Task force announces formula options to aid county-school budget disputes

• Click here to view the Fiscal Task Force's final report.

The NCACC Board of Directors approved during its May 19 meeting in Raleigh a set of recommendations designed to help county and school officials avoid destructive budget disputes and focus on providing for the educational needs of children.

The 2003-04 Fiscal Task Force, which was charged by President Noah Woods in October 2003 with exploring means of alleviating budget disputes, described in its final report a changing state elementary and secondary system that is being pulled by the federal No Child Left Behind mandate, the adjudication of the Leandro lawsuit, and an evolving economy.

Caldwell County Commissioner John Thuss, who co-chaired the task force with former Association President Moses Carey of Orange County, stressed the need for improved communications and understanding between boards of county commissioners and local school boards.

The task force authored seven items for inclusion within its general policy, which supports:

• Provision of education resources via state revenues;
• Full federal funding of the No Child Left Behind mandate;
• Amendments to the Dispute Resolution Process in the School Budget and Fiscal Control Act to reduce public controversy between county and school officials;
• A “serious examination” by the General Assembly – with the involvement of county officials – of the current state/local revenue structure and its adequacy in meeting education needs;
• Additional revenue resources – including supplemental school taxes and impact fees – for counties to fund construction and expenses;
• Greater effort by both commissioners and local boards of education to engage in meaningful communication for better understanding and clarity between the two groups;
• And consideration of six “local funding formula options” to reduce “the likelihood, frequency and intensity of local budget disputes.”

The task force based three formula options – the Statewide Average, Modified Statewide Average and Benchmarking models – on averages that are affected by external factors or funding from other levels of government. Those three formula options are tailored for counties in “catch-up” mode. The other three options – the Inflation, Snapshot and Tax Base Growth models – are based on historical internal calculations.

The Statewide Average and Modified Statewide Average models base goals on a statewide average per pupil expenditure. The Benchmarking Model looks at counties similar in population and other factors and sets goals based on those counties’ per pupil expenditure.

The Inflation Model adjusts the previous year’s expenditure for student growth and a predetermined inflation figure. The Snapshot Model determines what portion of overall revenue is used for schools at a given point in time, then grows that portion as overall revenues expand. The final model – Tax Base Growth – involves calculating the percentage of the tax base appropriated for schools, then applying that percentage to growth of the tax base and adding that number to expenditures on schools.