Chapel Hill Carrboro Schools project $3.25M budget increase for salaries and benefits

The Orange County Board of Commissioners (BOCC) held a joint meeting with local school boards on April 29, 2025, to discuss the upcoming budget and financial projections for the Chapel Hill-Carrboro City Schools. The meeting focused on the continuation budget request and the anticipated financial needs for the next fiscal year.

The discussion began with an overview of the current budget situation, highlighting that there are no legislated increases or changes to benefits for the upcoming year. Officials emphasized that the figures presented are based on best estimates and projections, which could change depending on legislative actions in Raleigh.

Key points included a projected 3% increase in salaries and wages, which would amount to approximately $1.6 million for Chapel Hill-Carrboro City Schools. This increase also includes local supplements, with an additional $1.7 million anticipated for matching benefits such as social security and health insurance. The total continuation budget request for the next year is estimated to be just under $3.8 million.

Officials noted that a special district tax, which typically sees a 2% annual increase, would provide an additional half million dollars in revenue, reducing the overall continuation need to approximately $3.25 million. A significant portion of the budget, over 50%, is attributed to matching benefits, underscoring the financial burden these costs impose on the overall budget.

During the meeting, there was a discussion about the complexities of aligning salary increases with rising retirement rates, which have increased significantly over the years. The board acknowledged the challenges posed by the current economic climate and the need for careful financial planning.

In addition to the continuation budget, the board presented a roadmap for future funding priorities, emphasizing the importance of investing in personnel and resources to enhance educational outcomes. While the expansion budget items were not prioritized, they reflect the district's commitment to empowering its staff and improving educational services.

The meeting concluded with a commitment to continue monitoring financial developments and to adapt the budget as necessary based on legislative changes and economic conditions. The board plans to keep the community informed as they navigate these financial challenges in the coming year.