2020/2021 BUDGET UPDATE Board of Education April 2, 2020 Kathleen - - PowerPoint PPT Presentation

2020/2021 BUDGET UPDATE

Board of Education – April 2, 2020 Kathleen Askelson, Chief Financial Officer Nicole Stewart, Director-Budget & Treasury

AGENDA

 Budget Timeline – Current Activity  March 11 Finance Discussion  March 16, 2020 Forecast  Scenarios for adjusting:

• Adjustment Scenarios for No Buy Down
• f Budget Stabilization Factor and

No New Funding

 Next Steps

TIMELINE 2020/2021 BUDGET DEVELOPMENT

OCT/NOV

School Accountability Committees Meet to Define Priorities Governor’s Proposed Budget ELECTION

DEC

2020/2021 Factors are Set Based

• n 2019

October Count Kick Off SBB and BFO Processes Community Engagement/ SAC Reports December Forecast / Outlook

JAN/FEB

Schools Enter Budgets into Hyperion Budget Increase Requests Due Cabinet Recommendations Negotiations

MAR

DAC Final Community Engagement Results Report Direction/ Feedback─ March 5 BOE Meeting March Forecast Begin Building Budget Negotiations Budget Survey

APR

Continue Fine Tuning and Building Budget Final BOE Direction for Proposed Budget April 2 BOE Meeting Negotiations Community Budget Forum

MAY/JUNE

Last Day for Legislators May 6 Proposed Budget Public Hearing May 7 BOE Meeting Final BOE Direction for Budget Adoption

• n June 4

MARCH 11 FINANCE DISCUSSION

1.9% inflation – including categorical funding 1,132 student enrollment growth $52M decrease to budget stabilization factor

2020/2021 ASSUMPTIONS Based on Governor’s Proposal – November 2019

Proposed statewide assumptions per the revised governor’s budget request released in November.

2020/2021 STATE REVENUE – NOV 2019 Jeffco Funding Assumptions JEFFCO’S STATE FUNDING

$18.5M

JEFFCO’S REVISED TOTAL GENERAL FUND INCREASE

$16.6M

LESS PASS THROUGH TO Charters, Colorado Preschool Program (CPP), and Innovation Schools (est)

$(1.9M)

Quick Facts about budget stabilization factor:

• FY 2020 buy down was $100M
• Factor peaked in 2012/2013 at $1.0B statewide
• Cumulative impact loss to Jeffco since inception

(2010/2011 through 2019/2020) $755M

For 2020/2021, the governor’s proposal will decrease the budget stabilization factor by: $52M Statewide Jeffco’s Share $4.6M Increases Jeffco’s Per Pupil Revenue by $56 2020/2021 ASSUMPTIONS NOV 2019 Budget Stabilization Factor

JEFFCO PUBLIC SCHOOLS Total Per Pupil Funding for 2020/2021 per the governor’s revised proposal

(before budget stabilization factor applied)

$9,102 $8,530

Funding (after budget stabilization factor applied) $(572)

2020/2021 OPTIONS FOR INCREASING AVAILABLE RESOURCES, IF DIRECTED Central reductions identified of $2.1M, if directed:

• List and Budgeting for Outcomes (BFO)

forms attached to agenda in BoardDocs

• NOTE: There are no reductions to 5A

directives or District Accountability Committee (DAC) recommendations

Additional reductions, if directed:

• Central
• Schools by reducing the student based

budgeting (SBB) base factor

MARCH 16, 2020 FORECAST

LEGISLATIVE COUNCIL STAFF Presentation March 16, 2020

• The economic outlook is extremely uncertain
• Downward revenue revision means less budget available
• Recession odds are increasing, with potentially

significant budget impacts

• Budgeting to a range…
• Appropriate funds conditionally

OFFICE OF STATE PLANNING AND BUDGET Presentation March 16, 2020

STATUS OF SCHOOL FINANCE ACT

• Legislation paused for Covid-19 until March 30, 2020
• Joint Budget Committee is working on the long bill

(full state budget) that will include recommendations for school finance

• Special sessions of the legislature can be requested by

the governor or two thirds of the members of the house

Adjustment Scenarios

For No Buy Down of Budget Stabilization Factor and No New Funding

2020/2021 ADJUSTMENT SCENARIOS

Scenario 1 Governor’s Proposal Scenario 2 No BS Factor Buy Down Scenario 3 No New Funding Scenario 4

State Funding Increase $16.6 $12.5 $.0 $.0 5A Mill Levy Inflationary Increase .6 .6 .6 .6 Retirement/Turnover Savings (credit to expenditures) 6.0 6.0 6.0 6.0 Total 2020/2021 Estimated New Available Resources $23.2 $19.1 $6.6 $6.6 Mandated PERA Increase .5% $2.6 $2.6 $2.6 $2.6 Loss of Revenue from 350 Student Decrease 3.0 3.0 3.0 3.0 Staff compensation – directed by BOE 03/11/20 17.0 17.0 17.0 .0 Unallocated / Reduction needed to balance budget .6 (3.5) (16.0) 1.0 Total Expenditure/Revenue Adjustment Assumptions $23.2 $19.1 $6.6 $6.6

1. Scenario 1 – Governors Proposal

• Leave compensation placeholder
• No further adjustments from governors

proposal 2. Scenario 2 – No BS Factor Buy Down

• Leave compensation placeholder
• Implement $3.5M in reductions to cover

loss of budget stabilization factor ($52M) 3. Scenario 3 – No New Funding

• Leave compensation placeholder
• Implement $16M in reductions to cover

loss of no new funding from the state 4. Scenario 4 – Remove all increase assumptions until final school finance act

2020/2021 BUDGET DIRECTION NEEDED

NEXT STEPS

NEXT STEPS  Budget team builds Proposed Budget starting in March continuing through April  If significant changes in legislation

• ccurs, additional BOE meeting may be

needed in April  Further direction on May 7 with legislation finalized  Budget adoption is scheduled for June 4

COMMUNITY ENGAGEMENT  Community Survey

• Launched week of March 9
• Community to choose top three and highest

priority for budget investments

• Closes April 27

COMMUNITY ENGAGEMENT (continued)  Two Budget Forums –

• April 6 (Lakewood High School) 6pm

(cancelled)

• April 25 (central location TBD) 9am
• Overview of state school finance process
• District specific budget
• Dialogue on priorities
• Community responses recorded via

budget survey

NOTE: May switch to Facebook Live if public forum is not advised

 Public Comment for Budget – May 7

QUESTIONS