TITLE
Title
BUDGET AMENDMENT: FY25 APPLICATION FOR PUBLIC SCHOOL BUILDING CAPITAL FUND - NC EDUCATION LOTTERY DISTRIBUTION
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SPONSOR
Sponsor
Dr. Whitley Oakley, GCS Superintendent
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BACKGROUND
Background
The Guilford County Board of Commissioners and Guilford County Board of Education are required to submit an annual application for the distribution of Public School Building Capital Funds (PSBCF) - NC Education Lottery (NCEL). This requires approval by both Boards.
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)
The Board of Education is seeking to use $4,750,000 to support debt service, as appropriated in the FY25 budget and part of the bond funding model. With this allocation for $4.75 million, staff anticipate a remaining balance of $86,000.
• 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 seeking to apply for the use of $890,000 in PSBRRF funds. Guilford County Schools (GCS) has accumulated a balance of $1,045,304, but already has approved projects in the pipeline totaling $825,000, leaving a remaining balance of $220,304. With the remaining current year distribution, GCS will have an estimated $463,284 available in the PSBRRF. The State has advised for GCS to go ahead and submit the project to be approved and paid out as funding becomes available in FY26. This will likely fully utilize the FY26 allocation. The projects are as follows:
- High Point Central High Chillers, Piping and Pumps Replacement
The Board of Education approved the PSBRRF application on March 11, 2025 and the PSBCF application on April 8, 2025 , and now Board of Commissioners' approval is required to formally apply.
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BUDGET IMPACT
Budget Impact
FY25 GCS Education Lottery Funds - Repair and Renovation Fund
$890,000 appropriation to capital project
$890,000 in Federal/State Funds
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REQUESTED ACTION
Requested Action
Approve the attached applications for the release of $4.75 million from the PSBCF - NC Education Lottery and adopt a capital project ordinance for FY25 GCS Education Lottery Funds-Repair and Renovation Fund in the amount $890,000 with $890,000 in Federal/State Funds.
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