DELTA COUNTY SCHOOL DISTRICT 50J SCHOOL BOARD
DECEMBER 2011
Where The Funds Come From
General Fund 2011-2012 Budget
3.16%
2.93%
3.57% 4.20%
3.91%
Federal
State Equalization
Property Taxes
Specific Ownership Tax
Other Local Revnue
Use of Fund Balance
Other State Revenue
24.55%
57.68%
Where The Funds GO
General Fund 2011-2012 Budget
Total Budget $36.7 Million
2.85%
9.06%
0.91%
Numbers reflected are
the percentage of the
total budget
0.76%
7.00%
Salaries
5.46%
Benefits
Purchased Services
Supplies
Utilities
Transfers to Other Funds
16.49%
57.46%
Equipment
Other
73.95%
Without inter-fund transfers, Personnel costs = 81.3%
of total costs.
Revenue Comparisons
Source
2010-2011
Actual
2011-2012
Budget
$ 1,602,153
$ 1,541,120
20,256,471
21,178,601
1,334,734
-0-
10,166,661
9,015,800
1,399,022
1,435,000
Other Local Revenue
983,429
1,160,243
Use of Fund Balance
-0-
1,077,256
Other State Revenue
1,639,300
1,312,073
$37,381,770
$36,720,093
$6,478.18
$6,152,07
Federal
State Equalization
Fed. Portion Equalization
Property Taxes
Specific Ownership Tax
Total Revenue
State PPR
Understanding PPR
(Per Pupil Revenue)
PPR is how schools are funded in Colorado through
the School Finance Act adopted annually. It is
made up of the following:
 Property Tax
Specific Ownership Tax
 State Equalization
 Full Day Kindergarten Factor (.08)
 Factors

 Personnel
 At-Risk
 Cost of Living
Property Tax
Each December, we set the mill levy assigned to our
District by the State. This becomes part of our
PPR. The current Mill Levy is 22.656.
Assessed valuations from the County Assessor are
applied to the mill levy to determine the District’s
portion of the property tax.
Mill levies were frozen 3 years ago which is
increasing the percentage of local funds into
school districts and decreasing the State share.
Current economic conditions causing assessed
valuations to decrease will cause property taxes to
decrease and State share to increase.
Current property taxes account for $9.7 million.
Specific Ownership Tax
We collect a portion of taxes assessed on:
car sales, boat sales, atv, license plate
renewals, etc…
Sales are down due to the current
economic situation which creates more
pressure on State Equalization.
Specific ownership accounts for $1.4
million.
State Equalization
State Equalization funds the balance of PPR
after Property Taxes and Specific
Ownership taxes.
District Board Resolution 2011-08 continues
to restrict $300 per student for capital
reserve. We call this the District PPOR
(Per Pupil Operating Revenue)
State Equalization accounts for $21.2 million.
Full Day Kindergarten

In 2007-2008 the State added a factor to
increase payments for districts providing full
day kindergarten with an additional .08 FTE.
Previously, kindergarten was funded at .50 or
½ FTE. This addition increases to .58 FTE
which is over $490 per kindergarten student
included in our PPR.
Factors
Personnel costs are factored for the
geographical area the District is in and
either adds to or reduces from base PPR.
 Cost of Living
 At-risk factors include:

 Free and Reduced Lunch
 ELL
 Special Education
All Factors adjust PPR up and down from the base
funding. Our District is the 6th lowest funded
district in the state.
Amendment 23
Amendment 23 was passed in 2000. It
guaranteed an increase in base funding of
inflation plus 1% in an attempt to increase
funding to schools in Colorado through 20102011. In 2011-2012 and beyond, Amendment
23 will provide for an increase of the inflation
factor only*. (Denver-Boulder Index) The
intention of the legislation was to close the gap
in funding compared to other states. However,
it has become the floor for increases to
education funding rather than the ceiling.1
1.
Source: Donnell-Kay Foundation
•
*This 1% reduction started in the 2011-2012 budget.
•
Currently PPR is not being funded as designed and there is
a “negative factor” to achieve budget reductions from the
State. (Total negative factor reduction of Amend. 23 $4.9
Million)
FAQ: School Finance General Fund




Furlough Day = $122,600 per day
PPR = $6,152 per full time student
Transportation cost per mile = $3.29
District contribution for health care


Average salary scale step




Single health plan = $76,172
Family health plan = $79,772
Current Enrollment (October 1 count)



Single health plan = $39,605
Family health plan = $43,205
Senior Teacher – “top end”



Certified = $324,000
Classified = $ 70,000
Activities = $ 10,000
Admin. = $ 27,000
New Bottom Steps = $60,000
Beginning teacher salary/benefits



Certified 2.38%
Classified 1.89%
Cost of step increase (including benefits) ($491,000)






Single = $350, Family = $650
Students 5,315
Funded FTE Count 4,909.50
PERA Increase ($195,000)
Education Increments ($65,000)
School District Funds









General Fund: General Operating Fund ($36.7 Million)
Food Service Fund: Lunch/Breakfast Program ($2.0 Million)
Federal Grants Fund: Title I to IV ($1.6 Million)
Capital Reserve Fund: Large Maint/Building projects ($1.8
Million)
Bond Redemption Fund: Payment of 2003 Bonds (2.0
Million)
Delta-Montrose Technical College: Funding from State
Higher Education, Tuition, Federal Student Aide ($3.2 Million)
Insurance Reserve Fund: Part of $300 Capital Reserve to
pay for Property Insurance and Worker’s Comp: ($229K)
Colorado Preschool Fund: BELA preschool Program ($645K)
Transportation Fund: ($1.5 Million)
DCSD50J Budget Process
School Budget Law

School Districts must provide a proposed budget to the
Board 30 days prior to the start of the new fiscal year.
 (We do this in the May Meeting.)

School Board must adopt a budget and appropriate the
funds before July 1st.
 (We do this in the June Meeting.)
Budget must be presented in a format that allows
comparisons of revenues and expenditures that any
“layperson” can understand.
 School Boards must authorize the use of fund balance by
resolution in which revenues are less than expenditures.
 Budgets can be adjusted up to January 31st each fiscal
year taking into account enrollment and other revenue
and expenditures not known at the time of the original
budget approved in June. (We do this in the November
Meeting)

Budget Process
We use a modified zero based budget
procedure that goes through every line in
the budget.
 We use position control to account for
personnel.
 Each account is analyzed and compared to
the prior 2 years and the current projected
year.
 Revenues are budgeted based on
enrollment projections. This accounts for
86% of District revenues.

Budget Process






January-February: Update spreadsheets with current year
projection and historical detail. Updated employee information.
January-February: Load current known changes into the
budget. (i.e. PERA increases)
January-February: Process the information coming from the
State and project what increases or decreases in funding might
occur.
January-February: Meet with principals individually and
directors to begin planning to meet the budget expectations.
February: Start budget projections for COLA, Steps, Furlough,
and other issues as appropriate.
February: Start the Board approved process for prioritizing
cuts/increases. (The past 2 years this has been accomplished
through the Budget Task Force.)
Budget Process
March: Apply all information to the
budget worksheets and evaluate the
need for cuts.
 March: State report comes out midmonth and make adjustments
accordingly as this is usually the report
the JBC uses to set the State’s budget.
 April: Prepare a preliminary look to the
Board and get the Board’s direction.
Board work session at April’s meeting.

Budget Process
May: Proposed budget to the Board. Budget
work session before the May meeting and
budget hearing during the meeting and
present the proposed budget with
recommendations to the Board and public.
 May: Take input from the Board and public to
make adjustments.

Budget Process





June: Finalize budget to be presented to Board.
Include State mandated budget reporting
requirements.
June: Budget hearing during the meeting for budget
presentation showing changes from May and final
line item budgets.
June: Board reconvenes the regular meeting and
approves the budget and appropriation resolutions
for each fund.
October: Actual student enrollment numbers and
additional information is factored into the budget.
November: Final budget and appropriation
resolutions are approved during the November
Board meeting.
2012-2013 Budget Timeline

January 2012:
 Budget template updated with current
information and prior year’s history.
 Gather data on potential budget reduction ideas.
 Meet with Principals regarding personnel and
budget reduction ideas.

February 2012:
 Directors start planning proposed budget
reductions based on State projections.
 Activate the Board desired process for budget
discussions. (BTF in the past)
2012-2013 Budget Timeline

March:
 Apply budget reduction ideas to budget template
to analyze progress towards budget reduction
goals.
 Adjust budget reduction goals after the State
forecast and JBC initial budget scenarios.

April
 Prepare preliminary budget for a work session
for School Board meeting.
 Take input from the School Board to create the
May proposed budget.
2012-2013 Budget Timeline

May:
 Prepare 2012-2013 proposed budget
 Present proposed budget to School board in a work
session.
 Present proposed budget during budget hearing during
the board meeting.
 Take input from School Board and adjust the budget
accordingly.

June:
 School Board adopts 2012-2013 budget and
appropriates the funds after budget hearing.

November:
 Adjust budget based on enrollment and other known
factors.
 School Board adopts revised 2012-2103 budget and
appropriations.
Budget Reduction Process
2010-2011: School Board created the BTF
(Budget Task Force)
 Met from Nov – March with a presentation of
their recommendations to the School Board
in April.
 Made up of 5 Community, 4 DAC, 4 Coord.
Council, 2 Class. Council, 2 Directors, 3
Principals. Mike and Terry were
“consultants” to the group. (20)

2010-2011 Budget
BTF Recommendation Implemented
Recommendation
Amount
Budget
Install 2 Furlough Days for All Staff
300,000
260,002
Eliminate District Funding for College Classes*
150,000
20,000
Increase Employee Contribution – Health Ins.
360,000
352,136
Reduce Bus Transportation Costs 10%
114,000
108,194
Intra School Consolidation
850,000
920,549
Qualifying Hours for Health Insurance
20,000
10,000
Reduction in Food for Meetings
35,000
30,000
150,000
150,000
9,000
0
25,000
21,915
102,000
102,000
Eliminate General Fund Support for Food
Service
Reduce Speaker Fees for In-service Training
Reduce Copier/Paper Costs by 10%
Reduce Extra-Curricular Activities
Totals
$2,115,000
$1,974,796
BTF 2010-2011

Eliminated 17.5 Teacher FTEs
 All but 2 were done through attrition
Eliminated 12.5 Classified FTEs
 Total State funding cuts $1,544,360
 Budgeted enrollment decrease $350,000

2011-2012 BTF
School Board creates BTF for 2011-2012 school
year
 Met from January – March with a presentation to
the School Board in April
 Made up of 5 Community, 5 DAC, 6 Coord.
Council, 5 Class. Council, 2 Directors, 5
Principals. Composition was based on Board
Districts. (2 Delta, 1 Ced. 1 Hotch., 1
Paonia/Craw) Mike and Terry were “consultants”
to the group. (28)

2011-2012 Budget
BTF Recommendations Implemented
Recommendation
Amount
Budget
Transportation Fee
$ 150,000
$
Intra-School (Certified)
45,000
240,000
283,297
8,175
0
110,000
119,310
79,000
79,000
One Additional Furlough Day (Board Approved
reestablish one furlough day to employees)
130,000
(106,297)
Crawford 6-7-8 (Board Approved 7-8 only)
209,738
194,293
Increase Activity Fees
Intra-School (Classified)
Health Insurance (Taken from Health Ins.
Reserves to prevent a large increase to
employees)
Fund Balance was authorized to
balance the 2011-2012 budget.
$
926,913
$ 614,603
2011-2012 BTF
Eliminated 6 Teaching and 8.5 Classified
positions.
 Board approved suspension of the Longevity
Policy encouraging long-standing teachers to
consider retiring which was successful in
reducing salary costs.
 Total State funding cuts $1,658,217
 Budgeted use of fund balance $1,077,256

Recap of the past 2 years

Total staff reductions
 Certified Teachers 23.50 FTE
 Classified Staff 20.50 FTE
Total Reduction Factor (Amendment 23
amount not funded) $4.9 Million
 Total State reductions in funding $3,202,577

Potential Process for 2012-2013





BTF in its current form: Effective? Needs
Changed? Dropped? (Current Board’s Decision)
District administration will put together
recommendations and priorities.
School Board’s input on the recommendations
Input will be received from DAC, Cord. Council,
Class. Council, Administration, and the
Community.
Administration will make final recommendations
to the School Board.
2012-2013 Budget
What we know today




State budget projections for cuts to school districts
near last year’s cuts. $1.6 Million.
Amount held over from last year’s State budget will be
used to offset cuts to school districts in 2012-2013.
Unrestricted Fund Balance available to help offset
cuts. $4.1 million less the amount 2011-2012 actually
used. (Budgeted $1.0 million)
Friday, the judge ruled in favor of the Lobato case.
This may have a positive impact on the 2012-2013
budget. However, there does not appear to be any
additional funds for the State to comply with this ruling.
It is also expected to be appealed to the State
Supreme Court.
2012-2013 Budget
Items to be Considered






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
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
Activity Cuts
Benefit Changes
Class Size Increase
Consolidation
Four Day Week
Fund Balance
Furlough Days
Program Cuts
Salary Adjustments
Other
(Alphabetic, no priorities
have been assigned)
Fund Balance Analysis
(Unrestricted)
Projected Fund Balance
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013* 2014*
-$1,000,000
-$2,000,000
* Projections
Use of Fund Balance
The use of fund balance has created a log
jam in the budgeting process. When you
use fund balance to shore up a budget
shortfall, it carries forward to the next year.
If no additional funds are available, the
budget will consume that amount of the
fund balance again. We are in a
predicament that may occur if additional
funding cuts come from the State. This
may require additional fund balance to be
used to balance the 2012-2013 budget.
This significantly increases the log jam.
Projected Use of Fund Balance
(Unrestricted)
Projected Fund Balance
$2,000,000
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2012
2013
2014
2015