Budget UpdateJeffco’s Future

Parent Leadership Fall 2007

Agenda

•Budget Overview

•Environmental Scan

•Strategic Advice

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 district’s budget

The Challenge of Jeffco Budgeting

Declining resources(enrollment)

Increasing expectations

Increasing costs (inflation)

Increasing mandates

2008-2009 Revenue Changes…As we know them today…

Assumption AmountRevenues:

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

2008-2009 Expenditure Changes…

As we know them today…Assumption Amount

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)

2008-2009 Compensation Assumptions…

As we know them today…***Assumption % COLA

Placeholder

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 $925,000Benefits $4,000,000

Subtotal: Compensation Increases

$30,955,000

Compensation Increases Reminder***

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

are placeholders only.

2008-2009: Combined Revenue and Expenditure Changes

As we know them today…

Revenue Changes… $13,105,000Expenditure and Compensation Changes…

$25,993,000

Revenue Increases Compared to Expenditure Increases

($12,888,000)

Planned Efficiencies (in the past…reductions)

$3,000,000

Planned Utilization of Mill Levy Override Dollars/Strategically Planned Spending

($9,888,000)

Good News

Conservative spending in:

Salary and BenefitsUtilities

Central Departments

led to no more than $3,000,000 reductions for 2008-2009 and

possibly less

Jeffco Enrollment

72,000

74,000

76,000

78,000

80,000

82,000

84,000

86,000

88,000

90,000

Enrollment Funded Count FTE Count (a)

Student Enrollment Comparison

Jeffco Financial ProjectionJeffco Public Schools

General FundProjected Revenues vs. Expenditures & Transfers

$0

$100

$200

$300

$400

$500

$600

$700

$800

2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011

Total Projected Revenue Total Projected Expenditures & Transfers

Illustrates planned spending of reserves

in millions

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

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)

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

Our Challenge: Educating the 21st Century

Student• Small Class Sizes

• Rigorous Senior High Requirements

• Technology

• Well Trained Teachers

• Outstanding Leaders

Our Challenge: Educating the 21st Century

Student• Guaranteed and Viable Curricula

• Textbooks and Materials

• Transportation

• Choice

• Safety and Security

Our Future Projected Reductions

• 2009-2010– $5,000,000

• 2010-2011– $7,000,000

• 2011-2012

–$9,000,000

Proactive and Thoughtful in Planning

• Strategic Use of the 2004 Mill Levy Override

• Budgeting for Results

• Staffing Study

• Pay for Performance

• Technology Refresh Program

Mill Levy Overview

History of Mill Levies1998: Defeated

1999: $45 Million Authorized$35.8 Million Collected

2004: $38.5 Million Collected

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

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

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)

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?

What if…

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

Our MissionTo provide a quality

educationthat prepares all children

for a successful future