TITLE
Title
BUDGET AMENDMENT: FY24 APPLICATION FOR NC EDUCATION LOTTERY DISTRIBUTION
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SPONSOR
Sponsor
Toy Beeninga (on behalf of Guilford County Schools)
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BACKGROUND
Background
On November 2, 2023 the BOC approved a total of $6.75 million in Public School Building Capital Funds (PSBCF)-NC Education Lottery distributions. It was determined that three (3) of those approved projects could be paid out of the Public School Building Repair and Renovation Fund (PSBRR) instead of the PSBCF. The Board of Education has resubmitted those applications for re-approval from the PSBRRF. The funding amounts and scope of these projects are not changing. County staff are recommending setting up a separate project to track the PSBRRF to keep it separate from PSBCF. The projects are as follows:
• $267,500 for Smith High School re-roof structural concrete canopies
• $250,000 for Ragsdale High School chiller replacement
• $130,000 for Colfax Elementary gym roof replacement
There are two (2) primary buckets of funding for lottery funds:
• Public School Building Capital Funds (PSBCF) - The General Assembly has allocated $100 million of Lottery revenue for the PSBCF annually. Of that amount, $98 million is distributed to the 115 school districts based solely on the average daily membership (ADM). Guilford County generally receives ~$5 million per year. Eligible projects with this funding source include:
o Purchase of land for public school buildings.
o Project planning/design fees.
o Construction of new public school buildings.
o Renovations of existing public school buildings.
o Enlargement (expansion) of public school buildings.
o Repair of existing public school building components and systems.
o Equipment purchases (equipment that is an integral part of a building, such as HVAC, plumbing, electrical and security equipment).
o School Technology (through the “ADM Fund” only; use of Lottery funds for School Technology is prohibited).
o Certain exterior improvements (parking lots, athletic fields, playgrounds, etc.).
o Debt Service (retirement of indebtedness incurred for public school facilities)
• Public School Building Repair and Renovation Fund (PSBRRF) - The General Assembly determines funding levels through the annual budget process. $30 million was appropriated for the PSBRRF in FY 21‐22. $50 million was appropriated for FY 22‐23, FY 23‐24 and FY 24‐25. These funds are distributed equally to all 100 counties. Guilford County will receive $500,000. Eligible projects with this funding source include:
o Enlargement (expansion of classroom facilities).
o Improvements to classroom facilities.
o Repair of existing building components and systems of classroom facilities.
o Renovation of existing classroom facilities.
o Equipment purchases for classroom facilities.
o Project planning/design fees.
County staff are recommending setting up a separate project ordinance to track the PSBRRF to keep it separate from PSBCF.
The Board of Education is also seeking to apply for the use of $816,606 in PSBRRF funds. Guilford County Schools (GCS) has accumulated a balance of $674,734 in the PSBRRF to pay for part of the $816,606 in requested projects. The State has advised for GCS to go ahead and submit the remaining $141,871 in projects to be approved and paid out as funding becomes available in FY25. These projects were not budgeted as part of the FY24 budget so a budget amendment is needed in order for the County to process those funds. The projects are as follows:
• $600,000 for Sylvia Mendez Newcomers School chiller and boiler replacement
• $216,606 for Jefferson Elementary School control valve replacement
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BUDGET IMPACT
Budget Impact
School Capital Outlay Fund
FY24 GCS Capital Maintenance- Education Lottery Funds
$647,500 decrease in appropriation to FY24 GCS Capital Maintenance- Education Lottery Funds
$2,000,000 decrease in Transfer from Other Funds (revenue will be directly booked to the project instead of to the General Fund and transferred to the project)
$1,352,500 increase in Federal/State Funds
FY24 GCS Education Lottery Funds- Repair and Renovation Fund
$1,464,106 increase in appropriation to FY24 GCS Education Lottery Funds-Repair and Renovation Fund
$1,464,106 increase in Federal/State Funds
NO ADDITIONAL COUNTY FUNDS REQUIRED
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REQUESTED ACTION
Requested Action
1) Authorize amendment re-aligning Lottery Funds and release of $1,464,106 in NC Education Lottery funds from the Public School Building Repair and Renovation Fund; and
2) Amend the FY24 GCS Capital Maintenance-Education Lottery Funds project ordinance to decrease the appropriation by $647,500, decrease Transfer from Other Funds by $2,000,000 and increase Federal/State Funds by $1,352,500; and
3) Adopt captial project ordinance for FY24 GCS Education Lottery Funds-Repair and Renovation Fund in the amount of $1,464,106 with $1,464,106 in Federal/State Funds.
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