Board of Education Meeting Expenditures Review June 12, 2020
Legislative Update • HB20-1418 School Finance Act introduced on June 6 th • 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% 2
FY2020-21 GENERAL FUND ASSUMPTIONS FOR JUNE 29 TH BUDGET ADOPTION FY2020-21 Budget Development • $0 No FY2020-21 projected increase in Funded Pupil Count 54,540 FTE Revenue • ($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 Expenditure • ($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 3
Positions Not Filled – FY2020-21 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 Performance 1 CE Data Specialist 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 $2.3 million including salaries and benefits 4
At A Glance – General Fund Forecasted FY2020-21 Budget (5.6%) PPR, FY2022 (7%) PPR, FY2023 Flat PPR (Projected FY2020 YE) General Fund ($ in millions) FY2019-20 FY2020-21 FY2021-22 FY2022-23 CURRENT STATE 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) 5
FY2020-21 GENERAL FUND ASSUMPTIONS FOR JUNE 29 TH BUDGET ADOPTION BUDGET DOES NOT INCLUDE AT THIS TIME • Furlough Days • Additional reduction of staff • Use of CARES funding • Salary reductions • Other cost saving measures 6
Timeline Going Forward June 29, 2020 Summer 2020 January 2021 Budget revision Engage the community in FY2020-21 Budget budget conversations Adoption Updated PPR based on December forecast Determine furlough days, FY2019-20 Resolutions staff reductions, cost for Designated Grants Cost savings strategies included saving strategies, etc. Fund (CARES in budget allocation) and Bond Determine/Finalize use of Redemption Fund CARES funding uses included in CARES funding (Bond refunding) budget Interest Free Loan Program (Possible to move into July based on SFA timing) 7
Ensuring Financial Sustainability while Maintaining Excellence 8
Effect on School Finance This graph shows the change in the local and state shares of school finance since the passage of 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 9
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