2017/2018 BUDGET Board of Education March 23, 2017 AGENDA - PowerPoint PPT Presentation

2017/2018 BUDGET Board of Education March 23, 2017

AGENDA  Timeline  Community Engagement Online Budget Tool DAC/SAC Feedback  State of the Economy March Forecast / Proposed Legislation Governor’s Request  Jeffco FY 2017/2018 Budget Budget Assumptions Use of One-Time Funds  Action – Board Direction on Budget  Questions

TIMELINE DEC NOV JAN/FEB MAR APR MAY Governor’s Kick Off Community Community Continue Budget Proposed School Engagement Engagement Building the Adoption Budget (SBB- Results Budget Student Early Based Direction/ DAC Final March Budgeting) Feedback Report Forecast and and Department Fine Tuning (BFO- Request of Budget Budgeting Board for Direction Outcomes) Public Processes Hearing Build Proposed Budget Budget

Community Engagement

COMMUNITY and STAFF ENGAGEMENT  Online Interactive Budget Tool We heard  District Accountability Committee (DAC)/ from School Accountability Committees (SAC) community Recommendations and staff  Cabinet Recommendations through:  Telephone Town Halls  All Leadership Meeting – District Leadership Feedback

COMMUNITY and STAFF ENGAGEMENT  Tool was open 3 weeks – January 21 through February 10  Available in English and Spanish  Outreach through Communications Internal Media Channels ( Leadership Memo, Messenger, website, dedicated parent email, customized text messages, customized district access points)  Response • 18,362 visitors • 5,366 responses • 585% higher than prior year

COMMUNITY and STAFF ENGAGEMENT  Results • Communicated to the Board of Education • Published on Jeffco’s website March 3. Average Responses ► Employee Compensation ► Athletics and Activities • Increase by $12M •2% decrease ► Deferred Maintenance ► Districtwide Fees •<1% decrease •24% or greater increase ► School Based ► Technology Expenditures •<1% decrease •< $1 per student ► Central Staff Support reduction •$1.4M decrease ► Student Mental Health ► School Closures •Close 4 schools •4% decrease

COMMUNITY and STAFF ENGAGEMENT ► Fund the District Improvement Plan (DUIP) ► Support Employee Compensation ► Continue Student Behavioral/ Mental Health Support ► Maintain Current Student Based Budgeting (SBB) Strong support for the tough decisions in order to utilize facilities and resources effectively.

COMMUNITY and STAFF ENGAGEMENT  Hosted 4 Town Halls • 3,958 Total Listeners • 62% Do Not Support Closing Schools • 94% Do Support Board Priorities including Compensation and Keeping Money in Schools  All Leadership Meeting − February 7, 2017 • Comments were gathered informally to be used for informational purposes only

State of the Economy

MARCH FORECAST KEY INDICATORS FROM THE STATE  State Economy Office of State Planning and Expanding with oil and gas  Budget downturn ending  Inflation Rate  2.8%  Property Tax Residential Assessment Rate (RAR) Change due to Gallagher amendment   Drop in local share from schools  TABOR refunds beginning in 2017/2018

2017/2018 ASSUMPTIONS GOVERNOR’S PROPOSAL Proposed statewide assumptions per the Governor’s Budget Request released in November. 2.7% inflation 8,109 student enrollment growth $45.4M increase to negative factor

2017/2018 ASSUMPTIONS If Residential Assessed Value (RAR) shortfall is not backfilled... Governor’s Total Request General Fund $4.4M Less Increase Pass Through $4.0M to Charters $(.4M)

2017/2018 BUDGET – Scenarios No Governor's No New Reductions Governor's Proposal and Funding and Needed Proposal Loss of RAR Loss of RAR State Funding Change 20 13 4 (10) 2017/2018 Retirement/Turnover Estimate 7 7 7 7 Funded Enrollment Change (4) (4) (4) (4) 2016/2017 Retirement/Turnover Over Estimate 2 2 2 2 Net New Available Ongoing Resources 25 18 9 (5) Target - Compensation Investment 25 25 25 25 Shortfall - (7) (16) (30) Cabinet Reductions Needed - 7 16 20 SBB Reductions Needed - - - 10 Net - - - -

Jeffco FY 2017/2018 Budget

JEFFCO FY 2017/2018 BUDGET REDUCTION RECOMMENDATIONS Board of Education has identified $19.8 million toward the targeted goal. ► $10.8M from Cabinet Reduction List ► $9.0M District Savings/State Outlook

JEFFCO FY 2017/2018 BUDGET 2016/2017 GENERAL FUND RESERVES School Carryforward Reserve $14,500,000 Assigned $49,262,544 TABOR Reserve $17,756,207 Multi-Year Commitment Reserve $17,006,337 Board of Education Policy Reserve $23,694,654 Unassigned $76,419,654 (13% of Expenditures ) Undesignated Reserve $52,725,000 2015/16 Comprehensive Annual Financial Report

JEFFCO FY 2017/2018 BUDGET PROPOSED BUDGET ACTIONS MOVE FORWARD WITH… ► Increased State Funding  $4M in new state funds ► Incorporating Identified Reductions  Budget office to build approved reductions in the proposed budget book ► Increase Compensation by $19.8M  Districtwide compensation placeholder to be added to the proposed budget book ► One Time Use of Reserves  On hold until state provides clarity on funding

JEFFCO FY 2017/2018 BUDGET RECOMMENDATIONS WHAT IF SCENARIOS…. ► Less than $4M in Funding from State  BOE approved direction from Memorandum of Understandings (MOU’s) with associations  One-time use of funds  Further reductions ► State Funding is Higher than $4M  BOE approved direction from MOU’s with associations  BOE direction for amounts beyond any MOU’s

JEFFCO FY 2017/2018 BUDGET RECOMMENDATIONS Late Budget Adjustments … Legislation must adjourn by May 10, 2017. Depending on the date when final funding is known and the extent of changes from the Board, the budget team will either:  adjust the proposed budget; or  revise the budget, if needed, after option.

ACTION and NEXT STEPS

NEXT STEPS MARCH APRIL MAY BOE meeting BOE meeting BOE meeting March 23, 2017 April 20, 2017 May 4, 2017 ► Board Direction ► First public ► Budget adoption hearing for 2017/2018 for 2017/2018 Budget office Proposed Budget will incorporate all BOE direction ► BOE direction into a revised on any revisions projection to be incorporated to be presented into the adopted in April budget

QUESTIONS