May 22, 2020 Operational Excellence Safety | Partnerships | - - PowerPoint PPT Presentation

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May 22, 2020 Operational Excellence Safety | Partnerships | - - PowerPoint PPT Presentation

Jun 16, 2023 313 likes •483 views

Board of Education Meeting May 22, 2020 Operational Excellence Safety | Partnerships | Communication Physical and psychological safety : We will invest in programs and services to ensure our students and staff feel safe and supported with

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Board of Education Meeting May 22, 2020

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Operational Excellence

Safety | Partnerships | Communication

  • Physical and psychological safety: We will invest in programs and

services to ensure our students and staff feel safe and supported with an emphasis on building resilience, addressing bullying and substance abuse and reducing self-harm.

  • Stakeholder Partnerships: We will build and strengthen the

relationships with stakeholders in order to create and enhance resources for our students, families and staff to build robust school communities.

  • Communication: We will work to improve communication across our

school community by broadening our audience reach, creating

  • pportunities for meaningful dialogue and lifting the voices of all

stakeholders, especially Black, Brown and Indigenous people.

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Agenda

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➢Where we were heading before COVID-19 ➢November 2019 Governor's Budget ➢Review Recommendations of Budget Task Force ➢Current Revenue Outlook – Uncertainty at the State Level ➢FY2020-21 Budget Impacts ➢Timeline and Next Steps

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» FY2020-21 Governor’s State Budget Request

Status Prior to COVID

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➢ +$52M to reduce Budget Stabilization Factor to 6.3% of Total Program Funding ➢ The request will fund a forecasted increase of 1,132 pupils (0.13%) and inflationary factor of 1.9% based on the January 2020 Forecast ➢ Projections for CCSD when the Governor’s State Budget Request released anticipated an increase $227 per pupil - $12M revenue increase PRIOR TO COVID

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PRIOR TO COVID

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Budget Task Force – Budget Reduction Recommendations

Implement the budget reductions for the FY2020-21 school year SY 2020-2021 Operating Budget ➢ Operate with a stabilized budget going forward ➢ Limit compensation increases for all employees to a maximum of $9 Million ➢ Centralized hiring freeze effective January 1, 2020 ➢ Hold Election for Operating and Capital needs PRIOR TO COVID

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General Fund ($ in millions) FY2019-20 FY2020-21 FY2021-22 FY2022-23 Revenue $631.35 $645.56 $659.08 $673.29 Expenditures 654.32 674.51 697.85 721.80 Revenue over (under) Expenditures ($22.97) ($28.95) ($38.77) ($48.51) Projected Ending General Fund Balance $61.50 $32.55 ($6.22) ($54.73) General Fund ($ in millions) FY2019-20 FY2020-21 FY2021-22 FY2022-23 Revenue $633.34 $649.03 $654.38 $660.91 Expenditures 654.32 663.91 676.63 688.59 Revenue over (under) Expenditures ($20.98) ($14.88) ($22.25) ($27.68) Projected Ending General Fund Balance $64.72 $49.84 $27.59 ($0.09)

With $9M of salary increases FY2020-2021 Projections as of June 2019

» At A Glance Projections

PRIOR TO COVID

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Current State Revenue Outlook May Forecast

➢ The speed of the economic contraction is unprecedented and the path to recovery remains uncertain ➢ General Fund revenue forecasts were revised significantly downward from March ➢ FY 2019-20 ($1.1 Billion) ➢ FY 2020-21 ($2.4 Billion) ➢ FY 2021-22 ($2.0 Billion) ➢ FY2020-21 Budget will need to be $3.4 billion less that Governor’s request – including FY2019-20 impacts carried over

Source: May 12,2020 OSPB presentation to CSFP

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CARES Act Funding and Impact on CCSD

➢ The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress on March 27th, 2020 ➢ The CARES Act provides fast and direct economic assistance due to the unforeseen financial impact related to COVID-19 ➢ Two sources of funding for Cherry Creek School District: ➢ Direct allocation to Cherry Creek School District based upon Title I funding formula ➢ $3.4M ESSER Grant Funding for Cherry Creek Schools ➢ The State of Colorado has received $1.67B from the Coronavirus Relief Fund as part of the CARES Act ➢ $510M for school districts and charter schools ➢ $28.5M for Cherry Creek Schools

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CARES Act Funding and Impact on CCSD

➢ One-time in nature ➢ Allowable uses remain unclear: It is not intended to back fill for State revenue losses ➢ This funding is not included in the financials on the subsequent slides as the focus will be the School Finance Act / Cherry Creek Schools General Fund ➢ Our structural budget issues before COVID still exist ➢ Will this lead to increased Budget Stabilization (Negative Factor) in FY2020-21 due to revenue being pushed into FY2019-20? ➢ Potential School Finance Changes: Reducing Cost of Living Factor and requiring that local voter- approved Mill Levy Overrides (MLO) to be used as Local Share ➢ 2021-2022: this could be the worst year of funding because there is likely to be no federal dollars to backfill state cuts

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  • $0 No FY2020-21 projected increase in Funded Pupil Count 54,540 FTE
  • ($23M) 5% PPR reduction - $8,041 PPR. Decrease of ($423) per student
  • $2M increase in MLO funding tied to 25% of Total Program
  • ($0.9) No Facility Rentals for FY2020-21
  • Salary Freeze (cost avoidance of $9M from Budget Task Force Recommendations)
  • ($5M) Capital Reserve transfer reduction
  • ($4M) Move of Nurses to Medicaid Grant
  • ($2.6M) Unfilled positions from central office hiring freeze
  • ($2.5M) Teacher ratio increase .25 at 19.0:1, continues at .25 increase per year
  • ($2.4M) 15% reduction of Decentralized budgets for departments
  • ($2M) FY2020-21 Health Insurance change – High deductible/H.S.A
  • $2M .5% employer PERA rate change due to automatic trigger

FY2020-21 Budget Development

FY2020-21 PRELIMINARY ASSUMPTIONS

Revenue Expenditure

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FY2022 TO FY2023 Budget Development

PRELIMINARY ASSUMPTIONS YEARS FY2022 to FY2023

  • No projected increase in Funded Pupil Count 54,540 FTE
  • ($34M) 7% PPR reduction FY22 - $7,478 PPR. Decrease of

($563) per student

  • $3.9M in MLO funding tied to 25% of Total Program

✓ Changes to other revenues Property and Specific Ownership tax, investment earnings, etc.

  • $0.9 Facility Rentals resume
  • ($2.5M) Teacher ratio increase .25 at 19.25:1, continues at

.25 increase per year

  • Salary Freeze
  • Capital Reserve transfer constant
  • $0 increase of Decentralized budgets for departments
  • $2M .5% employer PERA rate change due to automatic

trigger

  • No projected increase in Funded Pupil Count 54,540 FTE
  • $0 FLAT PPR reduction FY23 - $7,478 PPR. Decrease of

($0) per student

  • $1.2 M in MLO funding tied to 25% of Total Program

✓ Changes to other revenues Property and Specific Ownership tax, investment earnings, etc.

  • $0.9 Facility Rentals resume
  • ($2.5M) Teacher ratio increase .25 at 19.50:1, continues at

.25 increase per year

  • Salary Freeze
  • Capital Reserve transfer constant
  • $0 increase of Decentralized budgets for departments
  • $2M .5% employer PERA rate change due to automatic

trigger

FY2021-22 FY2022-23

Revenue Expenditure

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General Fund ($ in millions) FY2019-20 FY2020-21 FY2021-22 FY2022-23 Revenue $631.35 $645.56 $659.08 $673.29 Expenditures 654.32 674.51 697.85 721.80 Revenue over (under) Expenditures ($22.97) ($28.95) ($38.77) ($48.51) Projected Ending General Fund Balance $61.50 $32.55 ($6.22) ($54.73) General Fund ($ in millions) FY2019-20 FY2020-21 FY2021-22 FY2022-23 Revenue $633.34 $649.03 $654.38 $660.91 Expenditures 654.32 663.91 676.63 688.59 Revenue over (under) Expenditures ($20.98) ($14.88) ($22.25) ($27.68) Projected Ending General Fund Balance $64.72 $49.84 $27.59 ($0.09) General Fund ($ in millions) FY2019-20 FY2020-21 FY2021-22 FY2022-23 Revenue $633.34 $610.42 $582.57 $583.97 Expenditures 644.55 639.30 640.70 640.95 Revenue over (under) Expenditures ($11.21) ($28.88) ($58.13) ($56.98) Projected Ending General Fund Balance $74.49 $45.61 ($12.52) ($69.49)

» At A Glance – Funding Progressions

Projections as of June 2019 Budget Task Force Recommendations With $9M of salary increases FY2020-21 Forecasted FY2020-21 Budget (5%) PPR, FY2022 (7%) PPR, FY2023 Flat PPR (Projected FY2020 YE)

PRIOR TO COVID BUDGET TASK FORCE CURRENT STATE

Note: these numbers will be updated as clarity is provided regarding CARES funding and the School Finance Act is finalized

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May 22 May 29 June 5 June 12 June 19 June 26 June 29

Timeline and Next Steps

Review current issues known; State revenue and Budget assumptions Updates on State Legislation Further discussion of

  • ptions and draft
  • f cost savings

FY2020-21 Proposed Budget Revenue Deep Dive Updates on State Legislation Expenditure Deep Dive Finalize any remaining budget items FY2020-21 Budget Adoption Updates on State Legislation Other Funds

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Ensuring Financial Sustainability while Maintaining Excellence