Board of Commissioners · Work Session · May 29, 2025

morning everyone. Welcome to our third budget work session and I'll pass it over to the county manager for a few comments. Good morning everyone. We're glad that you're with us and are excited about today's conversations.

Um we will start off with the public schools followed by um human service related uh conversation from public health and opioid discussion the department of social services and then a conversation with the board count the durham county alcohol beverage control board. Uh there were a series of questions asked by um commissioners. We are in process of getting that information back to everyone. Um, as presenters share today, you may hear some of those responses, but do know by next week we will have those items wrapped up. So, I just wanted to manage expectations on how the discussions will flow. And we will now invite um Durham Public Schools for a

conversation. Welcome, Superintendent Lewis. Then welcome to your team. I will let you introduce everyone who's with you today.

Thank you so much. Good morning everyone. It's certainly a pleasure to be with you this morning. I appreciate the opportunity to have a conversation uh as it relates to Durham public schools budget and the support that uh the amazing support that the county provides us.

Uh again, Anthony Lewis, superintendent, Durham Public Schools, and I'll let my team members introduce themselves. Good morning. Uh Jeremy Teter, chief finance officer. Good morning. Nicholas King, Deputy Superintendent for Academic and

Leadership Services. Tanya Giovani, deputy superintendent for administrative, legal, and compliance services. Welcome everyone. Thank you.

And in a in the audience with us, we do have board chair Rogers, uh, board member Buyers. We also have Crystal Rogers. Oh, board member, I'm sorry, Vice Chair Carter has come in. Uh, Crystal Roberts from our office of public affairs and our interim chief operations officer, Ken Barnes.

Mr. Thank [Music] you. You're playing up there first. Okay.

Uh again, uh it's certainly an great opportunity to speak with you today. Uh this is your not year, it seems like a years, but 10 months of being here in in Durham. And uh many of you know once I arrived I uh set out on

a mission to uh talk to as many people as possible in the community uh both internal DPS community members, external community members just to understand the full picture of Durham public schools before charting a path forward. And so a part of that uh entry plan that I released was a series of listening and learning sessions. And the goal of that was to gather large numbers of people in a room uh to just hear from them and ask we asked them five questions. And one of those questions that we did ask them was and this this was back in August.

Given our budget constraints, what should be our priorities uh moving forward? And we were pleased with the turnout at those sessions and uh compiled uh all of the data from the attendees in person as well as uh administering an online community survey to get some feedback. And so just want to share a real high level some of the feedback that we received um that that helps us kind of um uh uh chart our path forward as it relates to this budget as well. And so

as a result of the uh first 100 days, there are 13 immediate priorities for Durham public schools that were noted. Certainly won't go into um all of these u but as you can see one of those was rebuilding trust within the community and that was something that was near and dear to us and still is in terms of making sure that we are um being fiscally responsible in an effort to continue to rebuild that trust uh within our community. uh off um during that time there was also some transportation challenges and simply put folks just said fix transportation issues. Uh right under that is increasing financial transparency and accountability. Uh Jeremy Teter our current CFO joined us in November uh came in and uh immediately hit the ground um running and racing and uncovering things and um bringing things to our attention. And as soon as we were in a good place that we were able to share with the community just at that time where we were financially uh we immediately called a press conference again an effort to um ensure that we are rebuilding trust with

the community and increasing our financial transparency in terms of some of the things that he discovered and he'll go um in in detail in some of those in in just a moment. Next slide. Oh, you have it. Okay.

One of those items that we also heard was support for teachers and staff. We cannot do this work without our amazing uh teachers and staff in our buildings. And one of the ways we do that is making sure that we are investing in them, making sure that we are listening to them um and supporting our teachers and and and staff. I often tell tell people that retention is the new recruitment. And so ensuring that we are addressing their workload reductions, uh compensation and retention, uh the differential pay for those hard to fill positions like I um EC positions and what was um uncovered in the fall, bus drivers was a hard to fill position in the fall and we're still um feverishly working towards ensuring that all of our uh routes are are full. and then

advocating for local and state funding. And that's one of the reasons we're here today to advocate for local funding uh as well as um this community uh in supporting us in advocating for state funding. Next slide. Go.

We also heard improve uh our school facilities. Uh the average age of our school buildings are about 59 years old and there's a tremendous amount of work. we shared with our board in the community uh at a recent board meeting uh that we're looking at close to $900 million in terms of um investing in our uh schools where they need to be. When I first got here and was able to tour um Murray Massingberg, uh I walked out of that building and many of you were in that building as well.

I walked out of that building said this is the experience we should have for all of our our children. Not saying that every building should be brand new, it'd be nice, but in terms of the investment in our buildings, um that that's something that we'll we'll continue to work on. security enhancements came out of of this uh particular priority as well. Uh preparing our uh facilities. Um just in my short 10 months, what I've observed is that um things break and then we fix.

So it's like break and fix. And so moving to a uh a standpoint where we have a capital improvement plan where we're able to um um put schools on cycles. For example, we know that HVAC system lasts about 7 to 10 years. And so how do how can we put schools on rotational cycles that we know that we are being preventative and more uh instead of reactive and that's part of that long-term um facilities planning process.

Next slide. And then again fix transportation issues. One of the things we know is that uh for some of our students the first adult interaction that they see is our bus drivers and sometimes the last interaction that they see with an adult is sometimes our bus drivers. And we cannot uh overstate the importance of our bus drivers and safety assistants that are riding those buses as as well.

And so uh in this budget proposal, which Jeremy will share as well, you will see uh probably have noted an investment in our our bus drivers. I will say um uh a highlight since January, we have been able to secure 40 additional bus drivers um for Durham public schools. And so we want to continue to address those transportation

issues uh from a staffing standpoint, from route optimizations, and then also just creating that creating that culture and listening to our transportation staffs in terms of some things that they're sharing with us that will assist with retaining them as well. Next slide. In addition to the listening and learning sessions, we also um engaged um the community around our budget. We added additional hearing.

I think this was the first time we've done two hearings, two budget hearings this this um this time. Uh we also launched a community uh online forum. Um but before we did that, one of the things we noted during the listening and learning sessions that there was an an opportunity for us to continue to educate our uh district staff, our community members on Durham public schools finance and North Carolina school finance, which is a lot different than your business budget or your or your home budget. And so we released a series of dollars and decisions in an effort to uh continue to educate our our our community and remind our community on how schools uh school districts get

their funding and where those funding sources go. One of the highlights of those dollars and decisions was one of our scholars um we have a bank, many of you may know or may not know, we have a bank at Hillside uh High School and the president of that bank, student president of that bank uh had an amazing opportunity to interview interview Jeremy Teter uh and just ask some phenomenal questions. cuz I think she even kind of went off script as well because she was just that engaged in this process. But the purpose of that was twofold.

One, to make sure that our students have some level of involvement in our school budget, but also when Jeremy was responding to those questions, responding in a way that if a high school student can understand it, then most of our community can understand our budget process as well. So, just some highlights from that uh online survey that that we took. Um, I won't read all this to you, but this is just pretty much a summary of what the community was uh sharing with us. And you will see they closely align with some of the priorities that were in the post entry plan uh to include ensuring reliable transportation, attracting uh and retaining our quality educators by increasing staff uh teacher and staff

salary. Um strong call for improving school infrastructure including HVAC systems. Um because you may know that we had to release a couple of our schools early uh due to HVAC issues. And so when it gets to a point where it's impacting academics, then that's a problem for me.

And so we want to continue to make sure we're addressing those. Next slide. And this was just the word cloud of what was shared there. And you can see loud and clear um what our community said as it relates to salaries, retention uh and investing in our employees.

And then this is just some our top thoughts um verbatim from what our community told us. Again, paying teachers and support staff competitive wages with the goal of recruiting and retaining our our staff support staff and also to address teacher retention. Next slide. There's more uh comments on staff pay.

Um and then lastly, bus drivers, appropriate pay for uh bus drivers to ensure that we're stabilizing our staffing shortages as well. And then addressing our uh facilities. Uh there was some uh

feedback we received around M's pay for our uh educators as well as adequate staffing to meet the needs of all of our scholars. Okay. At this time, I'll turn it over to Jeremy Teter to walk you through our budget requests. Okay.

Thank you, Dr. Lewis. Um, so we just um, you know, we looked at this um, information um, together with the two boards, the school board and and the county commissioners a couple of weeks ago. Um, and just sort of to rehash um, some of the history um, that we unpacked.

And so Dr. Lewis alluded to my arrival in November and the work that we did um to unpack sort of where Durham stood um and uh you know the district did not have a permanent finance officer for several months. It was a critical time um as school systems across the state of North Carolina were transitioning away from uh tremendous investment of ESR dollars and so um had had to work through some things. Um, so we were uh dealing with um a a budget potential budget deficit of almost $34

million. We are relieved that it is no longer us in the headlines and we we're hearing about some other districts in the headlines instead of Durham. And so, um, we've been able to work through, um, work through this dilemma, uh, with our with our internal resources just in terms of, um, sufficiently budgeting for the actual positions, uh, in Durham public schools, working through appropriately paying charter schools, um, in Durham and in surrounding counties where our Durham students may go. Um, just a variety of of issues.

Um, we were fortunate that a month into working through these challenges, the state of North Carolina tred up our state funding to reflect um that we had higher enrollment than they had initially projected. So, that was very timely uh on their part. Um, and in tandem with that um we were able to put in place sort of some short-term measures um at at the school system level. So, uh to our fortune um the the

previous interim superintendent, Dr. Caddyy Moore and other senior staff members um had contemplated um only populating our budgets um for for operating purposes um at the central office level and as well as our schools at the 85% mark. Uh and we made the decision to lock that in place and and to continue operating in that manner uh this year um as as a means of uh balancing things and making things work this year. Um, we were also fortunate to be able to leverage uh some one-time resources um that the district was fortunate to have received a prominent example um the Mackenzie Scott uh donation uh that came to Durham public schools a couple of years ago.

Uh able to lean on those resources as as a one-time fix uh to to pull the school system through this year until we were able to make some long-term uh decisions to set ourselves up for success. Um, we also implemented a hiring freeze u for positions that were not compulsory or not required uh by state law. And so um we we put that in place um just so that

we can we could regroup, reassess what are our mustos uh and how do we position ourselves for next year without creating um new challenges uh in the short term. Um on the long-term front, um we we took a long hard look at how we allocate our personnel resources in the district. And so we spent uh some time just sort of assessing our our studenttoteer ratios and how closely do those align uh to the state funding formulas as as well as other positions. Uh we also took a really hard look at our central services uh division of the district um to evaluate uh do we need to continue operating as the way we have with with those positions.

Uh and so the district has recently gone through a reduction in force uh for classified central office positions uh where we ultimately um eliminated 27 positions in our central office um with with a collaborative effort across everyone that serves on Dr. Lewis's senior team. Um and we spent um a good bit of time evaluating that and assessing that. Um you know

ultimately you know it did it did impact some people but a number of these 27 positions were vacant. um and we were able to um minimize the impact to to staff and and our HR team and our HR leadership has been working with impacted employees um in the positions that were occupied uh in order to help them find opportunities as best as possible. Um we did um send another document um that we would like to lift up and I don't know if we're able to pull up the um the actual budget book. Um, so we'll it is in your agenda packets.

I have to put it up on the PDF. So if you want to speak through it, they have it in their packets, but I I'll pull it up. Fantastic. Thank you so much. Um and so just as a um so the the other document that's being queued up that is also in the packet is just the actual um request

um that the district compiled. Um and so just some reminders. So some things that we won't talk through in the book again and that we had an opportunity to look at when we were together a couple of weeks ago. Uh we just we lift up the items that were required by statute uh to put in the book.

And so Dr. Lewis um prepared a letter of transmitt um when we delivered the document uh to county manager Hager um and we touch on just the academic performance of the district at the beginning of the book as as we're required to do. Um and then our goal um just for this time is to revisit um the items um that ultimately um made up the request, the financial component of the request and just to touch on those items and and touch on the rationale um behind those items. Um also I will share I know that we we received some questions um yesterday afternoon um from commissioners through county staff. um those um those items. Um our our senior staff has been working to prepare

answers to those questions and we should have those complete answers uh back to county staff today. Um they're very close and we just need to fact check a couple of things uh and fill in I believe one more blank u to the prek question and uh we'll have a complete set of answers uh to those items to you by the close of this business day in terms of the turnaround on those. Um, so I'm going to advance to um the space where we'll have sort of the most conversation, right? And so we um so just in terms of the the specific components um that make up the request um the we we split it really into three sections.

We talked about the continuation cost for Durham Public Schools and which is our best estimate of what it would cost for us to operate uh as we are next year. Uh we compared to our time together two weeks ago, we now have three different state level budget proposals. Um we did not have the house version of the budget when we were

last together. Um and so just um for to discuss sort of how we calculated things compared to what we now know, I think will be important. So, for the purposes of of developing our continuation costs, um we were assuming a 3% um state raise for all categories of employees. Um and then we were assuming just sort of normal increases in what we contribute to the state retirement system as well as to the state health plan.

um in the current um versions of the budgets that are up for contemplation at the state level uh where our our certified staff or our are our staff that's required to have an educator's license. 3%. 3. Uh and so we we're in the mix there somewhere in the middle uh of those and so we're feeling comfortable uh with what we produced and and what we forecasted um for this um bienium budget

that's coming from the state and where that's concerned. Um for our classified staff um the governor's proposal looks like a a 2% uh with a one-time bonus. 25% 25% with a onetime bonus. And so we're obviously going to watch these very carefully.

Um the House and the Senate are going through their process to try to reach some sort of consensus um for for where they might land on these items. So we're um we're going to keep an eye on that uh and and we'll keep everyone informed uh once we have clarity. Um unfortunately, we don't always have clarity by the start of of our fiscal year, which is July 1st. Uh and sometimes um it it's it's more typically September, October sometimes before we have final answers of what's going to happen with the state. Um and we have gone through some years where they could never agree and things just stayed as they are. Uh so hopefully that doesn't happen, but we'll certainly

monitor that. Um, also in that continuation cost, we've we've estimated what uh increases we might experience with with property insurance, our auto insurance, um, and our liability insurance as a district. Um, and we did have, um, some known software cost increase that we needed to anticipate. Um, and then you'll hear me say this many, many times, uh, anytime that we receive additional funding from the county, we're required to share that, uh, with our students that are enrolled in charter schools.

So, we factor in that component as well to make sure that we net what we actually need uh and comply with our requirement to share. Um the next um component here, right, is our expansion items are are items that are new for us that we're trying to do to grow um in advance. Um, local teacher supplements um are a a major conversation across the state of North Carolina. Um, as as we work to compete um for um seemingly a shrinking pool of qualified educators in North Carolina,

um Durham is fortunate to be number three uh in the state of North Carolina for the average teacher supplement and then we're bordered by number one and number two. So, we're very much um in the mix um of the districts that are competing most vigorously for those qualified teachers. Uh in the proposal that we developed, um we assumed um a $70 per month or a $700 per year increase uh for that local teacher supplement, which uh assuming assuming other variables remain fairly constant, that would move us up to number two on that list and make some form of progress uh with the other districts with whom we're competing. Um the next item um that and Dr.

Lewis alluded to this uh in his comments uh with with bus drivers, right? So I think we're all keenly aware of the transportation challenges that not only Durham has had but many school systems in their efforts uh to recruit and retain bus drivers. And so we're we're seeking um to offer a $200 per month uh supplement for our bus drivers, which is

2,000 a year um as a means of providing some stability. A, it increases their compensation and then B, um, it provides them a streamline of compensation that's not affecting their paycheck when they miss inclement weather days. Uh, and that was certainly an issue for us this winter and um, looking forward to being able to provide that for them. Uh, perhaps sort of the more complicated issue um that we've wrestled with in Durham public schools is the notion of local mast's pay.

Um we know that the in in the past decade or more the rules have changed uh for how the state of North Carolina administers M's pay. So um teachers were required to have completed at least one course uh towards their master's degree u by August of 2013 in order to be eligible for state funded masters pay. Um at this point in time in the current um state budget process um the different proposals at the state are in conflict with one another. uh the governor and the house versions of the state budget would restore uh mast's pay and the

senate version does not and so obviously um we are watching with keen interest uh how that will ultimately play out in in the budget process so we hope the senate loses that one um so we are um in in the 2425 school year that was the first year uh that Durham public schools offered the local mast's pay it was one of the shortfall issues that we had to grapple with as we were working to bring stability to our budget. Um and and ultimately the uh the district was not able to anticipate just how many teachers uh would ultimately qualify um under that initiative. And so uh we had many many more um that qualified than we thought would have and and had to contemplate that. So we're just seeking some assistance to make that program whole.

Um we're also seeking um to add our school social workers to that effort um for that program. So just wanted to lift that up and and hopefully the state will help us solve this problem and and we'll watch that carefully. Um we have

had uh a number of new programs come forward or or or expanded um in Durham public schools such as our dual language programs and our our prek programs and monastery programs. Um, and those positions were uh funded with our Mackenzie Scott funds that are suns setting. Uh, and so just seeking support to be able to continue uh what we're doing for those programs that have been wrapped up in the growing together initiative uh in Durham public schools. Um, much like the sunsetting Mackenzie Scott funds, we also had ESSER funds uh that sunset uh in September of this year.

Um and we had a number of initiatives uh that were connected to social emotional support for our students um that were a part of those ESSER dollars uh that uh the superintendent staff is seeking to continue. Uh one of them is a a social emotional curriculum that we use in the elementary space called Rethink Ed. Um another is a relationship with the center for child and family health to

help us react and respond to to trauma um with our students. Um, and then the third item under that umbrella is a is a software u that's used in a lot of school systems in North Carolina called Panorama. Um, we many districts took advantage of ESR dollars to be able to afford that. Um, and we're um ultimately using that a as a as a mechanism to measure social emotional health with our students and understand where that is.

Um the other category um in terms of expanding um funding for our exceptional children programs uh this is a space where there's been tremendous advocacy from our local board for the state of North Carolina to change the way that they fund those programs. Uh currently um that program is capped at 13%. Right? So they they contemplate our student enrollment and how many of those students uh qualify for exceptional children services. uh and they will not fund us beyond that 13% cap. Uh Durham

public schools um is above that 13% cap. Um so a little over 16% um of our student population. And so we've contemplated um what we might do um to try to close that gap as we continue as we continue to advocate the state to take measures to help in that way. And so we are uh contemplating um how we might do that in a staggered approach.

1 million, but that would just be step one in our effort to close that gap. 5 million in resources from the state of North Carolina to support those students. 5 million uh for that, but just try to stagger that over time and and slowly close that gap and continue to monitor how the state may or may not adjust. Um,

just like the other funding categories, any additional expansion money we receive, we would also have to share with share with our charter schools and keeping that in the forefront. The third category uh that we contemplated was just a non-recurring request uh for additional support for musical instrument refresh um and and a couple of items for our art programs. Um $150,000 and um our arts department has a very clear plan of how they would roll those out uh for the greatest need. Um and just like the other two categories, again, we would have to share uh some of those dollars u with our charter schools. Um so sort of in conclusion um on on the current expense or the local side of the equation seeking um 15,978,335 increase and then and then we were also seeking to maintain the $8 million of capital outlay funding um that came together this year recognizing that it was a a complex pathway to make that happen this year. Uh we're mindful

um that the county um in you have a complex budget just like us um and had to manage that um with a combination of ARPA resources and local resources um but um just still wanted to nevertheless lift up um that desire to continue at the 8 million threshold u where those are concerned. Um if Dr. Lewis doesn't have any other remarks. Um, we're happy to answer any questions that we can today and we'll take notes in case there are items that we need to follow up with after this meeting.

Just had one followup and just to kind of reiterate on the exceptional children funding. 5 million um we have to support those students and will continue to support those students regardless of funding um from our general fund. So it's in essence impacting all of our general ed uh students in those funds that could be used to invest in our

staff uh in a major way. So that's that equates to about 1,032 students that are um EC students in our district that are not receiving that funding through the states, but otherwise we are supplementing that funding out of our general fund. Thank you so much for the presentation information and I just want to say that I really appreciate the work that Durham Public Schools has been doing um over the past number of months since you arrived, Dr. Lewis.

Um, you all have really done amazing work and we know it's been hard. Um, really, really hard. You've done the hard work. I mean, that's everyone, the board, all of the staff, the leadership, um, out in the community. Um, you know, it's it's been very transformational and I just want to say it's evident to everyone um that the work that you've been doing

and um putting Durham public schools really on solid ground um and making really tough decisions. And this is hard. We're we're all making really hard decisions. 35 million. So um you know doing the math

that's about 4 million additional money. Um and then the expansion budget is on top of the continuation budget. 43 million worth of things that are not covered in terms of those needs. just to like lay it out.

I think that just helps me to get am I is that correct what I'm saying? That's correct. And and I would note right the board of education at our most recent meeting went through an exercise of if it remains as recommended how how they might prioritize and and and make those things work and and we'll go through that activity again um after things are finalized um in early June.

Okay. And and also just to clarify when we the county provides funding to the board of education you all even while things are listed it this is for this this is for that ultimately it is the board that decides how to allocate that funding. So, we give you all the money, you guys decide how to use it, unless we specifically earmark something. And we have done that, Keith, I think, in the past.

Have we done that at all? I think it's it's um in our ordinance, we may have designated once, but according to the law, we Yeah, we right. Okay. We don't have that level.

That's right. Right. I think last year we wrote something. Can you clarify, Keith, if you remember? I think we said we are

requesting this money be used for cert, you know, classified or certified salaries or something. I don't remember. Yeah. But legally, legally we cannot.

We cannot. So we can say we request but it's still the school board that decides exactly how the funding. So I just think it's important because as we talk about well we'd like to see this funded or we'd like to help you with this we can say that but and I think it's important for the public to understand that too because when community members come like they did at the public hearing on Monday and they say well we want you to fund more money for this. Um, at the end of the day, it's going to be a decision that this board of education makes around that.

David lifetime on the uh ordinance for 2425. We do and we have in the past put specific intents. This year we wrote it's the intent of the Durham County Board of Commissioners appropriate these

8 to support classified salary. So we do put kind of the intent of the board but as as has been discussed I'm not sure that necessarily mandates or encumbers for the school board that they have to follow that. Okay, that's helpful. I just wanted to create set that context.

Um, okay, thank you. I'm gonna open it up to board members for questions. Commissioner Burton. Thank you, Commissioner Jacobs.

Um, thank you, um, Dr. Lewis, Mr. Teter, for your presentation. So, I know I'm a county commissioner, but I'm going to put on my teacher hat. Okay, educator hat. So the question I have, the first question I have is when I look at the non-recurring items and I believe I asked the question, how much is in the school

board's um fund balance because it's such a small amount? Like can't you just move some money around and just find the money to pay for that item? Yes. So, fantastic question and we we contemplated these same things at our last schoolboard meeting of as we as we work to prioritize what we ultimately receive um from the county um we'll we'll evaluate strategies like that of of you know we we may take care of things smaller items such as that instrument refresh with with some one-time resources.

Uh so we will um so yeah we we're definitely thinking that same way. Thank you. And then the other question I have is again thinking about my educator role being in the buildings and seeing what has been prioritized specifically with growing together.

Um, how did you come to the decision that we're going to prior to prioritize this versus paying classified staff and increase salaries? Because this is the because I'm talking like if I was in the building, okay, people would say, "Well, why would they do this? I need more money. Why would they do this?

Why why are you funding this? " All right, that hey, that's the truth, right? Or when you're out in the community now that I'm on the side, people are wanting, you know, to know where's the money going, why was this done, things like that. So, I think that needs some explanation.

Yeah. You speaking specifically on the growing together initiatives. Yes. And like when I the monastery, you know, because we got two mon, we got what three monasuri schools like do we need a people will ask that do we need another monastery school? Oh, first I

would I would say I don't think you ever take your teacher hat off. Let me just start there. I should always keep your teacher hat on. Uh and if I could just go back to the previous question particularly around our fund balance.

That's one of the ways we want to ensure that we are fiscally sound district as well to ensure that that's beefed up and ensuring we're not having those opportunities where we're just finding money. I think that's what has kind of got us in the situation we're in with some of the unfunded items there. But as it relates to to growing together, this was something obviously that this community engaged in heavily uh in terms of what would growing together look like for our our schools to ensure that every student no matter what zip code you're in, each family has equitable access to all of these robust programs, dual language, monastery. And I will tell you specifically for monastery um as superintendent I'm not interested in having a man of something in our in our schools but a true monatory model and a true monatory model includes these instructional aids what they call teacher assistance or guides. Uh we have to have those if we're going to have a true monastery experience for all students. I know a lot of times people

think you know that maybe monasteries is just for the elite. You know, when Maria Monasuri founded Monasuri uh the Monasuri model um in the early 1900s, she founded the Monatory model specifically for what she was calling at that time uh the unhoused or the um students with some major behavior challenges during that time. And it was for poor families. And so when we think about just ensuring that all of our families have access um to Monasuri, again, making sure that it is a robust uh program in all of our schools and this is definitely required for that.

in addition, you know, the dual language, ensuring that that's a robust program um as well for all of our students. Thank you for that. And the I guess I have some comments or well, another question I have is when I'm looking in the news and I'm seeing what's happening across the state with regards to school districts and deficits, right? We know Chapel Hill Car was running a deficit. Um I think who else? New Hanover County last year ran a

deficit we were have in the situation Wake County and now we've seen in Winston Salem [Music] for are there enough people who are working in finance and HR to ensure that DPS is on good financial ground. And the reason I'm asking that question is because again going back to myself in the buildings. A lot of times staff doesn't understand what those people do in those roles to make sure everything is solid. So I want to know from you all, do we have enough people in those roles to make sure that we as a school district and as a county are on solid financial ground?

Yeah. U Thank you for that. I appreciate the advocacy for us. I think you're exactly right that the folks don't realize I think what we do until it's

broken. Uh, and so we um very very pleased um with the staff um that I have u with Durham Public Schools and and I've worked with a lot of finance professionals um in different parts of North Carolina and I would say that we are um we have the right people in the seats right now um in in the finance team and we've with varying degrees of experience and so the folks who were new um to education finance were growing and and and so the and then the folks that have been veterans were sharpening up their tools and um we've spent quite a few months contemplating um folks strengths and and where they can best contribute to the finance team and making sure they're in those right spots and um very very happy with the the way um those folks have stepped up uh to the plate to work with me since I've come on board to to get us on that solid footing. So very pleased with that and and I would say our HR team is in a in a similar spot and um I love the

relationship um that I have with the HR department. Um finance and HR don't always get along. uh and and we have a beautiful relationship in Durham and I know that um we have a a new HR leader that was not new to Durham but stepped into the the the lead position in January and she's I think doing very similar work um that I started doing in November of evaluating her seats on the bus and and how can those folks be arranged and and um we've started you know having regular meetings between those two departments and and those functional teams to make sure that we're working the way that we should and and and giving each other feedback uh because we affect each other tremendously. Uh [Music] specifically for for HR, um there once was a time in school districts where the fall and the spring were the busiest times of HR.

Uh that's no longer the case. It's entire school year. That's um and that's due to um a lot of the vacancies and the high need uh positions to fill in addition to uh ongoing uh

support that our our schools and staff need in the district. So we are constantly analyzing and ensuring that we have uh appropriate staff to provide to provide um the support that our buildings and departments need. Well, I appreciate that. Thank you so much.

I may have other questions, but I know I want my colleagues to ask questions. So, thank you so much. [Music] Thank you, Commissioner Burton. Looks like you would like to respond.

I did. Um, with regard to Miss Hager is Mr. Teter and Dr. Lewis are exactly right.

I do want to point out that Miss Hager, who's the assistant superintendent for HR, also has a standing meeting with Dr. King. Obviously, our priority under Dr. Lewis for doing public schools is educating, right?

Teaching and learning. And so they have a regular standing meeting where they ensure that the schools and teachers and principles have the resources, the human resources that they need to effectively and excellently teach our students. So just wanted to lift that up as well.

Thank you, Commissioner Valentine. Yes. Thank you, Chair. So good morning and thank you for uh gracing us this morning.

Um, so this is hard. So I had three children come through Durham public schools, uh, Northern, uh, School of the Arts, and, uh, I'm a little concerned about declining enrollment and how we square that with the present request, how we factor that number in. Now, I heard you uh tell us here this morning that you've worked on a proposal based on uh the current proposed budget by the by the county manager. I'd be interested to know what that looked like when you did that exercise and uh what part of the operations would be most impacted because our budgets are value documents, are they not? I value education, but I

want al also want to ensure that uh the taxpayers's money is being spent the right way. I'll start and turn over to to Jeremy. I I do want to clarify enrollment is up uh this year. So, um we're up over the trend over the last couple of years, right?

Yeah. Okay. From I I don't want to appear like I'm being disingenuous, right? Right.

I totally understand. Okay. But if we're looking at uh last year's enrollment versus this year, we are we are indeed up and you know look at certain projections there projecting that we will you know increase over the next 10 years that remains to be seen you know because you think take into account um birth rates across the country really are are down and so I'll turn over to Jeremy. So uh thank you.

Um so I think right so two kind of two parts to your question right I'll echo what Dr. Lewis said, you know, so the enrollment, you know, the enrollment was up and that has not been normal for some time, right? So, I think the pandemic really sort of wre havoc on enrollment trends and and and choices

that parents have made um for where they're educating their students. Um and then part part two, um you know, so we um we did take the board and and senior leadership through a prioritization activity of of how would we react? and and we were very grateful for right this this initial uh proposal from the county manager of of $4 million above and beyond our continuation costs. Uh and uh we contemplated um trying to do as much as we can um of those various expansion items with those resources.

Right? So uh as an example um we provided the board with tiers um of options. Right? So the teacher supplement for example.

Okay. Um maybe we increase that by 500 a year or 300 a year instead of 700. So we can do something um contemplating the bus driver supplement. Do we maybe we in do 150 a month instead of 200 a month, right? How do we still make progress on some things and um and so but it was

still a hard activity. Uh I think we're we're cognizant of can't do everything um with that level of funding. Um, but can we how much can we make happen of those things even if possible? And I think the the compensation was certainly a high priority, right?

Those compensation items were were a high priority for staff and and for the board um as they went through those activities. Um the the growing together positions were a high priority um for staff and the local masters pay. I I alluded to that earlier. complicated uh and that then that was an area where we looked at um many options.

Um so perhaps we continue that program but maybe not at a 10% do we continue that at a lower percentage and exploring different options there. So you know we work through that difficult exercise. Um there was support um for um some of the social emotional items. I think the the

board really asked for some additional information after they went through that activity. They they pressed for additional information from Dr. King's team of how are we feeling about these resources and and they're going to take a second pass at this activity of now that they have even more information. Will their priorities shift a little bit?

Right? So, um the additional EC funding was also a high priority. Um, so we we recognized all of these things were important um in in trying to do all of them, but perhaps having to be creative about how we structure them to at least make some moderate degree of progress. All right.

So, um, you had talked about, uh, the mast's pay. So, specifically as it relates to, uh, social workers, how how does that work? Yeah. Um so we have um so in in the old model um or in the state's old model of master's pay right any any educator um who was required to have a license um

was eligible to receive M's pay if they conformed to the state's guidelines uh and the initial roll out of the local model in Durham public schools was to allow that just for our classroom teachers that were spending at least 50% of their day teaching children. Um, and that, you know, candidly, it's a it's a sensitive topic um for our schools, right? Because we have um other licensed uh professionals um who are currently not benefiting from that, right? We have um instructional coaches um or we have we have our social workers and technology facilitators just a variety um of other types of positions that may not be teaching children on a daily basis but are infecting that climate.

Um we made the judgment call of the social worker space of of expanding to that space because those folks are not necessarily transferable uh to a classroom. Right? So, if I'm uh if I'm

an instructional coach or facilitator, um I was probably a teacher at one point um and could transition to a classroom and benefit from that local master's pay. Our social workers are not necessarily transferable to a classroom and but they're licensed and and they're doing important work. And so, that was sort of the the thought process on on that expansion. Um and we know um in our current roster of employees, we have 11 school social workers with a master's degree um who are not eligible uh for the state program just due to the timing uh of when they earned their master's degree or started that coursework.

All right, the final uh question and I also have a remark I'd like to make uh is around uh your prek dollars. And so this board has uh made a commitment to to advance in this particular area. And uh I'm wondering it I had a

conversation with one of my my colleagues. It seemed that uh the dollars are not being invested in that area in sort of an adequate way. Can you address that? So we did receive a written question in that regard uh yesterday afternoon.

Uh, and I know um largely, you know, we've got an answer here, but we've got a few more uh few more blanks that our experts are going to fill in on that. And so I think that's one by the close of business today, we'll have a very thorough kind of written reaction to that for you. Anything else you want to add? Well, uh I I would just want to share, you know, you know, the use of prek dollars uh is an incredibly complicated um dance, if you will, uh because uh in Durham public schools, uh the way we work through that process is we essentially braid three streams of funding um in order to provide prek services to as many kids as possible.

What makes that complicated sometimes is each of those three streams of funding um have different requirements as it relates to which students can participate um and what the circumstances are um that that those students have to what the uh criteria are that those students have to meet. Uh particularly, you know, we do have a a responsibility to provide prek services for certain um students with special needs um in prek. and and one of the reasons that the process becomes very complicated is that we have a responsibility to maintain seats for those students throughout the year. Uh because those students emerge uh show up or or become eligible at different times in in the course of the year.

Um and so if for instance we set aside 25 seats for that particular purpose and I'm just using a a round number. Um it it may be that we don't get to child number 22 um until May 5th, right? But when child

number 22 shows up and child 23, 24, 25, we maintain uh that responsibility to serve that child. So we have to leave those seats available, right, for those students and and so that is a complicator. Um what what we would share and we'll have some of this information um available to you later is as Mr. cheater said, but in those settings where you know those requirements are relaxed based on the way we are using funds, uh we find that our our response rate and our fill rate is significantly higher.

So, um in the two in two of our particular locations where we're using funds that don't have a a great deal of um uh um uh complication, you know, our our rate is 100%. Um, in other spaces though, that that rate is a bit further down and there are some other complicating factors that that impact that including, you know, the availability of wrap care for students. Um, and and and anyone who's paying attention knows that that is a that has been a particular challenge um for all

school systems, you know, across the state um uh since uh you know, the impetus of the of the pandemic. And that's just something that we haven't recovered from. Um and and the other piece and then the final piece is you know we really think it's it's it's it's a it's important to for us to focus on our offer rate right so are we offering seats because that you know once we offer the seat uh then uh a parent has to make some decisions um about whether the seat that we have available to offer them will meet with that family's needs and sometimes you know we just aren't able to create a match between that families needs um and the particular seats that we have that are available for them. And so um we're going to share some more of that information today.

Um but we we share I think it's important to note that we share this board's um commitment to increasing the number of students who have access to prek. We know that that is critical and vital to our success in the future. The sooner we

get access to these young folks um and get them in structured instructional um settings um the more we are going to be able to do for them. And so we're committed to continuing that work going forward. Thank you for that. " And so the money has to come from somewhere.

And so I always say when I'm confronted in the community, where do we look to for the additional funds? Where do we take it from? And I never get any positive responses in that regard. And I don't expect to because it's hard, right? Or we ask our taxpayers to take an additional um an additional responsibility in helping to to fill the gap. And that's also hard particularly in this and

challenging environment that we find ourselves in. Um in in previous years there there was I'll refer to it as soft money onetime money that was available to sort of fill some of these gaps. That money is drying up and so we don't have that sort of latitude. And so um this is going to be very hard.

It's going to be very hard um to to see if we can get to the to that to that number. It's going to be very hard and I'm just going to be honest with you particularly from my foxhole. I'll speak for myself. It's going to be very hard.

Okay. So, thank you. Thank you, Commissioner Valentine. Um so, I also had a few follow-up questions um related to the expansion budget requests. Um, so related to the local supplement amount that was requested, could you tell us a little bit more about how that

number was determined? And I think you already kind of referenced it, Mr. Teter, but that you already are starting to have conversations with the school board about what does it look like if you know we can't do that full amount, what are the options, but just to understand what that number is based on. Absolutely.

Um so we started with just sort of looking at um our competitors so to speak, right, in our our other districts um that are sort of in the mix for the highest supplement in the state of North Carolina. And so we um just, you know, for context, right, we're number three um and the the average uh teacher supplement for Durham public schools is $10,355. Uh, Chapel Hill Carbborough is next on the list at number two with 11,043. And so it was um so an average $688 per year higher than us. And so just wanted to kind of make that next push. Uh, and so looking at um pushing

ours up by 700 per year uh in an effort to to keep moving up the list. Um, and um Durham has made progress in that regard. and just remember being in in a competing district in the past that was number 10 on the list at one time and Durham was five and so you've made it to three. So it's so the investment has been clear and and um I think what Durham has done well is continuing to invest and what we found is if you don't keep making progress um you'll you'll stagnate um and and start working down the list.

So um so yeah, I think that's sort of been our philosophy behind that. And do we know what is in the proposed budgets for our competing school systems this year? Uh I think they're they're in similar they've had similar quandies, right? So I think we've heard them called out um as other districts that you know they have been trying to find ways to balance their shortfalls and we can I can go back and push into some more specifics um on their supplements. Um, but I know that they've been grapp

grappling with challenges um to make ends meet on those on those two sides. But we can um we can provide that in the in the followup. Um we do later know what has been at least requested for for those districts. And um I was going to say something else that went out of my went out of my brain, but um yeah, so I think um obviously that's a number that and I Oh, I know what I was going to say.

I really appreciated um Superintendent Lewis, you starting out with kind of the priorities which you know my takeaways were, you know, recruitment and retention, the um facilities and also transportation and those were echoed in the survey that you did, the community survey. So I think looking at with that lens when you look at what are the budget priorities, right? Um and certainly um there are

certain things in the expansion request that are definitely align specifically with that. Um so I think it's important when we make these tough decisions that we're focusing on on those things. So, um, you know, so obviously the supplements, um, bus drivers, we know that that's essential. Can't get to school, then there's no learning.

36 million, is that continuing what was done last year? because I think last year was the first year that we funded at least we intended to fund that. Could you talk about what what ended up happening? Yes.

Last year and then is this in align with that? Yes, ma'am. So that that's an accurate assessment that this is what we would need to continue um the model as it is.

Uh and um we were we had a good problem in that more teachers were eligible than were forecasted. 2 million. Um and this number reflects sort of an escalation of of that of that gap so to speak based on what we're expecting average salaries and benefits to be next year. Okay.

And also to clarify because I know Commissioner Burton spent a lot of time during our work session talking about this. Um the this is for teachers who are in the classroom. Yes, ma'am. They are full-time doing instruction and this is what aligns with the state policy.

Okay. Yeah. And has DPS at this point adopted any policies related to things like M's pay or related to these issues or are you contemplating adopting

policies? Yes. Thank you. I just want to before I answer the policy question, I do want to clarify your statement that this aligns with the state's model.

Just I want to always be transparent. The state's model is more expansive than classroom 50% instruction in the classroom. So just want to make sure that that's clear from pre203 and we are bringing a salary administration policy to the board. We've gone had I think maybe or there's some disagreement on how many times we've had a reading on it, but it's been brought to the board I believe three or four times and we have a salary working group that is working on that.

And there is language in there regarding um compensation including mast's pay, extra duty, all the things that our staff really do care about. And then once that policy is potentially adopted by the board with whatever changes the board may decide, we would then implement regulations and procedures as well. so that it's transparent, so that when people work in Durham public schools,

they understand how their compensation is computed and what their salaries and compensation will be. That's fantastic because I can say as being uh now starting my fourth term as an elected official, I really rely on the policies that our board has adopted. everything from, you know, we have extensive financial policies and things like that because when you're making tough decisions, then you really have to fall back on what are the adopted policies and so that's great that you all are doing that. That's going to really help. Um, and related to the growing together model, just to follow up on Commissioner Burton's questions, um, what happens if that doesn't get funded and is it possible to delay those investments? So I think um so sort of part one to

that is right their current investments um with Mackenzie Scott funds and uh I think you know to at this point in time um that it came through as a priority for both senior leadership as well as the board as as something for us to continue and it it would be it would be a priority um for us right as we grapple with the expansion dollars um that we ultimately receive from the any anything else? And I I'll just add it's it's really critical in terms of um us being the premier school district in in in the country. When I talk to parents um I meet a lot of parents and with little kids and I always ask, you know, what school do you go to? And they follow that. Well, I hoping you wouldn't ask me that because it's normally followed up with excharter school. And when I share with them some of the offerings and I remember a couple of times sharing with uh some parents about the um opportunities for uh dual language in our in our buildings and some of the other benefits of of growing

together. Um they said, "Wow, I had heard that, but I didn't know if that was true. " And so, um this is hugely important in terms of us being responsive to what our community uh has said in terms of ensuring that there's quality um programs in every zip code. you know, we have great schools, but uh you know, if you've been in Durham, you you know how the the magnet school applications work and ensuring that um all of our families have access to these robust programs.

And so, as we think about, you know, from an equity standpoint, uh and ensuring that, you know, my zip code doesn't define which program uh I have an opportunity to access, all of our families deserve that. And I really appreciate you pointing out uh Commissioner Jacobs um us being responsive to what we heard in the community through that survey and as well as the listening learning to and I hope people see that within our budget. You know, we dare not just sit in a room and and think about, you know, what do we want to ask for, but being responsive to what we heard and I hope people see that their voices are are projected in this budget request. Yeah. And I'm I

asked that only because no, I'm a huge fan of the growing together and what the goals are, but just the the environment that we're in now that Commissioner Valentine referenced, we're going to have a report later today from public health and DSS. It's really frightening, really alarming, and we are already seeing the impacts of those cuts on basic public health and social services. So, and then on top of us being in a reval where, and again, you heard it during the public hearing, we when you have residents who are on fixed incomes and their taxes are going up dramatically, you know, that's a problem, too. So, we're trying to juggle all of these things.

So, we're in a world now where we can't nec we we just are going to have to prioritize and not necessarily do all the things that we really want to do that we know need. So, I just that's my caveat. Um and I do

agree with um you know I'm concerned about the exceptional children area. I know Commissioner Burton has talked about, we've discussed that being um again looking at what's just prioritizing that's that's um seems like a really important area. Um and then you know for me personally my approach and you know our board will discuss this later on but as you know commissioner Valentine referenced that you know if if we can't really look at raising taxes because of all these conditions and then it's going to be a matter of where where creatively can we look at other areas of our budget um to try to make changes. And so, you know, one of the areas that I hope that our board will look at is um the for the social emotional specifically looking at um our partnership, our funding with our

mental health provider alliance and see if that might be an approach. So, we will we will definitely look at some other ways that we can try to meet some of the needs. And um I concur also with Commissioner Burton's comment about looking at for non-recurring expenses, looking at um at your fund balance and hopefully together we will be able to um address some of the um expansion needs. Um because as I said in the work session, there's nothing here that is not important.

Yeah. Um, any other? Yes, Commissioner Burton. Yeah, I just had two more questions real brief or one comment. One of the things in salaries and benefits, I think employees, I'm thinking back on the ground in the buildings don't understand how expensive that is, the pension cost and how that's a part of the salary,

right? I think was it like 25% or something like that. And so really making people aware that this is also a part of your salary and this is why it costs so much because people you don't really see that until you get like me and you retire, right? So I just wanted to lift that up.

But then also I wanted to ask because I like community ed. I think it's great. Are there any other counties that do something similar to what Durham does with our community program? because I think it's a really good thing that we do here.

So, just speaking only from my personal experience, this is the the third district that I've been associated with that has had a similar program. Um, and um so I think it's u but I' I've been impressed, you know, by the program I've seen here and and um it's um certainly seems like a stronger program than the others that I have worked with um in in my career. But um I don't know if Dr.

King wanted to shed any more on that. So, so I would agree having worked in multiple school systems across two states, um the program that we offer is uh extensive um um kind of deep and wide, right? And um another one of those areas that u frankly require uh an extensive amount of support. Um and we'll continue continue to do that.

Um, we do offer more than than than most folks offer. I I think it's safe to say in most communities if you have um a community type program and particularly I'm speaking to before and after school that is limited to the elementary grades. Um, Durham Public Schools is one of very a very limited number of school districts that I've seen across the state that offers any programming for students beyond um fifth grade. Um, and as you all know, we offer an encore program in

in many of our in many of our middle school programs. Um, so yeah, I think we are relatively unique in terms of um um the breadth and width of what we provide um in terms of that program. Yeah, I just wanted to give shout out to that because I know Commissioner Jacobs asked a question around that, but we do really good work with community ed. So, thank you so much.

Yeah. Thank you. Yes. In all transparency, the follow-up questions I had asked about were, you know, where are there different ways to fund the before and after school that would, you know, and you don't have to answer it now. I know you're going to follow up with a memo, but um just because especially looking at it as how in in the context of working parents um and also um around prek, how we can really um get up our prek numbers because that's the the wrap care that's

often the the barrier. and even looking at how we prioritize seats for the um before and after school. Um you know, just taking another look at that, especially around prioritizing um certain demographics. Um you know, low-income students or um you know, working parents.

Um and um I I didn't I just didn't know, you know, those those were just some of my questions. And then um with the prek issues about capacity um I think I'm hoping that the newou with the early years is going to help because one of the things that we have heard from early years is that they really want to work in partnership with Durham public schools on strategies around that. And so I hope that collaboration will really help with that. And um and my other questions were

around the cost of maintaining um you know school property that's not fully uh that's you know northern Lowe's and then for TSA when um the new campus opens uh understanding what are those carrying costs related to maintenance. But yeah, um any other questions at this point? Anything else that you wanted to say, Dr.? Yeah, absolutely.

Um first of all, thank you for this opportunity and we will uh make sure we follow up on those those questions. Uh I will say as it relates to prek RAP services before and and after care. We did apply for the 21st century grant. Um did not get that.

Um I have been in conversations with uh the CEO of our Boys and Girls local boys and girls club here. previous district had Boys and Girls Club in every elementary school for before and after care. He's definitely interested in having those conversations. Um, and I think it's also important to note that um, yes, that will ensure that our

families uh are taking advantage of pre-K offerings uh, and and just seats in Durham public schools, but that also helps with our transportation challenges as well. uh because it helps you know um relieve some of the stress of our transportation system by students being in uh afterchool care and not needing necessarily bus service. And then lastly, I'll I'll say this uh a couple of other priorities. Well, one um additional word that was on that priority of improve improving school facilities and safety was was mentioned in that priority.

Uh in addition, fostering student well-being in school climate. I know we uh definitely spend a lot of time talking about investment in adults, which we cannot do this work without amazing adults. We want to do all we can to retain those adults. Also want to make sure the student voice uh is in this space this morning as well as it relates to some of our social emotional learning and offerings. when we think about just school safety, which is top of mind for all of us. Um, that's something that we're always, you know, thinking about and some of these programs give us valuable data that can share that about 40% of our 6th through

12th grade students uh feel a sense of belonging at their school. Um, and to go a little bit further, about 35% of them feel like they have that adult at that building. So, we are able to respond to that data and these programs teach skills like self-awareness, emotional regulation, and resilience. And there was some research that was done that looked at school shootings across the country and those shooters lacked these particular skills that we are teaching.

And so when we think about all that we can do to keep our scholars and and staff safe. Again, this is us being responsive to to what we heard from this community. So, thank you so much for this opportunity. Thank you.

And what I hear you say is having a trauma-informed approach. And I don't know if we've if we've had any partnership with our um we have a trauma and um ASUS coordinator in Durham County government and I don't know how much collaboration there's been actually maybe Rod knows Rod is shaking his head. Yes. Um so any way we can support um she

is um Jess Phuket is um based in public health but any way that we can help support that in that way just to mention that and your idea about the Boys and Girls Club. I was at the breakfast recently and I walked out with a um a business leader in the community who said why don't we have these why don't why isn't the boys and girls club actually located in you know in the schools it's hard you know this model of busing kids to the boys and girls club it doesn't seem like an effective efficient model um so so it was really I'm really thrilled to hear you say that. Thank you for leading on that. Well, thank you all so much again.

Really appreciate you all. Really appreciate the partnership. Um and as the county manager likes to say, we will get through this together. Thank you. Thank you.

Okay. Okay. And so next up, we do have our uh public health discussion being led by Dr. Rod Jenkins, our public health director. Thank you for picking up my mess.

[Music] Okay, I'll just wait. We're just going to wait for Commissioner Valentine.

Well, welcome Dr. Jenkins. I will let you introduce your your team here with you today. Thank you so much and good morning to this great board.

Uh to manager Hager and staff. Uh it's a pleasure to be before you once again. With me today, I do have uh Deputy Health Director Christian Patterson. I also have my finance administrator and chief architect of public health uh budget uh Miss Michael Gwendon.

So, we appreciate the opportunity to um to be before you. Uh I'd like to start by just expressing gratitude to each and every one of you for your continued support of public health uh here in Durham County, especially during these tenuous yet dynamic times that we are in. I also like to thank uh staff for the last minute shift to allow me to present earlier as I do have a press conference at noon relating to a great opioid initiative that we have here in Durham. Over the past 5 years, public

health has seen the es and flows uh with our budget. This first slide just kind of really focuses on uh year end activity over the last five years. As you well knows, this board well knows with co funding beginning to dissipate. Many uh many initiatives um have had to be adjusted.

Uh so we are now going back to sustained levels of funding. Yet we have always strive to uh be good stewards of the funding that we do received. Uh it's important to uh to notate that remaining budget figures can be a bit misleading as depicted on this slide because many of the activities were fueled by CO dollars. We have always strived to spend uh no less than 90% of our county funding uh year-over-year and as this as the curve starts to slide down we can see that we're kind of going to sustain levels. Department of Public Health has requested

6% uh from uh this past year's budget. 3 million change from the current year's originally approved budget. 1 million 3,148,51. 2 million.

Our total change in revenue is $754,121. We are sunsetting two COVID Area grants along with a National Association of City County Health Officials grant that we did receive. We do expect our me Medicaid revenue uh to increase again across all sectors of our program areas totaling

$526,439. Contracted services is one of public health's highest price line items uh within our general ledger. This is the case for many departments across our enterprise, thus prompting uh county budget to take a much closer look at this line item uh each budget year at least within the past two years. 9 million.

6 million budgeted in contracted services for this fiscal year. 2 million or 62% of public health's contracted dollars. 4 million, about half is grant funded, half is county funded. of the county funded portion. There are also a few county

initiated projects that have been assigned to public health to administer which we certainly do with a smile. Uh these total right at about 250,000. Want to really highlight a couple of programs and I will say there are many programs in public health to highlight but these were selected. Number one, increased demand for immunizations.

Number two, hemoglobin A1C testing in our laboratory. And number three, employee wellness programs. We are seeing an increased demand for immunizations primarily from our refugee health program. For the first 6 months of this fiscal year, we served 466 patients and immunizations. I know 466 is a high number, but there's a greater there's a greater story to be told. We often have large families from Afghanistan, Pakistan, Honduras, El Salvador, Venezuela, Iraq, and many others that come in they come in all

together. So for example, we could have we could have a family of seven that may need 40 vaccines in one day. This 40 vaccines represents just one appointment. The next day, a family of five may come in and they may need 20 vaccines.

So, as you can imagine, this will deplete our entire supply for the week. There are also still state requirements for vaccinations, particularly for those attending public schools and those who arrive here into the United States. Some of the solutions that we have been implementing include using grant funds to buy more vaccines, using the inventory and schedule schedule to control the demand so we don't run out of vaccines each month, and moving to a flat fee for certain vaccines. We are continuing to reap the benefits of having a very advanced laboratory and

we will be testing A1 testing hemoglobin A1C which can indicate the risk or presence of diabetes. This testing primarily is used in our maternal health clinic and it is it also indicates gestational diabetes after 28 weeks of pregnancy uh area. This will be a major improvement for patients as they won't have to drink a rather disgusting drink that gets and then in turn get their blood drawn after they drink that drink an hour or every hour on the hour for 3 to four hours. We have been sending these tests out to LabCore and paying them quite a bit to run the test for the results. This year, we use grant funds to purchase this analyzer that will allow us to do the testing inhouse, which will produce cost savings for the department. If maternal health patients are on Medicaid, and 90% of them are, we will be allowed to build Medicaid for this test and reap the benefits of that

revenue. It is rare uh to this board for a health department to have a lab uh of this complexity uh really at our fingertips. and it's very advanced, highly equipped. We do have uh the panther which we purchased during co time which allowed us to do co tests and then we also have this now we now have this analyzer.

Uh so we're very lucky to have this service to our patients and to produce additional revenue. I will add uh for the record we do provide uh laboratory services for a neighboring county that happens to be Orange County. In terms of wellness, uh this information was requested about our efforts with wellness. Uh we continue to uh promote wellness in in earnest. We offer the choose to move program which affords employees an extra 30 minutes of exercise um either tacked on to their lunch or they can do it toward the end of the day. But uh please believe this is a

wildly popular program. About a third of our workforce is enrolled. 5% uh represents the increase from fiscal year 2023. Uh we do provide exercise opportunities for our employees uh with four fitness centers.

One located in health in the health and human services building, the other in admin 2, one is with the sheriff's department, and there is a newly added uh fitness center at the board of elections newest location. Uh the staff does do a very good job with exercise classes and it's pretty much broadcast wildly. There are 13 exercise classes and in terms of utilization data, uh the human services building is on track for the highest rate of participation in the last four years. Admin 2 still has a very consistent usage as in previous years. Do apologize for the next slide that goes against the rules of presenting. But I will say in

addition to the u choose to move uh depiction in this graph, we just wanted you all to know that by department the highest percentage of of usage per department uh Durham public health of course uh is among the highest soil and water DSS and library. Conversely, amongst the lowest is the sheriff's department, the budget department, economic development, and EMS. Don't shoot the messenger. I'm just giving the data.

Recommended budget highlights. Um, this is an opportunity for me to take a little deeper dive as it relates to uh, well path and a couple of the initiatives that we uh, set as priority for this next fiscal year. As you all know, public health administers the contract for the provision of health services for the detention center and the youth home. To

that end, we have been spending uh, we have a spending request for Wellpath contract for fiscal year 2526. Due to increased costs for staff, including the expansion of the youth home from 2024, off-site medical fees, and medication, public health is requesting an increase to the jail health contract for Wellpath in the amount of $784,521. There are three lines of the contract that we are requesting. Number one, uh, an increase is needed, 3% increase is needed for staffing at the detention center youth home totaling 526,921.

Um, it goes without saying that it is very tough to have uh, individuals to want to work in these areas. So, we we think it um prudent to to put this request. The second is an $125,000 increase cost for off-site medical fees, which we typically have to

come before this great board around midyear because we almost always overspend in this line. And the third is an increase for the cost of medications by $132,600. As you can see from this slide, the cost for pharmaceuticals have increased in recent years. Wellpar shares with us that HIV drugs and psychological drugs uh are the main drivers of these increases and as you can clearly see both costs on orders have increased significantly since 2019.

Uh of note 184% increase in pharmacy costs since 2019. 34% across increase in pharmacy orders from 2019 to 2024. and HIV total costs have risen 28,000 from 2019 to 2024. We do have behavioral health costs. I heard uh Commissioner Jacobs uh allude to Alliance and I'm pretty sure they're singing the same song, but that increase

of 431% since 2019. Uh while psychiatric prescriptions have increased at a slower rate, 142% all demonstrating the increased cost of psychiatric medications. If you bear with me as a refresher, just want to really provide uh the scope of services with Wellpath very briefly. Um for the most part, Wellpath does uh it does a they do a pretty good job.

They really provide uh patient intake. 9 full-time employees. They take care of sick calls, medication passing, passing medications to individuals, detox protocols, labs, and chronic care uh issues. Uh we do have MAT at the jail. That is something that the sheriff is certainly proud of and we've been a

leader in Durham in that space. 8 full-time employees. They do focus on patients suffering from the opioid use use disorder. 5 full-time employees.

Specifically lower at the lower end of this slide you know again it talks about the drivers of the increased pharmacy spend. just like to take a note to indicate that uh 184% increase in pharmacy spend from 2019 to 2024 which I aforementioned uh this is driven primarily to one medication which is big big tarvy uh and the utilization of long acting injectables and of course we have an 155% increase in total HIV prescriptions from 2023 to 2024 and then of course on top of all these HIV IV positive patients among Durham County's patient population. The per tablet cost of big tarvy has risen

29 and a half% since 2019. Total intake at the jail has remained steady over the past 3 years. Intake activities include receiving uh receiving uh patients upon entry, comprehensive medical assessments, providing special housing needs along with providing medication and treatment along with education activities for those uh for those patients. This slide also depicts an increase in medications that have been provided at the detention center on an annualized basis. With the exception of 2023 uh slight dip there, we have seen an increase year-over-year and medications passed. So, in my conversations with the jail, with the sheriff and sheriff staff, they have indicated that we do truly have some very sick individuals uh who are at our detention center.

I also wanted to share with this board as mentioned uh the pharmacy spend has increased drastically since 2019. I thought it would be helpful to provide the top three most expensive drugs that have been administered as shared to us by wellpath. Those include again the HIV drug bigv and two psychological drugs and Vega sustaina and ambilify maintaina. The chart also shows that quarter starting quarter 2 of 2020 the spend was $31,947.

Now we go to quarter 2 as of this report of 2025 and the spin was $237,954. So again HIV meds and psychological meds are the main drivers. HIV costs and total HIV scripts have seen a tremendous increase since 2022. As this slide indicates, uh HIV costs made up 61% of the total pharmacy spend in Durham. 2024, the number of

incarcerated persons with HIV increased by 30%. 82 incarcerations in 2023, 112 in 2024. And as I mentioned, uh, big tar, uh, one tablet costs $105 per tablet. And in 2025, the cost of big tablet is now $136 per tablet.

5% increase in the drug costs over the last 5 years. Moving on to a lighter note, the Durham comprehensive aging plan. Public health does support aging well Durham's comprehensive aging plan for 2025 through 2020 2030. The aging plan is an initiative of the board of county commissioners given to public health to administer uh the contract for fiscal year 2023 2024. 65 million through December

31st, 2030, which would be the end of the timeline for the current plan. Um the amount per fiscal year would be 300,000. So again, we want to give you the total for the whole plan, but then of course we know we do we do things year by year, fiscal year by year, that equates to 300,000. Keeping up with public health developments to include policy, health events, and funding cuts is similar to drinking water from a fire hose these days.

There's no doubt about it. It would be an understatement to say that these are uncertain times in public health. Uh we've seen the attacks on public health. We've seen the cuts to DHS.

We've seen uh dismantling of CDC. We are just responding to the federal government every week. I have personally been in weekly conversations with the North Carolina Department of Public Health. I have met with Secretary

Sangbai who is the Secretary of Health and Human Services and we are just doing the very best that we can in this financial freef fall uh as as the cuts have come to public health. To date we have two grants that have been cut by 10% for the next fiscal year and they have there has been an unprecedented stop work order for one of the grants for CO funds set to expire in May. Nonetheless, this field and this staff uh have in the very recent history faced an another unprecedented time in public health. Well, we have remained fortified and we have remained resilient.

We are going to continue to do this work that we love and we know how to do. We're staying focused on what we can control. We are looking critically at improvements to our revenue cycle. Those improvements include examining fees and increasing where we can, exploring debt set off as a new source of revenue generation and

debt write off as a cost-saving measure. We're requesting one additional billing team member so we can contract with more payers. We want to improve our credentiing and we want to improve timelines and accuracy of our billing. Lastly, this requested budget reflects the significant revenue increase based on current trends.

We are projecting a $592,95 revenue increase over our fiscal year 204 2425 revenue budget. And you can see the sources that are here. We project Medicaid $526,439, private insurance $11,50, and service fees $54,66 for a total of $592,95. We recognize public health is a revenue generating department and I'd like nothing better than to help manager Hager uh to put some money inside the co countyy's coffers. We didn't mention federal funding challenges. Um the department of

public health is a proud member of NICHO and we were the recipient of a NICHO grant of $100,000 uh to improve vaccine access education and outreach through faith-based partnerships. It was a great great opportunity. We received it. Uh the project period was October 1st 23 to September end of September 24.

We were the recipients of a nocost extension because of the great work we were doing. That was would have went from September 30th 24 to May 31st 2025. We received the request to pause this work on April 4th, 2025. fiscal impact.

We were not able to invoice $15,000 of work in our deliverable base contract. Durham County expended $7,500 in funds to support the work that will not be recovered. Uh that impact of that project again, we were 2025 expanding pediatric vaccinations. There was a community of practice convening that was cancelled because of the stop work order. Durham Public

Health uh suspended the contract with Grace Church and fortunately we had to um actually pay Northeast Baptist Church with county funds because we did have some work in order uh in progress and we certainly wanted to honor our commitments. state grants uh as you were as I've alluded to uh co 19 activities were stopped and we traditionally get a 90day cease to serve as a runway to commence stop all activities this time around we were given less than 30 days so again the work order was issued on March 24th 2025 for spending through May uh 31st 2025 $58,936 were uncollected The impact redistributed funding sources to retain four contract nurses administering vaccines through the end of fiscal year was nixed. e. masks, gloves, cleaning supplies,

etc. All of that was in an effort to de decrease the spread of respiratory illnesses. Tobacco prevention and control. Uh some of you may have heard the tobacco prevention and control branch at the state level has all but been disbanded.

Uh stop work order was issued on April 29th, 2025 for spending through May of 2025 for the federal portion only. That equates to $73,46 as far as uh impact to Durham. Um the impact Durham continues to lead the way and in doing such we do have a region an a nine county region regional tobacco control and prevention manager that is housed in Durham that handles all those initiatives for a nine county region. uh all of her activities have now have have to be funded through the jewel settlement funds in order to keep her whole to keep her straight. Uh so

they've narrowed the scope of the work as opposed to working on tobacco control smoke no smoking activities. Her scope is now focused only on youth vaping. That is it. Nothing more, nothing less.

HIV testing in the form of integrated targeted testing uh services. There has been a 10% cut which is equates to $26,755 reduction. Program impact 10% reduction in services for STI and HIV testing. Uh jail testing 10% cut uh which equates to $19,460 $16 reduction. uh 10% reduction to services for SI STI and HIV testing in the detention center and as we mentioned the P tobacco prevention and control uh that stop work order was issued so the federal portion next state portion is being revised uh the reduction amount still to be determined

as is still fresh it just happened maybe about a couple of weeks ago perhaps heavy on all of our minds right now is the potential cuts not only to Medicaid but also to SNAP. Um our innovation Durham's innovative nutrition and education program affectionately known as our dy program is an award-winning program. Uh it has led nutrition education in Durham since 1999. It's a it's been awarded uh the North Carolina Glacel Smith Klein Foundation Child Health Recognition Award in 2022.

Uh Durham public schools won uh the 2024 North Carolina Public Health Partners award uh due to their partnership with Dine. Fiscal impact of these cuts certainly will definitely be devastating to Durham, but more importantly it will be devastating to the 13 full-time employees. 12 of them are highly

qualified, highly trained registered dieticians. 3 million. Uh to this board, I just want to salute you and thank you all for your activities to allow to alert our legislators in Congress about the cuts and what the impact would be to the Durham community. Uh that impact equates to 21 DPS elementary schools, five middle schools, 19 preschools, 19 community sites, reaching over 10,000 Durham residents.

We support 42 community partners. We facilitate so much PSSE uh policy systems and and education environmental um activities. And then of course uh the double bucks program which we've worked so hard and tirelessly to support uh which provides over $277,000 to local farmers and puts local food on plates. Uh it it could all be wiped away in an instant. So, we're

we're going to continue uh to lift up our employees who are doing everything they can to advocate. We're going to continue to work through our channels with our lobbyists and the public health association. And um we're going to continue to hope that the Senate, you know, higher thinking minds will see it, not robbery, to disband this program. In conclusion, I leave you with this picture which really says a thousand words.

Uh this is the members of our STI team participating in the Durham Pride Festival which we do every year. We do it faithfully. We love the work that we do. We love working with each other.

We simply love public health. And at this time be happy to entertain any questions you have. Um board members, I just wanted to thank um Dr. Grod and his team for the detailed overview. We are just so grateful to have him as the leader of

the public health department and ACM um Pierce reminded me to share with the board about his leadership role. We are honored to have before us the president of the North Carolina Association of Local Health Directors. So he is able to be um at the forefront of the information firsthand and help um share that with partners across the state and that's above um responsibilities and in that seat uh he represents storm well. So I just also wanted to bring that um highlight to you.

Thank you so much, manager Hager. And all credit and all praise goes to the staff, particularly Micah, particularly Christian, and the other 260 plus hardworking men and women of Durham Public Health that make you all look good, and they uh really are fiercely committed to protecting uh the health and well-being of our community. Uh it's

an honor to serve. It is. Thank you, Rod, um for the presentation and also for the leadership that you're providing at the state level as well. Thank you. Um, this is uh a very sobering presentation and I I know we'll dig into a lot, but I just want to say that it is really important that our community understands the impact that the federal government's actions and policies are having right now on the health and well-being of people in our community. and that cutting programs for things like testing for uh HIV and STI, cutting back uh access to um care for for COVID, cutting back for uh funding for

food and for tobacco uh prevention is we're we're talking about losing ing people's lives. People's lives will be impacted and um our overall community health and well-being are is being put at risk and it's very very important that our residents know that this is happening right now and we need people to speak [Music] up about what is happening. Thank you. Well said.

Thank you. Um any yes, Commissioner Burton? Yeah, I just want to say kudos to you, Dr. Jenkins, and your team at public health.

Um, I think I shared with you I was just totally impressed during COVID with vaccinations and I went to the public health, took my dad, we went there to get our COVID vaccines. Um, and I just want to echo what Chair Jacobs said. I don't think people really

understand what public health does in our community, how many people rely on it. Um particularly with um vaccinations for kids, um the nutrition education, I experienced that working in the schools, the health educator, the nutrition educators coming into our buildings when I was teaching. um you know just all the things that you all do. Um so I just want to say thank you for that.

The thing that's opening my eyes with this presentation is the number of incarcerated individuals with HIV and they need psychiatric medications. Um, that is so alarming to me because we don't hear about HIV, you know, as much as we used to. You know, I know when I was growing up a long time ago in the

80s, you know, you really heard about it. You just don't hear about it. So, I want the question I have is what's the population, how the percentage of Durham residents who are living with HIV and the number of people in our detention center. Um because I just didn't it just didn't hit me.

Yeah, I will admit, Commissioner Burton, thank you for that question. I will admit I don't know that number off the top of my head, but I promise to get it to you. We're fortunate at this board um thought and not robbery to fund an ending the epidemic position uh uh held by Brad Kasein. Uh he is hard at work and I am more than sure that one text message will get me that information as soon as possible.

we will make sure we get that for you. Thank you. And what this is bringing to my attention is our, you know, efforts of making sure we focus on mental health with our children. Um, uh, because, you know, it's really

disheartening to me that we have so many individuals with our community dealing with mental health, schizophrenia, things like that. So, thank you so much. Thank you, Commissioner Valentine. Yes.

Thank you, Chair. Uh Dr. Jenkins, thank you. Thank you for your leadership and continuing to uh shine a light on the good things that are going on here in Dorham.

And also, I just want to highlight the work that you do in our immigrant community. And so, a lot of people don't know it. And so, we have a a large and growing immigrant population here in uh in Dorm County. And so thank you for your your focus on the needs with regards to the immunizations in those communities.

Yes, sir. Particularly as a military veteran, uh the work you do with our Afghan population here, uh that's my heart. Yes, sir. Well, so thank you. you had talked about uh revenue generation and I got to thinking

about Medicaid and the potential impacts as was described by um Commissioner Jacobs. Have you done an analysis of the potential impacts on the revenue that you project and what that might look like for for Dorm County? We are in the process of analyzing and thank you for that question and all the compliments. Uh, Commissioner Valentine, we are certainly in the process of analyzing, but we certainly don't want to be too premature in our analysis.

We know that um it is on the chopping block, but again, just like the folks at the state are sort of like crunching numbers, it's kind of it's kind of a moving target right now. Um, we know that the cuts uh are over a 10-year period. So, sort of like to cost that out, amateurize it is a little difficult at times, but for the most part, we are in the process of looking at it. Um, anything you might want to add, Madam Finance Administrator? No, ma'am. So

yeah, we're we're definitely we're taking all of that under consideration, but we're certainly um concerned and um while they're saying that it's not going away, you know, that level of cut is is definitely going to be pretty steep and it's going to affect everyone. And you also had uh talked about how we provide uh lab services to Orange County. Maybe I've read that somewhere. Maybe maybe I haven't.

Mhm. Um are we operating under some type of local agreement with Orange County? Any cost sharing associated with that? We uh we we have been under an agreement with Orange County probably for the past eight nine years.

But uh it's been a beautiful relationship. Um thus the reason why we were able to do a lot of things inside our complex um lab. Uh for the most part, um Orange County does have like two sites and um we are able to really have that courier service to bring those uh those specimens to us and we take care of them ourselves. Um we do

uh we we have invested in the personnel in our lab. That's most important. Uh under the leadership of Josie Paul and uh we certainly have the best and brightest. So we look to expand services.

We look for uh ways that we can probably generate revenue because as I mentioned and it's not just lip service. We know that we certainly need to do our very part uh to to provide funds for the county's coffers uh just to ease the burden or just really to do our part. So we look forward to continuing to expand on this investment. Um, I I think back to when I was um I was interviewing for for this position and I walked into the lab and I about fell out because I just couldn't believe how elaborate it was.

It was just so high tech. Uh, and coming from a pretty decent lab in Cumberland County, um, pales in comparison. Probably twice as big, a lot more technology. So, we're going to take advantage of it. And, uh, just as an aside, uh, I want to make sure that I at least get into the gym

and get on treadmill. What? once a week to make sure that we can do a little better in our reporting next time you come before us. Uh you had talked about well path and the contract that we have with the detention center and the youth home when I've talked to you on numerous occasions about this um and you do that for the county because the county requests uh that you handle that contract.

What do you think that should look like? I I I do believe that um you know we have a we maintain an excellent relationship during county department uh sheriff's department. Um I consider uh Sheriff Burkhead to be a great colleague. Um I consider attorney Love Lace to be you know bright mind and having been there for upwards of about five six years she certainly understands the operations Wellpath and Wellpath as as is now um and the sheriff's detention center staff they work really well

together uh so much so to where for the most part they have things under control. We provide a lot of oversight. So we have been um meeting with the detention center staff with wellpaths um executive regional vice president uh in order to really understand and peel back the layers. Um it is correctional healthcare.

Let me let me say this to this illustrious board. I do believe that all health care is public health but it is correctional health care. It's a little different uh from public health, but um do I feel as if they have the the tools and the the knowhow and expertise to manage that contract? Yeah, I do.

But at the same time, as mentioned, we do things with a smile. This is something that this board wants us to continue to do. Happy to do it. But I do feel as if the infrastructure is in place to make it happen. So, hypothetically, if if the sheriff were to and I consider the uh the sheriff to

be a a colleague as well, um if that were to be shifted hypothetically um under his responsibilities, would you still be able to provide a level of, you know, I don't want to use the word oversight, but assistance? Absolutely. Okay. Um, more than happy to continue to have that liaison in the form of a registered nurse.

Um, to to be the liaison to the sheriff's department. Uh, more than happy to insert myself in the process. Um, would definitely want u perhaps uh an ACM to be along with me to have more reporting um reporting direct line to manager Hager. and um you know would be more than happy to really uh set up sort of an ad hoc jail health committee advisory committee uh composed of um and you did ask me what I what I thought so I'll give it to yes that's correct composed of the courts composed of a representative from uh county manager's office composed of public

health composed of DSS mental health um this is what we had in Cumberland County it helped to move individuals from the detent ion center into the prison system, kind of unclog the pipeline, get them in front of the judges a little bit better and uh more importantly, it really assisted us in providing that expert health care and opinions, defay costs, make sure that, you know, red tape has been snipped and be able to, you know, really make things a lot better. That's my vision and I can see that happening. I believe Durham continues to lead the way. We're we have the expertise.

We have the people in place to make that happen. So, so thank you for that and uh I look forward to continuing uh our discussion on that. Yes, sir. Uh the sheriff had uh talked to us about 70% of those who are um coming into the uh detention center having a uh diagnosible mental health

condition. Is that number accurate? [Music] I tend to really feel as if it's somewhat accurate. Okay.

Um, you know, we we do, you know, we do have individuals that come in and, you know, they're not happy to be there and, you know, they seem to, you know, look for ways to, you know, uh, make their stay a little bit more pleasant. At least that's from what I heard. Okay. Um, but do I believe that it's as high as 70%, maybe, maybe not.

Um, but do I believe it's close to half? I really do. I really do. Um, we do have a a significant mental health uh crisis on our hands.

In my conversations with Attorney Love Lace and uh the sheriff, they have all vouched that mental health is significant and along with opioid use disorder. That's the reason why they have been rallying to get more services for that uh for the longest time. Right.

Thank you for providing uh some some context. Yes, sir. Uh but even at 50% that's alarming. And so it's consistent with the the uh um siren that's been going on for quite a number of years regarding the mental health crisis that we're experiencing not just here in Durham, but across our country.

Yes, sir. And so uh so thank you for your uh your leadership and uh the way that you um help to to curb that problem at least uh here locally. And so I agree with uh my colleague uh um Commissioner Burton when she was talking about HIV. And so as I was listening to your presentation and looking at the uh the data that you provided, I was immediately um taken to that this could potentially be a problem that's on the rise in our local community. And we've heard uh from from the larger community about their concern in this area. And so can you can you speak to where we are on uh the rising

numbers of HIV among us here in Dorm County? We continue to fight that battle as as you all have indicated it does seem to be normalized because there have been so so many advances in medications. People are living longer. Uh but it does not negate the fact that uh practices and behaviors have definitely not been as stringent as they've been in the 80s or the '9s.

awareness is sort of uh been it's there but it's been normalized. Uh there's a lot of risky behavior that has come from um social media and particularly a lot of uh a lot of um sites geared toward dating and all of that. So with that came the rise. Uh Durham does not necessarily have um the best uh standing when it comes to HIV. We certainly um understand that we are in the top 10 as it relates to uh the number of individuals affected with HIV. Uh be it you know the fact that we are a

large metropolitan area and that normally happens. So with that we continue to fight the good fight. We continue to promote awareness. We continue to work with our community partners uh as far as testing as far as getting people into care.

We uh we are committed to that. As our forementioned, we are grateful to this board to have a position dedicated to it. We are part of fasttracks um USA and fasttracks global. So we have goals and we are making tremendous progress but there is still a lot of work to be done.

Okay. All right. So finally uh you ended your presentation talking about DORM's innovative nutrition education program. And so I'm alarmed at how that program is being sliced and diced. Um, and so any any sort of guidance or suggestions that you could give to the board with regards to how we could potentially fill some gaps, I would be open to listening to that. I

would just say um we we're grateful to this board for the amount of funding um that it has given to public health. Um, we would hope that the board would consider, you know, if all else fails and the bottom falls out, if you will, that they would consider to keep this uh on our books for the most part, the proof is there. The data is there. Uh, we do have, you know, to to Commissioner Burton's excellent point earlier, uh, we're in, we're partners, we're locked in with DPS, we're part of the shacks, we're part of the classroom activities.

Uh we have kids going home to teach their their parents about nutritional eatings and um telling them about all the great things that they've learned from our registered dieticians. It is an awardwinning program. Um early in the presentation we indicated that we can control only what we can control. As it stands right now, the only thing we have been really tirelessly doing is advocating, getting

moms and pops and getting um the community at large, to Commissioner Jacob's point, to really understand the impact. If we don't get it from the feds and we're not getting it from the state, then it comes to the county commissioners. So, we want to make sure that they understand. But, um it it's a it's a fine it's a fine program.

It needs to stay in Durham. To my knowledge, there is no other program like dying in North Carolina. I would go on record saying that they have some they have some, you know, offsuits and some semblances, but nothing compares to this at all. Uh, thank you, Dr.

Jenkins. Yes, sir. Thank you. And thank you to my colleagues for your great questions.

Um, Commissioner Jacobs, I do my trust my trusty partner here. Let me know. Go ahead. Go ahead.

Yes, Dr. Patterson. Yes. Not yet.

Okay. Okay. Uh, Deputy

Deputy Director Patterson. Yes, ma'am. So, Commissioner um Burton, we did find that number of HIV um patients in Durham County, and it's about 2,000 people in Durham living with HIV and about 800 people living with AIDS in Durham. Yes.

Thank you. You're welcome. Yes, ma'am. Thank you, Christian.

And I will say this board um about I remember when I was chair and and Mayor Shu was mayor, we joined um an international effort um that Dr. Jenkins was referencing called FastTrack Cities to end HIV AIDS because Durham has one of the highest um rates in the state and it is a racial equity issue. it's predominantly black males who were impacted and um and

that's where the funding of an HIV navigator came from that initiative. And it would be great um if at a future work session we could have um our HIV navigator come and talk about maybe even in partnership with the work at Lincoln because this work is done in partnership with the Lincoln Community Health Center um as well and just all the partners because and the and our I've met Grant. He's fantastic. So just hearing more about about that.

It sounds like one of the big issues is also the funding of the medications. More than happy to make that happen, Mr. Jacob. That that would be great. Um, you know, I think we have to when we look at when I think about the cost center involved with providing medical care in the detention center and then just overall all of um public health and our

community, you know, it's all connected, right? And so it's so important that we think about this systemically and why investing in the education and prevention programs, the testing, the vaccinations, all of those are so so important because when we don't then we end up paying the price down the road. And you know that's what we see in our detention center um with the number of people that are suffering from uh mental illness, substance use disorder, but also very very sick people with things like diabetes and heart disease and um HIV. And you know, wouldn't it be great if we were able to spend all this money? I mean, it's astounding the the medication and the um the budget for Wellpath if we were able to spend that in other places. And I think that's why

these conversations about our behavioral health crisis system related to the heart program and the upstream mental health investments are really important because the goal is to keep people out of our detention center because it becomes even if you don't care about the you know human rights aspect of it economically it is very expensive. It is very expensive to run basically a health system between the behavioral health and the well path because we haven't even talked about our behavioral health contract which is actually run through a lot of that is also run through our justice services department. Does this number include what we spend through justice services for the psychiatrists for having psychiatric care on site for the mental health pod?

Does that number include this? No, ma'am. Okay. So, it would be really good for us to at some point also hear from the justice services department um around all of the mental health care that they are providing to be supervising.

Right. To be clear, uh Commissioner Jacobs, this this amount does include the medications that they prescribe, but not not anything else. Okay. So, that's a whole other component, right?

And does this include the money that we are spending on the medication assisted treatment? Yes. Okay. So, and related to that, it it would be I know that's something that we had discussed is trying to get um information from the from the office of the sheriff about more information about the MAT program, how many people are in the program, um and you know, what happens when they

leave detention because I know Jason is sitting back here, but when people leave the detention center and they have been in treatment, it's astounding there's something like 50 times higher chance of dying from an overdose if they go back to using right when they leave because people have not been taking the drug. So that that transition I think is important for us to find out about how how many people get the warm handoff with the fit program or peer support specialists and all that. Um the um the MAT program then is actually being run under the supervision of the whale path. I I guess it's not clear what the role is then with the office of the sheriff's staff versus the wellpass staff running that program. Do you know? Not as familiar, but again and we'll

endeavor to find out specifics. Yeah, but I do know that um Wellpath is committed to that program because they have seen results, positive results. Okay. So, it sounds like it is already being medic it is being medically supervised right now.

That's important for us to know that. Okay. That's correct. Um, do you know if we've been able to benefit from any of the legislation nationally and then at the state level around detainees being able to a get Medicaid coverage I think up to I don't know if it's 30 60 or 90 days um a before they leave the detention center. I have heard about the legislation. uh Commissioner Jacobs, but um Attorney Love Lace, uh Sheriff's Legal Council, and myself are in the process of gathering more information because there are some other counties that have uh kind of progressed a little

bit more in their investigation. Okay. So I think that's a real something that we should look into because obviously if people now people well right now for the moment a lot of people who in the who are in detention center have Medicaid when they come into the detention center in the past they have lost their Medicaid coverage and that's why we end up paying for it. But there is new legislation that allows them to to access their coverage while they're in the jail and that would really impact our costs.

So I think we that should be a priority for us to look into that. Um, and again, I know we had asked for to meet with the district attorney, but this is another reason for us to really dig into how long people are sitting in the detention center awaiting trial or the processing of their charges. Because the longer we have people sitting in the

detention center, the more that we are accumulating the costs of their medical care. And yeah, and to that point, um, to that excellent point you just made, um, as I was talking to, um, Commissioner Valentine, uh, in a previous capacity as an assistant health director in Cumberland County, we had that committee to ensure that there was a there was a clearance, so to speak, to ensure that, you know, the the courts would be there to ensure that, you know, inmates were being able to be seen. Um, because it had a trickle down effect. the longer they're there, the longer we have to provide care.

Um, so it it was effective. It was highly effective. Okay. Yeah.

I I would definitely like to learn more about that. Um, we know that when we bring people together and people communicate and collaborate, that is how you solve these types of problems. So, I look forward to hearing more about that as well. Um, and

the aging plan. I just want to make sure that that is actually in our budget right now. Is it? Yes.

Okay. Okay. Great. Great.

Great. Okay. Um and since they've just also adopted this new plan, it would be good at some point for us to hear the new plan um 2025, 2030 um in the you know, in the fall or whatever. Yeah.

Yeah. We can plan for that in the fall. Um and I also want to um concur with your um what you said about the dime program. Um you know these when we were meeting with the school board I was referencing we're going to have to go back in the future and I agree that this is something that is really critical.

So absolutely. Yeah. Any other questions before we move on? No. Anything else you would like to say? As I started with uh gratitude, I

will end with gratitude. We are eternally grateful to this great board for your support of public health. You all know that every dollar invested in public health returns the returns are immense. So we certainly thank you for your support.

Thank you so much. And thank you to everyone in public health for the work you do every day. And next up, we have somebody from uh Durham County Public Health with us, Jason Smith, our opioid settlement program manager, and Joanne Pierce, assistant county manager, um leading us on opioid discussion. Oh, it looks like uh All right, it looks

like Deputy Director Patterson is with us, too. And welcome Jason. Um, this may the be is this the first time you're presenting to our this board? Yes.

Okay. Well, welcome. Yes, ma'am. All right.

I just want to say good morning um to all the commissioners. Um, Madame Manager Hager, um, also County Attorney Williamson as well. Thank you guys for having us um, come and present on the opioid settlement program manager. Um, as you guys already mentioned, I do have uh, ACM Pierce and also deputy director um, from public health, uh, Kristen Patterson. Um, for those who uh do not know who I am, I am Jason Smith, opioid settlement program manager, the inaugural uh uh program manager as this

is the first uh position for this opioid settlement program. I am aware that this is maybe some of you all's first time hearing about the opioid settlement program. Um so um I will be providing just more of a highle overview um of this program um as well as some some budgets um implications as well. Uh please also feel free to sh um stop me at any given time during the presentation to to ask any question that you guys feel feel the need to do so.

All right. All right. 9 million as part of the national settlement. Um so this is a part of a broader uh broader effort to hold manufacturers and distributors accountable uh for their role in the opioid ep epidemic. Um so importantly uh these funds um are governed by strict

use guidelines. Um so um every dollar must be directly supported uh must directly support strategies that address opioid use uh disorder co-occurring substance use uh disorders or mental health conditions. Uh so therefore we do try to keep administrative overhead very minimal uh and programs must be evidence-based. Um and so that's one of the things that uh as you can see on this slide.

Uh so this means that uh focusing on measurable outcomes like reduced overdose deaths uh increased treatment retention and broader community wellness uh is going to be of great importance. Uh this slide also shows that this funding also uh is for it's an 18-year payment. So you kind of can kind of get a sense of the the payment schedule um that we have here. Um and so that's uh for the most part kind of gives a gives a sense of how the the funds are coming into Dorm County. This will be our third third year of

receiving funds uh based off the off the current payment schedule. So once again, these funds must be directly support the evidence-based strategies. So in this slide here, uh this is the NC opioid settlement strategies. Uh once again, these it's a strict usage of how these funds uh can be can be spent.

Um and so with that being said, um there are two uh sets of strategies, exhibit A and exhibit B. Um and as you can see, we are currently able to utilize uh exhibit A strategies. Those um those exhibit A strategies, they look across 12 evidence-based specific strategies. So when we look at the the the funds that we have already spent for this year, we are going to be talking about five specific um strategies that we have um that have been authorized and that we'll be talking about in today's uh presentation. But there are 12 um high impact strategies that are across um exhibit A. Um and if you're ever

inquired about exhibit B strategies, um the process to unlock exhibit B strategies will be to go through our collaborative strategic planning process which you'll find in exhibit A. And so once ex once that uh collaborative strategic planning process has been completed and then unlocks our our abilities to uh do more uh specific um strategies that are you'll find under exhibit B strategies which as you can see is close to 100 there. So opens up a whole wide base of strategies there. All right.

So this is essentially more like our northstar here for how we plan on spending these funds uh here. So these principles uh are not just philosophical uh they're operational. Um for example, focus on equity means our programs are actively prioritizing uh black and latinx residents who have been historically underserved. Uh we also um oper operationalize transparency uh by

publishing uh dashboards which I'll show you guys here in a second. Um holding public meetings and which like we're having next week. Um so our commitment to including people who with live experience uh for me for them to sit on advisory boards uh and directly inform uh for them to directly inform service delivery. Uh so these principles uh they act as a decision-making rubric essentially uh that helps us ensure that we aren't just compliant but that we're uh transformative.

And so it's it's we're looking at when we have these funds here, we want to make sure that we are looking at spending money to save lives. We're using evidence. We're using data to help us inform um our decision-m. We're investing in prevention.

Um and also I've I've I've uh been kind of pulled into even like youth prevention uh things of that nature. we can see even the the root of a lot of substance use disorder starting around the age of 14. Um and so there's been a lot of strong uh emphasis around youth prevention as well focusing on equity um and population that are disproportionately impacted uh once

again as I mentioned including people with lived uh lived experience or living experience um and also transparency and account accountability is also something that's strongly emphasized um as we utilize uh these funds and I'll go in another slide and show you how we're doing that as well. Okay. 1 uh million in opioid settlement funding. Uh these numbers here and I'll walk through each one but these numbers include uh direct service costs um personnel for outreach uh and peer support harm reduction supplies um and strategic planning activities.

uh every line item in this budget aligns with either the state's approved strategy list or u in the future it'll be some of our advisory committee's feedback. Um so this is not just about spending uh but it's about uh building durable infrastructure that supports long-term public and community outcomes. And so what we have here is uh

collaborative strategic planning. Um that's where my position actually falls under and that's you'll see the cost that's there for $145,000. Um we do have um uh these are all looked at as strategies. So I want to make sure I'm very clear with that.

Um the the second strategy we see here is harm reduction the lockone distribution. Um and also the third strategy harm reduction of our sterile um syringe program as well that is also being manned by the under the leadership in public health which is um Dennis Hamlet and also Morgan Culver who we'll see uh some of their highlights as well. But we can see that the nlloxxon distribution program is $274 $252. Um and also our harm reduction program we've allocated $67,000 um for that as well.

Um the the fourth strategy here is recovery support services. Uh this will fall under our CLC program uh community for linkages to um linkages to care program um which I'll give some highlights and share a little bit more about that as well. Uh but right now for the allocation for this year has been

$436,719. Um and last but certainly not least uh would be our we call port team or post overdose response team. Um and what has been allocated is $224,568. All right.

So now we'll share a little bit about some highlights. um some things that uh we've been able to uh some milestones and things that we've been able to do uh for this year. Um I will say that this is a kind of a newer initiative in terms of uh money that's been able to be spent. So we're extremely proud of some of the highlights that we've been able to uh get done uh for this year.

Uh we've created a framework for um a community-based advisor committee which is required for us in our collaborative strategic planning process. Uh so we've been able to do that. Uh we also were able to fill um a specialized harm reduction position uh which is going to be crucial for uh distributing resources like fentanyl test strips and lock zone and things of that nature. We also were able to expand our community paramedic

program. Um starting in February of of this year, we were able to bring on two um specialized community paramedics that we're excited about. Um which allows for real time post overdose engagement and also evidence-based practice um known to repeat uh known to reduce repeat overdoses uh in mortality. All right.

So let's jump into some highlights. All right. So for the collab collaborative strategic planning uh which I mentioned before uh we're not just working in a vacuum uh we're really trying to get out and um into the community and really share um so whether it's at committee meetings um if it's at town halls that we're trying to do we are trying to um we we're able to do collaborative planning sessions with stakeholders everyone that's involved uh we like we are sharing updates and receiving critical input uh in regards to this nature. It's very important that we bring as many people to the table so we can have a more diverse group and have a collaborative planning process. Um, additionally, um, I also work across uh, the state um, with other program

managers um, as we are standardizing metrics across the state um, and also aligning implementation. So, we're hearing best practices um, that may be in our region and also those who um, are very synonymous to our infrastructure. Do we need to progress the slide? I just I'm sorry.

Okay, there. Thank you. Please help me out with that. I appreciate that.

You I'm saying and it's not moving. All right. Sorry about that. Um so like I said um so I have been working across the state with other program uh managers, people who sit in this role as well across the state.

Uh once again hearing the the differences and their uh their challenges but also looking at best practice and how we can align um our our best practice as well. So with the collegiic strategic planning, it is a structured process that we are working through u to make sure we all have shared goals and visions and make sure that we have a good long-term planning uh for uh opioid settlement. All right. And what you see on this slide here is as I mentioned before um it's

one of our proudest moments is our new uh public dashboard. Uh this has been developed by John Paul uh ZA we call him JP uh that sits in public health. Um it provides monthly updates and it will uh foster some data transparency as well. Um so this allows both policy makers and um the p and the public to track outcomes and access the trends things of that nature.

Um this dashboard will also show nlloxxone distribution engagement numbers treatment linkages. Um so this tool we plan on updating this monthly um and it also serve as an accountability mechanism as well. So once again committee members, reporters, anyone who wants to look at this counties that can use this to see what's happening real time across Dorm County. Um so we are planning to really showcase this even more at our um meeting next Thursday at our town hall.

Um and so we'll have John Paul he'll be showcasing this as well, but we are working that. Awesome. So for our Nlloxxone distribution, this is one of our strategies. So Nlloxxone saves lives. I

think we are all in agreement with that. Um so this is under the leadership as I mentioned Morgan Culver. I want to keep saying her name. She has done an amazing job.

Um this is another inaugural position here. Our our specialized harm reduction specialist um role. Um she was able to along with others on her team um distributed uh over 3,300 kits through vending machines, outreach um teams and also partner agencies. So coming on board, uh we were able to establish 15 community-based partners, uh strategically around Dorm County looking at high overdose burden areas um and we were able to get um those areas equipped uh and mapped out and so which is also quite amazing.

So the o there's also uh in that role um Morgan has been able to do overdose um response trainings as well. She's been able to do um 10 of those uh reaching 194 people. Um so she's uh going through how to utilize Nlloxxone, safer use practices, things of that nature, how do we respond um in

in case of an overdose um that's happening in the community. So these are not just being armed with nlloxxone but also the educational component as well. So very highly important role uh that's being played here. Um this creates this is a critical piece of community readiness.

So also same person, same leadership, uh they're also doing the uh sterile uh syringe distribution or the um sterile syringe program. Um and so our mobile delivery model for sterile syringes had significantly increased reach. Um typically we were having we had a fixed site in our pharmacy here in public health where we were seeing maybe a dozen people uh that were that were coming in. But we found out that when you go to people where they are um you are highly and much more successful to get the work done.

Uh so uh Morgan in just a short amount of time she was able to uh meet uh 40 new mobile participants. Um which is quite amazing. That's a 230% increase. Um and why does this matter? Uh because we know that

sterile syringes reduce transmission of bloodborne um transmissions like HIV, hepatitis C. So, this is a huge win and a huge investment that we are um putting into. And Jason, real quickly, I see condoms in that picture. Are that being distributed as well?

Yes, ma'am. Okay, that's fantastic. All right, moving on to the next strategy. Um, so just some highlight here with our this falls under the recovery support strategy um within the NCOA and this is our CLC program.

And so this is really typically driven around our peer support specialists. Um they are the the lynch pin of our recovery support model. Um anyone who knows anything about peer support specialists, they are typically the heart. Um and so uh they made nearly 2,800 I'm excuse me 2,800 participant contacts. Uh and also facilitated 400 Uber rides to as as we know transportation to treatments are always an issue, right? And so Uber rides to treatment and um support

services. Also um of 187 new participants um that were engaged um 75 individuals were entered into treatment um including 8 38 of those for opioid use. Uh so these are not just numbers. These are people who reconnected with care.

Uh many for the first time in years. Um also what you'll see here on the right here is something that they have been diligently working on. And this is our updated English and Spanish resource guide uh that helps to bridge information gaps. Um this is especially for communities that are always uh engaged with tra traditional health systems.

Um these guides now uh include detailed referral info um and have been uh distributed to clinics, libraries uh and outreach events as [Music] well. All right. And this is going to be our fifth strategy here. is the the port team, the post overdose response team. Um, and this is um some of the data that we see within EMS. Um, and so EMS is

obviously we know what they do, but this data shows a meaningful reduction in the opioid related calls that they have been receiving. Um, they were once receiving 75 calls a month. Um, that's that number has been reduced now uh to 60 calls uh per month. Um and this cl this decline essentially um really reflects the broader impacts of of the work that we've been doing from the education that's been happening uh access and also community education as well.

Another part of their can you define? Yes. A medication for opio use disorder and then so we have our program which is medication for opio use disorder. Um this is the program here and this essentially is um this graph is showing how is how are the community paramedics responding um to an overdose and then you can see how they getting referred or how they getting linked to to care. And so one of the things I'll show you in the light green as you can see here 30 that 30 I'm

sorry 35% the dark uh kind of burgundy part of the pie and then I'll go to the light green as well. Um but when you see where it says scene of OD that means that um they are um responding at the time of an overdose uh 35% of the time and then if you see that where it says port uh FU which stands for followup uh 33% of the time they're following up u within 24 uh to 72 hours. So you can see just the response if you just put those two numbers together looking at a good 68% of the time that they are on the scene um almost if not immediately or within 24 to 72 hours um and that and then obviously they're providing care um in those instances and also getting uh individuals linked to care. Uh we also have received referrals uh from other places like dorm recovery response center uh Dorm County Justice Services, Orange County Community Paramedics and also something we found interesting was uh seven referrals also came uh from family and

friends um of prior uh patients. Uh so this mean that they the care that they received um impressed them enough that they felt comfortable uh referring them to our team. So it just kind of speaks to just the great team that they're that we're doing. So this type of work, it helps to build um build um trust and rapport with patients and also the community.

Last thing I'll share here too on this slide, it's just the the um kind of astounding or impressive retention rates that we see with Lincoln Community Health Center as well. Um and so those that have been linked to those care um just their ability to stay in care has been significantly higher. we see at Lincoln and then also we also see at Morse Clinic as well. That is preliminary data.

We're still gathering data around the retention with Morse Clinic, but it has been so high as well. Um and this is going to be where patients are referred. Just another breakdown um of where our top referral partners are. Um we see Lincoln Community uh center at at 37%. And once

again re just showing again the the retention. Uh other key partners as mentioned before in the last slide is DRRC or Dorm Recovery Response Center, Morris Clinic. Uh and then there's other teleaalth providers as well. All right.

Now we'll move into the recommended budget highlights. All right. So essentially what we're what we're asking for here is um across um the three ask here. And so the collaborative strategic planning we are asking for a funding increase of 145,000 that was our original um to 158,000 to support uh advisor committee development.

Uh we are planning to expand and and put get our advisor committee in place here soon. Um also for the development um of our dashboard and data transparency and also for more uh stakeholder coordination. Number two, harm reduction expansion. As I mentioned, under the leadership of of Dennis Hamlin and also Morgan Culver, um we are looking for a

small increase um between from 274 to $252 to $299,252. Uh specifically because we are launching a contract position to kind of help with the uh expansion of the outreach here. Right now, Morgan is doing the entire Nlloxxone distribution. She's also doing the training and she's also being in the sterile syringe program.

So we are looking um to hire a contract person to kind of help carry the load uh if you will. Um and once again as I mentioned the establishment of those 15 partners and the existing 15 community based partners this is all falling on the shoulders of one person. So we are looking to get some contract help with that. So that's what the justification for that increase is.

Um the other strategies are are really seeking uh level funding as well. Uh the recovery support services uh syringe services as well. uh the port we are looking to do an additional peer support specialist because once again our community paramedics are kind of carrying the loads on that those type of things. Um so we are looking for uh a peer support specialist to kind of help

strengthen um their participants um engagement and also care continuity and just a few current challenges that are happening just across the different strategies there um and that is across the recovery support services. So these are in the peer support that are linking and and helping individuals navigate um into care. One of the biggest things that they're proposing um is going to be launching a free phone program u for CC participants to stay connected uh to treatment and support services. Uh obviously phone issues are of of a concern.

We are exploring other resources and things of that nature to try to figure out how we can um get that done. um you know so we we are looking around across the county for for other resources for that. Um number two is peer support staffing. Um peer support um those roles are very high stressful. They're also individuals with lived experience or living experiences. So people are also juggling and their own challenges as well as

trying to help someone else juggle their challenges as well. So sometimes we do see a little bit of instability in terms of trying to keep on a peer support specialist. Um and so we are um looking to try to mitigate uh those staffing gaps um and despite funding for the the three uh full full-time position. So you that that is a current challenge there.

Um also within EMS um there's a potential um early loss um of the the FR um car care grant uh which really just threatens key services um which is including lock zone fat no test strips um and that's kind that's set to end um next next September um so they are more so looking for FY27 um just kind of keeping an eye on that because we don't know what's really coming down the pipe with potential um loss there. And then also just sustainability planning as well. And that's what the last part is here and that's is the FY27 budget of support uh that they may need to keep these vital services

going. And lastly, I just want to um invite you all to as many of you guys probably know or seen uh we are um once again trying to have our input session uh that we're required to do every single year. Um we want to make sure that we are listening and hearing across um from the community and also from those who are doing the work up front. So next Thursday at 5:30 we'll be um here and um you'll be able to hear from the individuals directly.

We'll also be walking through the dashboard that I mentioned. Uh you'll see a live version of of that. Um so you can kind of see and hear from John Paul uh directly. You'll also be able to hear Morgan and Dennis as well as they talk about the lock on distribution work um and all the things of that nature.

And this is also an opportunity for them for the community as a whole to kind of give their input. Um, as well you hear from the CLC program and also uh from Dr. join it from from EMS as well. And I think one more slide here and that's just some additional resources that we have here. And you guys can can see here as we are trying

to ramp up resources and spaces and places to put things um the county manager's office um on the website here on the opio settlement tab on the news. There's information typically there. Um, I will also shout out the uh North Carolina Opio Settlement TA team. Um, we call them Ostat.

Um, who have been extremely instrumental um, in providing TA and technical assistance uh, helping us out. Um, they also hold monthly calls in which they have individuals in my position across the state um, as well to help inform across anything that's happening um, across North Carolina and they have an amazing team and they are an amazing resource for us. Um also uh Cor the community uh opioid resource engine. This is a great website if you want to find any and all things that are happening across um opioid uh use disorder or things that are happening with opioid settlement.

Uh you can go to this website here and find a lot of great information and I think that's all. Well, thank you so much Jason. And just to

clarify, what is and I could not find um Keith exactly where in the budget book is the opioid settlement funding? Commissioner Jacobs, that's an excellent question. The there is a brief mention of it in the appendix. The opioid um ordinance is actually a separate ordinance than the budget document that you're reviewing and it's kind of been held that way for the last couple years.

Okay. So, when you are reviewing this presentation on June 9th when hopefully you approve the other budget, the main ordinance, you'll also have a second item which is the opioid budget amendment, opioid budget ordinance for the year. It is also a fiscal year ordinance as opposed to ARPA which is kind of a one-time ordinance. So, every year from now on, you will have both the main budget ordinance that you're doing here and an opioid ordinance.

So it's not included in the documentation you have. It's kind of a standalone. Does

that help? Yes. Thank you. And Jason, could you clarify then what is the total request for the settlement use of settlement dollars?

What is the total budget request for this coming year? 3 million. 3 million for this coming year. FY2.

Yes. Okay. And just looking at that previous chart of how much we have gotten obviously we have not spent um all the money that we have received since FY2223. So what is the amount that we currently have that's been car carried over?

Is that the does that reflect the car? I'm just confused about that. What is this chart showing us what's available right now? Because because there is also a certain

amount that is distributed each year by the settlement but I'm trying to understand what is the carryover plus what is the allocation and where are we at now? We will uh budget office will confirm with finance to make sure we understand the what's this is a fund balance conversation of course what opioid funds have been received and held in fund balance if you notice the chart overall if you look at the first couple years and then the middle years there's a lot more funding coming in the beginning so I think the plan as I recall it was to kind of make sure we're spreading out that funding so we have enough available in the outer years okay but I do believe I think we have it we have a number but we'll confirm with finance it's in the $3 million range. It is in the four. 5 million.

And the reason because I looked at the after numbers recently. So, um, we we can firm up that number. Okay. Before la after lunch.

Yes, that would be great just to see. And obviously that makes sense. We do the same thing with our transportation funding. And, you know, it looks like

we're need we'll need to back fill when we get to 38 39, those of us who are still here. Um but uh but yeah, we I think it's just important for this board to know that we have not we've been very conservative in our funding and our use of the money thus far and so we have not been spending down how much we actually are getting each year. So I think it would be good for us to see that and certainly what you're what you're recommending for this year is very modest increases. So I just wanted to create that context.

Commissioner Burton. Yes. So, I just want to make sure I'm clear. So, that money that is being requested comes from the opioid settlement funds.

Okay. Now, I understand. Thank you. Um, and the other thing I was going to request, first of all, great about the the the data dashboard that you all are launching, will that have demographic data? So, will we be able to see, for

instance, if we're going to track how many people are overdosing, their ethnicity, their age, um you know, race, whatever, gender, will that will we be able to see that? Yes, ma'am. And also related to who's in treatment as well? Yes, ma'am.

Great. And we're actively already um tracking a lot of the data. Um so, uh we're looking forward to figuring out what's appropriate uh for public facing. Uh but yes, all of us would be able.

Great. And then if also if you could share with this board since we are right now we are following exhibit A related to the opioid settlement. If you could share with everyone what those high impact strategies are that we could that we're allowed to use. If you could follow up follow up with us on that.

Sure. Okay. Thank you. Um okay.

I will turn it over. Oh, go ahead. I have the answer to the question. I get a check plus for memory. 6 million. I was hundred

million $100,000 off. Actually, um Crystal Lee shared this number in her presentation um last week. So yeah, and that was as of the end of this fiscal year. So this does not account for the dollars for the current year.

So wait, so that again it doesn't count. 6 6 million at the end of June 30, 2024. 5 million that's projected for the current year, whatever is not spent would would roll into that fund balance number. Okay, great.

Thank you. All right. Thank you, Commissioner Burton. Yes. Um, thank you for your presentation and I know that Jason I'm going to have to get with you because I met you previously because I want to learn as much as I can about this issue.

Um, I have a couple of questions. One, I want to know more about fentanyl. Um, how dangerous this drug is. I don't know much.

I've been trying to Google and learn more but um really learn about its effects and the harm that it causes. So if you can just briefly tell me about you know fentanyl. Sure. So yes um it's it's so fentanyl has been um obviously something that's been laced.

It's a I believe it's just a synthetic um that has been um kind of infiltrated into the drug supply. I'm not a fentanyl per se expert per se. Um in there and I'm obviously still learning a lot awfully a lot about it. Um but we also know just how highly dangerous it is. Um and so it's typically accounting for about 60% of of the death that we see in overdose rates. So when we look at the overdose deaths that are happening um we can see the we also have um charts that are shown the

fentanyl related. So essentially when an overdose is is happening, we're we're able to test those drugs to see what's in the drug supply and we're able to see the the high high effects of fentanyl um and essentially what they're causing the deaths of those. And so um it doesn't require but just a I don't know a tad bit of of fentanyl for it to just throw everything off. Um and so and it's it's highly into the drug supply and just causing havoc essentially on there.

Um, so yes, ma'am. Yeah. I mean, I've been hearing about it. I don't know much about it.

I know it's just causing a lot of deaths. It's causing a lot of harm. So, I appreciate that. And then the question I had is about I wrote it down.

Let me uh Okay. How how are individuals are there more individuals who are more prone to addiction? Um, and I'm I'm thinking about this like with other chronic

diseases such as, you know, high blood pressure, diabetes, um, and or does it just affect everybody the same way? Anybody can become addicted to these um, substances. And the reason I'm thinking this way is how is there any way do we target people to ensure that they don't become addicted to these substances or there's just no way of knowing? I don't know.

Yeah. Yeah. I think you bring up a great question. Um it's a complex question as well.

I think there are many contributing factors um to addiction. I will say this that I don't think there's no discriminatory factors of addiction. Um and so I think essentially um there is I guess you could look at it from many different ways but there's individuals who are coming there using it for pain. Uh it's just you know constantly pain medicine then there's the overprescribing of pain uh pain medications and uh once tolerance is built up and that's no longer really doing what it needs to do. Um I just

think of myself when ibuprofen doesn't work uh and I'm still in pain I'm like okay you need to give me something else because I'm dying in pain. And so um sometimes that's not regulated and so sometimes unfortunately it does lead to other problems. I don't find that there is a particular person that we target for that. I think everyone is essentially susceptible um to to addiction.

Um and so um but that's just what I've seen so far. I'm still learning and one of the things that we want to do is um have individuals with live and living experience to be at the table and really have these honest and transparent conversations so we can learn more together about the issue. [Music] and and in addition to m Mr. Smith's response, I'm sure we'll be glad to share some research with the board around predisposition and and drug addiction if it's useful for you all.

Thank you. Yeah, that'll be helpful. Oh, I was just going to say because you know understanding addiction, how do we help people through this? Um because you're

right, you know, it's it's complex, right? and so making sure people get the care and support that they need. So I appreciate what you all are doing with this and I'm still learning a lot about this too. Thank you.

And just to add on to what um Jason stated, we attended a um opioid set opioid conference and one of the speakers, he was a doctor and he stated um it was a room full of people. " He was like, "But no. " And so that's why we want to get the information out that it

could be anyone that has an addiction problem and we want to make sure that they feel welcome to come and talk to us that we're able to get these resources out. Thank you so much. Yes, ma'am. Yeah.

Thank you. And I I just want that's a great question. I just want to follow up as since um 2017 I've been co-chairing with Dr. for Wanda Boon, our countywide task force addressing substance and medication use.

And one of the things that I've learned is that the stigma surrounding um addiction is a huge barrier and also access to care, people having access to mental health and physical health care. Um so that th those can be some of the issues that um can prevent people from getting um the help and the care that they need. And we're unfortunately we are searing

seeing the criminalization of substance use disorder happening again right now. And that is one of the things that I am very very alarmed about because we have made astounding progress. You've all seen the news reports how nationally the overdose rates have dropped dramatically in the United States. And we know the reason why.

It's from access to medicationass assisted treatment, access to nlloxxone that reverses the overdoses. And now the federal government is cutting back funding for Nlloxxone for the uh the the medication assisted treatments. And if these cuts go through related to Medicaid expansion, we are going to see the overdoses going up again because the work requirements uh would probably very much target people who are

in recovery. And if you've gone to a a recovery court graduation, you know that you've seen that when people are in recovery, eventually they are able to work. But we don't expect people when they've just had heart surgery to walk out the door and start working again. And that's the way we need to think about recovering from substance use disorder as well.

So I just I'll stop there. Commissioner Valentine. Yes. Thank you, Chair.

Mr. Smith, pleasure is all mine. I don't think I've ever met you. Yes. So, good to see you and have you here uh today. Uh let me just make a comment regarding uh the distribution of the opioid settlement which I think uh spread out over the 18-year period is purposeful in a way that um shows that uh we had some

foresight to think critically about uh how this money would be spent over the course of years. I'll be quite old in in the year of uh let's see when does this end? I'll be an old man by the time that this money is running out. So, Commissioner Jacobs, you're correct when you looked at me.

I I hope to be here, but I'll I'll be I'll I'll be old. Yeah, I'll be old. Yeah. Um so my question so you had mentioned that you were going going to uh provide us with some of the exhibit A strategies and my question was actually going to be have there been any movement to assess uh exhibit B strategies and I think there have been some move in that regard and the creation of the advisory board is sort of moving us in that direction. All right. So to that end, I think it was it's going to be important uh and dashboards is wonderful wonderful uh with regards to um having data available

to our residents. Um but it's also going to be important that we know the entities in particularly in the out years that's going to receive this money knowing this community the way that I do. Uh they're going to know they're going to want to know how this money's being spent, right? And so I think that's going to to be in important.

Um so accountability uh to Durm County is going going to be important. You had talked about uh youth prevention as something that uh initially wasn't under consideration but it's very much in the conversation. So how how do you envision the youth prevention sort of model being integrated into the opioid settlement? Yeah, it's a great point. Thank you so much for your comments as well. Um so one of the one of their strategies is one is bringing on the advisor committee um to kind of really help and and really hear u the input and feedback across the advisor committee but also getting community input um really putting that on the table um around specifically

around youth prevention um and how we plan on to address it is one of the things that um failed to mention too is we plan on putting out an open RFP uh process u specifically to address that issue if that's one of the highest uh race priorities that we kind of foresee um across um concerns with the community and things of that nature. Um but one the advisory committee, two getting the community input and then really bringing enough uh information and data to bring to uh to you all honestly um to see if it's something that we want to move forward with. Um and if so um we'll put out an RFP process to um make that available so we can start addressing that. I will say that we have um very limited uh movement in terms of that in terms of school health in terms of we are trying to get in there but we are having some bumps in the road and trying to get into the school system through school health um with this type of work. So there's many different avenues many different ways and I've worked with partners in dorm county around youth prevention um specifically um around COVID and other other diseases as well.

Um so I think that the organizations and the entities are out there. Um I think just the opportunity to help make that impact um just awaiting on us. Thank you. Um uh the other thing I wanted to to discuss is you had talked about the need for additional personnel to help in this work.

You identified several key positions that you're um looking to fill. Um would it be correct to say that you know it's going to be quite a number of years before the exact infrastructure to carry out this is going to take place and so uh have you have you thought long term about what this infrastructure is going to look like and what the costs are going to be associated with that and you don't have to have the answer today but th those sorts of things that I'm sort of thinking about already. Okay. I thought you had a comment. Um I think it is something that we are we are still thinking through. um uh we don't have all the answers yet just in terms of how we want to build the infrastructure but I think it is a part of the collaborative strategic planning process um and how we do build the

3 million each year so that we will have money for the 18 years. I don't I'm like Commissioner Jacobs I won't be here that long but you know just trying to hopefully we will hopefully we will hopefully we will. Yes. So just making sure that we have the funding in place because as Jason stated when we get to what 3839 um the 512 million that's not I mean thousand sorry that's not going to be a lot of money for the infrastructure but if we can kind of level set at a certain

amount each year then we'll have money to spend during that time. And what we did find out from OSAT is if we're at um year 18 and we have extra money, we can keep going until the money ends, until we run out of money. So it doesn't stop at 18. Okay.

Good. So now that's some helpful information. Yes. Yes.

So being conservative now really helps us out. Okay. All right. Thank you so much.

You're welcome. Well, thank you. Yeah. I think, you know, thanks to our um current governor, former attorney general Josh Stein and his team, we have an excellently structured settlement that is really unique in the whole country.

And so it is important that we have this constant source of money uh over the next 18 years. It's not that much money, you know. We know it's really not that much. But what I the way I look at it is that we So, we came into

this with Durham County already having an A team. We already had amazing public health staff who were working on harm reduction and we have the North Carolina Harm Reduction Coalition to partner with in the community. We already have public health running this incredible community linkages to care program um doing peer support. We already had our community paramedics who were doing innovative treatment in the field getting grants.

We already had the you know our jail mat program. So, we were actually already leading the way with programs um that I think thanks to having the durm joints together running for many years. So, we didn't have to sit here and think, okay, what do we need to do? What can we do? So, I just want to lift that up and just lift up all of the Durham County staff who have been doing

amazing work in this area. Um and especially um I just think it's incredible to see those numbers around when people overdose in that moment being able to offer them to start treatment right away and then the peer support specialists that follow up with them and provide the wraparound care because you know what it's not we know it's not rocket science. People need the support. They need the case management and honestly we should be honoring the lived experience of people and also offering employment. I was on our statewide um NCAACCC just one more thing task force and one of the most popular thing that came out of that year-long initiative was peer support specialists because that's something whether you're a rural county or an urban county you're going to have community members who are recovering and they need jobs as well

and they need to have their valuable life lessons put to work. So I just I hope that we will keep you know supporting that program which is you referenced is really difficult. Um I wanted to know um what um when when do you feel like the advisory committee will start because that's one of our requirements right for the opioid settlement. Uh yes ma'am.

So we just submitted um a resolution to adopt and and establish uh the advisory committee. So, that should be coming your way uh here shortly. Um, we do know that there is a 30-day um application phase. Um, once the uh it is adopted and so um I'm looking hopefully by Julyish um we should have the the onboarding of the advisor committee which we're highly anticipating and looking forward to.

Okay. Fantastic. Um and the

um do you happen to know what the interaction is with the heart program with all these different programs? Do you have any idea? I imagine that there is collaboration but I would love to for us to hear more about that whether that what you know in terms of referrals or things like that. Yeah, at this time I don't have uh much information around the current interaction, but more than glad to get that and look into that.

Okay. 5% or something from our recovery response center and I think we need to understand what is going on. That is a county funded program and you know that's our dropin center for people who are having a any type of behavioral health crisis, substance use disorder and that should be a really strong referral source for us. And we the community linkages to

care program used to have a peer support specialist located there. I don't think they do anymore but um yeah. So, I think we need to I would like for us to get more information about that and that and also I want to lift up Lincoln and the Morris Clinic because Lincoln has an outstanding program, MAT program and the fact that the pharmacy is right there. Um, people can get their medications.

Uh and also this is another comment for our board to be aware of. The Lakewood Clinic which recently opened Lincoln the pharmacy has not been able to open yet. Um we we need some collaboration with the Duke Health System on that because the Lakewood Clinic was meant to actually be a huge um MAT clinic and it has not. The

problem is that people are not able to get the medications there and you want to have the one-stop shop. So, I want to just lift up that issue um for for our board and to also share that the city they first used their trunch of opioid dollars 100% for the Lakewood uh Lincoln MAT program and then now their latest um allocation is for harm reduction. Um, so it's great to have their partnership in this work as well. Okay, any other any closing comments?

Oh, Joanne, I have a closing comment and I'm sure I speak on behalf of public health and it's directed to Commissioner Jacobs. Thank you. Thank you. Thank you for your many, many years of working in this space.

It's been complex. It's been tough. Um, we've had some um some wins and we have a lot of work to do, but we really appreciate your work and uplifting the

language of substance use disorder um consistently and um you've you've been in the trenches with us and we just want to appreciate you for that. Um it it's tireless work and it's behind the scenes, but just wanted to say thank you. uh we really appreciate it and u we're in this space and we thank you for your continued advocacy and to the entire board thank you for your support. Thank you Commissioner Burton.

I just wanted to lift up Lincoln too um and just shout out why it's so important that we support Lincoln Community Health for its important work particularly with um this um opioid um use disorder. So, thank you all so much. Yeah. And Jason, any closing comments?

Uh, yes. I just wanted to say thank you to each of the commissioners. Uh, very nice meeting you as well for the first time. Um, but nice seeing you all. Thank you guys for your time. Um, and just the ability to kind of indulge us in this very important uh

topic. And uh, Commissioner Jacobs, just a very personal thank you to you as well. Uh, I've been in this role for about 10 months. Uh, I've been in public health for the previous two years and I worked for the city of Baltimore for the last previous 12 years.

Um, but when I first came into this role, you know, you kind of took me by the arm and really helped me and brought me up to speed and um, I really do appreciate that as well. So, I'm looking forward to all the the work that we have coming down the pipe and um, just making a more impactful Dorm County. Thank you. And everyone come to the town hall next week.

That's right. Yes. Thank you so much. Thank you.

Okay. So, we will um, did you want to say something? Okay. What we'll do is just um maybe take a 10-minute break and do a working lunch.

Is that or do you want to do that? Let's do a lunch because DSS is M is scheduled for 1:00. 1:00. Okay.

Yes. All right. All right. I didn't I was worried that I had been long-winded, which I typically am. So, I All right. We appreciate that.

Okay. So, we'll So, one o'clock then. Okay. Great.

Thank you. Um it appears the ABC board manager is here and so if you're okay for us starting a little earlier that'll be great. So we we can take a can we do a 20 minute? Okay.

We will we will come back in 20 minutes. Okay. Okay. Thank you so much. Thank you.

Everyone's here. Thank you. And welcome to Mr. Lou Sordell who is our uh manager of our ABC stores.

And it's great to have you here with us today. And it looks like you're solo, riding solo today. Yes, ma'am. Yes.

So, um, yeah, appreciate you coming and sharing, uh, giving us an update and discussing the budget because a lot of people don't realize Oh, we do have a board member here who just walked in. Yes, we have a couple board members. Um, I'll I'll introduce them. Okay.

I will I'll turn it over to you. Thank you, Commissioner Jacobs. Okay. Um, dear Durham County Commissioners and Durham County government members, um, my name is Lordell.

I'm the general manager for Durham County ABC board. Um, and it's a great honor to be here today to be able to present our annual report. Um, I

would like to introduce our board members, uh, Mr. uh, Dan Lepas and Dr. Ryan Orcart. Um I will start my presentation with an overlook um at our proposed budget for the next fiscal year 26.

4 million um with other income being $50,000 totaling to 63 million uh490,418. Um out of that revenue um the taxes will equal 14,816,939. Uh cost of sales for all the

spiritual liquors purchase would be about 32,440,435. 9 $9 million. Um adding the other operating expenses totaling the total operating expenses at $11 million. Um, as we grow as a company and provide uh more modern shopping experience for Durham County residents,

um, we feel it's very important for us to keep growing and building high quality modern stores. Um and with that with that said we are uh in a second half stage uh for finishing our store at TWW Alexander. We are currently renting uh right next to Food Lion and we purchased land a few years back. Uh we started construction um this fiscal year and we'll be finishing it next fiscal year.

Hopefully we'll be moving in by November. um or January the latest. 45 million. So our total estimated expense for next fiscal year um is 59,787,000 um dollars. Part of being in a controlled state in North Carolina um is mandatory

profit distributions. Next year, next fiscal year, um our distributions to city of Durham will equal to $242,551 for uh Durham County, $2,182,966. Um we are under contract with AL. Uh it's a state agency that provides ABC uh police services for us and the law enforcement amount for the distribution is $400,000. Um, we also are required to um work with uh nonprofit organizations within the Durham County um that support uh treatment, prevention, and education um for um for um citizens with um uh with alcohol abuse or drug abuse um

issues. use with um that amount for next fiscal year will stay the same at $525,000. In the times like this, we feel it's very important to keep these funds to these organizations because a lot of these funds are being cut by the federal government and a lot of these organizations um would would be in a in a bad situation if it wasn't for Durham County ABC. I'll go over the organizations that we funded um this year. Our working capital will um equal to $352,000 for next fiscal year. Um for the for our grand recipients for this year, uh we funded Boys and Girls Clubs of Durham and Orange Counties, Durham County Justice Services, El Futuro, Jubilee Home, Lincoln Community Health Center, Durham Proud, Purpose Learning Lab, Student U, and Urban

Ministries of Durham. um our grand committee uh that includes um our our um Durham County ABC board members. Uh they work really really hard to find a complex group of organizations that touch Durham County from each and every way. Um, we conduct site visits every year and those visits are very crucial for us to understand what every organization does and how it helps Durham County citizens.

Um, just to one if if I had to uh point one out that really touched me personally. Um we we funded Jubilee Home last year um where they were able to build a first women's center for um for women that um incarcerated and come out of um system. And the house was

built beautifully and um it was proud very proud moment for us to uh to see that what we do uh creates a place like that. Um to summarize our stores, we have 10 stores currently. We opened a new store um at Glen School Road next to Walmart in Durham. Uh we found this area to be underserved and we wanted to make sure that all county citizens um have a store within the vicinity of where they live.

And I'll have some pictures for for you to see how we how we did it. Um, we also moved our store in Hope Valley. It's one of our older stores. It was our smallest store.

Um, it was producing a lot of revenue for Durham County. Um, and we feel it was important for us to rebuild it. So, it's um more 21st century store,

more modern with more storage and the opportunity to uh serve the um Durham County citizens better. So, we actually moved it uh to a leased property. Used to be a bottle shop, Sam's bottle shop, and we under leased there for a few years until we tear the old building down and rebuild it. Um this is what the new building will look like.

As you see, um it's very modern, lot of light. The uh the side facing Food Lion is the top picture and that site already is at 15 ft. So, it will it will have a significant presence there. So, any anybody shopping in Durham County will be proud uh to have a store like that.

This is the store at Glenn School Road. Uh it's part of the shopping center. Uh this is what it looked like before we took over and moved in and this is what it looks like now. Uh we as Durham

County ABC are helping the stores around it as well with our presence there. There are more uh customers frequenting the other areas as well. Um, our store four, which is the TWW store that I mentioned in our budget. Currently in the top picture, we are uh right next to Food Lion.

Um, it used to be a gym and we purchased the land what you see there at the Mark X. And right now we are um we have a roof, we have the the sides, it's all bricked out. They are working on concrete inside. And like I said, hopefully by November, we'll be moved in.

This is what the store will look like when it's finished. So again, very modern. Um, and it will serve that area a lot better, being bigger. for our next project within the

next um 10 years. We purchased the land um at Hoover Road, South Hoover Road, and we will be moving our warehouse there together with our admin office and our AL uh office. And also, we will be serving all mixed beverage customers that are in downtown out of this uh warehouse. It's a lot closer for them.

It will be a lot bigger. It will provide more customer service for them and it will make us more efficient as an organization having all these uh pieces together. Right now it's all separated. And this is a financial overlook for Durham County ABC. As you see where we were in 2018 all the way to 2024 and how we grew and that's about the time when we started really aggressively investing our uh profit back into the buildings and

modernization technology. our team members and overall improvement of the of the company. Um during COVID as you see the sales have not uh slow down other than mixed beverage sales. An important fact to mention as as I said um it's very uh we we try to keep our relationship with mixed beverage customers uh at the high level and during COVID we were able to buy a lot of the liquor back from them to help them out survive those hard times.

Uh this is a little graph for postcoid trends. As you know, the economy uh is in a very uncertain place right now and um for alcoholic beverage sales, it also shows and it kind of matches what we see from a national standpoint as well. Um our sales in 23

were 62, a little over $62 million. Um where in 24 the increase was just slight. So the economy is flat when it comes to alcohol beverage sales. 49 million for next fiscal year.

And this is just uh some summary for um for you to see how the breakdown of different categories uh is for Durham. So this is top 50 items that sell the most in Durham County and they are divided in in categories by um by the amount of of revenue. So, this actually is from April 2020. And as you see, vodka, tequila, and whiskey had an equal share in Durham

County. And going to 2024 postcoid um numbers, tequila has taken over quite a bit. Um all the other categories are showing lower numbers. And then when we go back to this past April, you see you see tequila almost uh close to half of overall take in Durham County uh market.

And the important part why I'm mentioning this is because as a company and and organization we have to we have to watch what's going on in a in a world and with the tariffs and if this is our number one product we have to make sure that it's available for our for our citizens. And here just a summary for those three years you see how tequila just uh took over and it's dominating the market. So we actually applied

this breakdown to our stores. When you go to Durham County ABC stores, you'll see that tequila has the the main uh part of the shelves. Um it's all the store resets are reflecting um what we see in these trends. And at this time I would like to thank you uh for having me and um I'm open to any questions you may have.

Well, thanks so much Lou for your great leadership of a really big enterprise. 4 4 million is significant. And I want to acknowledge another board member that came in, Mr. Daniel Edwards.

Um, and are you chair of the board now? Okay. Who is the chair of the ABC? I'm sorry.

Okay. Well, but thank you all. I want to acknowledge the board members because um

you represent us on this board and you have a really big job, a really important job um overseeing this budget and this organization that has a huge impact on our local economy, but also the funding that we get directly. 182 million that feeds into our our budget as well. and the $525,000 that goes into um nonprofits um including justice services department which Durham County government as well. So, so I just want to thank you for that as well as um the investments that you have made um in building really nice facilities throughout the county and revitalizing commercial strip development throughout the county. That has a multiplier effect on again

revitalizing different parts of our community. Um, and I just would love love it if you could provide us even a map um, so that we could see geographically where all of the ABC stores are. Um, it would be great. Great to see that.

Thank you. Um, thank you, Commissioner Jacobs. Absolutely. Yeah.

And I will turn it over to everyone for questions. Commissioner Burton. Yes. Thank you so much for this presentation.

And as a new commissioner, um, I'm learning about the ABC stores, the board. So, you know, I really have learned something new seeing how many sales is generated, right? And I know where the Glenn um the Glenn School Road story is. It's in not too far from where I live. So, um I the question I have is with regards to the grants, is that a set aside amount? Can you increase the amount that you that the ABC board can give away or how do

people do they apply for the grants? How does that work? Um, thank you for the question, Commissioner Barton. Um, yes, the the amount because of all the hard work of the team um that works for Durham County ABC uh has been increasing every year.

And with this with this year and all the uncertainties um the sales are not growing as they were before. That's why we decided to keep the the budget the same. We didn't decrease it. Uh we make cuts elsewhere to make sure that these organizations have the funds they need to to keep functioning.

So going forward as we improve um our facilities and the sales will follow and they will grow. We would love to grow that number as high as we can. That's a that's a very important part of what we do. Um and we would we would keep working hard on it. So, our board um grant committee uh has the oversight

on how much money goes to which organization and they all apply and they all let us know what they need uh based on what projects or what what they do with it and then um we go into uh into meetings and then we approve the grant committee approves the different funds for the different organizations and they do apply. We have a uh we announce it publicly when the grant um cycle opens. We hold a meeting. If any of the organizations have any questions, uh we are there to answer the questions. And last year or this year, this fiscal year, we had uh uh the opportunity to host a networking event for the grantees for Durham County ABC board where they came together um and collaborated on how they do different things in Durham County so they can better support the community um and just find out what everybody does because sometimes they're

all on their little islands and this event was very very successful. That's great. And yeah, let's hope that we can increase those grants, you know, because there's so many needs in our community, right? So, I appreciate that.

And I guess the other question may be this can go to county manager Hager. 2 million that we receive as a county is that we that goes in our general fund and we could use it for whatever we want. Yes, that goes in our general fund and it supports the overall budget. Great.

Thank you so much. Thank you. Yes. Sorry about that.

Uh thank you for being here today and uh for your presentation and more importantly, we couldn't thank you enough for your contribution uh in the form of the distribution that you provide for the county. Um, we're hoping for your continued growth um in near future. I'm

hoping to to be at the uh the new store that you're that you're opening. Uh I hope to be there for the the official opening. Um and in addition to that, I want to also fall back on the the grant provisions that you provide. And so I don't know if people thank you for that.

Um but I'm going to personally today thank you. And uh I know my my colleague had already sort of talked about this, but to the extent that you could uh expand in that area, we we would be uh welcome to that. But uh thank you for what you do. So if it if it goes unappreciated and unsaid today, thank you.

Thank you. And thank you. Thank you, Commissioner Valentine. I wish I could uh take the credit, but uh to be uh completely transparent, our board members uh are really the driving force behind the grants and all the the good that goes back to our community. Uh without their leadership um specifically with the with the five people that we have on our board, none of this would be possible. You can see how the company

has changed uh since this group of people have been present. and they are very very hardworking board and um I'm honored to be uh serving under their supervision. Well, let me go on the record. Thank you to the board for your commitment to our community.

Thank you so much. Thank you. Thank you. Well, thank you. I have some follow-up questions. Um so yeah it's really fascinating to look at the trend data and see how since 2018 to 2024 the growth um in the ABC budget uh the growth in revenues um and also the investments being made in opening new stores and I also want to highlight because I know we've talked about this is that the investments that you've made and staff and making sure that there are fair wages and benefits

for the staff. Maybe you could talk about that a little bit related to the staff. Absolutely. Uh thank you uh Commissioner Jacobs.

Yeah, our our team um our team members are the most important people that walk through our our doors and since I've been um had the privilege to serve, I that was my number one priority to make sure that our team is well taken care of and uh we improved our health benefits uh quite a bit to match what Durham County provides for Durham County employees. um our uh increases are in line with the surrounding boards. Um even in these uncertain times, we want to make sure that our employees are still receiving increases. And just one one more uh example to me me mention that I'm very very proud of our uh HR uh director Tristan Coleman worked really really hard in negotiation with our uh health

provider Sigma and she negotiated $10,000 uh credit uh towards uh health benefit for our employees and she turned it into uh shoes. So, every single employee that's full-time with us and some part- timerrs, they were able to go to a specialized store and get fitted for orthopedic shoes because they stand on their feet all day and um they all were able to go and um get shoes that our uh health provider funded. They didn't even cost us us anything. And um now if you go to Durham County stores and ask them about their shoes, they'll all be happy to show you uh their their new shoes.

So so things like that. Uh we are constantly trying to uh improve on different things for our team members. We hold a regular meetings every month with our full-time staff, our managers, assistant managers, and we try to collaborate on how we can do what we do

for them better. Wow, that's fantastic. 182 million, but for the record, what was the amount last year? Um, the amount last year was um was a little higher.

9 million. 9. Keith is getting up. You're specifically asking about ABC dollars that are coming to the county.

Yes. 75 million. Currently, in our SAP

6 plus million, but I don't think we're done collecting yet for this year. 7 million, slightly over that, I think, David 2709. 7. 6 million.

So, okay, they're on target to meet their numbers. It's always a constant conversation about can that number grow. Yes. So, every year in the budget, I always ask um and I I'm I'm going to ask what would it look like for you at least to keep flat funding this year, understanding that you're not projecting a lot of increase. um being very conservative and also I know you're investing a lot in in the new facilities but um you know would it be possible I know you're pro you are um proposing the

75 for the county? Um, thank you for the question, Commissioner Jacobs. Um, to be a a good servant of of the company. 1 to have a balanced budget with the projects that were put in place a few years back.

Uh, completing the build of the store and the purchase of the warehouse. Um, that's the main reason. So the money is coming back just being reinvested into the company for those builds. So then as years come that number can go back.

So we are investing in our our future to give back the number that we were we were uh giving in the past years. Okay. Um what

so what will be your fund balance with this budget? Will you have a fund balance or in terms of Yes. So, um we um right now the the budget is balanced and we um we will have $300,000 um okay after all the profit distributions are finalized. Okay.

Um that's not a very large fund balance. 4 million budget. Um and then in terms of the um allocations to the grant recipients, I also want to thank you all for having a rigorous process. Um it it has not always been that way in the past. And I want to acknowledge this board for having doing your due diligence and

actually going out and visiting the sites and really being invested in it. I love the fact that you had some event where you brought everyone together. That's a really interesting idea of how you build relationships and connections between nonprofits. we might want to take we might want to follow up on that example here um as we try to encourage people to collaborate when there is less and less opportunity um in in the environment that we're in.

Um because looking at the list, you all you have very reputable um uh nonprofits that you're investing in as well as county departments and um that are different parts of the system um when you look at who you're funding. So um what was the amount last year for this fund also just to have the perspective? It was the same amount. Okay.

So this year keeping flat. Yes. Okay. Okay. All

right. Well, I won't push you too much then on the um you know, because we could use that money for some of the other requests that we have, but um knowing that you you really don't have a lot of wiggle room on the fund balance that you have. 75 million. I hope so.

Yeah. and related to the tariffs and fascinating to see the tequila is that I would never have known that. Um could do you have any insight on into why that is. Um I think tequila started taking off around the time when the covid started where uh different uh different brands became available. I remember when I first came to US uh there was only one or two brands available and now you look

at the stores and you have um wallto-wall tequila different different products from different parts of um of the tequila region. So I think the consumers are just more educated about good quality products and that's what they prefer and the variety is there, the quality is there. Um sometimes there are social media uh influencers that could cause some of that growth as well. Um but I think just having it available I think plays a big role in it.

And nationally uh during COVID the the products were not available as they are now. And now that part has leveled off a little bit. um and people companies caught up to the de demand but now with everything going on um I think the c

customers are more careful about what they buy how much they spend so that's why we see that flatline in revenue and as a company we look just like Darham County does we look uh 10 years out even even further and this Far we have touched every single building. We have um one way or another we have two more stores left that need to be rebuilt because they are just too old and the cost of running them at a current state is just not uh efficient. together with the warehouse build um and finishing some of the projects that you have seen on my presentation. In the 10-year plan, we'll be able to uh after completing everything, we'll be able to focus uh on more on getting back to those numbers as you've seen before for our profit distributions and also um increasing

that uh number for the organizations that we sponsor that we fund. So if you give us a little bit of time, uh we'll be back there and we'll we'll we'll do our part and be a be a partner like we have been. Thank you. Uh and my last question is um in terms of the revenues, what is do you have data on the breakdown between what are the individuals coming in to buy at the store versus the retail sales, you know, directly to bars, restaurants, hotels. what that uh that breakdown follows um the the graphs that I presented that's a mixture of all that's not it's not divided into the bars and restaurants but a lot of times um what people are drinking at the bars they get exposed to different flavors different drinks and then they go to the store and buy a bottle of the

corresponding product. So, but in terms of your sales, do you track your direct sales to, you know, when when bars or restaurants are ordering for you directly? Um, versus and I mean, how how that's what I'm looking for is understanding how how many uh how much revenue is coming from the uh mixed beverage side of things. Yes.

Yes. Yes. Yes. So, um, we are budgeting for next fiscal year, uh, the breakdown would be $50 million for retail sales and, uh, $13,44,000, um, from mixed beverage sales.

And that trend has been very interesting, especially during COVID, because during COVID, uh, most of the sales were coming from the retail side and the mixed beverage side. um slow down quite a bit. And then

coming out of COVID, that uh uh mixed beverage side has grown quite a bit for Durham County. If I uh if I click back to Oh, yeah. I see the side there. Yeah.

Um the breakdown. So basically from 2018 where we were at $8 million um at 24 fiscal year we were at $13 million for mixed beverage. And the one thing I have to say our our team uh focuses on that customer service uh part of the relationship between us and the bars and the restaurant. So, anytime a new establishment wants to come to Durham and do business, uh, we try to help them as much as we can to make sure they have the products they want, the amounts they want, especially with allocated bourbon. Uh, that's a that's a very important comp component for the new establishments when they start and get them going the right way. Okay, that's

helpful. And I think um it's also important we look at the potential for expanding the revenues um the whole ecosystem that we have. um Daniel Edwards and I when he served as chair of the tourism authority board previously, but just thinking about again this whole issue of how do we help support our restaurants, our hotels um and our local businesses, the bars really um can can benefit from having more visitors to Durham, more events, more tourism, convention center events. Those will help boost uh those mixed beverage sales.

So, um another reason for us to to think more broadly about about that. Yeah. Well, thank you so much. Any other final comments or questions? Well, thank

you again for your great work and thank you to the board. Thank you. Our final presentation today is from our DSS um director, Maggie Clap. Welcome, Maggie.

Good afternoon, commissioners and county manager. I also brought Contessa Sawyer with me, my program manager. Um, as I know you had some additional questions on lowincome housing and she is over that um program. So, just in case there's anything that I could not answer.

Thank you. Just in time for the train. Oh, okay. The clicker's here.

Okay. Okay. So, our current department highlights. Um, over the past year, we have brought in allies for outcomes.

Um, we're going to continue collaborating with them and working with them into the next fiscal year. Uh, we initially started with them coming in. Um, they are a consulting group that works with supervisors and child welfare on best practices. So we initially started um working with them um in that capacity and then throughout their work um which they have done an amazing job.

We also realized that we needed some additional support with our program managers um and all the way up through our leadership program. So we're going to continue to work with them. They have also um helped us with some um critical team building needs in um uh Medicaid, FNS um and CATD which is our division over um training and QA. Um there is some struggles going on there and so they came in and they have done a

phenomenal job with that and um the teams are working much better together. So that has been a successful um contract. Um, we also collabor we also contracted with CCR. Um, they came in and did a lean process of Medicaid and FNS.

Durham had not had one in, um, I think for a very long time. And so what that is is they come in and they look at the way you process cases and your processes um, around that. And they look to see are there any deficiencies? Are we working efficiently as we can?

Are there things that we need to do better, do differently? So they did they also assessed our case loads for new um staff into Medicaid and food and nutrition. So where um a new staff person should be with a case load where someone should be at 9 months, a year and two years so we can better help manage our case load numbers. That contract ended in February of 2025 and we are continuing with school of um government trainings from the UNCC school of government. They came in and did managing with respect for all of the leadership team, including me and

my team. Um, and we're continuing to do that to build um our culture up of respect and accountability and also to continue to work on retention. Excuse me. Um, Traverse Northwoods is a document management system for child welfare and aging and adult services.

The state currently does not have one in the works at all for aging and adult services and it was desperately needed. Um they are working on one for child welfare. When I got here two years ago, they were supposed to have one ready to go. They had to pull that back um and restart again with another agency.

So we decided um since Durham County is in the last um phase of any implementation for a child welfare system from the state, um we knew it would be a couple of years before we got anything. And so we knew that we needed to have a a different case management system. So, we're continuing um to work with them um for child welfare and aging and adult services. One of the things I'm going to talk about in the next couple of slides is some of the things that we've done to

um make our agency more efficient and make sure that we had staff in the right positions and also our reduction in usage of temp staff. So, um over the next couple slides I'll go through that. Any questions so far on anything? Okay.

So, I just wanted to give a kind of a picture of where things are with our restructure. So, um when I came into Durham DSS, we had just come out of COVID. Um and the first year that I assessed, I saw that we probably could be doing things a little bit differently um in some areas and that I did not want to ask for additional staff. When I knew Medicaid expansion staff we'd received, but also I felt we had some areas that we could transition um positions. So these are all positions that I have reclassed assessed that um we had a a need in another area and less of a need in that area. So what has come out of that um is we do have an intensive treatment team now for aging and adult APS adult protective services um and

that is extremely helpful as you know um across the nation. Our communities are aging and our cases are getting more complicated and the needs are increasing. Um so we were able to do that with this restructure. Also um SA was um made mandatory um and so that um we cannot have a wait list anymore for essay and so that team was drowning in work.

So we were able to recclass and put um a position um added to that team to help out with that workload. Um we also um moved um James Hart who is over um our um I'm trying to think of not retention um when they come into the agency. Thank you. It's been a day recruitment.

Um but we didn't really have anything focused on retention at the agency. So when I came in we were at 15% um vacancy rate. we have now maintained 11% pretty steadily the last two years because

we're really trying to focus on retention. Um and so we moved him to be over a retention department. He's going to have a staff person who reports to him that's going to work on internal trainings, not so much the trainings of how to do Medicaid, but more of um so sort of the soft skills training, motivational interviewing and that kind of thing. So we can have that internal and continue to work on our retention.

So for that I gave a position to HR to um have them focus um that this position focused mainly on DSS recruitment. Um and that has worked really really well. Our packets have been moving very quickly because that's his sole focus whereas James had about 50 different hats. Um, and since it has worked out so well, I recently met with Kathy Everett Perry and I have identified a position in DSS to transition to HR to work just um for DSS and employee relations um because Rod um does not just work for DSS even though I'm sure some days it might feel like that. Um so we just it and that will

help us be more timely with things that we need out of there. So um we are working to reclass that as as we speak. Um, and I'm just trying to Oh, and then the other thing that we were able to do with the reclasses is we were the only county of our size that had a long-term care team in Medicaid that had 10 staff reporting to one supervisor. Now, in children family Medicaid, that's okay if it has to be.

But in long-term care, that is where the county and us could have the biggest financial impact if we have to ever do a payback with long-term care and we don't process a case correctly. So we were able to recclass two positions, make one a supervisor and a lead and split those teams up. Um and that's actually happened. We have the supervisor in place and that has caused um you know that work then to be better have better oversight with less staff.

Maggie, quickly, you've said essay. Um can you define essay? Yes. Contessa, what specialist?

Special assistance. Thank you. Um and that again is an

entitlement. So, we cannot have a wait list. Um, if somebody needs it, they have to have it. So, that team's work is just going to continue to grow because that continues to be a need and you'll see that in one of my slides.

And that's for adult and aging services. Correct. Yes. Um, and so, um, with the temp staff, um, we love our temps, but, um, we were really, um, I feel way overutilizing temps.

53 million this fiscal year. Um and so um and it's not impacted the work at all. In fact, I think it's um actually helped us with the work and become more efficient because we're owning the work. Um so we do still have temps for certain areas.

Um but overall we've been able to greatly reduce that. So that's something that I'm happy about and I I'm going to continue to work on that. So the one thing that we did request from the county this year um is our adoption assistance, our four e

payments. Um unfortunately we you know we have to not unfortunately these children deserve that but um the children that we have in care we have to continue to provide for them um through extended foster care and until they're 18 except in some situations. Um and so that is something that um even if we as we now continue to focus more on reunification and hopefully those numbers increase, we still have a large number of children in care. It's 347 uh that are receiving this assistance.

So that's going to, you know, as some drop off and and age out, others come in. And so this is just something that's a mandatory thing that we have to pay for. Um and it is um it continues to grow each year. So, we are trying to um budget for that.

Any questions on that? And was this funded in the budget? This amount? Yes, I believe it was. Yes. I'm Well, Keith,

yes. Okay. Um the homeowner tax relief program. Um, so the fiscal year for 2025, the budget was 500,000 from the city, 500,000 from the county.

Year-to- date spending is 803,414. Um, and to date, this is an overall increase as you can see about, um, close to 300,000. Um, and so I know you did have some questions for us, um, Commissioner Jacobs, about that. I don't know if you got the answers or do you want me to Okay.

Um, well, contest, I'm going to turn that over to you. Okay, there it goes. Good afternoon. So, um, as it relates to LIHR, the low-income homeowners relief program, to date, we have received 767 applications and 564 have qualified for those benefits. Um the trend data for the program I

believe um we we have that up there as far as spending. Um and recommendations um we currently recommend reverting back to allow applications from August to January. Um given that we are no longer providing case management throughout the year. Um can I say something?

Okay. So can you just slow down a little bit? Can you tell me how many applications were received this year? Six.

I'm sorry. 767. 767. Okay.

All right. And so far, I guess a million dollars is given a combined city, county, and so far only 83,000 has been spent. Yes. Okay.

670. Thank you. And Contessa, how many were approved? Did you say that met good criteria?

564. Now, we are still open. The program

actually closes tomorrow. Okay. So, um we have not expended the funds. In other words, there has been adequate funding.

Yes. Okay. And you said that you're recommending to shorten the application uh period. Um can you explain a little bit more why you think it's better to shorten it?

Sure. We were providing um limited case management um to the applicants that actually opted into the program. But what we find is that um they are actually working with some of the social workers in adult services. So they're already receiving the referrals and the resources that this case management um program was actually providing.

Okay. Are we I guess one question is are we anticipating with the revow that there could be an increased I see Ker shaking his head. um do we anticipate that there

may be an increased need for this fund and whether I guess my question is if we have a mil if if I'm assuming the funding is flat for this year but I think my concern is what happens if we run out of money because of the you know the reval yeah people on fixed incomes yeah I'll speak to that when We started this initiative years ago. We had an approach to come back to the board as we had more insight on patterns and that has allowed us to refine the program and expand what we could do to meet our resident needs. That assessment often happens at two points. I know close to the end of the calendar year around December and then January February time

frame I think there's a second look. So from a budget management perspective, I would anticipate um staff coming back to say these are the patterns we're seeing and um an appeal would be made to both the city and the county to um look at what we could afford to do. that that strategy seemed to have worked so far. And in this fiscal year that we're about to broach with folks seeing a different tax rate, we may imagine we may have a higher level of um participants.

Okay, thank you. That sounds like a good approach. Thank you. Um so some of the concerns that could impact um the budget again is that state county special assistance which I um discussed briefly since there's no cap

um we cannot have a waiting list and the standard monthly payment is 100% of the monthly payment if the individual resides in adult care home. Uh the state did um adjust a cola increase in January to 2 and a half uh%. So that's just an unknown out there. As I said we don't know.

So we just keep an eye on that. Um I'm also very focused on our unification efforts. Um and so this is an increased cost um that we are managing internally. What that looks like is that we have um extended uh visitation hours.

I'm sorry from um going into the evenings and then also um the weekends because we cannot afford the cost of security in our buildings um during those times. we have to do these visits in public for safety reasons. So, one thing that we will be doing is doing fun things um with families like taking them to um Frankies or um which is an amusement type game thing um or taking them out to dinner so

that we can do these visits um in a positive way in the community for safety but also support the family. So, we would be paying those costs. Um and so that's just something we're managing internally. And then the other thing that has been an increase this last year um and I have checked and it it seems to not be throughout the state is we are getting um asked to pay for costs in court.

Um we're being um court ordered to pay for certain costs to help with um reunification efforts that fall outside really of um our mandate. Um but if we're court ordered, we have to pay for it. So, um I'm working with um the judges on that so that we all have an understanding of what DSS is responsible to pay for and what's mandated. Um but again, that's just um a concern that can impact our budget down the road.

And then of course, the unknown needs of the community and what the programs will be to continue um to be supported or with what restrictions. And by that I mean food and nutrition and Medicaid and what that will look like. Um because I'm sure

then our crisis services uh will most likely increase. Maggie, can you give us an example of what is a courtordered cost that really um Well, we were initially Yes. So, we were initially court ordered to pay $10,000 for flooring um for a a home uh with two teenagers in it because they had um uh damaged the flooring of the house prior to them being removed and then when they were being put back in. Uh that's not a safety concern.

It would be if the child was four years old, but a teenager it was not. Um and so we were um little bit wondering why. But we I've had conversations and and that seem that has seemed to decrease now. Um that we've had those conversations with what is appropriate and what is not. Obviously for a four-year-old, yes, that absolutely you can't have holes in the floor, but two teenagers, yes, you you can. Um so we just want to make sure

that when we're court ordered to pay for something, it is for the right things. Thank you. You're welcome. Director Clap.

Yes. Good to see you, by the way. You too. It's like I just saw you.

It is, isn't it? Yes. Um, so I was aware of the extended visitation hours and weekends. Um, but you had raised a concern that I wasn't aware of with regards to security.

And so what would the cost look like associated with that if you were to have those visitations in in house? Mo, I think you're in here. I'm gonna I'm gonna give that one to you. I knew there was a reason why I was here. , the officers there are working at a rate of $35 an hour in order to support security needs

of the facility. If the facility were going to be open and you need to actually do um screening, uh there's three personnel that work in screening and then you need an ambassador at the desk and since a lot of times too we might not and I believe also after hours we have to notify them quite ahead of time. Most definitely. so that we can schedule the officers, the contractor can schedule the officers to be the available.

And so a lot of times we may have a parent who is running late or has to do a last minute switch on a day or something happens. So normally they're scheduled out but not that far in advance all the time. Um and so that's um when we talk to some other counties who do this, they use that same concept of of kind of using the community as just a added support. Thank you.

You're welcome. Thank you. Glad you were here. Um so, um the other concern that

we have, um is I believe most likely LEAP will be cut. Um that's the the word that we're getting from the state and the federal government and we had our meeting with them a couple of uh weeks ago as director's association. SIP will probably remain um but we don't know what our funding will look like. So, um, and that if they cut LEAP, then if we continue to offer that, that would be passed on down to the state or the county, um, to allocate that for, um, and SIP.

SIP is our energy program. Sorry, I'm sorry. Yeah, SIP is our energy program. Oh, I thought LIHAP was LEAP is for um seasonal and elderly population, and there's no crisis requirement.

SIP is all year, but it is a you have to have a crisis requirement. Okay. Yeah, I finally got that figured out last yesterday. Um and so we just um we ran out of our SIP allocation about I think

two months ago. Um the counties that had overage um the state reallocated that. So we got an additional $25,000. In a week and a half that was gone.

So we are now again with no SIP funding. Um so and that is st paid directly to the state um from the state. We process the applications um but that's um paid directly to the state and then the I'm just going to say the 179 352 what that is is we're capped at that um a year. So for those workers that are working on the LEAP applications and the SIP applications, if they code it to this, um, we get those dollars back for workers time to support the program. Um, but again, we're capped at that. 3 or 4 million that that we were we are not we are not going to um be able to probably

make up at the local level. Be very difficult for us to cover. Correct. This program which helps people pay to have electricity, heating, air conditioning.

Yep. Yes. Yep. So, I have heard I I've not heard anything with SIP and I'd be I'd be very surprised if they did um take away SIP altogether, but I think the LEA app they might because that there is no crisis crisis requirement for that.

So, um, my biggest concern right now, of course, is Medicaid and FNS, but also I think as the county, we just need to be aware, um, that TANNIF, um, that, um, so this SSBG um, is a state, it's a block grant and TANIF, um, temporary assistance for needy families comes out of that. that is used in a lot of different ways and the what we have last heard is that they are going to take that grant completely off the table. They do not feel that the um there's

enough oversight from what I've been told and that counties um DSS's and other agencies can use it um and not have a lot of accountability or oversight. Um so again that's um going to be a hard one if that happens because um overall the state contributes less than 5% to child and adult services. 60% of that is all federal and 36% is all county funding. So the proposed cut is an overall 10% cut proposed and again increased penalties for states with errors.

So if we process something in error then that would come back onto us. Um the social services block grant is said proposed total elimination and Durham's allocation for that is 929,949 with a 25% county match. 2 million and can you talk a little bit about what that would mean? What what this is funding that people would no longer be able to get help

with? Well, the check the checks that are um sent directly to them for assistance tanniff checks. So those checks are sent directly to families. So we wouldn't even know that percentage.

I mean, I'm sure there's a percentage out there that we can get. Um we don't have anything to do with that, but that would come out of this. Um in addition, um child care falls under this. Um foster care, adoption services.

So there's there's quite a list and I can send that to you all. Um there's a very good paper done on it, but it's mostly what you're looking at is child care. um you're looking at the um checks that go directly to families to help with their support monthly and then also for us it would be our child welfare with um foster care and um adoption. So like with TANIF like when you say child welfare um like that money would go directly to like foster care families. No. So TANINF um are checks that go directly to the

family. So people apply for TANINF and those checks go to them monthly. Um so but out of that same bucket we also get TANF dollars and so um that is you know that hurts with daycare and things like that but also more importantly for DSS is this SSGB is the social services block grant because that's where we fund we get um funding for foster care and um adoption. So these are two different things. Um but so the 10% is a 10% overall to Tannif and then the SSBG grant would be totally eliminated. Yeah, I think Maggie if you could ex you know just trying to understand like at the functionality level what that would mean for the work that you all do and if we have any idea how many people how many children how many families are we talking about we can I can look into that and get help think see if the state

can get us that information we don't have it for the checks that go directly to the families for tanniff but there might be somewhere at the state. I can find that for the county. Um it's hard to tell with the SSBG grant um how that's going to impact us because that goes through the state and then the state sends it to us. So it's not that we necessarily code things to that grant funding.

Um so that might be a little bit trickier. 2 two is I'm going to have to drill down on that to see if it's more foster care adoption or things like that. Okay. Thank you.

You're welcome. Again, it's concerning because we can't locally make up we can't fill this gap, right? Correct. Yes. So, Director Clap, we're having a a a very uh complicated uh discussion right now, but to to our residents, I think it's fair to say that this is we're witnessing a a dismantling of the social

u the social safety network. Yes. In our country. Yes.

Is that right? That that I think our residents would understand that. So, that's the crisis point that we're at. Yes.

And uh I think our residents need to know that. Yes. Our residents need to know that. um the ability to pay for food is going to be impacted.

Um the ability to get medication, to get health insurance, um to get child care and I you know how it also is going to affect us as a community is these things are stressors for families and that's when we do see calls come in more um to child welfare and aging and adult services. Um, so yes, that is exactly what we are seeing is a dismantling of any safety net for our families in a time when it's greatly needed because I know that my grocery bill has significantly gone up and I can't imagine what it's going to be like for our families if there are any cuts to SNAP. Um, I don't think SNAP is in what it should be anyway. And now if we're talking about cutting that back even more. Um, so you're going to have

conversations in a home where you're going to have to really start having can we afford child care? then can I afford you know to give up my job then can I afford food and health insurance and so that's where you know families then stay in crisis and that's not healthy for the family it's not healthy for children to grow up in that environment or for parents it's very hard to parent in that environment I'm sorry I try not to be very doom and gloomy but I just we had a rough call with the state today about Medicaid so it's just it's yeah we just have to hope that this bill does not pass well I think it's important that we get that information out. Yes. So, more information uh that we put out I think is is best for for our residents.

Um and also I don't think a lot of our residents are really clear and I think it's already been raised but I want to say it again how much the federal government contributes to social services in Dorm County. Yeah. Okay. Thank you. You're welcome. Um, so this is um we were able to pull a

little bit of this um from the states, but I'm going to drill down a little bit more for you. But just to look at if um the number of children that would be impacted by the 10% cut to TANNIF um would be um 3,899 children in North Carolina. And that's about a little over 50 mill 50 million dollars. So I'll drill down more to see if we can get for for Durham itself, but that's just the state um overall view of that.

I know um you all sent the letter and I appreciate that support. Um so I know um you all are aware of the proposed um cuts to SNAP. Um and I apologize. We we say FNS at DSS.

We all have our own term for it. So that's food nutrition services, but that's SNAP. So um if you hear that, that's um where that is. Um as we know, the proposed cut

is by 230 billion. Um stricter work requirements and what's currently in place and age restrictions, increased penalties, meaning my staff process an application, they process it incorrectly, that's passed on down to the counties, and then the roll back benefit increase. So, a couple of years ago there was a benefit increase. They're talking about rolling that back.

Um, so that would cut that. Um, and I I just want to say this about um when you start to put in work requirements, a couple of things happen. One is um that's an added work onto the worker. And so that's also added time for the parent and to get all of that paperwork in. So, what happens um when you have work requirements that come into play and the more strict they are, you have families that lose benefits because they they're in crisis um they don't have all the paperwork together or by the time they get it into us, we got to restart the application over. So, they may that means they may not be reertified and

lose their benefits or they may not get their benefits at the start. So, those are things that when you think about work requirements, it's not just um it's a lot more complicated than that because it's also added work on the staff, but then it it's a lot of times you're going to have a certain percent and and not a small percent that will lose those benefits because of that paperwork. Yes. Yeah.

I'd have a question. Um so for our red a lot of times when people hear the work requirements they're thinking okay you should work if you're going to get these benefits. Okay. So, and then also the paperwork.

I think for a lot of residents and myself understanding, okay, what what is the paperwork? Right. So, if you can explain when they when the federal government is adding stricter work requirements, what does that mean? Like, okay, you got to work 40 hours a week or you got to work at least 20 hours a week. like what what is it that they're

trying to do to make this so ownorous for people? Um well, at the moment, I just had a call with the state this morning. We don't know um they don't know even um what the the federal government's work requirements are going to look like. If that I believe that's going to happen.

I think what the federal government thinks with work requirements is that the majority of people who get these benefits do not work. And that's actually incorrect. There's a very small percent that don't. and for valid reasons.

They may have a disability. Uh they may not um there there may be something going on in their home with child care, things like that. So there's certain things that you can get waved on with a work requirement. So it's actually a very small percentage of people that do not work.

Where this would come into play is just having to prove more um probably more documentation of your work. It probably would be a certain number of hours. So you work this many hours, you get this number of benefits, but at the moment we don't have the answers on that. the communication information has not been

shared. Um, but I what I will say is that with the work requirements too is that certain populations you don't have to have you automatically get waved. Let's say if you are a pregnant mom. Um, so those are what we're also concerned about is are those populations that have been traditionally waved for that which you would be understanding of somebody possibly in their eighth month of pregnancy not being able to work.

um is that going how's that going to be impacted? So, unfortunately, I don't have all the information to share with what that's going to look like. I can just say it's not um going to be a good thing for the community just because in time when this has happened, we've seen increase of people not being able to get the benefits either timely or get them at all. Um and so far, um the federal proposal is to have states cover a portion of the food benefits cost year-to date through April. Um our benefits paid to our families in Durham was um almost $59

million. And I I did ask the state today because I knew I was meeting with you all if they understand what uh if if they've thought about what they're going to cover. Um and they have not thought that through yet. I guess they're still thinking that thinking that.

So I don't have an answer to that of what that'll look like either. Um the Medicaid and Medicaid expansion with the trigger law. Um as we know when North Carolina funded this and passed this, they put in a trigger law. So um it means that um any act um to lower the threshold um at which a reduction of the federal Medicaid assistance percentage triggers, we would discontinue the coverage of the Medicaid uh expansion population.

And since someone uh asked me this today and and wasn't aware, I want to say this. Um what that looks like if we lose Medicaid expansion is not that no more people will be able to apply and the people who currently have it will continue to get it. Those people

will no longer be covered. So I think that there's a story out there that maybe it just means we won't enroll anybody else. That's actually not true. It means the expansion coverage would cease and that would be immediately correct.

You know, 660,000 people immediately losing their health care. And that's around what 20,000 people in Durham County. And we have to think that these same people are probably also getting SNAP and that will be cut possibly. And then again with the TANIF and the SSBG with child care, what that will look like to a family.

Um so that's that's where we're at. I would like to ask um a favor. If this does occur, um I would I I understand that you all um approved 35 positions for us two years ago for Medicaid expansion. I thank you for that. I would ask that you give me uh a minute to assess before we

um are asked to give those positions up. I understand that I'm going to of course if this happens there will be positions that we will not continue with, but I don't know what this is going to look like with the work requirement and that workload. And I also don't know, they are talking about Medicaid reertifying every six months, not every year. And that is going to be a huge lift for counties.

We honestly don't know how we're going to even be able to do that to be honest around the counties cuz reertification for FNS is every 6 months. That is a much easier reertification. Medicaid is lengthy um and timeconuming. So I do just want to put that out there that we'll have to reassess what that's going to look like. I I just wanted to um say that I I agree with Maggie in that perspective. Part of the reason the budget was recommended the way it was to hold the line in so many areas because there's so much shifting around us and

the impact of clawing back programs that have been in place for decades will be hard for us to see. And I appreciate you stating that. And I and I know from my perspective both for public health as well as DSS, we we're just going to have to be very tactical because there are so many nuances with it. Thank [Music] you.

Um and this is just an overall of what that would look like. Um the cuts. So, um, again, reducing the 90% match for Medicaid would result in the elimination of, um, Medicaid expansion. Um, and so something else came out, um, that if there's three states, and we're one of them, um, that because we, um, do allow um, we have children and undocumented children and pregnant women that we cover Medicaid for in in a

timely window. we don't let them wait like other states. Um they may penalize us for that and m not have it be 90% but it be 80. And so yes, and again if when you cut Medicaid, it's not you're not just cutting um people's health insurance, you're also going to hurt the hospitals.

Thankfully Durham um is not in a rural area with a hospital that we could lose. Um but other counties could lose their hospitals that are solely dependent on that. You're talking about job losses around food and nutrition as well. And with um Medicaid, people's um you know, we'll be losing jobs with this as well.

So, it's an overall impact. It's not just um people's health insurance as well. It's going to impact every area. And our federally qualified health center, Lincoln Community Health Center, Um and again um this goes to show that

the it's 8% that are not working due to retirement or inability to find work or other reasons. So this work requirement is impacting 8% um the the rest um work full-time or they don't work due to school attendance and that's a small or with disability um or not working due to caregiving um but 44% work full-time and then the others work um part-time or in or have a waiver like with going to school. Okay, that's it. Well, thank you uh Maggie for this presentation. Thank you Contessa. Um you all are really DSS is really uh and public health at the very center of this absolute devastating storm that is you know

unfortunately could very much hit our our communities very soon. And as Commissioner Valentine said, this is the dismantling of decades and decades of work in our country to provide some semblance of a safety net. And even what we have today pales in comparison to many other countries in the world. Um and just from a purely financial and fiscal um pragmatic perspective, it doesn't make any sense because the end result will be more people who are literally on the streets unhoused.

People are not going to people's health is going to be compromised, not being able to have access to food. Children are going to be at risk. They're not going to be able to learn. This is our future

workforce. We'll have more people in our jails. And the there's nothing about it that makes any sense. It's going to be so costly in the long term to all our local governments, all of our services.

Um it's it's not smart decision making at all. Even if even if you don't care about the fact that is absolutely cruel and inhuman and especially when it's being done to finance tax cuts that are basically going to benefit very few people and the wealthiest people in our country. So, um, again, we have to really raise ring the alarm for everybody, um, all of our residents that they need to voice their concerns and take action. It has to be a collective effort.

Um, I I think I would just say that we're going to have to be responsive. Um, we'll have to be in crisis response mode. um whatever happens, we know that we will all pull together um in Durham County and we will all problem solve and we'll come up with the best solutions that we can. I'm I am confident that we will do that and I really appreciate the work that you have done to strengthen DSS to prepare us for what may come because the work that you've done to invest in your staff, the professional development, um bringing in best practices, uh realigning positions, trying to reduce waste in the budget with temporary staff. All of those things you have done um are going to really put us in the best position to deal with whatever comes our way. So,

thank you. No, you're welcome. I I didn't realize that my work when I got here was leading up to this, but I do think it has put us in a good position. Um and I just met with the staff of Medicaid and FNS last week and I told them the same thing that you said.

I said, "No matter what happens, we're going to get through this together. we're going to continue to serve our families. Um, and we're going to make it work as best as we can. So, um, I appreciate that because, um, at the end of the day, we still have families to serve and we're going to continue to do that.

I just think we need to, um, as Commissioner Valentine said, people need to know what the impact is. Um, and it's it's not just as simple as having to um, lose your insurance, which is can be life-threatening, um, or losing access to food. it it impacts your entire family system and structure and community. So, um yeah.

Yeah. Thank you. Welcome. Any other questions? Well, I don't have a question, but uh I

want to let you know that you're at the tip of the spear regarding the provision of social services here in the county. and uh I've had an opportunity firsthand to look at uh the investment that you're making in your agency um particularly u with your senior leaders. Um so you holding on to the consultant for another year is is evidence of that. And so um hang in there.

We're we're we're hanging in there with you. I know you are. It's not it's not quite clear what tomorrow is going to bring. Um, but we'll be here to um to assist you the best way that uh that we can.

So, and I appreciate that. I I appreciate the board support and I appreci I just want to say I appreciate the county manager support. Um, every time I've called, she's picked up and it's just been um it's just been really nice to work with you. Um, and I just it's we all need to have that support right now and support each other and so thank you. Thank you. Thank you.

Okay. Um so board members, we have covered the topics um for today. Um the subjects that we've addressed with public health and DSS are among the hardest I know for all of us right now. You can't turn on a TV in the morning or at night without seeing the shifts that are happening.

And so, um, we collectively will will get through it all. Procedurally, we want to give in an update as to where we are in process. A couple of administrative um items on Monday afternoon. the district attorney can come and share on a couple of the questions that the board asked. And so, uh, the we have a light, um, meeting agenda on Monday. And so, that afternoon, uh, we can have the DA come

at that time that works with their schedule as well as, uh, there was a request for, hey, Tyrie to also share so we could also have that conversation on that time. uh on that would then take us to um Monday and on Tuesday where we would have further board discussions and discuss reconciliations that that you may have. We can also have part of that conversation on Monday afternoon as well as far as areas that the board may want to discuss further. Um, we did have an optional meeting on the 5th, but because of the way this budget was recommended, it it's not warranted that we we meet on that day. So, we would propose that we try to finalize um board conversations on Tuesday. And I believe I covered those major

administrative issues. There are questions that are outstanding and we are working through those with the various departments and with any budget and process there may be some areas that we we miss but we have the chance to to work through those throughout the fiscal year as we've always done. One other quick note I will bring up. There's a a matter that the city manager and I have been talking through is responsiveness as it relates to some of our homeless community issues. And I will be um presenting to the board a request for proposal um scenario that would look at um trying to address daytime a pilot for homeless um gaps and it is an issue that we do have some day service activities but there are some gaps. We can't cover them all because we

all see the potential tsunami that's coming in so many spaces. So, this is an attempt to cover some gaps. Um, but I'll bring that back when we have that fleshed out a little bit more within the next week or so. So, we would initiate the RFP with it being finalized within a 30-day period for a pilot um based on best practice.

Um, so I just wanted to put that placeholder out there and I I I am sure in the joint city county conversations there may be some additional um dialogue about um joint efforts. Okay, just to clarify before we go on about the schedule. So just from what you just said, Madame Manager, so the request that I made about the short-term some of the short-term homeless recommendations that will come not through the budget work session, but through another presentation. So So for

that one, I'm suggesting we because we're still refining some of that. Okay. So, we'll do that through a separate uh we I'm suggesting that we do that partially through the joint the coordinated joint city county um discussion, but I can come back to the board with that and I can also have more concrete information on that um by Tuesday with what that RFP may look like at the Okay. Okay.

at our on Tuesday you'll give us on by Tuesday if not before. Okay. Yeah. Yeah.

My only concern is that we've been some of the issues around our unhoused population is a crisis now. Oh, it is. And so what I'm recommending is that we do it now so that the RFP happens with within the next two weeks. Okay. And so you'll have a dialogue either in a regular work session, okay, or by a communication in

writing with next steps and then you'll see the RFP. So either way, we do plan to address it timing wise. Just trying to flesh some things out and not quite ready for that discussion, but knowing that in the by the first or second week in June, well, the RFP will be on out and then because there were also some requests for just very not very small amounts of funding for some of the funds that have expired. Yes.

And so we'll address that as well this. Okay, great. Yeah. And I just wanted to see from other board members, were there any other presentations that people wanted to have from anyone related to the budget?

Um I think mine was Matt Hey, Tyrie Bourne and we said the district attorney and that was about it. Yes. So, uh, in addition to the discussion with the, uh, the district attorney, we thought it would be a good idea that the

top, um, defense attorney in the county come as well, uh, Don Baxton. Okay. So, the public defender. Okay.

Um, and I guess the alliance, let me give you update on alliance had some schedule conflicts. they will send detailed responses to the questions related to their um budget. We can also coordinate for them to present at a later time even on a regular session. Um so it was a schedule conflict issue.

Yeah. Yeah. I guess I would say I would hope we could get them out of our August work session. We can definitely plan for that. I think by then they will have greater clarity on some of the the movements that are happening legislatively of all the entities. They I am sure are working in a a tough space right now sorting through the whatif

scenario. So I I think August would be a great time fra but also do know that staff is closely working with them and um they are having lots of conversations as well with um Durham public schools as they're strengthening that partnership also. Okay. Um and then I had a question.

Yes. like I'm wanting to know exactly um what Alliance Health does with DPS. I know um they give up some a significant amount of funding, so I'm just not really clear as to what they do. Yeah, that's a great question. We did um that was one of the questions that was farmed out to them um to give response to in their budget for the current year 2425. An amount was allocated to support

DPS at a at a increased level than historically done in mental uh and behavioral health support services. the activities will ensue next fiscal year. They've been working through what that process would look like and so you will see those those desired steps come to fruition in 2526 if that makes sense. But their responses will flesh that out so that it is clear.

So related to that then would it mean that the money carries over? Yes ma'am. So that's part of the reason we lowered their budget. 5 million level. 5 million level because of actual expenditures were um at 2 million. And so, but we will carry forward the dollars that were allocated

for the current fiscal year for several strategic areas, including DPS into next year's budget. That way, we are not um putting more pressure on the current year's budget. I am sure their concern will be well, what happens in subsequent years and how do we continue those activities and that's something that we'll have to collectively work through. Okay.

And then one other area was I know Commissioner Burton had asked about Museum of Durham History and so what we talked about for them is that we will have the Museum of Durham History present at the joint city county meeting which is scheduled I believe on June 10th. Okay. All right. Thank you. And related to that, do you then feel like it's not that much money that we would So what we tal there were a couple

exchanges. There is a gap between um as with almost everybody's request um between what was asked and what was funded. And so uh for for that particular request, if it is an amount higher than we put in the budget, we could do an amendment at the beginning of the fiscal year to adjust it if the board decides to um increase the level of funding for the museum higher than than what's right now budgeted because we we did flat funding for them. effectively flatfunded and and agreed it's an agreed upon number by both city admin and management and county management.

All right, Keith, I'll let you take it away. There's really not much to take away uh to explain. Normally around this time, we have we show you an add delete list. It's a shorthand that we use for

additional dollars that have been either discussed by the board or some uh issues that the budget office finds after we produce the manager's recommended budget. And we did find only two things uh so far that are sort of clerical work that we need to adjust. One of them is adding some county funding to prek base budget um because of some offsetting article 46 sales. There was just a little confusion on on our part.

So, there's an additional $126,000 in county funding that needs to go to prek to hold them whole to the amount that we wanted to budget them at in the recommended budget. We also have a $300,000 revenue uh that we want to add to the recommended budget that's related to off revenue offset for Medicaid transformation in the office of emergency services. So in simple terms, that revenue of $300,000 more than offsets the additional cost that we have. So it's an

actually we got a a plus $173,000 that we're going to reduce fund balance as a revenue source to keep the budget in balance. Those are clerical issues. Just letting you know. Normally at this time, commissioners have had discussions amongst themselves or with the manager and and departments about additional funding issues that you all might have.

We have not seen those and we have not heard discussions and I'm quite proud of you all to not have had too many ads or deletes to the budget. But I am bringing it up that if this is the last meeting we have in in any real terms without discussions on this, the manager's recommended budget will stay as is with just these few changes, that's a three and a half cent recommended uh property tax rate increase unless there's discussion about additional Don't get too excited. Yep. Yep.

Yep. Well, now's the time to do it. Okay. Yes. And thank you for that explanation. just th this is the

appropriate time for our board to start discussing you know here's something that I really want to see if we can figure out a way to fund and ideas creative problem solving types of ideas about well what would be some options of something that's maybe in the manager's budget that maybe we would want to provide less funding for and find funding for something else. So, this is where the horse trading happens um and a time for everyone to start having a give and take about the things that are priorities for them that and and also solutions at the same time. So, we'll start with Commissioner Burton. Thank you.

Okay. So, um one of the things I would like I want to see I really want to see if we can fund more of the school's budget. Um, and the reason is because when I read the

information that David sent to us, I went through the comments from residents, it was like 350 people who responded and I did that yesterday and I just went through every comment that people wrote and the top things that came up, pay teachers more, fund the schools, EMS, public safety. It was those three things. Um, one thing that I'm concerned about is because of the charter cost that we will not be able to give enough with the teacher supplement, things like that will be lowered. I'm concerned about um making sure our kids have good instruction with EC.

So, I I'm willing to if we can put more money into that line item. Um, do you want me to give a amount or how does this work? What did Okay, you

specifically were saying the EC item? The EC and I think if we can give them, you know, if we can get it close to the full ask, I would I think we should do that. I really think we should give close to the full ask, but I know that's a significant tax increase, but I think we need to get to that ask as close as possible. And another thing that I heard from the administration today is one of the challenges that DPS has is because parents are opting out for other educational options and trying to stay for lack of a better word competitive um with offerings and understanding why we're providing that. So, I would like to know, okay, if we did the whole amount, how much of a property tax increase that would be? Um, cuz my question to you,

Commissioner Burton, is if you wanted to come up with that, where where are you finding that money? What are some things in the budget that you would want to not fund? are there certain cost areas or something um that you would you would want to take you know because there's two approaches one is to find money somewhere else that's already been allocated in the budget or I mean there's only you know that's another option is there anything in the budget yeah think about it and I have some ideas but I was just going to ask you. Yeah, I mean I know we talked about Alliance maybe taking you know with the mental health part with Panorama the things that they were asking for for the mental health supports covering that or somehow can we use money from I don't know ARPA um to maybe fund the prek

2 two, I think to give the schools full funding is five plus million dollars. So, it's somewhere between a half a cent and three/4 of a cent. To uh Commissioner Jacob's point, finding that kind of money in the budget, replacing that with some other funding source either through lower expenditures or higher revenues would be an extraordinarily heavy lift and the budget's not easily has easily available $5 million more. I would say that just to say that property tax is largely the one place to go to for that type of significant increase. Okay. So I see the I'll look at right here but that I'm thinking about how can we get closer to that number particularly with regards to EC and ensuring that people get their their pay

that you know people get paid because that's going to be important especially listening to director clap about how you know social services we're looking at some potential cuts and where do we get you know our kids are safe, things like that. But this is the initial discussion, but now that I see that, I have a better idea. So, thank you. And I would just say also to keep in mind that the impact of doing something like raising taxes are going to have on the community in light of all the other things that we're facing.

and if we have to allocate future funding in the middle of the fiscal year for cuts in social services. Um just thinking about that our ability to respond and how that will be impacted if we are really pushing. So I just think those are some of the things to think about as well. Um

Commissioner Valentine and also the EC budget. I just wanted to get that exact amount cuz I did write it down. 1 million 1 point Yeah. 4.

Yeah. Let me let me go look. Okay. So, would that be your biggest priority if you had to pick one thing?

That would be my priority is ensuring that is um included. Yes. Because I know how much that's important. Yes.

Okay. 4 4 million for the EC. So I think it's important to know what your priorities are. Okay, Commissioner Valentine.

So thank you, Chair. And so uh in with respect to priorities, um filling the filling in that gap that exists with regards to um the funding around prek and we sort of talked offline about that um finding a creative way to um to fund that. And so to the extent that those discussions have gone and moved forward uh that

would be one of my priorities. And so um and you're referring to the Durham prek Yes. request and I think there was a gap for that. 1 million for the Durham PreK.

Yeah. 3 I get the exact number. 3 a solution related to that. Yeah.

We may we may have a solution to that. We'll we'll circle back on that particular issue. Okay. And I just wanted to be clear also with the school's budget making sure that salary expansion is in there like they're ask.

And that's why I was like how can we get to the closest amount because I know that charter fee is coming in there too. Yes. So I believe right now their budget amount would align with what the Senate and House budget scenarios are if I'm not

mistaken. And so the impact for charters would al that's also captured in their request as well. Okay. Yeah.

I'm just looking at what they're I'm trying to make sure that that gets included like the I'm trying to make sure that the charter funding doesn't eat up with salary increases. Do you understand? Well, yeah. So, so there's a form it's a formula that we allocate that's a portioned that would um allocate the amount for the charters.

So, they're full if they're full ask. Now, let me go to that page and I may first I got to get on the right. And you know what? It may have been in the supplemental item that's in

3 million for those same increases for charter schools. So DPS has already built into their requested numbers the charter school sort of sirch charge for lack of a better term that they have. Now if there's expansion needs like the increase in local teacher supplement and

things of that nature we would have to make sure and double check that that has included the the search charge for the chart yes for charter schools on that. Yeah that's what I was talking about. Yes. Thank you.

And I appreciate you, Commissioner Burton, fleshing it out because there has been some historical reconciliations related to the charter. So I I can imagine that maybe the place in which you're coming from making sure that from what we budget it is correct. Um I will say historically we formulaically budgeted it properly. How it's applied is on DPS.

Um, anything else, Commissioner? So, I just like to to to make a comment about, you know, where we are in the budget process generally. So, I mean, I've looked through this budget extensively trying to find things that could potentially be cut. And and I

in, you know, when I say cut, I mean, um, so that we can fund something else as opposed to funding that particular line item. And I'm finding some difficulties with that. Um, I mean, quite uh, frankly, I mean, I'd like to see the schools get their complete ask, but I don't I don't know how we get there. Um, and I'm not comfortable, particularly in this environment, with going to the taxpayers and say, um, when I ask you to to do more, um, I'm struggling with that.

Um, particularly with not knowing what tomorrow is going to look like in our community with all the changes federally. Um, but if I was going to find find some, I would hope it would be um go towards community intervention and support services. And so, uh, our young people are in crisis around our community. Um, not exactly sure what that dollar uh, figured would look like.

Potentially, you know, adding some um, additional monies in my my brother's keepers program uh, would be something that I would do. But again, you know, what what do we cut in the budget in order to to make that happen? But that certainly would be uh one of my uh additional uh priorities. So um I know that uh this is the the right time, but I'm I'm sure that our our discussions will continue.

Um particularly around the schools. Um I mean, if someone has a a creative way of, you know, getting us to that full ass, I'm I'm I'm all ears on it, but I I don't see how we get there um currently. So Okay. Well, thank you. I appreciate hearing from everyone. So, when I look at um for instance for to start with the DPS ask um so what we know is that the managers recommended budget does give them an additional 4 million to prioritize.

Right? So if I look at um I'm just you know we I probably need staff help on this but if we look at for instance you the first thing is the increase the local teacher supplement there's funding in there for that. Yes. If DPS so chooses and if they choose to do it at that amount or maybe they'll lower the amount of the supplement but let me just say yeah I'm just wondering if I'm just playing around here.

6. Of course, you've got to do the charter on top of that. 20%. Yes.

Right. Um I don't know. I'd be curious. Or let's say we started out let's and we don't get to make this choice because they're going to make this choice, but I'm just playing around. 3 for the teacher supplement and then

4 four. Um, and then you add the charter to that. How much is left after that? If somebody could do the math.

Another 700. 3. Apologies. 4.

Okay. Okay. So, you're basically that's taking care of that. So then I'm saying I'm looking at well we know the bus driver supplement is important.

So that's 377 and then the other priority I think would be we you know the EC which is um the one point where's the EC that I think that makes it's at the end. Okay. Where is the EC amount? It's

right. Oh, yeah. 1. Okay.

1. 4 that we'd be looking for. And I agree that they could take the fund balance for the non-recurring. I mean, it really I I I do personally, you know, I'm not even looking at the growing together thing at this point, but um so then for me, this is just my own thinking.

4 million at least? and could we possibly see if Alliance could fund the 607 for the social emotional? Um, so that would be one thing I would ask the manager if you could have a conversation with them. I think a lot I think we should not rely on Alliance right now for a gap because they to cover a gap because they are right now saying we could increase our direct funding to Alliance. We could for that then I think then we don't that

would be a better way to do it. Well, okay. That is we'll we'll we will follow up. Okay.

So, that's all right. Then that would be another So, then we're looking at $2 million. How do where do we find $2 million? I Madam Chair, where where will we find that money?

I know that's why I'm just throwing out ideas. Okay. All right. For me, when I look at the budget, there are two concerns there.

One concern I have is around the budget for HI reborn. I cannot justify in this climate um having the continuation of that funding for a nonprofit that um it was a very exceptional circumstance where the county there was no RFP, you know, we just directly funding oper operational costs because of a grant the federal grant opportunity that we rose to the occasion to support. And that was three years ago. And the understanding was

that they would be finding we said this is not meant to be recurring funding. 5 this past year 1 million. And so my I would feel comfortable I really we need to be stepping down from that um for a number of reasons. I believe number one because you know we're we're we're pulling back from a lot of folks and in our own departments even um and um I you know we really that I don't I don't believe that's something that we can continue doing especially when we have these other needs.

Um so I'd like to see us be you know decreasing that amount accordingly. That would be one place to find some money. Um, I would really like to know how much just doing their bridge program is costing because that to me seems to be the most impactful

um thing that the hat tyorn is doing. Um, that seems like a fantastic program and I'd love to know what is the cost of that. Um, you know, if you look at their budget, the information we got last night, thank you to Crystal Harris, if you look at their budget, as of um March, they still had not spent almost $700,000, and most of their budget is spent for positions and salaries. Um, and again, we're just in a tough situation where we have to make.

So, that that's one place that I want to look. And then the other is, you know, again is is vehicles. We we we have a very high cost center for vehicles. I know that the flip side is we end up with maintenance costs.

But when we're in these very difficult times and we have to decide, do we invest in vehicles or people? Um that's one that I and I would want to look at. Is there any way we could find some do less in that area

and be able to shift some money this way? Um, those were and I think the manager has a some creative ideas around the Durham prek, but I don't see a lot of other room in our budget and I'm also not comfortable with increasing property taxes right now. So, um, further than they are. So that's that's where I'm at.

Mo, you look like you want to speak. Well, we can't hear you. You need the microphone. When you're talking about vehicles, are you also talking about things like ambulances?

No, I'm talking about not not the emergency vehicles. I think it was in the probably in the office of the sheriff allocation where there was a the highest number of vehicles. I don't think there any other department that had um except for EMS which we know. Yeah. Yeah. That's where that's where the bulk of the price is is an EMS for

vehicles. Well, anyway, so just to hear from the matter, so what we have heard the board give some um guidance of places to explore. Yes. and and we will we'll do that over the next couple of days and follow up on Monday if not before.

Um the vehicle number may be trickier um than one may imagine at first glance. Um we we did reduce a number a couple of years ago and and playing catchup was a costlier amount. So let staff go back and and see what we can um find and and we will come back. As you know, this is a tight budget.

Um our departments are doing more. You know, when you look at our population, they're serving. uh and the places where we are investing and

expanding especially in our public safety area. Some of those places such as EMS um services we've not kept up as we should and we should be recommending twice the number. So um we will come back. I will also say that the spirit of the conversations today have been helpful and I'm hopeful for the the community also to see um as we shift into next year and we look more deeply in what we do and why we do it.

Um that these conversations will continue. they have to because not sure exactly what Congress will do but they will do something and some shifts will occur. So so we'll be back on Monday. uh we'll look at the vehicles, explore um a conversation with the alliance, but

I I I don't feel we'll be able to to to make much headway based on what we've heard right now where they are um in and in in the other areas that you discussed. And Commissioner Burton, yeah, I just want to make sure I'm clear on you know on record. Um, so I'm pro or I really want the salary expansion. I know the salaries and benefits increase.

That's because we have so many local position. The schools have so many local positions paid out of local dollars and you have to cover that with the state. That doesn't go to everybody. It only goes to positions that are paid locally.

Um, but the increased teacher supplement that will go to all certified staff if they're paid regardless on local dollars or state dollars. And then of course the M's pay and the bus driver supplement. And I think and like I said, the exceptional children's funding and the reason why is because you those children

need those exceptional children teachers and you're saying that's going to cost when you do the math an extra $2 million. [Music] Well, don't I'm not good at math, so I think I'd rather let the staff Let them do the math. Okay. Yeah.

I was just doing that on the napkin. So, Gotcha. Okay. Yeah.

But All right. Keith, do are you I see you paused and and um I just want to make sure you have We hear two million. Yeah, we Yeah, we have two. Yeah, we hear the 2 million finding 2 million or 1 million.

Is there agreement upon the 2 million number? Not necessarily. I just want to make sure that that it that today that this this number I know there's concern about how do you cover it and but I just want to make sure so that you said two million. Yeah, I would be comfortable

saying that too. I mean with the idea of covering the um the exceptional children and the bus drivers assuming the the rest can be somehow covered by what we're already the manager's budget figuring out where would we find that money in the existing allocations. I mean I can certainly go on record and say that's something that we can explore. um you're going to have a difficult task in in finding that.

But to the extent that we could find that, I could I could wrap my arms around it. Sure. But I'm not sure that uh that that number is something that we can uh that we can find in the budget without right without right undoing another area that we've made a commitment to in what is already a challenging environment. Right. So but to the extent that we can Yes. So, so my my main issue my main concern I guess I need to look down here

is that we have everything on the list. So the one is prek. Yes. The other is dur is is public schools and I think with prek we may have an approach.

We need to do some followup and those were the two. Okay. Just wanted to make sure staff has direction as far as research and followup. All right.

Thank you. [Music] I tried to get some money from the ABC board. Okay. Well, that if you want to go back and talk to them because you know that that um they have a big budget.

Yeah. Okay. and I think they have been on a bit of a buildings spree. So, they're paying the extra revenue that they're getting is paying some of that debt off. And that's why he said in the future as the debt on these

new buildings gets paid down, then we can probably see a benefit. It's not unlike investing in downtown Durham or Durm whatever the new it's like they're investing in these new in these new buildings and new stores that will in turn they've got to pay for them first and then we'll should see an increase in revenue. I'm not sure it's available to us for 2526 but okay because that's that's a good 500,000 less that we're that we don't have in our budget. So, so we we're we're going to go back and pressure test everything and and we'll we'll come back.

I want to be clear. We we have budgeted $2,750,000. That number he showed up on his screen was a different thing. That's a formula that the state law says they have to give to Durham, but they have always given us more than the state formula.

So, we have budgeted 2002 $2,750,000 this year and for next year. 1. 1. That was just a subset. A

little confusing, I know. Get that clarification. Oh, okay. So, we're actually counting on them giving us more than they are saying they are going to give us.

They they have given us plus 500 600,000 over that for the last couple of years as a budgeted number that we knew. Yes. 7 the additional amount, but they always will show kind of the formulaic

distribution, but to my knowledge in my 10 years here, they have not they've always met the target that we have set for them. And it's it's slowly inched up or stayed flat depending on the year. Just for clarification, in our proposed budget, what are we assuming is going to what are we assuming at this moment will be the revenue that we get? $750,000.

Okay. And that's what is budgeted this year and we're almost at that amount and we should collect. Usually it's dead on. That's an agreed upon number that usually we discussions between management and and ABC board had.

It's like is this a number? Okay. You tried to push them a little bit I think on that number, but I didn't hear the man ABC manager bud a little bit. 75 cuz we got a lot of debt we're paying for and different things of that. Okay. Well, I'll let you all follow up

on that. Thank you. All right. Um well, Madam Chair, before you uh move towards uh ending the proceedings, let me just say that uh hey Ty reborn, I would be against us removing any of the their request on equitable grounds.

And so I heard you loud and clear, but I just wanted to make sure that uh I put that on the record. Okay. I'm sorry. And you're clarifying that you So I'm I'm against using hate type reborn as one of the the the um budget line items that we go to try to get some money.

Okay. So you want you want their funding level to be the same that it was last year. So yes or or what they put in for this year, which is a million a million. Correct.

This budget supports 1 million to the hat reborn initiative. Yes. Yes, sir. They they submitted um after the budget request a higher number.

Oh, they did? Okay. We um left them I left them at the same level as as previously.

Okay. Um or funded. Yes. I think there's also an issue with um that the city is what the city's funding level is going to be because that's something that we jointly funded before.

Do do you know what that number is offand? So the city so last year the the county funded a million dollars for haty reborn in local dollars. The city funded a million dollars you through their ARPA funding. um they they have um until um the maybe the end of the calendar year or next year to use all their ARPA dollars and so uh they have not expended all of it but they will uh the city at this juncture did not add additional funding for next year. So on Monday when we hear from them we can get more insight on their budget and their strategies. Fair

enough. Thank you. Um, I just want to say I hear you, um, Commissioner Valentine, and that's why I said that if we have what can we if we have to raise the property tax slightly more to make sure the schools get what they need, our kids need good educators on the ground. And when I read what the residents said in that through that statement, the three things that came up, public schools, EMS, public safety, I hear you about, hey, Tyrie Borne, okay, and I understand, but I think our kids need good teachers in those buildings and that includes EC and we need to take that into consideration.

Absolutely. and and thank you for that. Okay, great discussion. Um really great

presentations and um want to thank everyone for this process and um there was a um communication sent related to um one of our fire districts and we we will follow up with information on that and we'll discuss it. Monday, but we'll send a written um response. I just wanted to bring that to you to your attention. Thank you.

Okay. Thank you. And I would entertain a motion to adjurnn. Madam Chair, I move that we adjourn.

Second. Okay. Moved by Commissioner Valentine, seconded by Commissioner Burton. All those in favor, please say I. I. And we are ajourned.