Expenditures Review June 12, 2020 Legislative Update HB20-1418 - - PowerPoint PPT Presentation

Board of Education Meeting

Expenditures Review June 12, 2020

Legislative Update

• HB20-1418 School Finance Act introduced on June 6th
• Budget Stabilization Factor increases $612.1M, from $572.4M in FY2019-20, to total of $1.18B for FY2020-21
• CCSD impact: projected PPR $7,989 reduction ($475) per pupil, a reduction of (5.6%)
• Estimated CCSD Total Program reduction of ($25.8M)
• Total program mill levies reset to the lesser of:
• 27 mills
• The number of mills imposed when the district de-Bruced
• Amount to fully fund the district’s total program
• If a district is required to levy more mills than in 2019, the district must issue an immediate corresponding tax credit
• As CCSD is not de-Bruced, this would not negatively affect CCSD but would be an overall positive as this would add additional funds

to K-12

• A secondary bill was introduced last week to consider repealing the Gallagher Amendment and would submit a question to voters in

November 2020

• Needs 50 percent of voters’ approval
• Under current law, Colorado faces a drop in the Residential Assessment Rate from 7.15% to 5.88%

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• $0 No FY2020-21 projected increase in Funded Pupil Count 54,540 FTE
• ($25.8M) 5.6% PPR reduction - $7,989 PPR, decrease of ($475) per student
• $2M increase in MLO funding tied to 25% of Total Program
• ($0.9) No Facility Rentals for FY2020-21
• Salary Freeze
• ($5M) Capital Reserve transfer reduction
• ($4M) Move of Nurses to Medicaid Grant
• ($3.1M) Teacher ratio increase .25 at 19.0:1, continues at .25 increase per year
• ($2.6M) Unfilled positions from central office hiring freeze
• ($2.4M) 15% reduction of Decentralized budgets for departments
• $2M .5% employer PERA rate change due to automatic trigger

FY2020-21 Budget Development

FY2020-21 GENERAL FUND ASSUMPTIONS

Revenue Expenditure

FOR JUNE 29TH BUDGET ADOPTION

Positions Not Filled – FY2020-21

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Area Position Area Position

SPED 1 GT Coordinator for Math/Science IT 2 Analyst Positions 1 LD SpEd Position 3 Senior Analysts 1 SpEd Autism Coordinator EdOps 6 Assistant Principals Legal 1 Truancy Coordinator HR 1 EOP Position Innovation 1 CTE Coordinator 3 Generalists 1 Concurrent Enrollment Coordinator 1 Employee Relations Liaison 1 CE Data Specialist Performance Improvement 1 Director of Curriculum 1 STEM Coach 2 Star Mentors Fiscal 1 Risk Management Specialist 1 Director of Supply Chain Management 1 Warehouse Staff Position

Estimated General Fund annual savings of $2.3 million including salaries and benefits

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At A Glance – General Fund

General Fund ($ in millions) FY2019-20 FY2020-21 FY2021-22 FY2022-23 Revenue $633.34 $608.90 $576.51 $576.51 Expenditures 644.55 639.30 640.70 640.96 Revenue over (under) Expenditures ($11.21) ($30.40) ($64.19) ($64.45) Projected Ending General Fund Balance $74.49 $44.09 ($20.10) ($84.55)

Forecasted FY2020-21 Budget (5.6%) PPR, FY2022 (7%) PPR, FY2023 Flat PPR (Projected FY2020 YE)

CURRENT STATE

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• Furlough Days
• Additional reduction of staff
• Use of CARES funding
• Salary reductions
• Other cost saving measures

BUDGET DOES NOT INCLUDE AT THIS TIME

FY2020-21 GENERAL FUND ASSUMPTIONS

FOR JUNE 29TH BUDGET ADOPTION

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June 29, 2020 Summer 2020 January 2021

Timeline Going Forward

 Engage the community in budget conversations  Determine furlough days, staff reductions, cost saving strategies, etc.  Determine/Finalize use of CARES funding Budget revision  Updated PPR based on December forecast  Cost savings strategies included in budget  CARES funding uses included in budget  FY2020-21 Budget Adoption  FY2019-20 Resolutions for Designated Grants Fund (CARES allocation) and Bond Redemption Fund (Bond refunding)  Interest Free Loan Program (Possible to move into July based on SFA timing)

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Ensuring Financial Sustainability while Maintaining Excellence

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This graph shows the change in the local and state shares of school finance since the passage

• f the Gallagher Amendment.

From 1983 until 1991, local school districts covered the majority of the costs of public education in

• Colorado. After passage of TABOR

in 1992, the state share continued to increase while the local share

• declined. This pattern accelerated

after passage of Amendment 23 in 2001, but has stabilized with the passage of Senate Bill 07-199 in 2007, which prevented mill levies from falling for most school districts in the state. Source: Legislative Council Staff Memorandum, Oct 2018

Effect on School Finance