projects, Pay-Go funding provides a flexible, renewable stream of resources that can be directed toward emerging priorities, preventive maintenance, and smaller-scale but critical repairs at ALL schools. Without it, Chapel Hill-Carrboro City Schools faces a growing backlog of maintenance issues, increased reliance on emergency repairs, and further deterioration of aging facilities. 

Moreover, reducing or walking-back the Pay-Go commitment after securing public approval for the bond damages our collective credibility. Residents who voted in favor of the bond package in November 2024 did so with the understanding that it was part of a comprehensive, multi-pronged funding strategy. Weakening the Pay-Go component creates the perception of a “bait-and-switch” where voters feel they were promised one thing but delivered another. This not only undermines future public engagement efforts but also the integrity of our collaborative long-term planning efforts.

In short, sustaining the Pay-Go plan in full is essential; not just as a financial mechanism, but as a statement of integrity, accountability, and follow-through. It is a moral imperative and a vital investment in the future of Orange County’s children, schools, and community. We recognize that the tax increase required to support this level of investment is significant; however, it was publicly understood from the outset that such an increase would be necessary to fund this historic and long-overdue investment in school capital needs. The voters overwhelmingly said ‘yes’. 

Thank you for your partnership and continued support of public education. We remain committed to working together to achieve sustainable and equitable outcomes for all students.

Sincerely,

Dr. George Griffin
Chair, Board of Education
Chapel Hill-Carrboro City Schools

George Griffin, PhD Chair, Board of Education  Chapel Hill-Carrboro City Schools  919.306.2924  www.chccs.org ggri...@chccs.k12.nc.us  750 S Merritt MIll Road, Chapel Hill, NC 27516

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