Board seeks more oversight: ordinance would require DPS to 'reflect' county funding by state purpose/function

Durham County staff proposed adding a reporting requirement to the budget ordinance that would require Durham Public Schools to translate county-provided local funding into the state chart-of-accounts purpose and function codes and to notify the Board of County Commissioners if local funds are shifted cumulatively by 15% or more.

Keith explained the rationale: the county already budgets at a high level, but asking DPS to “reflect” local appropriations in the state coding gives the board clearer insight into how local dollars are being used. “If DPS wants to move 15% of their instructional services budget…you all need to be notified and approve it,” Keith said, explaining the intent is transparency and to protect the board’s stewardship of local funds.

Legal counsel and staff said the board has statutory reporting authority and can limit shifts at the purpose level, but cautioned that requiring approval at too-granular a level would generate frequent amendments. Counsel noted the county can access the school district’s books and require reporting; adopting a 15% cumulative threshold is intended to be a practical trigger for oversight rather than micromanagement.

Commissioners requested that staff provide examples, benchmarking with other counties, and a plan for regular reporting (for example, at quarterly joint meetings with the school board). Staff indicated they will ask DPS to prepare the state-purpose breakdown for the manager-recommended dollars, including the $2,570,000 addition.