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Alamance-Burlington School System

Board of Education FY 2007 Budget Request School Board Mr. Tom Manning Chairman Mrs. Brenda Foster Vice Chairman Mr. Todd Baker Mrs. Jackie Cole Mrs. Gayle Gunn Ms. Mary Alice Hinshaw Mr. Steve Van Pelt Administration Dr. James G. Merrill Superintendent Vacant Assistant Superintendent for Curriculum Vacant Assistant Superintendent of Administration Mr. Ronnie Wall Assistant Superintendent for Facilities Mr. Farrell E. Hanzaker Assistant Superintendent for Personnel and Finance Ms. Sandra M. Tinsley Executive Director of Finance Mr. Steve Partin Finance Coordinator

Alamance-Burlington School System 1712 Vaughn Road

Burlington, North Carolina 27217 336-570-6060

www.abss.k12.nc.us

The Alamance-Burlington School System does not discriminate in employment or in its educational programs and activities against

qualified individuals with disabilities, nor on the basis of age, gender, race, color, religion, or national origin.

Alamance-Burlington School System Board of Education FY 2007 Budget Request

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The FY 2007 Proposed Budget Document The FY 2007 Alamance-Burlington School System’s proposed budget document’s format presents the school system’s budget and attendant information in an organized and comprehensive document to facilitate the reader’s knowledge of the school system’s budget development, management, and processes in addition to the numerical information contained in previous years and expanded in this document. The document’s format conforms to the standards set forth by the Association of School Business Officials International’s Meritorious Budget Award program. The document contains the four major sections listed and defined below. The Introductory Section includes the table of contents and relates to an overall view of the FY 2007 proposed budget through the budget message. The Organizational Section describes the school system’s management organization and explains the various budgetary processes, structure, and management policies. The Financial Section includes budget data by both summary and detail level for school division funds. The Supplemental Information Section includes the following information of interest to school division employees and the community at large:

Alamance-Burlington School System 2006-2007 School Year Calendar Student Membership Profiles of Student Achievement ABCs of Individual Schools Adequate Yearly Progress Report End-of-Grade Results End-of-Course Results SAT Profile-College Bound Seniors High School Graduation Rates Student Dropout Rates

Staff Survey Parent Survey Per Pupil Expenditure History School System Personnel Summary Teacher Experience Levels Comparison of Teacher Salary Supplement Teacher Turnover Rates Local Tax Information Glossary of Terms

Alamance-Burlington Board of Education

Mr. Thomas K.Manning

Chairperson

Mrs. Brenda Brown-Foster

Vice Chairperson

Mr. Todd Baker Mrs. Jackie Cole Mrs. Gayle Gunn

Ms. Mary AliceHinshaw

Mr. Steve Van Pelt Dr. James G. MerrillSuperintendent

and Board Secretary

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Table of Contents

Introductory Section

Table of Contents 4 Board of Education Approval 5 Budget Message 5 No Child Left Behind Legislation 7

Organizational Section

Section Introduction 9 Organization and Management The School System 10 The Board of Education 10 Direction of the School System 11 School System Administration 11

Financial Organization 12 Budget Development Process 13 Budget Calendar 13 Description of Financial Structure 14 Budget Administration 15 Budget and Financial Policies 16

Financial Section

Section Introduction 23 Budget at a Glance 24 Summary of All Funds 25 Operating Fund Introduction 26 Revenue Summary 27 County Appropriation 28 State Revenues 29 Federal Revenues 30 Funding Reported as Local 31 Appropriated Fund Balance 32

State & Federal Expenditures 33 Local Operating Fund Expenditures 33 Proposed Local Increases 34 Expenditures by Program 36 Capital Outlay Funds Summary 38 Recurring Capital 39 Recurring Capital History 39 Capital Improvements Plan 40 2004 Bond Referendum 41 Other Funds 42

Supplemental Information Section

Section Introduction 49 Alamance-Burlington School System 50 2006-2007 School Year Calendar 51 Student Membership 52 Profiles of Student Achievement ABCs of Individual Schools 53 Adequate Yearly Progress Report 54 End-of-Grade Results 55 End-of-Course Results 56 SAT Profile-College Bound Seniors 57 High School Graduation Rates 58

Student Dropout Rates 58 Customer Surveys Staff Survey 59 Parent Survey 62 Per Pupil Expenditure History 66 Personnel Summary 67 Teachers by Years of Experience 68 Teacher Salary Supplement Comparison 69 Teacher Turnover Rates 70 Local Tax Information 71 Glossary of Terms 74


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Board of Education Approval

The Alamance-Burlington Board of Education adopted the fiscal year 2007 proposed budget as submitted by the Superintendent at its regular meeting on April 24, 2006, for submission to the Alamance County Board of Commissioners for approval.

Budget Message The Alamance-Burlington School System’s proposed budget for 2006-2007 highlights and summarizes our financial plan for the coming year and is based on our commitment to academic excellence and success for all students.

Our financial plan must also reflect the requirements of the No Child Left Behind Act that has far reaching fiscal and accountability implications (see the following two pages for a description of this new federal legislation). The budget request reflects our community’s expectations of our school system, our mission, the legislative requirements, mandatory increases and some priority expansion items. The Mandatory Increases category reflects the large dollars of required funding to meet ongoing base-budget expenses such as legislative salary increases, increased utility costs, and increased health insurance and matching employer retirement costs. The expansion items are listed in priority order. The majority of the funding requested in this category reflects recommendations relating the implementation of a new comprehensive instruction program at Cummings High School. The second item reflects the restoration of Zonal Athletic funds. Our budget and the strategic allocation of those resources have a major impact on academic progress. We continue to improve in student achievement and accountability measures as shown in this document within the Supplemental Information Section. In addition, our parents continue to indicate their opinions of improved satisfaction of our schools as evidenced by our 2005 Customer Survey results. Of the 58 questions asked, the system-wide results indicated improvements in 42 (72.4%) areas. Satisfaction ratings for schools and the school system also increased. Parent satisfaction with their school (rating of good or excellent) is 84.9%. Parent satisfaction with the school system (rating of good or excellent) is 74.9%.

Our budget request for 2006-2007 for the local operating fund will require an increase in the county’s appropriation of $1,827,156, an increase of 6.9% over the current year’s appropriation for mandatory expense increases. This mandatory increase is related to a growing student population, state increases in salaries estimated at 5% for certified staff and 3% for non-certified staff, matching retirement rates, increased health insurance costs, and increased utility costs (which increased over 15% this during this year), as well as a projected increase in pass-through dollars for charter schools. The expansion request for additional county dollars is $746,980 or an increase of 2.8% for a cumulative increase of 9.7%. The major portion of this category is the funds needed to implement the new comprehensive instructional program at Cummings High School. The minor portion of this category is for the restoration of Zonal Athletic funds.


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Budget Message (Continued) The preliminary state budget information given to us by the NC Department of Public Instruction as a planning allotment indicates projected legislative salary increases of 5% for certified employees and 3% for non-certified employees and a continuation of a $750 per year salary increase for certified employees that was legislated this past year and funded in October (we must pick up costs of local positions for 2006-07). Our school system absorbed state cuts of over $688,000 in the current school year, and any future cuts in state funding would result in a very significant impact on our budget, programs, and services. The capital outlay budget reflects our short-term capital improvements, major repairs and renovations, vehicle and equipment additions or replacements. Our request in the capital recurring fund is $1,100,000. This budget request contains the next year of the Capital Improvement Plan (CIP) with 75% of funding from the State Public School Building Capital (PSBC) fund and a 25% local match in the amount of $306,250. For the first time since 2001, we are proposing an increase in the price of meals (25 cents) in our Child Nutrition Program. The price of food and almost every category of expense has increased in double digits this year as a result of escalating oil prices. This document includes supplemental information, statistics, and charts that provide useful information about our budget request and our school system. In addition, through this document, the Board of Education is fulfilling one of its major responsibilities of informing county leaders and the general public of the needs of our school system.


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No Child Left Behind Legislation

No Child Left Behind (NCLB), signed into federal law by President Bush in 2002, is having a tremendous impact on North Carolina’s public schools and schools across the country. The legislation represents the largest ever expansion of involvement in K-12 education by the federal government. The law was designed around the idea that not all students are making the academic progress they need to make in order to become successful adults. NCLB strives for each student to be proficient in reading and mathematics by the 2013-14 school year. The state has set incremental percentage goals based on 2001-02 data and what it will take to get to 100 percent proficiency by 2013-14. Adequate Yearly Progress (AYP) made toward the 2013-14 goal will be measured in terms of student subgroups for a school, district or state. The same target goals will apply to all subgroups in all schools across the state. Those subgroups are the 1) school as a whole; 2) white; 3) black; 4) Native American; 5) Asian/Pacific Islander; 6) Hispanic; 7) multiracial; 8) limited English proficient; 9) students with disabilities; and 10) economically disadvantaged students. If even one student subgroup in one subject does not make its targeted goal, then the whole school and district are considered as not making AYP.

NCLB and ABCs In North Carolina In addition to measuring schools according to standards set under No Child Left Behind (NCLB), the State Board of Education remains committed to the ABCs of Public Education. Both the ABCs and NCLB require reading and mathematics assessments for students in Grades 3-8. NCLB requires that students in high school be tested at least once in reading and mathematics, so North Carolina has reinstated the Comprehensive Tests of Reading and Mathematics for Grade 10. Science assessments will be required at various grade levels by 2007-08. North Carolina will

conduct science testing for Grades 5 and 8 and use the End-of-Course biology test to fulfill the high school requirement. The state has already set standards for learning in science at all grade levels as part of the North Carolina Standard Course of Study. The National Assessment of Educational Progress (NAEP) will be required of every state on a biennial basis beginning in 2002-03. Both the ABCs and No Child Left Behind hold high standards for academic achievement as their cornerstone, but they measure progress toward reaching that goal differently. The ABCs model measures student growth looking at the percentage of students proficient from one year to the next, but it is not broken down into subgroups. NCLB compares scores at the same grade levels within subgroups from one year to the next. In North Carolina, progress will be reported for the ABCs accountability model and for NCLB. It is possible that a school might do well in the ABCs accountability model and fail to meet standards for NCLB’s Adequate Yearly Progress. For instance, a school could be meeting expected growth or even high growth standards under the ABCs and 80 percent or more of the students could be scoring at Level III proficiency or higher. If even one subgroup in one subject scores below the expected percentage proficiency set for AYP, however, that school would be considered as not meeting NCLB standards.

School Communication And Involvement All schools are required to keep parents informed of the school’s Adequate Yearly Progress as well as the level of achievement of their child in each of the state academic assessments. The School Report Cards include important information about the performance, class size and teacher quality of each public and charter school in North Carolina, providing access to critical indicators of school quality and


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No Child Left Behind Legislation (continued)

achievement. Parents may request information concerning their child’s teacher’s or paraprofessional’s qualifications. Title I schools must provide parents with certain information and opportunities for school improvement participation. (A parent representative elected by the parent/teacher organization at the school must sit on the School Improvement Team in all public schools under the ABCs.) NCLB school planning includes writing a school parent involvement policy and informing all parents of the policy, offering flexible parent involvement meetings, and involving parents in planning, reviewing, and improving school programs.

Teachers and Paraprofessionals Must Meet NCLB Standards

The new federal law has requirements affecting standards of quality for all of our teachers that they must meet by June 30, 2006. Paraprofessionals (usually teacher assistants) working in Title I schools have to meet new standards by Jan. 8, 2006. Under NCLB, “highly qualified” for teachers means that public elementary and secondary teachers teaching core academic subjects must be fully licensed or certified by the state and must not have had any certification or licensure requirements waived on an emergency, temporary or provisional basis. In 2002, North Carolina had 5,137 teachers with national certification, more than any other state in the country. More than 33 percent of our state’s teachers hold

master’s degrees. However, about 30 percent of our 85,817 classroom teachers lack the credentials required by NCLB. The state must begin reporting its progress to the federal government regarding having all teachers meet NCLB’s definition of “highly qualified” by June 30, 2006.

NCLB and Local Schools Two factors will determine, for the most part, how local schools are affected by NCLB: 1) whether or not the school makes AYP; and 2) whether or not the school receives Title I funding. Each summer, school standings under No Child Left Behind will be announced for the school year just concluded with a more detailed report in the fall when ABCs results are also released. What happens next with a school, if it fails to make AYP standards, depends on whether or not it receives Title I funding. Schools receiving Title I money that fail to make AYP for two consecutive years must offer all students enrolled the opportunity to transfer to another school in the school system that has met AYP. Schools failing to make AYP for three consecutive years must offer tutoring services outside the normal school day to students on free or reduced lunch. These sanctions for schools not making AYP increase in severity each year. Restructuring, the most severe of the sanctions, only occurs if schools fail to make AYP for six consecutive years.


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Organizational Section Introduction

The Organizational Section of the FY 2007 Proposed Budget document

describes the Alamance-Burlington School System’s organizational and management structure, the school system’s mission statement, and various policies and procedures which govern the budget management process. The narrative which describes the organizational and management structure includes an overview of the school system, lists of the Board of Education and the Administrative Leadership Team, the direction of the school system, and the various components of budget administration and accounting management.

Section Contents

Section Introduction 9 Organization and Management The School System 10 The Alamance-Burlington Board of Education 10 Direction of the School System--Mission Statement 11 School System Administration 11 Financial Organization 12 Budget Development Process 13 Budget Calendar 13 Financial Structure 14 Budget Administration and Management 15 Budget and Financial Policies 16


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The School System

The Alamance-Burlington School System operates as a fiscally dependent agency of the Alamance County Commissioners to provide a free and appropriate education to the children of the county’s residents. The five-member Alamance County Board of Commissioners is charged by state law to appropriate funds for the operation of the school system’s local operating budget. The school system will operate a total of 33 school buildings for its projected 22,134 students in grades kindergarten through twelve in 2006-2007. The school system’s students reside within the boundaries of Alamance County, North Carolina. The Alamance-Burlington School System is governed by an elected seven-member Board of Education, which is responsible for the school system’s financial matters. As a financially dependent entity, the Board of Education is required by state law and county policy to maintain financial statements in accordance with generally accepted accounting principles and to abide with those laws and policies that determine fiscal accountability. The Board of Education appoints the Superintendent of Schools. The Superintendent is responsible for the day-to-day operations of the school system. The school system’s organizational chart is included within this section and presents the structure of administrative positions in the Alamance-Burlington School System.

The Alamance-Burlington Board of Education

Mr. Tom Manning Chairman

Mrs. Brenda Foster

Vice Chairman

Mr. Todd Baker

Mrs. Jackie Cole

Mrs. Gayle Gunn

Ms. Mary Alice Hinshaw

Mr. Steve Van Pelt


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Direction of the School System

Below is the adopted mission statement of the Alamance-Burlington Board of Education. The FY 2007 School Budget Request supports this mission statement in each of the areas mentioned.

MISSION STATEMENT

The mission of the Alamance-Burlington School System is to educate all students to

meet high academic standards and to prepare all students to be responsible citizens in a complex, changing world, which is accomplished through

▪ Safe and supportive learning environments for staff and students ▪ Successful instructional practices which recognize the diversity of our students and

community ▪ Purposeful training of all staff resulting in a high performing work force ▪ Efficient and effective use of fiscal and human resources ▪ Parental involvement for student success ▪ Community input, feedback, and support ▪ Improved communication and trust among all constituents of the community

School System Administration

Dr. James G. Merrill Superintendent

Vacant Vacant Assistant Superintendent for Curriculum Assistant Superintendent of Administration Mr. Farrell E. Hanzaker Mr. Ronnie Wall Assistant Superintendent for Personnel and Finance Assistant Superintendent for Facilities

Ms. Sandra M. Tinsley Executive Director of Finance

Mr. Steve Partin

Finance Coordinator


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Financial Organization Legal Authority The Alamance-Burlington School System is a comprehensive school district serving the students and citizens of Alamance County. The school system is committed to providing the highest quality educational opportunities to its students while maintaining fiscal responsibility and accountability. The Board of Education is responsible for adopting policies which guide the Superintendent and administrative staff in the management of day-to-day operation of the school system. The Board of Education is responsible for budget review, but it is not a tax-levying body and must submit its annual budget to the Alamance County Board of Commissioners which controls the allocation of local funds to the school system. The State of North Carolina provides funding for basic educational programs, and local funds are used to supplement these programs. Fund Accounting The financial accounts of the school system are organized on the basis of funds, each of which is considered a separate accounting entity. School system resources are allocated to and accounted for in these individual funds based upon the purpose for which they are to be expended and the means by which spending activities are controlled in compliance with legal provisions. The school system’s budgeting and accounting systems include the following funds: The State Public School Fund is used to account for the revenues and expenditures allocated for education purposes by the State Board of Education. These funds are expended according to the provisions of state statutes. This is a special revenue fund. The Local Operating Fund is used to account for the revenues and expenditures allocated for educational purposes by all financial resources other than those in the other funds. Revenue sources include appropriations by the Board of County Commissioners, state funds allocated directly to the school system, and other funds made available to the school system for current operating expenses. This is a general revenue fund. The Federal Grant Fund is used to account for the revenues and expenditures allocated for educational purposes of federal government categorical grants by the State Department of Public Instruction and other grants made directly to the school system. This is a special revenue fund.

The Capital Outlay Fund is used to account for the revenues and expenditures allocated for the school system’s acquisition of fixed assets and construction of major capital projects. Sources of revenue for this fund are local county government appropriations, proceeds from the sale of school construction bonds and certain state assistance. The Child Nutrition Fund and the Day Care Fund are used to account for the revenues and expenditures for the school food services and day care services provided to students and parents. These funds are enterprise funds.

Basis of Accounting Basis of accounting refers to the timing of recognition of revenues and expenditures in the accounts and in the financial statements, regardless of measurement focus. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable fiduciary funds are accounted for using a current financial resources measurement focus; that is, only current assets and current liabilities generally are included on the balance sheets. Statements of these funds present increases (revenues and other financial sources) and decreases (expenditures and other financial uses) in net current assets. The Modified Accrual Basis of Accounting is followed for all governmental type funds and fiduciary type funds of the school system. Revenues are recognized in the accounting period in which they become susceptible to accrual, that is, both measurable (the amount of the transaction can be determined) and available (the amount is collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period). Expenditures, other than long-term debt and the long-term portion of accumulated sick and vacation pay, are recorded when the liability is incurred. The Accrual Basis of Accounting is utilized by the proprietary type funds. Revenues are recognized when earned, and expenses are recognized when goods and services are received whether or not cash disbursements are made at the time.

Alamance-Burlington School System FY 2006 Superintendent’s Budget Request

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The Budget Development Process

The FY 2007 Proposed Budget was developed through the input of school system administrators, school principals and staff, and citizens. It is the product of months of work to assure that the educational and support programs of the school system continue to provide the students of Alamance County superior educational opportunities while providing a safe and secure environment for learning. The school system continues to face the challenges of providing space for a growing student population, maintaining quality educational programs, the repair and renewal of aging school buildings, hiring and retaining quality instructional and support personnel, and improving employee compensation to remain competitive with surrounding school systems and private business.

FY 2007 Budget Development and Approval Calendar January 2006 ◦Initial budget call issued to schools and administrators February/March 2006 ◦Budget input from school and administrators received ◦Administrative Staff budget work sessions ◦Consolidate information and formulate draft budget plan ◦Receive initial State forecast allotments April 2006 ◦Presentation of Proposed Budget to Board of Education ◦Revise budget as requested by Board of Education ◦Public hearing on proposed budget ◦Board of Education budget work sessions ◦Board of Education Approval of Proposed Budget May 2006 ◦Submit budget to County Commissioners ◦Meeting with County Commissioners to present budget ◦County Commissioners’ public hearing June 2006 ◦Approval of budget by County Commissioners


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Financial Structure

In 1975 the General Assembly enacted a law requiring a uniform accounting system for all local school administrative units. The minimum requirements for the accounting code structure include four components (fields) for the code: fund, function, program reporting and object. These fields make it possible for meaningful analysis of financial data to provide appropriate management and decision making at all levels. The school system’s Department of Finance, with the direction of the Board of Education and the Superintendent, is responsible for the fiscal operations of the school system including budget development and management, maintenance of the accounting system, payment of bills, payroll, and the receipt and posting of all revenues. The budgeting and accounting systems of the school system are organized and operated on the basis of self-balancing accounts, which comprise its assets, liabilities and fund balances, revenues and expenditures as appropriate. The school system’s budget is maintained by fund, function, program, object and location code levels. This structure permits the accurate and appropriate tracking of revenues and expenditures for the requirements of the school system, required state reporting and audit purposes. The school system’s budget is composed of six separate funds to record assets and liabilities for specific purposes: 1 State Public School Fund 4 Capital Outlay Fund 2 Local Operating Fund 5 Child Nutrition Fund 3 Federal Grant Fund 6 Day Care Fund The fund budgets are comprised of individual program budgets (PRCs) that include line item expenditures (object codes). Within each of these program budgets are function and location sub-program codes that provide additional detail for the tracking of expenditures for the school system.

Object codes indicate the service or the commodity obtained as a result of a specific expenditure. The major object code categories are

100 Salaries 200 Employee Benefits 300 Purchased Services 400 Supplies and Materials 500 Capital Outlay 600 Other Non-Categorical Objects 700 Transfers

Each revenue and expenditure code includes a function (or purpose) code designation to permit the analysis of expenditures for similar reasons. Function designations are assigned by the state. The current function codes used by the school system are 5100 Regular Instructional Programs 5200 Special Instructional Programs 5300 Adult Educational Programs 5400 Co-Curricular Educational Programs 5700 Vocational Education Programs 5810 Educational Media Programs 5820 Attendance & Social Work Services 5830 Guidance Services 5840 Health Services 5850 Psychological Services 5860 Speech Pathology/Audiology Services 5900 Other Instructional Programs 6100 Pupil Support Services 6210 Improvement of Instruction 6250 Curriculum Development 6310 Board of Education 6320 Executive Administration 6330 General Administration 6410 Office of the Principal 6420 School Resource Officer Services 6510 Business Support Services 6520 Fiscal Services 6530 Facilities Acquisition & Construction 6540 Operation of Plant 6550 Transportation of Pupils 6560 Child Nutrition 6580 Maintenance of Plant 6640 Personnel Services 6670 Technology Support Services 7100 Regular Community Services 8000 Other Non-Programmed Services 9000 Capital Outlay Projects Some of the function codes listed have sub-function level codes to permit more detailed tracking of expenditures. Location codes for all schools and central administration are used to track the location of expenditures.


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Budget Administration and Management Process

Budget administration and management are processes of monitoring revenues and expenditures throughout the fiscal year. Revenues are monitored to ensure that anticipated receipts are received, posted to appropriate codes within the financial system and deposited. Adjustments to revenue budgets are made as necessary. Expenditures are monitored to preclude budgeted amounts are not exceeded and that funds are expended for intended, appropriate and legal purposes. Monitoring of both revenues and expenditures on summary levels is a continuous activity of the Finance Department.

Revenues The school system receives revenues from federal, state and county sources as well as from fees and tuition payments for some specific programs such as summer school. Revenue estimates for the fiscal year are completed through cooperative planning between the Finance Department and the appropriate program administrators. State and federal revenues are promulgated at the state level and are transmitted to the local school division as adjustments are made. State and federal revenues are posted to the school system’s financial system as payments from these sources are paid. The state Department of Public Instruction monitors all expenditures made to state and federal programs, and, if approved, deposits the funds into the school system’s state account. County and other locally based revenues are received as checks or cash and are posted and deposited on a daily basis. Monthly statements of state and federal revenues are received from the state treasurer’s office and are reconciled each month by the Finance Department.

Expenditures

Although each program administrator is responsible for the maintenance of the program budget, the Finance Department has the overall monitoring responsibility for all expenditures of the school system. Both the program administrator and the Finance Department monitor expenditures to preclude exceeding budgeted amounts. Expenditures include all payroll and benefits payments for employees as well as the accounts payables to vendors for all materials, supplies and contracted services. Program managers receive monthly statements from the Finance Department. The financial system is updated daily to provide accurate information concerning all expenditures. Program administrators may reallocate budgeted funds within their program budgets through coordination with the Finance Department. Reallocation requests are submitted in writing to the Finance Officer for approval and processing.

Reporting The school system prepares annual financial statements to report the results of all funds under the Board of Education’s authorization. This report is completed by an independent outside auditing firm that reports its findings directly to the Board of Education.


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Budget and Financial Policies

The Alamance-Burlington School System adheres to both School Board and state policies in the preparation, monitoring and reporting of its budget for each fiscal year. On the following pages are the governing policies for budget and financial management within the school system and the state of North Carolina public schools.

School Board Policy 7.01

General Statement on Financial Operations Responsibility for management of the financial affairs of the school system shall be vested in the superintendent of schools and may be delegated by the superintendent to members of his/her staff. The finance division functioning under the direct supervision of the finance officer shall be responsible for collecting and disbursing public funds in accordance with applicable state and federal laws and regulations. The budgeting, accounting and auditing procedures shall be such that records of appropriations, revenues, and expenditures are readily available to enable the Board and administrators to evaluate the financial operation of all aspects of the school system. In the conduct of its financial operations, the school system is committed to high standards of performance, and its records are available for public inspection.


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North Carolina General Assembly General Statutes

Chapter 115C - Elementary and Secondary Education. Article 31- The School Budget and Fiscal Control Act

Part 2 - Budget

§ 115C-425. Annual balanced budget resolution. (a) Each local school administrative unit shall operate under an annual balanced budget resolution adopted and administered in accordance with this Article. A budget resolution is balanced when the sum of estimated net revenues and appropriated fund balances is equal to appropriations. Appropriated fund balance in any fund shall not exceed the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred revenues arising from cash receipts, as those figures stand at the close of the fiscal year next preceding the budget year. The budget resolution shall cover one fiscal year. (b) It is the intent of this Article that all moneys received and expended by a local school administrative unit should be included in the school budget resolution. Therefore, notwithstanding any other provisions of law, after July 1, 1976, no local school administrative unit may expend any moneys, regardless of their source (including moneys derived from federal, State, or private sources), except in accordance with a budget resolution adopted pursuant to this Article. (c) Subsection (b) of this section does not apply to funds of individual schools, as defined in G.S. 115C-448. (1975, c. 437, s. 1; 1981, c. 423, s. 1; 1993, c. 179, s. 1.) § 115C-426. Uniform budget format. (a) The State Board of Education, in cooperation with the Local Government Commission, shall cause to be prepared and promulgated a standard budget format for use by local school administrative units throughout the State. (b) The uniform budget format shall be organized so as to facilitate accomplishment of the following objectives: (i) to enable the board of education and the board of county commissioners to make the local educational and local fiscal policies embodied therein; (ii) to control and facilitate the fiscal management of the local school administrative unit during the fiscal year; and (iii) to facilitate the gathering of accurate and reliable fiscal data on the operation of the public school system throughout the State. (c) The uniform budget format shall require the following funds:

(1) The State Public School Fund (2) The local current expense fund (3) The capital outlay fund

In addition, other funds may be required to account for trust funds, federal grants restricted as to use, and special programs. Each local school administrative

unit shall maintain those funds shown in the uniform budget format that are applicable to its operations. (d) The State Public School Fund shall include appropriations for the current operating expenses of the public school system from moneys made available to the local school administrative unit by the State Board of Education. (e) The local current expense fund shall include appropriations sufficient, when added to appropriations from the State Public School Fund, for the current operating expense of the public school system in conformity with the educational goals and policies of the State and the local board of education, within the financial resources and consistent with the fiscal policies of the board of county commissioners. These appropriations shall be funded by revenues accruing to the local school administrative unit by virtue of Article IX, Sec. 7 of the Constitution, moneys made available to the local school administrative unit by the board of county commissioners, supplemental taxes levied by or on behalf of the local school administrative unit pursuant to a local act or G.S. 115C-501 to 115C-511, State money disbursed directly to the local school administrative unit, and other moneys made available or accruing to the local school administrative unit for the current operating expenses of the public school system. (f) The capital outlay fund shall include appropriations for: (1) The acquisition of real property for school purposes, including but not limited to school sites, playgrounds, athletic fields, administrative headquarters, and garages. (2) The acquisition, construction, reconstruction, enlargement, renovation, or replacement of buildings and other structures, including but not limited to buildings for classrooms and laboratories, physical and vocational educational purposes, libraries, auditoriums, gymnasiums, administrative offices, storage, and vehicle maintenance. (3) The acquisition or replacement of furniture and furnishings, instructional apparatus, data-processing equipment, business machines, and similar items of furnishings and equipment. (4) The acquisition of school buses as additions to the fleet. (5) The acquisition of activity buses and other motor vehicles. (6) Such other objects of expenditure as may be assigned to the capital outlay fund by the uniform budget format.


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The School Budget and Fiscal Control Act (continued) The cost of acquiring or constructing a new building, or reconstructing, enlarging, or renovating an existing building, shall include the cost of all real property and interests in real property, and all plants, works, appurtenances, structures, facilities, furnishings, machinery, and equipment necessary or useful in connection therewith; financing charges; the cost of plans, specifications, studies, reports, and surveys; legal expenses; and all other costs necessary or incidental to the construction, reconstruction, enlargement, or renovation. No contract for the purchase of a site shall be executed nor any funds expended therefore without the approval of the board of county commissioners as to the amount to be spent for the site; and in case of a disagreement between a board of education and a board of county commissioners as to the amount to be spent for the site, the procedure provided in G.S. 115C-431 shall, insofar as the same may be applicable, be used to settle the disagreement. Appropriations in the capital outlay fund shall be funded by revenues made available for capital outlay purposes by the State Board of Education and the board of county commissioners, supplemental taxes levied by or on behalf of the local school administrative unit pursuant to a local act or G.S. 115C-501 to 115C-511, the proceeds of the sale of capital assets, the proceeds of claims against fire and casualty insurance policies, and other sources. (g) Other funds shall include appropriations for such purposes funded from such sources as may be prescribed by the uniform budget format. (1975, c. 437, s. 1; 1981, c. 423, s. 1.) § 115C-426.1. Vending facilities. Moneys received by a local school administrative unit on account of operation of vending facilities shall be deposited, budgeted, appropriated, and expended in accordance with the provisions of this Article. (1983 (Reg. Sess., 1984), c. 1034, s. 168.) § 115C-426.2. Joint planning. In order to promote greater mutual understanding of immediate and long-term budgetary issues and constraints affecting public schools and county governments, local boards of education and boards of county commissioners are strongly encouraged to conduct periodic joint meetings during each fiscal year. In particular, the boards are encouraged to assess the school capital outlay needs, to develop and update a joint five-year plan for meeting those needs, and to consider this plan in the preparation and approval of each year’s budget under this Article. (1995 (Reg. Sess., 1996), c. 666, s. 2.)

§ 115C-427. Preparation and submission of budget and budget message. (a) Before the close of each fiscal year, the superintendent shall prepare a budget for the ensuing year for consideration by the board of education. The budget shall comply in all respects with the limitations imposed by G.S. 115C-432. (b) The budget, together with a budget message, shall be submitted to the board of education not later than May 1. The budget and budget message should, but need not, be submitted at a formal meeting of the board. The budget message should contain a concise explanation of the educational goals fixed by the budget for the budget year, should set forth the reasons for stated changes from the previous year in program goals, programs, and appropriation levels, and should explain any major changes in educational or fiscal policy. (1975, c. 437, s. 1; 1981, c. 423, s. 1.) § 115C-428. Filing and publication of the budget; budget hearing. (a) On the same day that he submits the budget to the board of education, the superintendent shall file a copy of it in his office where it shall remain available for public inspection until the budget resolution is adopted. He may also publish a statement in a newspaper qualified under G.S. 1-597 to publish legal advertisements in the county that the budget has been submitted to the board of education, and is available for public inspection in the office of the superintendent of schools. The statement should also give notice of the time and place of the budget hearing authorized by subsection (b) of this section. (b) Before submitting the budget to the board of county commissioners, the board of education may hold a public hearing at which time any persons who wish to be heard on the school budget may appear. (1975, c. 437, s. 1; 1981, c. 423, s. 1.) § 115C-429. Approval of budget; submission to county commissioners; commissioners’ action on budget. (a) Upon receiving the budget from the superintendent and following the public hearing authorized by G.S. 115C-428(b), if one is held, the board of education shall consider the budget, make such changes therein as it deems advisable, and submit the entire budget as approved by the board of education to the board of county commissioners not later than May 15, or such later date as may be fixed by the board of county commissioners.


19

The School Budget and Fiscal Control Act (continued)

(b) The board of county commissioners shall complete its action on the school budget on or before July 1, or such later date as may be agreeable to the board of education. The commissioners shall determine the amount of county revenues to be appropriated in the county budget ordinance to the local school administrative unit for the budget year. The board of county commissioners may, in its discretion, allocate part or all of its appropriation by purpose, function, or project as defined in the uniform budget format. (c) The board of county commissioners shall have full authority to call for, and the board of education shall have the duty to make available to the board of county commissioners, upon request, all books, records, audit reports, and other information bearing on the financial operation of the local school administrative unit. (d) Nothing in this Article shall be construed to place a duty on the board of commissioners to fund a deficit incurred by a local school administrative unit through failure of the unit to comply with the provisions of this Article or rules and regulations issued pursuant hereto, or to provide moneys lost through misapplication of moneys by a bonded officer, employee or agent of the local school administrative unit when the amount of the fidelity bond required by the board of education was manifestly insufficient. (1975, c. 437, s. 1; 1981, c. 423, s. 1.) § 115C-430. Apportionment of county appropriations among local school administrative units. If there is more than one local school administrative unit in a county, all appropriations by the county to the local current expense funds of the units, except appropriations funded by supplemental taxes levied less than countywide membership of each unit. County appropriations are properly apportioned when the dollar amount obtained by dividing the amount so appropriated to each unit by the total membership of the unit is the same for each unit. The total membership of the local school administrative unit is the unit’s average daily membership for the budget year to be determined by and certified to the unit and the board of county commissioners by the State Board of Education. (1975, c. 437, s. 1; 1981, c. 423, s. 1; 1985 (Reg. Sess., 1986), c. 1014, s. 78.) § 115C-431. Procedure for resolution of dispute between board of education and board of county commissioners. (a) If the board of education determines that the amount of money appropriated to the local current expense fund, or the capital outlay fund, or both, by

the board of county commissioners is not sufficient to support a system of free public schools, the chairman of the board of education and the chairman of the board of county commissioners shall arrange a joint meeting of the two boards to be held within seven days after the day of the county commissioners’ decision on the school appropriations. Prior to the joint meeting, the Senior Resident Superior Court Judge shall appoint a mediator unless the boards agree to jointly select a mediator. The mediator shall preside at the joint meeting and shall act as a neutral facilitator of disclosures of factual information, statements of positions and contentions, and efforts to negotiate an agreement settling the boards’ differences. At the joint meeting, the entire school budget shall be considered carefully and judiciously, and the two boards shall make a good-faith attempt to resolve the differences that have arisen between them. (b) If no agreement is reached at the joint meeting of the two boards, the mediator shall, at the request of either board, commence a mediation immediately or within a reasonable period of time. The mediation shall be held in accordance with rules and standards of conduct adopted under Chapter 7A of the General Statutes governing mediated settlement conferences but modified as appropriate and suitable to the resolution of the particular issues in disagreement. Unless otherwise agreed upon by both boards, the following individuals shall constitute the two working groups empowered to represent their respective boards during the mediation: (1) The chair of each board or the chair’s designee; (2) The superintendent of the local school administrative unit and the county manager or either’s designee; (3) The finance officer of each board; and (4) The attorney for each board. Members of both boards, their chairs, and representatives shall cooperate with and respond to all reasonable requests of the mediator to participate in the mediation. Notwithstanding Article 33C of Chapter 143 of the General Statutes, the mediation proceedings involving the two working groups shall be conducted in private. Evidence of statements made and conduct occurring in a mediation are not subject to discovery and are inadmissible in any court action. However, no evidence otherwise discoverable is inadmissible merely because it is presented or discussed in a mediation. The mediator shall not be compelled to testify or produce evidence concerning statements made and conduct occurring in a mediation in any civil proceeding for any purpose, except


20

School Budget and Fiscal Control Act (continued)

disciplinary hearings before the State Bar or any agency established to enforce standards of conduct for mediators. Reports by members of either working group to their respective boards shall be made in compliance with Article 33C of Chapter 143 of the General Statutes. Unless both boards agree otherwise, or unless the boards have already resolved their dispute, the mediation shall end no later than August 1. The mediator shall have the authority to determine that an impasse exists and to discontinue the mediation. The mediation may continue beyond August 1 provided both boards agree. If both boards agree to continue the mediation beyond August 1, the board of county commissioners shall appropriate to the local school administrative unit for deposit in the local current expense fund a sum of money sufficient to equal the local contribution to this fund for the previous year. If the working groups reach a proposed agreement, the terms and conditions must be approved by each board. If no agreement is reached, the mediator shall announce that fact to the chairs of both boards, the Senior Resident Superior Court Judge, and the public. The mediator shall not disclose any other information about the mediation. The mediator shall not make any recommendations or public statement of findings or conclusions. The local board of education and the board of county commissioners shall share equally the mediator’s compensation and expenses. The mediator’s compensation shall be determined according to rules adopted under Chapter 7A of the General Statutes. (c) Within five days after an announcement of no agreement by the mediator, the local board of education may file an action in the superior court division of the General Court of Justice. The court shall find the facts as to the amount of money necessary to maintain a system of free public schools, and the amount of money needed from the county to make up this total. Either board has the right to have the issues of fact tried by a jury. When a jury trial is demanded, the cause shall be set for the first succeeding term of the superior court in the county, and shall take precedence over all other business of the court. However, if the judge presiding certifies to the Chief Justice of the Supreme Court, either before or during the term, that because of the accumulation of other business, the public interest will be best served by not trying the cause at the term next succeeding the filing of the action, the Chief Justice shall immediately call a special term of the superior court for the county, to convene as soon as possible, and assign a judge of the superior court or an emergency judge to hold the court, and the cause shall be tried at this special term. The issue submitted to the jury shall

be what amount of money is needed from sources under the control of the board of county commissioners to maintain a system of free public schools. All findings of fact in the superior court, whether found by the judge or a jury, shall be conclusive. When the facts have been found, the court shall give judgment ordering the board of county commissioners to appropriate a sum certain to the local school administrative unit, and to levy such taxes on property as may be necessary to make up this sum when added to other revenues available for the purpose. (d) If an appeal is taken to the appellate division of the General Court of Justice, and if such an appeal would result in a delay beyond a reasonable time for levying taxes for the year, the judge shall order the board of county commissioners to appropriate to the local school administrative unit for deposit in the local current expense fund a sum of money sufficient when added to all other moneys available to that fund to equal the amount of this fund for the previous year. All papers and records relating to the case shall be considered a part of the record on appeal. (e) If, in an action filed under this section, the final judgment of the General Court of Justice is rendered after the due date prescribed by law for property taxes, the board of county commissioners is authorized to levy such supplementary taxes as may be required by the judgment, notwithstanding any other provisions of law with respect to the time for doing acts necessary to a property tax levy. Upon making a supplementary levy under this subsection, the board of county commissioners shall designate the person who is to compute and prepare the supplementary tax receipts and records for all such taxes. Upon delivering the supplementary tax receipts to the tax collector, the board of county commissioners shall proceed as provided in G.S. 105-321. The due date of supplementary taxes levied under this subsection is the date of the levy, and the taxes may be paid at par or face amount at any time before the one hundred and twentieth day after the due date. On or after the one hundred and twentieth day and before the one hundred and fiftieth day from the due date there shall be added to the taxes interest at the rate of two percent (2%). On or after the one hundred and fiftieth day from the due date, there shall be added to the taxes, in addition to the two percent (2%) provided above, interest at the rate of three-fourths of one percent (3/4 of 1%) per 30 days or fraction thereof until the taxes plus interest have been paid. No discounts for prepayment of supplementary taxes levied under this subsection shall be allowed. (1975, c. 437, s. 1; 1981, c. 423, s. 1; 1989, c. 493, s. 2; 1995 (Reg. Sess., 1996), c. 666, s. 3; 1997-222, s. 1.)


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§ 115C-432. The budget resolution; adoption; limitation; tax levy; filing. (a) After the board of county commissioners has made its appropriations to the local school administrative unit, or after the appeal procedure set out in G.S. 115C-431 has been concluded, the board of education shall adopt a budget resolution making appropriations for the budget year in such sums as the board may deem sufficient and proper. The budget resolution shall conform to the uniform budget format established by the State Board of Education. (b) The following directions and limitations shall bind the board of education in adopting the budget resolution: (1) If the county budget ordinance allocates appropriations to the local school administrative unit pursuant to G.S. 115C-429(b), the school budget resolution shall conform to that allocation. The budget resolution may be amended to change allocated appropriations only in accordance with G.S. 115C-433. (2) Subject to the provisions of G.S. 115C-429(d), the full amount of any lawful deficit from the prior fiscal year shall be appropriated. (3) Contingency appropriations in a fund may not exceed five percent (5%) of the total of all other appropriations in that fund. Each expenditure to be charged against a contingency appropriation shall be authorized by resolution of the board of education, which resolution shall be deemed an amendment to the budget resolution, not subject to G.S. 115C-429(b) and 115C-433(b), setting up or increasing an appropriation for the object of expenditure authorized. The board of education may authorize the superintendent to authorize expenditures from contingency appropriations subject to such limitations and procedures as it may prescribe. Any such expenditure shall be reported to the board of education at its next regular meeting and recorded in the minutes. (4) Sufficient funds to meet the amounts to be paid during the fiscal year under continuing contracts previously entered into shall be appropriated. (5) The sum of estimated net revenues and appropriated fund balances in each fund shall be equal to appropriations in that fund. (6) No appropriation may be made that would require the levy of supplemental taxes pursuant to a local act or G.S. 115C-501 to 115C-511 in excess of the rate of tax approved by the voters, or the expenditure of revenues for purposes not permitted by law. (7) In estimating revenues to be realized from the levy of school supplemental taxes pursuant to a local act or G.S. 115C-501 to 115C-511, the estimated

percentage of collection may not exceed the percentage of that tax actually realized in cash during the preceding fiscal year, or if the tax was not levied in the preceding fiscal year, the percentage of the general county tax levy actually realized in cash during the preceding fiscal year. (8) Amounts to be realized from collection of supplemental taxes levied in prior fiscal years shall be included in estimated revenues. (9) No appropriation may be made to or from the capital outlay fund to or from any other fund, except as permitted by G.S. 115C-433(d). (c) If the local school administrative unit levies its own supplemental taxes pursuant to a local act, the budget resolution shall make the appropriate tax levy in accordance with the local act, and the board of education shall notify the county or city that collects the levy in accordance with G.S. 159-14. (d) The budget resolution shall be entered in the minutes of the board of education, and within five days after adoption, copies thereof shall be filed with the superintendent, the school finance officer and the county finance officer. (1975, c. 437, s. 1; 1981, c. 423, s. 1; 1987 (Reg. Sess., 1988), c. 1025, s. 13; 1993, c. 57, s. 1.) § 115C-433. Amendments to the budget resolution; budget transfers. (a) Subject to the provisions of subsection (b) of this section, the board of education may amend the budget resolution at any time after its adoption, in any manner, so long as the resolution as amended continues to satisfy the requirements of G.S. 115C-425 and 115C-432. (b) If the board of county commissioners allocates part or all of its appropriations pursuant to G.S. 115C-429(b), the board of education must obtain the approval of the board of county commissioners for an amendment to the budget that (i) increases or decreases expenditures from the capital outlay fund for projects listed in G.S. 115C-426(f)(1) or (2), or (ii) increases or decreases the amount of county appropriation allocated to a purpose or function by twenty-five percent (25%) or more from the amount contained in the budget ordinance adopted by the board of county commissioners: Provided, that at its discretion, the board may in its budget ordinance specify a lesser percentage, so long as such percentage is not less than ten percent (10%). (c) The board of education may by appropriate resolution authorize the superintendent to transfer moneys from one appropriation to another within the same fund, subject to such limitations and procedures as may be prescribed by the board of education or State or federal law or regulations. Any such transfers


22


shall be reported to the board of education at its next regular meeting and shall be entered in the minutes. (d) The board of education may amend the budget to transfer money to or from the capital outlay fund to or from any other fund, with the approval of the board of county commissioners, to meet emergencies unforeseen and unforeseeable at the time the budget resolution was adopted. When such an emergency arises, the board of education may adopt a resolution requesting approval from the board of commissioners for the transfer of a specified amount of money to or from the capital outlay fund to or from some other fund. The resolution shall state the nature of the emergency, why the emergency was not foreseen and was not foreseeable when the budget resolution was adopted, what specific objects of expenditure will be added or increased as a result of the transfer, and what objects of expenditure will be eliminated or reduced as a result of the transfer. A certified copy of this resolution shall be transmitted to the board of county commissioners for (its) approval and to the boards of education of all other local school administrative units in the county for their information. The board of commissioners shall act upon the request within 30 days after it is received by the clerk to the board of commissioners or the chairman of the board of commissioners, after having afforded the boards of education of all other local school administrative units in the county an opportunity

to comment on the request. The board of commissioners may either approve or disapprove the request as presented. Upon either approving or disapproving the request, the board of commissioners shall forthwith so notify the board of education making the request and any other board of education that exercised its right to comment thereon. Upon receiving such notification, the board of education may proceed to amend the budget resolution in the manner indicated in the request. Failure of the board of county commissioners to act within the time allowed for approval or disapproval shall be deemed approval of the request. The time limit for action by the board of county commissioners may be extended by mutual agreement of the board of county commissioners and the board of education making the request. A budget resolution amended in accordance with this subsection need not comply with G.S. 115C-430. (1975, c. 437, s. 1; 1981, c. 423, s. 1.) § 115C-434. Interim budget. In case the adoption of the budget resolution is delayed until after July 1, the board of education shall make interim appropriations for the purpose of paying salaries and the usual ordinary expenses of the local school administrative unit for the interval between the beginning of the fiscal year and the adoption of the budget resolution. Interim appropriations so made and expended shall be charged to the proper appropriations in the budget resolution. (1975, c. 437, s. 1; 1981, c. 423, s. 1.)


23

Financial Section Introduction

The Financial Section of the FY 2007 Proposed Budget presents the fiscal plan at summary and detail levels. The Alamance-Burlington Board of Education approves the school system’s budget at the function level within fund. Fund budgets permit the school system to accurately account for the revenues and expenditures at a summary level. School system resources are allocated to and accounted for in these individual funds based on the purpose for which they are to be spent and the means by which spending activities are controlled.

Section Contents

Section Introduction 23 Budget at a Glance 24 Summary of County Appropriations 24 Summary of All Funds 25 Operating Fund

Introduction 26 Revenues Summary 27 County Appropriation 28

State Revenues 29 Federal Revenues 30 Funding Reported as Local 31 Appropriated Fund Balance 32

Expenditures State & Federal Expenditures 33 Local Program Expenditures 33 Proposed Local Funding Increases 34 Proposed Local Expenditures by Program 36

Capital Outlay Fund Summary 38 Recurring Capital Appropriation 39 Recurring Capital Appropriation History 39 Capital Improvement Projects 40 Bond Projects 41 Other Funds Summary 42 Child Nutrition Fund 43 Day Care Fund 43 Debt Service 44 Bond Amortization Schedules 45


24

Budget at a Glance

Expenditure Highlights

● The 2006-2007 proposed operating budget totals $152

million.

● $818,493 to fund a five percent increase for locally-paid certified personnel

● $233,510 to fund a three percent increase for locally-paid non-certified employees.

● $111,675 to fund the state mandated increase of $750 to certified employees during FY 2006.

● $34,511 for a 3.0% increase in health insurance costs.

● $41,000 is included to provide pass-through funds for additional charter school students.

● $739,000 for increased costs of utilities and high bandwith services.

● $551,980 for a comprehensive instructional program at Cummings High School.

● $120,000 to restore zonal athletic funding.

● $75,000 for high school registration expansion.

Revenue Highlights ● The 2006-2007 requested county appropriation for the

operating fund is $28.9 million, an increase of $2.6 million over the current year’s appropriation.

● Increase in county appropriation for local operating

budget is $2,499,136 or 9.4%. ● 68.5% of the total operating fund budget is funded from

the state. ● 19.0% of the total operating fund budget is funded by the

county appropriation. ● 7.2% of the total operating fund budget is funded by

federal programs. ● A decrease of $751,334 in the use of fund balance is

budgeted for FY 2007.

Summary of Requested County Funding

FY 2006 FY 2007 Increase/ Approved Proposed (Decrease) Operating Fund 26,466,238 29,040,374 2,574,136 Capital Funds: Recurring Capital 1,000,000 1,100,000 100,000 Capital Improvement Plan 275,000 306,250 31,250 Totals 27,741,238 30,446,624 2,705,386


25

Summary of All School System Funds

The Alamance-Burlington School System receives revenue from state, county and federal sources. Revenue from the state supports the basic instructional program provided by the school system. The Alamance County Board of Commissioners appropriates a portion of its general fund to the school system to fund the system’s educational and support programs and activities.

Operating Fund

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Increase Actual Actual Actual Approved Proposed (Decrease)

County Appropriation 23,422,820 24,234,939 24,939,398 26,466,238 29,040,374 2,574,136 State Revenues 86,952,431 89,126,395 93,232,174 96,433,672 104,205,759 7,772,087 Federal Revenues 6,764,374 9,491,869 9,949,135 9,622,057 10,934,930 1,312,873 Other Local Funds 5,395,017 6,719,274 6,087,485 5,516,290 5,619,916 103,626 Budgeted Fund Balance 2,391,079 2,311,740 2,311,740 3,106,740 2,355,406 (751,334) Total Operating Fund 124,925,721 131,884,217 136,519,932 141,144,997 152,156,385 11,011,388

FY 2007 Operating Fund Revenues

Federal

7.3%

Other Local

3.7%

Fund Balance

1.5%

State

68.5%County

Appropriation

19.0%

Other School System Funds

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Increase Actual Actual Actual Approved Proposed (Decrease)

Recurring Capital 930,977 1,240,000 1,289,600 1,000,000 1,100,000 100,000 Capital Improvement Plan 1,065,550 1,434,650 1,282,305 1,100,000 1,225,000 125,000 Technology Plan 0 0 0 300,000 0 (300,000) Bond Proceeds 0 0 0 36,532,163 28,741,288 (7,790,875) Child Nutrition 9,520,680 10,449,000 10,041,500 9,998,200 10,608,600 610,400 Day Care 1,090,000 1,220,300 1,220,300 1,220,300 1,220,300 0 Total Other Funds 12,607,207 14,343,950 13,833,705 50,150,663 42,895,188 (7,255,475) Grand Total - All Funds 137,532,928 146,228,167 150,035,637 191,295,660 195,051,573 3,755,913


26

Operating Fund

The Operating Fund is utilized by the Alamance-Burlington School System to account for the revenues and expenditures necessary for the day-to-day operation of the school system. Revenues are received from federal, state and county sources. Tuitions and fees for some programs are collected to partially offset costs of those programs.

The school system’s operating fund is maintained with three major funds: state funded programs, locally funded programs and federally funded programs. This organization provides for the accurate accounting of expenditures by funding source as required by state statutes. This section is organized through the exhibits of the revenues for the Operating Fund and then the exhibits of the expenditures. Both revenues and expenditures are presented in summary first and then by the detailed exhibits.

Section Contents

Section Introduction 26 Revenues

Revenue Summary 27 County Appropriation 28 State Revenues 29 Federal Revenues 30 Funding Reported as Local 31 Appropriated Fund Balance 32

Expenditures State & Federal Program Expenditures 33 Local Program Expenditures 33

Proposed Local Funding Increases 34 Proposed Local Funding Increases by Program 36


27

Revenue Summary

The Alamance-Burlington School System receives revenue from state, county and federal sources. Revenue from the state supports the basic instructional program provided by the school system. The Alamance County Board of Commissioners appropriates a portion of its general fund to the school system to fund the system’s educational and support programs and activities. Federal revenues fund the school system’s federal grant programs and are revenue-expenditure neutral. The school system also receives funds from sources considered to be of a local nature: these sources include tuitions and fees, ABC profits, earned interest and the use of fund balance.

Operating Fund Revenues FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Increase Actual Actual Actual Approved Proposed (Decrease) County Appropriation 23,422,820 24,234,939 24,939,398 26,466,238 29,040,374 2,574,136 State Revenues 86,952,431 89,126,395 93,232,174 96,433,672 104,205,759 7,772,087 Federal Revenues 6,764,374 9,491,869 9,949,135 9,622,057 10,934,930 1,312,873 Other Local Funds 5,395,017 6,719,274 6,087,485 5,516,290 5,619,916 103,626 Budgeted Fund Balance 2,391,079 2,311,740 2,311,740 3,106,740 2,355,406 (751,334) Total Operating Fund 124,925,721 131,884,217 136,519,932 141,144,997 152,156,385 11,011,388

FY 2007 Operating Fund Revenues

by Percent of Total

Federal

7.3%

County

19.0%Other Local

3.7%

Fund Balance

1.5%

State

68.5%


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Operating Fund Revenues

County Appropriation

Alamance County’s Board of Commissioners is requested to appropriate $29,040,374 to the school system’s operating fund for FY 2007. This is an increase of $2,574,136 or 9.7% above the current year’s approved appropriation and includes the required per pupil amount for charter school students who reside within Alamance County ($786,569). This increase includes $1,827,156 to fund mandatory expense items and $746,980 for expansion of existing programs as detailed on page 34. This appropriation will fund various instructional and support programs in FY 2007. Operating Fund County Appropriation 1998 - 2007

Operating Fiscal Fund Per Pupil Year Appropriation ADM* Expenditure 1998 17,726,200 19,072 929.44 1999 18,534,854 19,364 957.18 2000 19,519,596 19,860 982.86 2001 21,470,662 20,583 1,043.12 2002 22,768,408 21,488 1,059.59 2003 23,422,820 21,237 1,102.93 2004 24,234,939 21,951 1,104.05 2005 24,939,398 22,175 1,124.66 2006 Approved 26,466,238 22,338 1,184.81 2007 Proposed 29,040,374 22,733 1,277.45

*ADM for 2004-2007 includes charter school students.

Per Pupil Expenditure 1998 - 2007

800

1,000

1,200

1,400

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Proposed


29


State Revenues

State revenues are anticipated to total $104,205,759 for FY 2007. This is an increase of $7,772,087 above the

current year’s estimated budget amount. The estimated increases are based upon anticipated increases for instructional programs and salaries.

State funds are allocated to school systems in the categories listed below by either position allotment or by

dollar allotment based on formulas. Each category has its individual formula for allotments. Funds must be spent in the individual programs and expenditures are reported to the state on a monthly basis through electronic transfer of data.

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Actual Actual Actual Approved Proposed Classroom Teachers 39,778,117 40,588,808 42,495,939 45,536,110 48,902,040 Central Administration 1,178,362 1,169,238 1,231,174 1,296,997 1,335,907 Non-Instructional Support 4,544,596 4,264,491 4,604,134 4,955,266 5,146,385 School Building Administration 4,105,919 4,165,428 4,244,474 4,328,758 4,628,296 Instructional Support Personnel 5,111,064 5,154,045 5,420,984 5,698,492 6,059,099 K-3 Teacher 304,746 0 97,000 0 488,250 Extended Benefits 1,753,777 1,963,433 2,195,786 2,409,228 2,529,689 NBPTS Certification 6,119 5,290 4,588 4,636 4,775 Driver Training 428,222 445,604 413,964 535,700 545,187 Vocational Education-Months of Employment 4,531,123 4,463,093 4,725,498 4,883,238 5,195,643 Vocational Education-Program Improvement 409,196 267,551 284,176 286,076 284,610 School Technology 1,226,734 630,024 709,006 234,483 569,891 Foreign Teacher Exchange 1,223,427 1,367,580 1,648,416 908,770 1,004,230 Teacher Assistants 4,968,207 5,307,759 5,684,437 6,363,627 6,083,183 Staff Development 94,886 158,266 139,512 160,947 140,761 Behavioral Support 57,822 77,073 51,928 0 63,860 Low Wealth 0 0 10 0 2,907 Exceptional Children 7,719,868 7,866,146 8,284,075 8,563,393 8,878,321 Incentive Funding 1,168,381 1,927,306 1,527,690 0 1,277,999 Academically & Intellectually Gifted 765,488 775,382 805,223 820,657 871,570 Compensation Bonus 0 0 0 0 89,340 Limited English Proficiency 1,015,913 1,164,207 1,352,769 1,538,139 1,689,228 Pupil Transportation 2,326,708 2,364,247 2,592,139 2,592,168 2,752,633 Instructional Supplies 966,556 1,052,990 1,318,192 1,100,646 1,167,916 EC Developmental Day Program 131,906 86,689 126,986 0 151,201 Assistant Principal Interns 34,707 69,456 69,616 0 0 Alternative Education Programs 380,937 394,458 632,924 0 0 At-Risk Students 1,773,643 2,216,492 1,848,359 3,425,908 3,519,881 Student Accountability 935,249 644,939 606,804 790,433 822,957 Recruitment & Retention of Teachers 10,758 14,795 0 0 0 Compensation Bonus 0 472,002 64,810 0 0 Teacher on Loan 0 45,103 51,561 0 0 Military Compensation 0 4,500 0 0 0

Total State Revenues 86,952,431 89,126,395 93,232,174 96,433,672 104,205,759


30


Federal Revenues Federal revenues are estimated by the state Department of Public Instruction (DPI) through its initial planning allotments. Federal revenues for FY 2007 have not been completely received from DPI at the time of the publication of this document, and proposed FY 2007 amounts have been estimated by the Finance Department.

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Actual Actual Actual Approved Proposed Vocational Education-Program Improvement 208,068 274,468 282,839 275,183 277,812 Vocational Education-Tech Prep 56,695 61,474 61,240 61,591 61,272 Education for Homeless Children 28,824 25,380 39,055 78,731 78,731 IDEA Title VI-B Building Capacity 47,005 117,795 40,106 65,944 97,559 Safe & Drug Free Schools 89,854 101,648 101,723 120,019 116,121 IDEA Pre-School Handicapped 141,741 163,312 160,237 162,751 179,397 ESEA Title I 1,783,519 3,059,928 3,029,215 3,513,126 3,513,126 ESEA Title I – Migrant Education 146,218 357,970 271,964 222,192 222,192 IDEA VI-B Handicapped 2,651,935 3,557,299 4,134,831 4,006,892 4,652,272 Learn and Serve America 10,000 20,645 12,645 0 12,640 Innovative Strategies 99,482 117,241 142,387 66,722 66,722 No Child Left Behind 507,824 802,568 817,226 802,059 807,362 Literacy Acquisition 153,728 213,854 194,299 237,847 237,847 Title I – Eastlawn 0 0 79,160 0 0 Educational Technology 51,965 29,822 94,836 0 97,335 21st Century Community Learning 0 499,989 459,775 0 399,991 Language Acquisition 11,224 47,676 -8 0 0 School Renovation 91,187 0 0 0 0 Technology Literacy 4,565 0 0 0 89,884 School Improvement 4,341 0 0 0 24,667 Abstinence Education 9,164 5,456 27,605 9,000 0 Comprehensive Safe & Drug Free Schools 68,942 57 0 0 0 Goals 2000 73 0 0 0 0 School Reform 5,989 0 0 0 0 Eisenhower Grant 45,223 0 0 0 0 Class Size Reduction 40,486 100 0 0 0 Title I Accountability 15,109 35,187 0 0 0 REA Grant 491,213 0 0 0 0 Total Federal Revenues 6,764,374 9,491,869 9,949,135 9,622,057 10,934,930


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Funding Sources Reported in the Local Operating Fund

Within the Local Operating Fund revenue budget are revenue sources that, by state direction, must be accounted for within this fund. The table below details each of these revenue sources. The estimated total for these sources for FY 2007 is $5,619,916. FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Actual Actual Actual Approved Proposed State & Federal Funding Sources Math Science Grant 0 0 0 0 141,648 Textbooks 759,825 1,093,588 1,011,223 1,350,537 1,448,228 Smart Start Program 67,700 27,000 105,886 30,000 30,000 More at Four State Program 90,571 486,321 478,291 527,600 527,600 Medicaid Reimbursement 387,298 477,012 57,951 106,399 106,399 Medicaid Direct Service 0 0 202,803 0 0 ROTC Program 30,164 62,058 40,903 40,000 40,000 CARE Grant 484,018 913,844 406,136 641,297 0 Nursing Grant – DHHS 0 0 92,074 98,630 98,630 Emergency Crisis Plan Grant 0 0 0 177,529 113,980 Z Smith Grant 0 304,704 0 0 0 Small Learning Communities 0 83,505 67,721 0 300,000 State Library Grant 9,998 0 0 0 0 Success Grant 854 0 0 0 0 21st Century Grant 418,988 9,240 0 0 0 Juvenile Day Center Program 335,745 0 0 0 0 Local Funding Sources Local Government Sales Taxes 526,831 93,096 418,220 100,000 0 Fines & Forfeitures 875,937 1,270,481 1,337,067 965,000 1,265,000 School Vehicle Rental 119,041 134,282 172,339 110,000 110,000 Tuitions 136,669 102,621 103,885 124,000 124,000 Building Rental 70,689 69,570 73,091 70,000 70,000 ABC Revenues 39,717 52,053 48,855 45,000 45,000 E Rate Revenue 73,691 197,162 170,345 110,000 100,000 Needy Children Funds 7,869 7,578 8,459 16,791 16,791 Transcripts 3,984 5,032 3,530 4,000 4,000 Interest on Investments 202,026 174,481 191,165 161,007 190,140 School Resource Officers 0 0 181,961 0 0 Miscellaneous & Discontinued 90,808 23,756 32,718 52,500 52,500 Indirect Cost – Federal Programs 102,156 172,323 171,824 131,000 131,000 Indirect Cost – Local Federal Programs 0 16,632 0 0 0 Indirect Cost – Child Nutrition 474,000 506,041 485,920 500,000 500,000 Day Care Transfer In 63,458 141,640 143,994 150,000 150,000 Prior Year Supplemental Taxes 300 93 18 0 0 Deduction Fees 0 2,080 760 1,000 1,000 Contributions & Donations 16,600 15,115 12,510 0 0 Insurance Settlements 6,080 71,459 0 0 0 Vocational Education-Program Improvement 0 188,131 0 0 0 General Administration 0 18,141 64,666 0 50,000 Disposition of Fixed Assets 0 235 3,170 4,000 4,000 Operating Fund Local Revenues 5,395,017 6,719,274 6,087,485 5,516,290 5,619,916


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Appropriated Fund Balance

State law G.S. 115C-425 (a) restricts the appropriation of fund balance or fund equity to an

amount not to exceed the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred revenues arising from cash receipts as those amounts stand at the close of the fiscal year preceding the budget year.

The appropriated fund balance is a portion of the total fund balance which is unreserved and available to the Board of Education and which is appropriated and designated as available for expenditure in the adopted budget ordinance. These funds are available to preclude the unit from experiencing cash flow difficulties and to meet current obligations during the fiscal year. The total amount of appropriated fund balance in most years is not expected to be utilized and at year-end will once again be available for appropriation to the subsequent year. The amount of fund balance budgeted for expenditure in FY 2007 is $2,355,406.

2000 2001 2002 2003 2004 2005 2006 2007 Audited Audited Audited Audited Audited Audited Estimate Estimate

Undesignated 0 663,300 2,428,980 3,964,407 4,590,995 2,385,832 2,195,832 3,800,178 Designated for Budget 4,328,179 2,343,480 2,343,480 2,311,740 2,311,740 3,106,740 3,106,740 2,355,406 Mandated Reserves 2,745,413 2,430,759 800,898 1,084,142 747,156 1,163,123 757,000 810,000 7,073,592 5,437,539 5,573,358 7,360,289 7,649,891 6,655,695 6,059,572 6,965,584

Equity Totals by Category and Fiscal Year

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

2000 2001 2002 2003 2004 2005 2006 2007

Undesignated Designated for Budget Mandated Reserves

Undesignated reserves are available at year end. Designated for budget are funds budgeted as revenue for the coming year. Mandated reserves are funds that must be reserved by law. These reserves include reserves for inventories, accounts receivables and interfund receivables.


33

Expenditures

State and Federal Expenditures State and federal funds are received and expended in individual categories. The North Carolina Department of Public Instruction monitors expenditures for both state and federal expenditures through the school system’s electronic reporting of month-end financial data. Financial statements are received from the state treasurer’s office and are balanced with the school system’s financial records on a monthly basis. These statements include receipts and disbursements from both state and federal funds.

Local Operating Fund Expenditures Funds received and reported as local funds include federal, state, county and various locally generated sources. State law requires that these funds be reported as local funds (see page 31 for the list of sources reported as local funds). Expenditures are recorded within the programs of the operating fund budget of the school system. These programs, for the most part, follow the same designations for expenditure as do those of the state mandated programs listed on page 29 of this document. Funds received from the county government and other various sources are expended within these same programs for the same purposes. For FY 2007, the school division is requesting an increase in the county’s annual appropriation of $2,574,136. The list of items on the following page details the recommendations for increases in the county’s appropriation by specific purpose. Local expenditures by programs are given for fiscal years 2003 through the proposed 2007 within this section.


34

Operating Fund Expenditures

Proposed Local Funding Increases

The Alamance-Burlington School System has programmed its FY 2007 expenditures to provide the students of the school system a high quality, comprehensive and meaningful education. To meet this goal, this budget provides for the continuation of existing instructional and support programs and the items listed below are requested for increased or additional funding for 2007. Percents represent increase of sub-total amounts to FY 2006 county appropriation.

Mandatory Increases Amount

► State Salary Increase: The state Department of Public Instruction (DPI) is estimating that state-paid teachers and other school-based certified employees will receive a pay increase of about five percent. Locally-paid employees in these positions will also receive this increase. 818,493

DPI is projecting a salary increase for non-certified employees at three percent. 233,510

Legislative $750 per teacher and school administrator salary increase added in October 2005 and mandated by the state must be local expenditure for FY 2007. 111,675

► Health Insurance Increase: The legislated increase for employee health insurance is expected to be three percent as included in the state budget. This amount reflects the employer cost for locally paid employees only. 34,551

► Charter School Pass-Through Increase: Pass-through payments to charter schools will increase by $41,000 for the additional charter school students. 41,000

► Other Increases: The cost of utilities increased by 15% during the current year and increased costs of high bandwidth services due to higher bandwidth capabilities require additional funding to maintain current services. 739,000

Sub Total for Mandatory Increases 1,978,229 Increases in other revenues and reductions in grant programs (151,073) Net for Mandatory Increases 1,827,156 6.9% Expansion of Existing Programs

► Cummings HS Comprehensive Improvement Program: [See next page for detail.] 551,980

► Zonal Athletic Funds: The restoration of supplemental funding for all athletic programs at middle and high schools. 120,000

► High School Registration Expansion: Adds additional course at some high schools that currently don’t provide them. 75,000

Sub Total for Expansion of Existing Programs 746,980 2.8% Requested Increase in Local Operating Fund 2,574,136 9.7%

▪ ▪ ▪ ▪ ▪

Requested Increase in County Appropriation for Operating Fund 2,574,136


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Cummings HS Comprehensive Improvement Program

Estimated Cost Curriculum Begin freshman academy 7,500 Begin AVID program 54,800 Open evening academy 31,000 Establish a credit recovery program 0 Consider allowing electives as a privilege once students have demonstrated

core mastery and consider reading as a supplement 0 Establish a summer program for rising ninth graders 4,250 Set strict and high GPA and discipline requirements for extra-curricular

participation 0 Provide Johns Hopkins “Adolescent Literacy” initiative for staff 0

Leadership Establish co-principals, each with an administrative team. One team will

focus on curriculum and instruction, teacher staffing and evaluation, and support staff and development. The other team will focus on school management, student discipline, facility and non-certified staff supervision 0

Establish professional development schools with both Elon and UNC-Chapel Hill to assist these management teams 0

Co-principals must have demonstrated success at school reform. 0

Staff Provide ten extra days of summer training for staff 90,000 Require all staff to reapply to Cummings HS 0 Non-renew all non-tenured staff 0 Provide incentive pay for all certified teachers to work at Cummings HS as

core teachers ($2,000 per year) 82,800 Incentive pay for all other licensed/certified staff ($1,500 per year) 93,150 Additional supplemental pay for all licensed/certified staff ($500 per year) 51,750 Provide retention bonus for teachers who stay four years ($8,000 in FY 2010) Not determined Employ counselors for twelve months 11,730 Add three ESL teachers and consider moving ESL intake center to Cummings HS 90,000 Provide full-time test coordinator to relieve counseling staff 35,000 Consider once-a-month four-day instructional weeks, with Fridays used for staff development 0 Transfer top, experienced teachers from other schools 0

Structure Establish an alternative program for suspended Cummings HS students 0 Require a standard mode of dress 0 Redesign in-school suspension 0 Create extended schedule for flexibility for some students 0 Establish advisor/advisee and senior mentors 0 Community The Closing the Gap Committee is considering the possibility of adopting

Cummings HS and seek to support for a 21st Century Learning Grant 0 Increase adult mentors and sponsors 0 Establish parent involvement and “support-of-child” contracts between school

and parents 0 Add community service requirement for graduation 0 Total estimated for Cummings HS Comprehensive Improvement Program 551,980


36

Local Program Operating Fund Expenditures

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Actual Actual Actual Approved Proposed 001 Classroom Teachers 4,081,090 4,662,461 5,091,674 5,343,036 5,665,359 002 Central Office Administration 621,368 648,199 662,694 735,836 757,911 003 Non-Instructional Support 1,335,146 2,122,902 1,921,696 2,535,661 2,611,752 005 School Building Administration 1,365,507 1,475,619 1,713,098 2,039,087 2,302,031 007 Instructional Support Personnel 876,035 910,046 990,301 1,073,635 1,215,313 009 Extended Benefits 148,816 138,101 167,117 174,780 183,519 012 Driver Training & Safety Education 4,949 5,000 5,174 6,372 18,304 013 Vocational Education-Months of Employment 198,858 334,799 315,998 361,616 372,862 014 Vocational Education-Program Improvement 223,572 364,611 203,734 237,621 312,621 015 Technology 780,786 1,170,176 852,786 886,270 911,170 020 Foreign Teacher Exchange 20,671 20,214 3,960 52,125 56,775 027 Teacher Assistants 421,417 407,492 408,766 495,144 509,998 028 Staff Development 197,907 116,283 82,519 119,848 120,028 032 Exceptional Children 533,494 587,987 767,181 668,360 689,834 034 Academically & Intellectually Gifted 151,168 154,560 161,529 173,289 242,382 036 Charter School Payment 478,909 544,418 730,588 745,569 786,569 048 Safe & Drug Free Schools 8,100 2,627 14,494 357 357 054 Limited English 0 0 107,831 0 42,655 056 Pupil Transportation 393,226 412,080 309,244 230,554 235,977 061 Instructional Supplies 916,822 977,692 1,265,800 1,484,196 1,484,196 069 At-Risk Students 372,969 829,955 1,043,772 1,086,106 1,131,278 112 Math Science Grant 0 0 0 0 141,648 130 Textbooks 759,825 1,093,588 1,011,223 1,350,537 1,448,228 345 Small Learning Communities Grant 0 75,859 183,586 940 300,000 350 CARE Grant 478,298 834,806 798,708 641,297 0 398 Emergency Crisis Plan 0 0 75,646 117,529 113,980 404 Smart Start Grant 67,711 27,000 12,448 30,000 30,000 413 More at Four 85,945 438,626 500,014 527,600 527,600 501 Needy Children Fund 4,174 5,681 6,117 16,791 16,791 615 Nursing Grant – DHHS 0 0 98,164 98,630 98,630 701 Day Care 63,458 141,640 143,994 150,000 150,000 706 Local Transportation Costs 0 0 215,672 317,360 326,761 740 High School Summer School 71,897 53,421 47,793 49,672 49,672 741 Cultural Arts 42,977 62,196 70,733 62,757 62,757 801 Maintenance & Operations 8,616,221 8,510,496 8,840,715 8,683,685 9,302,814 847 High School Literacy 2,361 24,643 1,449 26,334 0 849 Success Schools 0 233,998 222,473 238,390 248,438 865 Pre-K & Early Childhood Development 73,881 69,763 81,147 69,184 69,184 882 SIMS/NCWISE 59,285 57,080 58,150 56,626 56,626 883 Central Office Reduction Funds 398,413 441,452 491,839 462,252 468,325 884 Finance/Personnel Administration 94,360 97,118 97,576 104,262 109,262 885 Business Support 402,085 407,646 355,038 528,634 555,341 886 Personnel Management 102,204 100,184 105,907 110,084 115,338 887 Personnel Development 126,919 167,837 269,287 277,664 297,664 890 Co-Curricular 473,079 489,222 484,106 506,909 638,725 892 FY Priority Projects 0 0 0 725,000 0 893 Cummings High School 0 0 0 0 551,980 896 Board of Education 302,818 348,670 275,006 298,691 298,931 897 Executive Administration 36,833 62,764 41,350 69,333 69,729 898 General Administration 690,591 801,721 896,581 798,356 988,419 899 Community Services & Print Shop 237,446 224,739 324,536 321,289 327,962 NA Discontinued Programs 708,204 9,240 0 0 0 Total Local Expenditures 27,029,795 30,664,612 32,529,214 35,089,268 37,015,696


37

Capital Outlay Fund

The Capital Outlay Fund is utilized to account for the revenues and expenditures allocated for the school system’s acquisition of fixed assets and construction of major capital projects. Sources of revenue for this fund are local county government appropriations, proceeds from the sale of school construction bonds and certain state assistance. The Alamance-Burlington School System’s Capital Outlay Fund utilizes separate categories within the fund to appropriately and accurately track revenues and expenditures that are directly related to the acquisition of capital outlay items. Each category is discussed separately within this section.

Section Contents Section Introduction 38 Fund Revenues 38 Recurring Capital Outlay 39 Capital Improvement Projects 40 Bond Projects 41


38

Capital Outlay Funds

Capital outlay funding is appropriated by the County Board of Commissioners to the school system to purchase needed equipment and furniture, maintain and improve facilities, acquire vehicles, and complete projects which assure the health and safety of students and employees and enhance the learning environment. Capital outlay funding requested for FY 2007 includes local government appropriations, proceeds from the sale of bonds, and state funding from the Public School Building Capital Fund. The proposed budget includes capital outlay items categorized into these areas:

Recurring Capital: Funds appropriated to the school system on an annual basis to provide needed funding for recurring requirements such as school furniture and equipment, minor repair projects to improve school buildings, purchase needed vehicles and complete projects which improve the safety of our buildings. All funding for recurring capital outlay is appropriated annually by the County Board of Commissioners. Capital Improvement Plan (CIP) projects include those which maintain and improve our facilities. When available, funding for the CIP is 75% state funds from the Public School Building Capital Fund and a 25% local matching amount. 2004 Bond Referendum projects are budgeted for FY 2007 although not all projects will be completed within the fiscal year. Proceeds from the sale of bonds approved by county voters in 2004 will fund these projects.

Summary of Funding Request for the FY 2007 Capital Outlay Fund

Local State Bond Funding Funding Proceeds Total

Recurring Capital 1,100,000 0 0 1,100,000 CIP Projects 306,250 918,750 0 1,225,000 2004 Bond Referendum Projects 0 0 28,741,288 28,741,288 Total Local Funding for Capital Outlay 1,406,250 918,750 28,741,288 31,066,288


39

► Recurring Capital Appropriation

The school system is requesting a total of $1,100,000 for recurring capital needs for FY 2007 for the projects listed below. The county appropriated $1,000,000 in FY 2006. The requested recurring capital items for FY 2007 are

Indoor Air Quality/ADA/Asbestos $ 100,000 Carpet/Tile Replacement 100,000 Paving Projects 50,000 Modular Relocation/Renovation 80,000 Painting 65,000 Rest Room Renovations 60,000 HVAC Controls 55,000 Roof Repair 175,000 Instructional/Band Equipment 100,000 Classroom Furniture 100,000 Maintenance/Custodial Equipment 20,000 Sewer Fields Repairs 15,000 Water Tank Renovation 35,000 SIMS Computer Replacement 75,000 Activity Bus Replacement 70,000 Total Appropriation Request $1,100,000

Per Pupil Expenditures – Recurring Capital Appropriations FY 1997 - 2007

When the appropriated amounts are divided by the average daily membership (ADM) excluding charter school students for each year, it reveals that appropriations have varied over the years on a per pupil basis. The requested per pupil amount for FY 2007 is $49.70.

School Year Appropriation ADM Per Pupil

1996-1997 700,000 18,580 37.67 1997-1998 700,000 19,072 36.70 1998-1999 732,146 19,364 37.81 1999-2000 854,110 19,860 43.01 2000-2001 878,514 20,583 42.68 2001-2002 898,984 21,488 41.84 2002-2003 930,977 21,237 43.84 2003-2004 1,240,000 21,514 57.64 2004-2005 1,289,600 21,600 59.70 2005-2006 1,000,000 21,708 46.07 2006-2007 Proposed 1,100,000 22,134 49.70

Per Pupil Amounts - Recurring Capital Outlay Appropriations

FY 1997 - 2007 Proposed

$0.00

$50.00

$100.00

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

FY 2007 Proposed


40

► Capital Improvement Plan (CIP) A detailed capital improvement plan was implemented during the 2001 fiscal year to better maintain and renew the school system’s buildings in a timely manner. The plan assists in determining the needs of the school system and was initially requested by the county government.

The Public School Building Capital Fund (PSBC) established by the state has been used to fund CIP projects in prior years. The PSBC can be used to fund 75% of a given project with a required 25% local match.

The CIP request for FY 2007 includes roof repair projects, bleacher and stadium light repairs, traffic pattern upgrades, steampipe replacement and intercom systems at a total cost of $1,225,000. The CIP projects by location and funding sources are

Local PSBC Project Funding Funding Total Roof Repair Projects Vaughn Road 78,750 236,250 315,000 Holt ES 43,750 131,250 175,000 Ray Street 43,750 131,250 175,000 Bleachers/Stadium Lights Williams HS Bleachers 37,500 112,500 150,000 Cummings HS Bleachers 1,875 5,625 7,500 Graham HS Bleachers 1,875 5,625 7,500 Williams HS Lights 25,000 75,000 100,000 Traffic Pattern Upgrades Eastern HS/Woodlawn MS 18,750 56,250 75,000 Heat Steampipe Replacement Williams HS 50,000 150,000 200,000 Intercom Systems Southern MS 1,250 3,750 5,000 Andrews ES 1,250 3,750 5,000 Newlin ES 1,250 3,750 5,000 Williams HS 1,250 3,750 5,000 Totals 306,250 918,750 $1,225,000


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► 2004 Bond Referendum Projects The voters of Alamance County passed a $36.5 million dollar bond referendum in November 2004 for a new elementary school, additional classroom space, and school building renovations. The list of projects, the project budget and year-to-date expenditures and encumbrances amount for each project are

Project Original FY 2005 FY 2006 Outstanding Balance Budget Expenditures Expenditures Encumbrances 04-11-06 New Elementary School 13,960,250 40,369 1,651,317 1,339,630 10,928,934 Holt ES 2,628,780 146,594 1,460,620 378,574 642,992 South Graham ES 2,428,780 36,226 659,676 1,346,543 386,335 Haw River ES 1,931,700 5,310 0 136,290 1,790,100 Andrews ES 3,805,147 96,250 533,596 2,249,139 926,162 Wilson ES 1,196,273 0 33,354 155,646 1,007,273 Broadview MS 300,000 30,000 9,183 0 260,817 Cummings HS 530,216 0 421,025 76,925 32,266 Newlin ES 2,734,958 68,600 58,800 68,600 2,538,958 Southern MS 1,903,378 99,150 1,136,142 16,129 651,957 Southern HS 1,015,650 7,720 335,100 554,370 118,460 Eastern HS 1,015,650 0 223,103 703,422 89,125 Western HS 1,015,650 8,235 209,183 751,853 46,379 Williams HS 1,015,650 20,352 500,970 667,962 (173,634) Classroom Furnishings 1,050,081 0 0 0 1,050,081 Total Bond Projects 36,532,163 558,806 7,232,069 8,445,083 20,296,205

The FY 2007 budget amount of $28,741,288 includes both the encumbered amount of $8,445,082 and the

unencumbered balance of $20,296,205.


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Other Funds

The Alamance-Burlington School System utilizes separate funds for the appropriate and accurate tracking of revenues and expenditures that are not directly linked to classroom instruction. The funds included within this section are the Child Nutrition Fund, the Day Care Fund and the Debt Service Fund. The Child Nutrition Fund and the Day Care Fund are considered enterprise funds since they are financed and operated in a manner similar to a private business enterprise in that their costs are financed through user charges. The Debt Service Fund, a governmental fund, is controlled and operated by the county government finance office and is budgeted within the county government’s annual budget.

Section Contents

Section Introduction 42 Child Nutrition Fund 43 Day Care Fund 43 Debt Service 44 Bond Amortization Schedules 45


43

Other Funds

Enterprise Funds

The child nutrition program provides breakfast and lunch meals for students and faculty at our schools. Expenditures cover staff salaries, matching benefits, food and materials purchases. Revenue is generated through meal charges and federal reimbursements for free and reduced price lunches served to economically disadvantaged students. The child nutrition fund budget by major category is

FY 2006 FY 2007 Increase/ Approved Proposed (Decrease) Salaries 2,935,000 3,025,500 90,500 Benefits 800,000 850,000 50,000 Contractual Services 783,000 745,000 (38,000) Supplies & Materials 4,430,000 4,818,100 388,100 Equipment 1,050,200 1,170,000 119,800 Total Child Nutrition Fund 9,998,200 10,608,600 610,400

The day care program provides before and after school child care to working

parents. The revenue is generated through service charges for student day care and the expenditures are for staff salaries, matching benefits, after school snacks, field trips and other materials.

The day care fund budget by major category is FY 2006 FY 2007 Increase/ Approved Proposed (Decrease) Salaries 453,000 453,000 0 Benefits 85,000 85,000 0 Contractual Services 251,000 251,000 0 Supplies & Materials 431,300 431,300 0 Total Day Care Fund 1,220,300 1,220,300 0


44

Other Funds

Debt Service

By state law, school systems in the state of North Carolina are not permitted to issue bonds and, therefore, do not pay debt service. County governments are charged with the responsibility of providing and maintaining school facilities. Alamance County government has issued bonds to build school buildings in past years.

Summary of FY 2006 and FY 2007 Debt Service Payments

FY 2006 FY 2006 FY 2006 FY 2007 FY 2007 FY 2007 Principal Interest Total Principal Interest Total Payment Payment Payment Payment Payment Payment

Refunding Bonds Series 1998 755,000 191,280 946,280 745,000 162,590 907,590 School Bonds Series 1999 1,000,000 844,500 1,844,500 1,000,000 802,000 1,802,000 Refunding Bonds Series 2003 1,140,000 476,700 1,616,700 1,130,000 431,100 1,561,100 School Bonds Series 2006 0 0 0 600,000 981,933 1,581,933 Debt Service Payments 2,895,000 1,512,480 4,407,480 3,475,000 2,377,623 5,852,623


45

Bond Amortization Schedule

Refunding Bonds Series 1998

Issue Amount $8,140,000 Fiscal Interest Principal Interest Total Outstanding Payment Year Rate Payment Payment Payment Principal 1 1999 3.60 275,000 130,942 405,942 7,865,000 2 2000 3.60 240,000 304,360 544,360 7,625,000 3 2001 3.60 240,000 295,720 535,720 7,385,000 4 2002 3.60 240,000 287,080 527,080 7,145,000 5 2003 3.70 790,000 278,440 1,068,440 6,355,000 6 2004 3.70 780,000 249,210 1,029,210 5,575,000 7 2005 3.80 765,000 220,350 985,350 4,810,000 8 2006 3.80 755,000 191,280 946,280 4,055,000 ► 9 2007 3.90 745,000 162,590 907,590 3,310,000 10 2008 3.90 730,000 133,535 863,535 2,580,000 11 2009 4.00 715,000 105,065 820,065 1,865,000 12 2010 4.10 700,000 76,465 776,465 1,165,000 13 2011 4.10 690,000 47,765 737,765 475,000 14 2012 4.10 475,000 19,475 494,475 0 Bond Totals 8,140,000 2,502,277 10,642,277


46


School Bonds Series 1999 Issue Amount $25,000,000

Fiscal Interest Principal Interest Total Outstanding Payment Year Rate Payment Payment Payment Principal 1 1999 4.25 0 274,875 274,875 25,000,000 2 2000 4.25 1,000,000 1,099,500 2,099,500 24,000,000 3 2001 4.25 1,000,000 1,057,000 2,057,000 23,000,000 4 2002 4.25 1,000,000 1,014,500 2,014,500 22,000,000 5 2003 4.25 1,000,000 972,000 1,972,000 21,000,000 6 2004 4.25 1,000,000 929,500 1,929,500 20,000,000 7 2005 4.25 1,000,000 887,000 1,887,000 19,000,000 8 2006 4.25 1,000,000 844,500 1,844,500 18,000,000 ► 9 2007 4.25 1,000,000 802,000 1,802,000 17,000,000 10 2008 4.25 1,000,000 759,500 1,759,500 16,000,000 11 2009 4.30 1,000,000 717,000 1,717,000 15,000,000 12 2010 4.40 1,000,000 674,000 1,674,000 14,000,000 13 2011 4.50 1,000,000 630,000 1,630,000 13,000,000 14 2012 4.50 1,000,000 585,000 1,585,000 12,000,000 15 2013 4.50 1,000,000 540,000 1,540,000 11,000,000 16 2014 4.50 1,000,000 495,000 1,495,000 10,000,000 17 2015 4.50 2,150,000 450,000 2,600,000 7,850,000 18 2016 4.50 2,800,000 353,250 3,153,250 5,050,000 19 2017 4.50 2,800,000 227,250 3,027,250 2,250,000 20 2018 4.50 2,250,000 101,250 2,351,250 0 Bond Totals 25,000,000 13,413,125 38,413,125


47


Refunding Bonds Series 2003 Issue Amount $13,405,000

Fiscal Interest Principal Interest Total Outstanding Payment Year Rate Payment Payment Payment Principal 1 2004 3.00 435,000 254,550 689,550 12,970,000 2 2005 3.00 645,000 496,050 1,141,050 12,325,000 3 2006 4.00 1,140,000 476,700 1,616,700 11,185,000 ► 4 2007 3.00 1,130,000 431,100 1,561,100 10,055,000 5 2008 3.00 1,105,000 397,200 1,502,200 8,950,000 6 2009 3.00 1,085,000 364,050 1,449,050 7,865,000 7 2010 4.50 1,060,000 331,500 1,391,500 6,805,000 8 2011 3.50 1,050,000 283,800 1,333,800 5,755,000 9 2012 4.00 1,230,000 247,050 1,477,050 4,525,000 10 2013 4.00 1,715,000 197,850 1,912,850 2,810,000 11 2014 4.00 1,685,000 129,250 1,814,250 1,125,000 12 2015 4.00 1,125,000 45,000 1,170,000 0 Bond Totals 13,405,000 3,654,100 17,059,100


48


School Bonds Series 2006 Issue Amount $22,000,000

Fiscal Interest Principal Interest Total Outstanding Payment Year Rate Payment Payment Payment Principal ► 1 2007 4.00 600,000 981,933 1,581,933 21,400,000 2 2008 4.00 600,000 882,400 1,482,400 20,800,000 3 2009 4.00 600,000 858,400 1,458,400 20,200,000 4 2010 4.00 600,000 834,400 1,434,400 19,600,000 5 2011 4.00 600,000 810,400 1,410,400 19,000,000 6 2012 4.00 600,000 786,400 1,386,400 18,400,000 7 2013 4.00 600,000 762,400 1,362,400 17,800,000 8 2014 4.00 600,000 738,400 1,338,400 17,200,000 9 2015 4.00 600,000 714,400 1,314,400 16,600,000 10 2016 4.00 600,000 690,400 1,290,400 16,000,000 11 2017 4.00 800,000 666,400 1,466,400 15,200,000 12 2018 4.00 800,000 634,400 1,434,400 14,400,000 13 2019 5.00 2,400,000 602,400 3,002,400 12,000,000 14 2020 4.00 2,400,000 482,400 2,882,400 9,600,000 15 2021 4.00 2,400,000 386,400 2,786,400 7,200,000 16 2022 4.00 2,400,000 290,400 2,690,400 4,800,000 17 2023 4.00 2,400,000 194,400 2,594,400 2,400,000 18 2024 4.10 2,400,000 98,400 2,498,400 0 Bond Totals 22,000,000 11,414,733 33,414,733


49

Supplemental Information Section

The Supplemental Information Section of the FY 2007 Proposed Budget document contains various budget-related and system measurement information significant to the public and school system employees.

Section Contents

Section Introduction 49 Alamance-Burlington School System 50 2006-2007 School Year Calendar 51 Student Membership 52 Profiles of Student Achievement ABCs of Individual Schools 53 Adequate Yearly Progress Report 54 End-of-Grade Results 55 End-of-Course Results 56 SAT Profile for College Bound Seniors 57 High School Graduation Rates 58 Student Dropout Rates 58 Customer Surveys 2004 Staff Survey 59 2005 Parent Survey 62 Per Pupil Expenditure History 66 School System Personnel Summary 67 Teacher Experience Levels 68 Teacher Salary Supplements – Comparative Jurisdictions 69 Teacher Turnover Rates 70 Local Tax Information Assessed and Estimated Market Value of Property 71 Property Tax Levies and Collections 72 Property Tax Rates 73 Glossary 74


50

Alamance-Burlington School System

Alamance County is located in the Piedmont area of North Carolina, 20 miles east of Greensboro and 60 miles west of the state capital, Raleigh. The county was originally founded in 1849 when it split from Orange County. Today, the county is the home to more than 135,000 people who reside in communities of all sizes.

The former Alamance County Schools and the Burlington City Schools merged in 1996. Today the system educates more than 22,100 students in kindergarten through grade 12 in its 33 schools. The system’s students reside within the boundaries of Alamance County, North Carolina. The 22,100+ students comprise the sixteenth largest school system in North Carolina. The Alamance-Burlington School System is governed by an elected seven-member Board of Education, which is responsible for the school system’s educational and support programs. The Board of Education appoints the Superintendent of Schools. The Superintendent is responsible for the day-to-day operation of the school system.

The school system’s 33 schools house kindergarten through grade five students in nineteen elementary schools, grades six through eight students in seven middle schools, and grades nine through twelve students in six high schools. The school system has one alternative education center. The school system is guided by its single goal:

The mission of the Alamance-Burlington School System is to educate all students to meet high academic standards and to prepare all students to be responsible citizens in a complex, changing world, which is accomplished through

▪ Safe and supportive learning environments for staff and students

▪ Successful instructional practices which recognize the diversity of our students and community

▪ Purposeful training of all staff resulting in a high performing work force

▪ Efficient and effective use of fiscal and human resources

▪ Parental involvement for student success

▪ Community input, feedback, and support

▪ Improved communication and trust among all constituents of the community

Although the school system continues to be challenged with an increasing student population, the diversity of its students, the need for additional classrooms, repairs to existing facilities, and the need for additional revenues for educational and support programs, it also continues to believe in student achievement by providing exceptional educational opportunities to its students and sound fiscal accountability to the citizens of Alamance County.


51

2006 – 2007 School Year Calendar

Teaching Teacher Holidays/ Total Month Date Description Days Workdays Vacation Days August 21-24 Teacher workdays 25 First day of school August Totals 5 4 0 9 September 4 Labor Day holiday September Totals 20 0 1 21 October 9 Teacher workday 30 Teacher workday October Totals 20 2 0 22 November 22 Teacher workday 23-24 Thanksgiving holiday

November Totals 19 1 3 23

December 22-31 Winter break December Totals 15 0 6 21 January 1 Winter break 15 Martin Luther King, Jr., holiday 18-19 Teacher workdays January Totals 19 2 2 23 February February Totals 20 0 0 20 March 2 Teacher workday 26 Teacher workday March Totals 20 2 0 22 April 6-13 Spring break holiday 27 Teacher workday April Totals 14 1 7 22 May 28 Memorial Day Holiday May Totals 22 0 1 23

June 8 Last Day of School 11-13 Teacher workdays June Totals 6 3 0 9 SCHOOL YEAR TOTALS 180 15 20 215


52

Student Membership Alamance-Burlington School System serves more than 22,100 students, and 599 others attend charter schools. For FY 2007 budgeting purposes, the school system has received the following student membership projections from the state: State ADM projection for 2006-2007: Alamance-Burlington Schools 22,134 Current charter schools + 599 Total projected ADM 22,733

Effect of Charter Schools: Charter schools receive a per pupil allocation from the operating fund county appropriation equal to that of the students of the Alamance-Burlington schools. It is anticipated that student enrollment in the existing charter schools which are attended by Alamance County students will total 599 students for the 2006-2007 school year. The local cost for charter school students is appropriated to the school system by the Alamance County Board of Commissioners to be passed through to charter schools.

0

5,000

10,000

15,000

20,000

25,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Membership Growth 1997-2007

(Excluding Charter Schools)

Projected


53

Profiles of Student and School Achievement

ABCs of Public Education

The ABCs of Public Education is North Carolina’s primary school improvement program with the goals of providing strong local school accountability, an emphasis on mastery of basic subjects and as much local decision making as possible. Since the ABCs program became law in 1995, it has been modified and improved to better portray school performance and to ensure that its measures are as fair and accurate as possible. Formulas are used to measure the academic growth and achievement for all schools. The 2004-2005 school year marked the ninth year of the ABCs for K-8 schools and the eighth year for high schools.

Schools are rewarded based on growth in student achievement and for the performance of their students’ scores at or above grade level or proficiency standards. In schools that attain the High Growth and Expected Growth standards, certified staff and teacher assistants receive financial incentive awards.

Twenty of the school system’s thirty-three schools achieved either High Growth or Expected Growth recognition during school year 2004-2005.

School 2002 2003 2004 2005 Growth Growth Growth Growth Altamahaw-Ossipee ES High* High* Expected* No Recognition Andrews ES Expected High* No Recognition No Recognition Broadview MS No Recognition No Recognition No Recognition No Recognition Cummings HS Expected Expected High High Eastern HS No Recognition No Recognition Expected Expected Eastlawn ES No Recognition Expected High Expected Elon ES Expected* Expected* High*** No Recognition Garrett ES Expected* High* High*** Expected* Graham HS No Recognition Expected High High** Graham MS No Recognition Expected No Recognition No Recognition Grove Park ES High High* Expected* Expected* Haw River ES Expected High Expected No Recognition Hawfields MS No Recognition Expected* No Recognition Expected* Hillcrest ES Expected* High* Expected* No Recognition Holt ES High* High* Expected* Expected* Jordan ES Expected* High* Expected* Expected* Newlin ES Expected High* High* No Recognition North Graham ES High High Expected Expected Pleasant Grove ES High High Expected*** Expected* Sellars-Gunn Center Expected Expected Expected Expected Smith ES Expected* High* Expected* Expected*** South Graham ES No Recognition High* Expected*** No Recognition South Mebane ES High* High* Expected*** High* Southern HS Expected No Recognition No Recognition Expected Southern MS Expected* High* No Recognition No Recognition Sylvan ES Expected High* No Recognition No Recognition Turrentine MS No Recognition High* Expected* No Recognition Western HS No Recognition No Recognition High* Expected* Western MS No Recognition High* No Recognition No Recognition Williams HS Expected Expected High High Wilson ES High* High*** No Recognition Expected* Woodlawn MS High* High* High* High* Yoder ES Expected* Expected*** Expected* Expected*

*Schools of Distinction with more than 80% proficient ** Named one of state’s 25 most improved schools. *** Schools of Excellence with more than 90% proficient


54


2005 Adequate Yearly Progress Report

Adequate Yearly Progress (AYP), the evaluation measure of the federal No Child Left Behind legislation, was implemented for the first time during the 2002-2003 school year. Of the 33 schools in the Alamance-Burlington School System, fifteen schools met their AYP goals, and nine others missed AYP by only one goal in the 2004-2005 school year. Made Yearly Number of Number of Percent of School Progress Target Goals Goals Met Goals Met Altamahaw-Ossipee ES No 17 16 94.1% Andrews ES Yes 21 21 100.0% Broadview MS No 29 27 93.1% Cummings HS No 17 14 82.4% Eastern HS Yes 15 15 100.0% Eastlawn ES Yes 21 21 100.0% Elon ES No 13 12 92.3% Garrett ES Yes 19 19 100.0% Graham HS No 17 16 94.1% Graham MS No 29 22 75.9% Grove Park ES No 19 17 89.5% Hawfields MS No 23 22 95.7% Haw River ES No 25 15 60.0% Hillcrest ES Yes 19 19 100.0% Holt ES Yes 17 17 100.0% Jordan ES Yes 13 13 100.0% Newlin ES No 29 24 82.8% North Graham ES No 19 18 94.7% Pleasant Grove ES Yes 17 17 100.0% Sellars-Gunn No 7 5 71.4% Smith ES Yes 19 19 100.0% South Graham ES Yes 23 23 100.0% South Mebane ES Yes 13 13 100.0% Southern HS No 17 16 94.1% Southern MS Yes 21 21 100.0% Sylvan ES No 17 16 94.1% Turrentine MS No 29 25 86.2% Western HS Yes 9 9 100.0% Western MS No 21 19 90.5% Williams HS No 17 16 94.1% Wilson ES Yes 15 15 100.0% Woodlawn MS No 21 20 95.2% Yoder ES Yes 13 13 100.0%


55


North Carolina End-of-Grade Tests Students Proficient in Reading and Mathematics

End-of-grade tests in grades 3 through 8 provide students with the opportunity to demonstrate what they have learned at each specified grade level. The end-of-grade tests are curriculum-based, multiple choice reading comprehension and mathematics tests that measure curricular competencies described in the North Carolina Standard Course of Study. These tests are administered to all eligible students within the final three weeks of the school year.

Alamance Burlington School System End-of-Grade Tests

Students Proficient in Reading and Mathematics

0

20

40

60

80

100

Perc

ent at or

above L

evel III

Reading Math

1997 1998 1999 2000 2001 2002 2003 2004 2005


56


North Carolina End-of-Course Tests

Students Proficient by Subject

State testing shifts at the high school level from measuring what students are to learn in a grade to testing what students learn in a course. These end-of-course tests are given in the final 10 days (or the equivalent for alternative schedules) of the school term when the course is taught. Courses required for high school graduation and measured by the end-of-course tests are Algebra I, Biology, English I, Economics/Legal and Political Systems (ELPS) and United States History.

Alamance-Burlington School System End-of-Course Tests - Students Proficient by Subject

0

20

40

60

80

100

Perc

ent at or

above L

evel III

Algebra I Biology English I ELPS US History

1997 1998 1999 2000 2001 2002 2003 2004 2005

End-of-Course tests were not given for ELPS and U.S. History in 2004 and 2005.


57


SAT Profile of College Bound Seniors The Scholastic Assessment Test (SAT) is designed to assess verbal and mathematical reasoning abilities that students develop over time and has been administered to college-bound seniors in the United States for nearly eighty years. Colleges typically use SAT scores for admission decisions. SAT scores are reported for students scheduled to graduate the year of the report and represent students’ most recent scores The table and the graph below detail the comparison of SAT mean scores of Alamance-Burlington School System students with students in North Carolina and the United States.

SAT Total Mean Scores 1998-2005

School Year 1998 1999 2000 2001 2002 2003 2004 2005 ABSS Students 958 963 967 965 955 975 982 1002 North Carolina 982 986 988 992 998 1001 1006 1010 United States 1017 1016 1019 1020 1020 1026 1026 1028

900

920

940

960

980

1000

1020

1040

Score

ABSS State Nation

SAT Total Mean Scores 1998-2005

1998 1999 2000 2001 2002 2003 2004 2005


58


High School Graduation Rate Totals

High School Graduate Totals

School Year Total Seniors Total Graduates Percent Graduates 1997-1998 907 893 98.46% 1998-1999 931 906 97.31% 1999-2000 998 959 96.09% 2000-2001 967 919 95.04% 2001-2002 1,127 1,081 95.92% 2002-2003 1,170 1,123 95.98% 2003-2004 1,206 1,168 96.85% 2004-2005 1,274 1,134 89.01%

Student Dropout Rates Grades 7-12

3.8%3.4%

4.8% 4.6%4.8%

4.3%

3.9% 3.9%

3.5% 3.5%3.7%

3.2%3.5%

3.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004

ABSS State

Source: Department of Public Instruction-Dropout Data Report for North Carolina. School year 2004-2005 data is

scheduled to be released by the Department of Public Instruction in January 2006.

98.46% 97.31% 96.09% 95.04% 95.92%95.98% 96.85%89.01%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1997-

1998

1998-

1999

1999-

2000

2000-

2001

2001-

2002

2002-

2003

2003-

2004

2004-

2005


59

Customer Surveys

Parents and staff members in the Alamance-Burlington School System have the opportunity to provide feedback about a variety of issues through the use of the Staff Survey and the Parent Survey. Groups are surveyed in alternate years and give input about school climate, communication, curriculum, student discipline, relationships with school staff, parent involvement, facilities and other issues involving the school district.

Staff Survey

The Staff Survey is the opportunity to provide feedback from all school-based employees of the school system. The 2004 survey shows overall ratings increased favorably since the 2002 survey.

Agreement Disagreement 2002 2004 2002 2004 School Climate

An atmosphere of mutual trust exists among the administration, 68.1% 77.1% 20.1% 11.9% faculty, staff, students and parents.

Drug and/or alcohol use is not a serious problem at the school. 74.4% 75.4% 15.1% 14.1%

The school shows sensitivity to issues of racial and ethnic fairness. 81.9% 84.7% 6.8% 4.4%

I am kept informed when important decisions are made about the 69.1% 71.3% 18.1% 14.9% programs in this school.

The school is a safe and secure place in which to work. 87.3% 90.8% 5.7% 3.0%

Faculty and staff feel that they make important contributions to this school. 79.2% 84.8% 8.9% 6.2%

Understanding cultural diversity is important in educating our children. 90.9% 93.0% 3.1% 1.9%

Faculty and staff effectively cooperate in trying to achieve school goals. 85.0% 90.3% 7.3% 3.0%

Communication The principal and assistant principal(s) work with the entire staff to ensure 75.0% 76.8% 15.3% 13.9% clear communication within the school.

Decisions are reached through a process in which staff members’ views are 67.6% 72.5% 16.9% 15.3% considered.

Teachers are encouraged to communicate concerns, questions and ideas. 80.7% 83.0% 11.1% 8.7%


60

Staff Survey (continued)

Agreement Disagreement 2002 2004 2002 2004 Curriculum

Computers are integrated into my classroom curriculum. 75.6% 79.7% 14.0% 10.1%

Teachers use a variety of teaching methods and strategies. 93.7% 92.8% 1.9% 1.3%

The school has adequate instructional supplies to support the instructional 60.4% 65.5% 28.9% 22.2% program.

The Standard Course of Study is used as the guide for instruction in this school. 94.7% 93.9% 0.7% 0.6%

There is a strong academic emphasis and high expectations in this school. 88.7% 90.9% 5.4% 2.7%

Discipline Character education has an impact on the behavior of the students in this school. 65.0% 70.0% 16.0% 10.9%

Student discipline is administered fairly and appropriately. 65.1% 76.4% 21.8% 13.0%

Rules for student behavior are consistently enforced. 65.2% 76.2% 21.6% 13.6%

School rules and expectations are clearly defined, stated and communicated. 86.1% 91.3% 7.1% 3.4%

Administrators in the school handle discipline problems effectively. 65.6% 76.7% 21.1% 10.0%

Staff The principal and assistant principal(s) are highly visible throughout the school. 87.9% 86.5% 5.9% 7.4%

The principal and assistant principal(s) set high expectations for staff performance. 78.5% 92.4% 14.0% 2.9%

Teachers have high expectations of students. 91.4% 93.1% 2.9% 1.8%

The school leadership team functions effectively. 69.4% 74.2% 11.1% 8.5%

The faculty and staff share a sense of commitment to the school goals. 83.7% 88.9% 7.2% 4.7%

The principal is an effective instructional leader. 76.1% 80.9% 11.3% 8.7%

Administrators provide constructive feedback to teachers based on in-class 80.7% 81.4% 6.6% 5.8% observations.

Parental Involvement The school provides sufficient opportunities for parental involvement. 89.6% 89.7% 3.7% 3.2%


61

Staff Survey (continued)

Agreement Disagreement 2002 2004 2002 2004 Facilities and Equipment

District-wide facilities are adequate for students to achieve. 56.4% 55.4% 17.7% 21.4%

Copiers and printers at the school meet my needs. 62.4% 53.6% 31.5% 37.7%

Renovations should be completed before construction of new schools. 68.2% 62.3% 9.5% 14.9%

The school building is neat, bright, clean and comfortable. 74.7% 79.3% 18.3% 13.2%

The temperature in my work area is usually comfortable. 56.4% 38.6% 36.2% 53.6%

Funding Funding for the school system is adequate. 14.8% 22.6% 69.7% 59.2%

School District Systemwide staff development is appropriate and well-organized. 61.2% 62.9% 16.8% 16.8%

The school district is committed to academic excellence. 79.9% 87.7% 7.5% 3.1%

The central office is responsive to my questions and concerns. 55.2% 64.0% 19.9% 15.1%

Overall Satisfaction The overall grade I would give this school is: 2002 2004

Excellent 34.6% 49.6% Good 44.6% 39.4% Fair 11.6% 9.8% Poor 2.9% 1.2%

The overall grade I would give this school system is: 2002 2004

Excellent 8.0% 21.1% Good 52.4% 58.8% Fair 28.4% 18.2% Poor 4.1% 1.8%


62

Customer Surveys

Parents and staff members in the Alamance-Burlington School System have the

opportunity to provide feedback about a variety of issues through the use of the Staff Survey and the Parent Survey. Groups are surveyed in alternate years and give input about school climate, communication, curriculum, student discipline, relationships with school staff, parent involvement, facilities and other issues involving the school district.

Parent Survey

The Parent Survey is the opportunity to provide feedback from parents of the school system’s students. New questions for 2005 are designated with an asterisk (*).

Agreement Disagreement 2001 2003 2005 2001 2003 2005 School Climate

An atmosphere of mutual trust exists among the administration, 73.8% 82.2% 85.9% 11.9% 5.2% 12.0% faculty, staff, students and parents.

I feel welcome when I visit the school. 85.4% 87.1% 87.2% 7.3% 5.3% 11.9%

The school appears well-organized and efficiently run. 81.3% 84.3% 90.5% 7.7% 4.9% 9.0%

Teachers in the school show respect and concern for my child. 80.1% 83.8% 89.9% 8.4% 5.8% 9.2%

Drug and/or alcohol use is not a serious problem at the school. 73.4% 73.2% 74.1% 8.8% 8.4% 19.5%

The school promotes and emphasizes character education. 81.2% 83.7% 92.5% 5.1% 3.3% 6.2%

The school makes every effort to maintain a safe environment. 85.4% 89.7% 94.4% 4.2% 3.2% 4.5%

Weapons are not tolerated on the campus of this school. 90.6% 93.9% 96.0% 2.3% 1.7% 2.3%

The school shows sensitivity to issues of racial and ethnic fairness. 69.5% 72.0% 77.5% 6.2% 5.5% 9.1%

* My child (children) feel safe at school. -- -- 93.3% -- -- 6.5%

* Threatening acts and/or school violence are not serious problems at this school. -- -- 76.5% -- -- 17.0%

* Harassment and/or bullying are not serious problems at this school. -- -- 55.9% -- -- 30.6%


63

Parent Survey (continued)

Agreement Disagreement 2001 2003 2005 2001 2003 2005 Communication

I am informed of my child’s progress regularly. 85.5% 88.4% 88.3% 9.9% 6.3% 10.4%

The school promotes good parent-teacher communication. 77.7% 84.0% 84.6% 10.3% 5.6% 13.1%

The school does a good job of letting me know about school activities and events. 82.3% 85.2% 87.2% 10.0% 6.8% 11.1%

* I feel comfortable contacting Central Office leaders and or Board of Education members. -- -- 69.8% -- -- 20.1%

* I receive information from my child’s school In a timely manner. -- -- 80.6% -- -- 18.7%

* I regularly receive information from the school in a format and a language that I can understand. -- -- 88.7% -- -- 10.4%

Curriculum Homework assigned is appropriate and clear to students. 76.2% 80.2% 51.7% 11.5% 7.7% 12.7%

My child has access to a computer at home. 75.9% 76.5% 59.0% 20.5% 18.2% 13.1%

My child is challenged academically. 78.2% 83.2% 85.6% 9.7% 6.0% 10.5%

My child’s test results are reviewed and explained to me. 64.3% 74.0% 72.2% 22.2% 14.1% 22.9%

Students have sufficient access to computers and sufficient instruction in their use. 75.7% 79.0% 80.6% 8.5% 5.7% 9.5%

Students in the school have sufficient instructional materials. 71.3% 73.5% 77.8% 11.6% 11.0% 13.9%

School personnel are available to give students the assistance they need on their assignments. 72.9% 77.0% 49.2% 9.5% 7.4% 10.3%

Varied learning environments are provided to accommodate different teaching and 67.1% 70.1% 46.2% 7.8% 6.3% 9.6% learning styles.

* Students are involved in a school wide reading -- -- 84.3% -- -- 9.4% program that emphasizes vocabulary development.

* Teachers in my school systematically provide -- -- 71.3% -- -- 26.4% specific feedback on the homework assigned to students.

* The school succeeds in preparing children for -- -- 88.1% -- -- 9.2% future work.

* The school stresses good teaching and -- -- 85.8% -- -- 10.8% improving student learning.


64


Agreement Disagreement 2001 2003 2005 2001 2003 2005 Discipline

Discipline is handled fairly at this school. 69.0% 73.4% 75.8% 11.3% 9.0% 14.7%

Rules for student behavior are consistently 74.7% 79.7% 82.4% 9.3% 6.7% 12.3% enforced.

The school rules are clear and fairly enforced. 80.3% 82.1% 81.1% 7.5% 7.0% 11.7%

* Appropriate consequences for violations of school-wide rules and procedures have been -- -- 84.7% -- -- 8.9% established and implemented.

School District The school district is committed to school improvement and academic excellence. 77.8% 82.9% 55.9% 6.7% 4.6% 4.7%

The central office is responsive to my questions and concerns. 51.9% 59.0% 27.1% 11.8% 9.0% 12.0%

* I know, or have an idea about, the -- -- 76.9% -- -- 14.7% school district’s mission.

Facilities The school facilities are adequate to support the instructional program. 73.8% 76.4% 79.3% 11.9% 8.9% 13.8%

The basic “to and from” school transportation services meet the needs of my child. 76.1% 80.4% 74.5% 11.9% 7.6% 7.8%

The school building is neat, clean and in good repair. 80.2% 83.5% 87.2% 9.7% 8.1% 10.5%

District-wide facilities are adequate for students to achieve. 50.8% 57.1% 32.3% 11.4% 9.1% 15.8%

Renovation should be completed before construction of new schools. 71.8% 74.5% 77.0% 8.3% 6.2% 11.1%

Parental Involvement Sufficient opportunities are available for parental involvement. 80.7% 85.5% 51.9% 7.5% 4.6% 9.6%

The school is supportive of parent concerns. 72.9% 78.2% 81.6% 10.9% 7.2% 13.9%

* I have had the opportunity to participate in at least one activity at my child’s school (PTA/PTO), curriculum/instruction meeting, -- -- 94.1% -- -- 5.1% parent conference, information session, etc.).

* If necessary, the school will schedule a meeting at a time that is most convenient for me. -- -- 90.4% -- -- 5.0%

* I have had the opportunity to participate in a meeting where school plans and strategies are developed and/or reviewed. -- -- 61.4% -- -- 26.5%

* I realize that I share, with the school, the responsibility for my child’s academic success. -- -- 97.6% -- -- 2.0%


65


greement Disagreement 2001 2003 2005 2001 2003 2005 Staff

The faculty and staff share a sense of commitment to the school goals. 78.6% 83.9% 86.2% 4.9% 3.0% 4.4%

The principal and assistant principal(s) are highly visible throughout the school. 70.8% 79.3% 52.5% 11.0% 5.7% 7.6% The principal and assistant principal(s) have high standards for student achievement. 78.2% 84.8% 56.6% 4.3% 2.2% 3.3%

The school’s programs meet the needs of special students (learning disabled, gifted, etc.). 60.0% 62.6% 64.8% 8.0% 5.6% 7.6%

The principal and assistant principal(s) have high expectations for student behavior. 85.4% 88.2% 91.7% 3.4% 2.4% 3.6%

Teachers have high expectations for students. 81.0% 88.3% 89.8% 4.7% 2.4% 5.6%

Other Issues We should have lower class sizes in our 78.9% 76.0% 50.4% 6.8% 7.1% 16.6% schools.

Funding for the school system is adequate. 37.1% 36.1% 33.0% 33.9% 36.5% 48.1%

Overall Satisfaction The overall grade I would give this school is: 2001 2003 2005

Excellent 32.7% 37.0% 46.3% Good 39.8% 50.6% 38.6% Fair 11.7% 9.0% 10.8% Poor 2.2% 1.5% 1.9%

The overall grade I would give this school system is: 2001 2003 2005

Excellent 13.2% 17.2% 21.4% Good 53.2% 62.2% 53.5% Fair 24.5% 14.8% 17.3% Poor 3.2% 2.0% 2.3%


66

North Carolina Department of Public Instruction Per Pupil Expenditures for Alamance-Burlington School System

Excluding Child Nutrition Funding

State Final State Federal Local Total Average Daily Per Pupil Per Pupil Per Pupil Per Pupil School Year Membership Expenditure Expenditure Expenditure Expenditure

2006-2007 * 22,134 4,707.95 494.03 1,672.35 6,874.33

2005-2006 * 21,708 4,442.31 443.25 1,616.42 6,501.98

2004-2005 21,435 4,349.53 464.15 1,517.57 6,331.26

2003-2004 21,280 4,243.04 482.53 1,304.16 6,029.73

2002-2003 21,185 4,154.96 359.95 1,141.41 5,656.32

2001-2002 20,946 4,140.49 310.45 1,212.56 5,663.50

2000-2001 20,455 4,172.73 275.30 1,220.12 5,668.15

1999-2000 19,860 3,979.67 228.97 1,097.69 5,306.33

1998-1999 19,364 3,782.03 203.88 1,027.70 5,013.61

1997-1998 19,072 3,603.30 168.82 981.18 4,753.30

Note: Local Funding per pupil amounts include funding from various sources in addition to the annual appropriation for schools by the Alamance County Board of Commissioners. State final ADM does not include charter school students. * 2005-2006 and 2006-2007 amounts are estimated based on budgeted totals.

FY 1998-2006 Per Pupil Expenditures by Source of Funding

by Percent of Total

0%

20%

40%

60%

80%

State Federal Local

1998 1999 2000 2001 2002 2003 2004 2005 2006

Source: North Carolina Department of Public Instruction Statistical Profile 1998-2005. FY 2006 amounts are estimated by Finance Department staff.


67

Alamance-Burlington School System Personnel Summary

(Full-Time Equivalent Positions Only)

School Year

1998 1999 2000 2001 2002 2003 2004 2005 State Position Categories -1999 -2000 -2001 -2002 -2003 -2004 -2005 -2006 Administrators/Managers 25 23 22 22 23 24 22 22 Principals 31 30 32 33 33 33 33 33 Assistant Principals 37 38 44 47 47 50 53 53 Elementary Teachers 558 568 591 621 627 652 696 710 Secondary Teachers 633 662 680 724 742 773 790 768 Other Teachers 11 45 41 13 15 15 24 21 Guidance 48 48 46 52 50 52 52 51 Psychologist 11 13 10 9 12 11 11 12 Librarian/Audiovisual 30 30 30 32 32 33 32 33 Consultant/Supervisor 5 4 3 3 3 1 1 1 Other Professional 47 55 82 81 89 98 98 105 Teacher Assistants 387 400 401 409 396 447 454 435 Technicians 10 11 10 14 14 15 15 16 Clerical/Secretarial 126 128 129 134 138 144 147 145 Service Workers` 237 211 208 203 211 207 231 224 Skilled Crafts 41 41 40 42 44 45 42 42 Total Full-Time Positions 2,237 2,307 2,369 2,439 2,476 2,600 2,701 2,671

Source: Years 1998-2005 from Alamance-Burlington Annual Public School System Full-Time Personnel Report as published in the state Statistical Profiles, 1998-2005. 2006 numbers are ABSS Finance Department estimates.

Number of Positions by Group

0

200

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1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

CO Administration School Administration Teachers Student Support Teacher Assistants Classif ied


68

Number and Experience Levels of Teachers

2005-2006 Years of Number of

Experience Teachers * 0 148 1 107 2 92 3 88 4 69 5 71 6 52 7 65 8 71 9 42 10 46 11 54 12 42 13 29 14 37 15 35 16 28 17 35 18 33 19 30 20 28 21 27 22 23 23 25 24 27 25 26 26 32 27 19 28 26 29 25 30 20 31+ 56 Total Teachers 1,508 * This includes all full-time and part-time teaching staff employees on September 19, 2005.

38.1%

18.3%13.1% 10.2%

8.5% 8.1%3.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Percent

0-5 6-10 11-15 16-20 21-25 26-30 31+

Years of Experience

Percentages by Experience Levels - School Year 2006

Number of Teachersby Years of ExperienceSchool Year 2005-2006

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69

Comparison of Annual Teacher Salary Supplements along the I-85/I-40 Corridor

2005-2006 School Year 0 Years 10 Years 25 Years Experience Experience Experience Bachelor’s Degree State Salary 25,510 34,470 43,080 School System Amount Percent* Amount Percent* Amount Percent* Alamance-Burlington 1,531 6.00% 2,068 6.00% 2,585 6.00% Asheboro City 1,531 6.00% 2,068 6.00% 2,585 6.00% Caswell County 500 1.96% 575 1.67% 875 2.03% Chapel Hill-Carrboro 3,061 12.00% 4,136 12.00% 10,770 25.00% Chatham County 2,900 11.37% 3,000 8.70% 3,300 7.66% Davidson County 1,531 6.00% 2,068 6.00% 2,585 6.00% Durham County 3,189 12.50% 4,653 13.50% 6,247 14.50% Guilford County 3,760 14.74% 3,710 10.76% 4,630 10.75% Lexington City 2,551 10.00% 3,447 10.00% 4,308 10.00% Orange County 2,551 10.00% 4,826 14.00% 6,031 14.00% Person County 2,041 8.00% 2,758 8.00% 3,446 8.00% Randolph County 1,276 5.00% 1,724 5.00% 2,154 5.00% Rockingham County 1,276 5.00% 1,724 5.00% 2,154 5.00% Thomasville City 3,000 11.76% 3,200 9.28% 3,500 8.12% Wake County 3,215 12.60% 4,689 13.60% 6,719 15.60% Winston-Salem/Forsyth 2,820 11.05% 3,440 9.98% 4,630 10.75%

* Percent of appropriate Bachelor’s Degree state salary.

0.0%

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15.0%

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25.0%

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Percent Comparision of Teacher Supplements

0 Years Experience 10 Years Experience 25 Years Experience


70

Teacher Turnover Rates

1997-1998 School Year to 2004-2005 School Year

Teacher Turnover Rates The Alamance-Burlington School System’s teacher turnover rate was 19.71% for school year 2004-2005 compared to the state average of 12.95%.

Number of ABSS State Teachers Who Turnover Turnover School Year Left ABSS Percent Percent 1997-1998 163 12.45% 12.50%

1998-1999 201 14.56% 13.41% 1999-2000 264 18.13% 13.59% 2000-2001 242 16.43% 13.96% 2001-2002 250 16.19% 12.49% 2002-2003 237 15.11% 12.44% 2003-2004 232 16.57% 12.37% 2004-2005 325 19.71% 12.95%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005

State ABSS


71

Local Tax Information

Alamance County government collects tax revenue from local sources (property taxes, personal property taxes, sales taxes, licenses, permits and fees are examples) and allots a portion of these revenues to the Alamance-Burlington School System for operating and capital outlay expenditures. Assessed and Estimated Market Value of Property The table below lists the assessed and the estimated market value of property within Alamance County for the previous ten years by type of property. Assessed valuations are established by the Alamance Board of County Commissioners at 100 percent of estimated market value. A revaluation of real property is required by the North Carolina General Statues at least every eight years. The last revaluation became effective January 1, 2001. Assessed Value (expressed in thousands) Ratio of

Assessed Public Value to Fiscal Real Personal Service Estimated Estimated Year Property Property Companies Abatements Total Actual Value Actual Value 2006 * 7,470,907 1,999,853 265,728 (105,307) 9,631,181 10,053,933 95.8% 2005 * 7,479,979 2,002,198 266,024 (105,437) 9,642,764 10,075,294 95.7% 2004 7,333,313 1,959,567 263,590 (97,107) 9,459,363 9,821,834 96.3% 2003 7,165,025 2,040,177 272,207 (112,622) 9,364,787 9,463,575 99.0% 2002 7,050,979 2,006,849 262,276 (106,583) 9,213,522 9,384,687 98.2% 2001 4,568,291 1,889,038 196,049 (69,726) 6,583,652 6,583,652 100.0% 2000 4,424,621 1,803,826 197,163 (63,600) 6,362,010 8,244,761 77.2% 1999 4,255,957 1,694,167 190,253 (64,688) 6,075,688 7,623,572 79.7% 1998 4,060,715 1,634,962 182,933 (56,586) 5,822,024 7,187,896 81.0% 1997 3,934,909 1,395,408 216,913 (52,497) 5,494,733 6,683,403 82.2% 1996 3,825,744 1,285,344 211,799 (56,754) 5,266,133 5,990,513 87.9%

* FY 2006 amounts are estimated by school finance staff. FY 2005 amounts have not been audited at the time of publication. Other years’ source of information: Alamance County 2004 Comprehensive Annual Financial Report.

0

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4,000,000

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8,000,000

10,000,000

12,000,000

(exp

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19961997

19981999

20002001

20022003

20042005

2006

Market Value and Assessed Value of Total Taxable Property

Market Value Assessed Value

This page will be updated when information becomes available.


72


Property Tax Levies and Collections This table details the past ten fiscal years’ tax levies, current and delinquent tax collections and the ratio of total tax collections to total tax levies. The last column presents the Alamance County property tax rates for each fiscal year.

Ratio of Total Tax Rate Delinquent Tax Collections Per $100 of Fiscal Total Tax Current Tax Tax Total Tax to Total Assessed Year Levy Collections Collections Collections Tax Levy Value 2006 * 55,360,097 54,149,914 1,099,463 55,249,377 99.8% .5625 2005 * 51,962,775 50,864,459 1,007,484 51,871,943 99.8% .5100 2004 49,253,815 48,212,757 978,734 49,191,491 99.9% .5200 2003 46,653,743 45,632,597 875,788 46,508,385 99.7% .5000 2002 39,258,696 38,248,639 818,922 39,067,561 99.5% .4200 2001 34,737,647 33,913,140 794,157 34,707,297 99.9% .5250 2000 33,584,751 32,745,445 660,910 33,406,355 99.5% .5250 1999 32,368,475 31,668,144 665,161 32,333,305 99.9% .5300 1998 31,008,115 30,326,093 498,278 30,824,371 99.4% .5300 1997 29,165,729 28,614,864 454,844 29,069,708 99.7% .5300 1996 27,240,087 26,773,052 693,908 27,466,960 100.8% .5150 Note: This table includes data from only the County’s General Fund countywide property tax levy.

* FY 2006 amounts are estimated by school finance staff. FY 2005 amounts have not been audited at the time of publication. Other years’source of information: Alamance County 2004 Comprehensive Annual Financial Report.

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Total Tax Levy, Current Collections, and

Delinquent Collections by Fiscal Year

Total Levy Current Collections Delinquent Collections



73


Property Tax Rates 1999 - 2006

The table below displays the property tax rates for Alamance County and counties surrounding Alamance County as established by the appropriate county governing bodies. Of the twelve counties listed, Alamance County has the 10th lowest rate for fiscal year 2006.

Area Counties: (ranked by highest rate in 2006) Rank 2006 2005 2004 2003 2002 2001 2000 1999 Orange County 1 .8430 .8800 .8450 .8300 .8050 .9290 .9190 .9020 Durham County 2 .8090 .7900 .7630 .7530 .7290 .9297 .9297 .9397 Forsyth County 3 .6660 .7080 .6920 .6920 .6400 .6745 .6625 .6515 Person County 4 .6500 .6700 .6700 .6700 .6700 .6700 .6500 .6500 Guilford County 5 .6428 .6184 .7135 .6742 .6742 .6372 .6372 .6372 Rockingham County 6 .6350 .6350 .6350 .6900 .6900 .6600 .6600 .6700 Wake County 7 .6040 .6040 .6040 .5640 .5640 .5640 .7300 .6300 Caswell County 8 .6000 .6000 .6611 .6611 .6411 .6411 .7350 .7050 Chatham County 9 .5970 .6464 .6464 .6464 .6464 .8500 .8500 .7900 Alamance County 10 .5625 .5100 .5200 .5000 .4200 .5250 .5250 .5300 Davidson County 11 .5400 .5300 .5300 .5300 .5300 .5300 .5300 .4800 Randolph County 12 .5250 .5000 .5000 .4800 .4800 .5125 .5125 .4650 Source: North Carolina Association of County Commissioners



74

Glossary of Key Terms

Accrual Basis: The basis of accounting which indicates revenues are recorded when they are earned (whether or not cash is received at the time) and expenditures are recorded when the goods and services are received (whether or not cash disbursements are made at the time). Allotment: Allocations of state and federal funds to local education agencies. Appropriated Fund Balance: Appropriated fund balance in any fund shall not exceed the sum of cash and investments minus the sum of liabilities, encumbrances and deferred revenues, as those figures stated at the end of the fiscal year preceding the budget year. Appropriation: A legal authorization to incur obligations and to make expenditures for specific purposes. An appropriation is usually limited in amount and for a specific time period. Asset: Government owned or held resources that have monetary value. Available (Undesignated) Fund Balance: Funds remaining from the prior year which are available for appropriation and expenditure in the current year. Average Daily Attendance (ADA): The sum of students present daily divided by the number of days in a term. Average Daily Membership (ADM): The sum of the number of days in membership for all students in individual school units divided by the number of school days in the term. Specific state funding allotments are based on average daily membership. Basic Education Program (BEP): A state plan aimed at improving the quality of education by requiring school systems to offer a basic education curriculum, reduce class size and provide expanded resource assistance. Initial funding for the Basic Education Program was provided in 1985-1986.

Budget: A fiscal plan of a board of education for raising and expending funds for specific programs, functions, activities or objectives during a fiscal year. Budget Resolution: The board of education shall adopt a budget resolution making appropriations for the budget year in such sums as the board deems sufficient and proper. The budget resolution shall conform to the uniform budget format established by the State Board of Education. All moneys received and expended by a local school administrative unit should be included in the school budget resolution. Budget Year: The fiscal year for which a budget is proposed and a budget resolution is adopted (July 1 to June 30). Capital Assets: Assets of significant value and having a useful life of several years. Capital assets are also known as fixed assets. Capital Improvement: Expenditures related to the acquisition, expansion or rehabilitation of an element of the government’s physical plant. Capital Outlay: Fixed assets with a value of $500 or greater and with a useful economic life of more than one year. Categorical Grant: A grant received from another governmental grant to be used or expended for a specific program or purpose. Charter School: A public school operated by a group of parents, teachers and/or community members as a semi-autonomous school of choice within a school district operating under an agreement (charter) with the State Board of Education. Current Expense: Those expenditures of a recurring nature including personnel, benefits, services, supplies and equipment.


75

Glossary of Key Terms

Encumbrance: The commitment of funds to purchase goods or services. To encumber funds means to set aside or commit funds for a specific future expenditure. Expenditure: The payment of cash on the transfer of property or services for the purpose of acquiring an asset or service or settling a loss. Fiscal Year: The 12-month period to which the annual budget applies. By state law, all North Carolina school systems must observe a fiscal year that begins on July 1 and ends on June 30. Fund: An independent fiscal and accounting entity consisting of cash and other resources together with all related liabilities, obligations, reserves and equities which are segregated by appropriate accounting techniques for the purpose of carrying on specific activities or attaining certain objectives in accordance with established legal regulations, restrictions, or limitations. Fund Balance: The excess of the assets of a fund over its liabilities and reserves at the beginning or ending of a fiscal year. Indirect Cost: A cost necessary for the functioning of the organization as a whole, but which cannot be directly assigned to one service.

Local Current Expense Fund: Appropriations for the current operating expenses of the local school administrative unit other than appropriations included in the state public school fund and the federal grant fund. These appropriations are funded by the local board of county commissioners or other source for current operating expenses of the public school system. Months of Employment: A unit of employment that corresponds to a calendar month. Rather than allot a number of positions, the state allots a certain number of months of employment that can be assigned to a position or a portion of a position at the discretion of the local administrative unit. Per Pupil Expenditure: The annual current expenditures divided by the final average daily membership for the year. State Formula: The calculations used by the state to fund various allotments to the local education agency. Formulas can be based on the number of positions calculated on average daily membership, months of employment or flat dollar amounts. State Public School Fund: Appropriations for the current operating expenses of the public school system from moneys made available by the State Board of Education.

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