By Susan Dickson
Staff Writer
Chapel Hill-Carrboro and Orange County schools superintendents Neil Pedersen and Shirley Carraway warned that the school districts could see major cuts if they don’t receive funds requested in their annual budgets.
The Chapel Hill-Carrboro and Orange County boards of education met with the Board of County Commissioners on Monday night for a joint work session.
The Board of County Commissioners has said it hopes to limit this year’s tax increase to equal the amount of debt-service payment increases. The county’s annual debt payments equal about $23.4 million — $17.6 million for school facilities and $5.8 million for county facilities, according to county budget director Donna Coffey.
Board of commissioners chair Moses Carey said the school boards should prepare for the possibility of receiving smaller budgets than those requested.
“I think you’re wise to have those discussions about scenarios that might be possible,†he told school board members. “They’re real.â€
He added that the commissioners are trying to limit the tax increase because the county increased the tax rate six cents in each of the last two years.
According to county and school budget estimates, a one cent Chapel Hill-Carrboro district tax rate increase would generate about $790,000 in additional revenue, while a one cent county general fund property tax rate increase would generate about $1.2 million.
Pedersen said he was concerned because about $5 million of his $7.2 million requested budget would fund anticipated salary increases mandated by the state, the cost of opening Carrboro High School and fixed costs such as utilities.
“We are very apprehensive about the bind that we’re all in,†he said. “We are putting together some serious meetings about how we reduce our budget.â€
“I think everybody’s tried to keep everyone informed, but as I learn more about the tax situation … I think we’re all in a bind and I don’t think there are any easy answers out of this,†he continued.
Carraway said that if Orange County schools did not receive the money the board requested, the schools would actually have less money per student because of an increase in the number of students, with Gravelly Hill Middle School’s eighth-grade class opening in the fall.
“We’re going to be identifying a list of things that we’re going to have to cut,†she said. “The majority of that will be people.â€
“If we don’t get the money, we’re going to have to cut, and our cuts will be people cuts,†she continued.
Chapel Hill-Carrboro board member Mike Kelley questioned how the county accrued its debt. “I would like to understand, and I think there are other people who would like to understand, how we came to this point.â€
Commissioner Barry Jacobs said escalating construction costs and other factors increased the county’s debt.
“If you think about the cost increase between the time that we planned Carrboro High School, Gravelly Hill Middle School and Elementary No. 10, it’s probably about $10 million behind what was anticipated,†he said.
“My sense is that this was a confluence of circumstances,†Jacobs continued.
Carey encouraged both boards to identify potential cuts and to inform the public. “You have to be transparent, you have to let people know,†he said. However, he added, “We will always do the best we can.â€