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Colorado is facing unprecedented budget challenges. How it's affecting the St. Vrain School District.
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Grassroots St Vrain is an independent, non-partisan organization made up of nearly 1,000 volunteers committed to informing and activating citizens on education related issues in the greater St. Vrain Valley towns of Colorado.
• 2008 MLO / Bond Issue• Leadership St. Vrain • Great Education Colorado • Great Futures Colorado• DECIDE ballot initiative• Prop 101, Amendments 60 & 61• What’s to come?
2
Fiscal Education Network
A project of the Colorado Nonprofit Association
3
An Unprecedented Challenge
Colorado is facing an unprecedented, long-term fiscal challenge.
Even a strong recovery and sustained job growth over the next 15 years is not enough [to solve the budget problems]. (DU: Center for Colorado’s Economic Future)
The costs to maintain public services exceed the revenues to pay for them.
P
4
Public attitudes toward budget crisis?
Pew Research Center February 2011
If state needs to balance its budget, should state increase…
Yes No
Taxes on business 41% 55%
Sales tax 30% 67%
Personal income tax 28% 68%
5
Public attitudes toward budget crisis?
Pew Research Center February 2011
If state needs to balance its budget, should state decrease…
Yes No
Pensions of government employees 47% 47%
Funding for roads and public transportation
31% 67%
Funding for public colleges and universities
31% 66%
Funding for health care services 21% 76%
Funding for K-12 education 18% 79%
6
Colorado General Fund Spending
(2011-2012 estimates)
K-12 Education41%
Human Services
9%
Health Care23%
Higher Educa-tion10%
Corrections9%
Other8%
Backseatbudgeter.com
7
Colorado Spending
Colorado Fiscal Policy Institute, 2009
P
Total
(45t
h)
K-12
Educa
tion
(32n
d)
Highe
r Edu
catio
n (4
8th)
Med
icaid
(49t
h)
Highw
ays
(48t
h)$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000 $5,246
$1,747
$270 $1,016 $342
$4,387
$1,523
$149 $540 $224
Per Capita SpendingColorado v U.S. Average
US AverageColorado
8
Colorado Spending
Colorado Fiscal Policy Institute, 2009
P
Total
(47t
h)
K-12
Educa
tion
(48t
h)
Highe
r Edu
catio
n (4
8th)
Med
icaid
(49t
h)
Highw
ays
(48t
h)$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00 $140.52
$50.67
$7.16 $27.74 $8.87
$106.49
$41.16
$3.52 $13.11 $5.44
Spending per $1,000 of Personal IncomeColorado v U.S. Average
US AverageColorado
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Waste, Fraud & Abuse?
P
Total Budget97%
Potential Savings3%
Contingency Audit Estimates
Greeley Tribune
“Focusing on trimming the fat fails to address Colorado’s systemic budgetary problems.” - Independence Institute, Citizens’ Budget
Estimates of the magnitude of our challenge: 5 to 30 times greater.
10
The State Has GrownSince 2001:• 700,000 more Coloradans
• 70,000 more students in K-12
• 35,000 more college students
• 150,000 more Medicaid recipients
• 2,500 more prisoners
Colorado Fiscal Policy Institute and U.S. Census
P
11
State Revenues Haven’t Kept Pace
Colorado Legislative Services and Fiscal Policy Institute
P
General Fund
K-12 Students
Population Registered Vehicles
College Students
Medicaid Caseload
0%
20%
40%
60%
80%
100%
120%
7%15%
19%26% 31%
100%
Growth in Colorado 2001 - 2010
Per
cen
t G
rwo
t
12
Why Don’t Revenues Keep Up?
Voters chose:• Strict limits on homeowner property tax• Strict limits on state sales and income tax revenues• Voter approval of any new tax increase
Legislators chose:• Cut sales and income taxes in 1990s and early 2000s
Other factors:• Recession• ~40% health care inflation over past decade• Aging population with more health care needs
P
13
Taxes are Comparatively Low
Legislative Council
P
High Average Colorado Low$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00$163.89
$58.50$40.89 $37.50
Colorado State Taxes per $1,000 of Personal IncomeCompared to Nation
49 of 50
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Taxes are Comparatively Low
Legislative Council * - Collected Locally
P
Sales
& U
se (4
4 of
45)
Indi
vidua
l Inc
ome
(28
of 4
3)
Corpo
rate
Inco
me
(42
of 4
6)
Prope
rty* (
27 o
f 50)
Mot
or F
uels
(32
of 5
0)0.00
10.00
20.00
30.00
40.00
50.00
60.00
48.3539.51
20.91
52.20
6.7019.68
20.12
3.29 2.8910.8920.74
1.55
29.82
2.908.71
0.33
Taxes Per $1,000 of Personal Income
High Average Colorado Low
15
Colorado Tax Rankings
• Combined state and local tax burden = 34th
(Tax Foundation)
• Best states for retiree taxes = 5th
(MSN Money)
• Business tax climate = 15th
(Tax Foundation)
P
16
Tax Collections Are in Decline
P
17
Transportation Revenues Losing Value
Colorado Department of Transportation
P
18
What happens when…
• Demand for public services grows more than revenues
• State required to maintain a balanced budget
• Legislators run out of one time “tricks”
P
19
Public services must be cut…
Governor Hickenlooper letter to JBC and Office of State Planning and Budgeting
P
Inflation K-12 per pupil
Old Amend. 23
Higher Ed Human Services
Health Care
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
5.4%-2.6%
-12.3% -16.4%-3.7%
9.2%
Funding Change 2007-08 to 2011-12
Per
cen
tag
e C
han
ge
20
Public services must be cut…
Governor Hickenlooper letter to JBC and Office of State Planning and Budgeting
P
Natural Resources
Local Affairs Agriculture Governor's Office
Department of Administra-
tion
Department of Revenue
-70.00%
-60.00%
-50.00%
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
-23.33%
-3.64%
-41.18% -41.18% -63.64% -38.95%Changes in Colorado 2007-08 to 2011-12
21
K-12 Education Needs?
Education News Colorado
P
2011
-12
Amen
d 23
2010
-11
Actua
l
2011
-12
Legis
latur
e
2011
-12
Gov
erno
r$4,600$4,800$5,000$5,200$5,400$5,600$5,800$6,000
State Funding for K-12 Education(in millions)
mil
lio
ns
22
Higher Education Needs?
Colorado Department of Higher Education
P
Competitive Restoration Losing Ground
Erosion Governor's Budget
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600 $1,500
$1,000
$760$550 $519
State Funding for Higher Education
Level of Funding
Mil
lio
ns
23
Estimated Spending Needs for Select Service Areas
Service Area Goal Additional Need Source
Transportation Current “C” level service
$461 million/year Dept. of Transportation
Transportation “B” level service
$688 million/year Dept. of Transportation
Transportation Service and corridor planning
$1.3 billion/year Dept. of Transportation
CU Denver School of Public Affairs
Impact on St. Vrain
Ed News Colorado and St. Vrain Valley School District
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12$5,600
$5,800
$6,000
$6,200
$6,400
$6,600
$6,800
$7,000
$7,200
$7,400
$6,255
$6,548
$6,742
$6,945
$6,635
$7,202
$6,255
$6,548
$6,742
$6,945
$6,635
$6,328$6,255
$6,548
$6,742
$6,945
$6,635
$6,190
St. Vrain Per Pupil Funding
Amend 23 Legislature Governor
Impact on St. Vrain$21 Million Less
Source: St. Vrain Valley School District
FY 07
FY 08
FY 09
FY 10
FY 11
FY 12
- Am
end
23
FY 12
- Leg
islat
ure
FY 12
- Hick
enlo
oper
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
$139 $150 $161 $173 $169 $186$165 $160
St. Vrain Total Program Funding
To
tal
Pro
gra
m F
un
din
g i
n M
illi
on
s
Local v Statewide Tax InitiativesFood for thought…
<25% 25-49.9% 50-74.9% >75%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
82%63%
39%25%
Percentage of Colorado Schools Dis-tricts with Voter Approved MLO
Percentage of Students on Free/Reduced Lunch
Our Aspirations and Priorities
• Be the first choice for St. Vrain families
• Maintain classroom experience
• Increase and improve instruction time for students
• Expand course offerings and focus programs
• Upgrade technology to ensure it is a learning asset
• Support teachers to succeed at the job we’re asking of them
• Empower families to take more responsibility
• Minimize impact on working families and our community
28
“Expect more cuts.”
“The state budget should expect cuts of the same magnitude in 2012, although not necessarily to schools.”
- Gov. Hickenlooper’s budget director, Henry Sobanet
Durango Herald, February 16, 2011
P
29
Colorado Voters must Decide
“[T]he ball is back in the voters’ court. It now is up to the people of Colorado to decide what kind of place they want
their state to be.”
- Durango Herald, February 16, 2011
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30
Learn More
• BackstreetBudgeter.com by Engaged Public — www.backseatbudgeter.com
• Bell Policy Center — www.bellpolicy.org
• Center for Colorado’s Economic Future (DU) — www.du.edu/economicfuture
• Colorado Department of Higher Education — http://highered.colorado.gov
• Colorado Fiscal Policy Institute — www.cclponline.org/fiscal_policy
• Colorado Tax Tracks — www.colorado.gov/taxtracks
• Independence Institute’s Citizens’ Budget — http://tax.i2i.org/citizens-budget
• U C Denver School of Public Affairs — www.ucdenver.edu/academics/colleges/SPA
P
31
Learn MoreColorado Nonprofit Association
Renny Fagan: [email protected]
Andrew Lindstad: [email protected]
303.832.5710www.coloradononprofits.org
Fiscal Education NetworkJohn Creighton: [email protected];
303.682.0907
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• Talk to your family, friends and neighbors about what you have learned tonight.
• Collect email addresses to grow the Grassroots St Vrain contact lists and strengthen our local community network.
• Sign the petition to put Senator Heath’s proposition on the ballot.
• Carry a petition with you to collect signatures from your family, friends, and neighbors. Get trained tonight in only 15 minutes!!
What can you do?