Budget Update Jeffco

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Budget UpdateJeffcos FutureParent Leadership
Fall 2007
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Agenda

• Budget Overview
• Environmental Scan
• Strategic Advice

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District Personnel Summary
Teachers Other Certificated 5,178
Support Staff 1,561
Administrators/Professional Technical 411
Other Hourly Part-time 4,300

• Salaries and benefits are approximately 86 of
  the districts budget

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The Challenge of Jeffco Budgeting

• Declining resources
• (enrollment)

Increasing expectations Increasing costs
(inflation) Increasing mandates
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2008-2009 Revenue ChangesAs we know them today
Assumption Amount
Revenues Revenues
State Funding (2.8 Cost of Living Increase) 15,372,000
1 from Amendment 23 (designed to make up for 10 years of public school under funding) 5,490,000
Enrollment (projected decline 600 funded count) (4,047,000)
Charter School Revenue Allocation (3,360,000)
Other Revenue (350,000)
Subtotal Revenues 13,105,000
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2008-2009 Expenditure ChangesAs we know them
today
Assumption Amount
Expenditures Expenditures
Savings from Retirements (5,420,000)
Enrollment Expenditure Savings (2,482,000)
Amendment 23 Categorical Expenditures 212,000
General Increases utilities/new schools programs/teacher work year/class size/graduation/technology (net of carry forward) 2,600,000
Transfers (Capital, Insurance, Preschool) 128,000
Subtotal Expenditures (without compensation increases) (4,962,000)
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2008-2009 Compensation AssumptionsAs we know
them today
Assumption COLA Placeholder
Expenditures Expenditures
Steps, Level Adjustments, and Variable Pay Teachers and Classified Personnel Steps and Levels Administrators, Principals, and Assistant Principals Variable Pay 10,440,000
Cost of Living Adjustments (2.3 Assumption) 10,000,000
PERA Salary Increase Legislative Changes 5,590,000
OCR Mandated Teachers 925,000
Benefits 4,000,000
Subtotal Compensation Increases 30,955,000
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Compensation Increases Reminder

• Compensation increases are subject to
  negotiations. No decisions have been made. COLA
  and benefits numbers are placeholders only.

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2008-2009 Combined Revenue and Expenditure
Changes As we know them today

Revenue Changes 13,105,000
Expenditure and Compensation Changes 25,993,000
Revenue Increases Compared to Expenditure Increases (12,888,000)
Planned Efficiencies (in the pastreductions) 3,000,000
Planned Utilization of Mill Levy Override Dollars/Strategically Planned Spending (9,888,000)
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Good News

• Conservative spending in
• Salary and Benefits
• Utilities
• Central Departments
• led to no more than 3,000,000 reductions for
  2008-2009 and possibly less

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Jeffco Enrollment
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Jeffco Financial Projection
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Colorado Context

• Finance Act
• Amendment 23 dollars will end in 2010-2011- 5.0
  million per year
• Mill levy stabilization funding shifts funding
  from state to local funding
• Jeffco receives 50 less per child than Douglas
  County, 132 less per child than Cherry Creek,
  and 137 less per child than Boulder
• Tax Code in our Constitution

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National Context

• Colorado is
• 48th in the nation in K-12 spending
• 48th in the nation in higher education spending
• Colorado spends 7,730 per student, 971 below
  the national average of 8,701.
• (79.6 million for Jeffco Kids)
• (Colorado Legislative Council)
• (Center for Budget Policy and Priorities)

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National Context

• Colorado is
• 4th lowest in state and local tax burden
• 2nd lowest in business tax burden
• 6th lowest in state sales tax rate
• 2nd lowest in residential property tax burden
• Metro Denver Economic Development Corporation

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Our Challenge Educating the 21st Century
Student

• Small Class Sizes
• Rigorous Senior High Requirements
• Technology
• Well Trained Teachers
• Outstanding Leaders

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Our Challenge Educating the 21st Century
Student

• Guaranteed and Viable Curricula
• Textbooks and Materials
• Transportation
• Choice
• Safety and Security

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Our Future Projected Reductions

• 2009-2010
• 5,000,000
• 2010-2011
• 7,000,000
• 2011-2012
• 9,000,000

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Proactive and Thoughtful in Planning

• Strategic Use of the 2004 Mill Levy Override
• Budgeting for Results
• Staffing Study
• Pay for Performance
• Technology Refresh Program

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Mill Levy Overview

• History of Mill Levies
• 1998 Defeated
• 1999 45 Million Authorized
• 35.8 Million Collected
• 2004 38.5 Million Collected

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Public Perceptions

• 56 think property taxes are about right
• 25 think property taxes are too high
• 58 of all voters think funding for Jeffco
  schools should be increased
• 62 of parents believe funding for Jeffco schools
  should be increased
• 51 of those over 60 believe that funding for
  Jeffco schools should be increased

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What Options Do We Have?

• Transportation Mill
• A levy for excess transportation costs
• Estimate 15 M per year 2 mills
• 2 mills 48 per year on 300,000 home
• Special Building and Technology Mill
• Up to 10 mills for 3 years
• Estimate - 70 M per year on 10 mills
• 10 mills 238 per year on 300,000 home

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Mill Levy Options

• Mill Levy Override for the General Fund
• 22,233,869 Available
• Plus
• 9.2 Million Because 3A Passed in November
• 31,433,869
• (74 on a 300,000 home)

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Strategic Thinking and Advice

• When should Jeffco go to voters for funding
  increases?
• What type of mill levy override election makes
  sense to you?
• What other advice do you have as we begin this
  dialogue with our parents?

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What if
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Organizational Change

• Two roads diverged in a wood
• and I
• took the one less traveled and that has made all
  the difference
• Robert Frost
• 1874-1963

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Our Mission

• To provide a quality education
• that prepares all children
• for a successful future