2020/2021 BUDGET UPDATE Board of Education – April 2, 2020 Kathleen Askelson, Chief Financial Officer Nicole Stewart, Director-Budget & Treasury
AGENDA Budget Timeline – Current Activity March 11 Finance Discussion March 16, 2020 Forecast Scenarios for adjusting: Adjustment Scenarios for No Buy Down of Budget Stabilization Factor and No New Funding Next Steps
TIMELINE 2020/2021 BUDGET DEVELOPMENT OCT/NOV DEC JAN/FEB MAR APR MAY/JUNE School 2020/2021 Schools Enter DAC Final Continue Last Day Accountability Factors are Budgets into Community Fine Tuning for Legislators Committees Set Based Hyperion Engagement and Building May 6 Meet to Define on 2019 Results Report Budget Priorities October Count Budget Increase Proposed Budget Requests Due Direction/ Final BOE Public Hearing Governor’s Kick Off Feedback─ Direction May 7 Proposed SBB and BFO Cabinet March 5 for Proposed BOE Meeting Budget Processes Recommendations BOE Meeting Budget April 2 Final BOE ELECTION Community Negotiations March Forecast BOE Meeting Direction for Engagement/ Budget Adoption SAC Reports Begin Building Negotiations on June 4 Budget December Community Forecast / Negotiations Budget Forum Outlook Budget Survey
MARCH 11 FINANCE DISCUSSION
2020/2021 ASSUMPTIONS Based on Governor’s Proposal – November 2019 Proposed statewide assumptions per the revised governor’s budget request released in November. 1.9% inflation – including categorical funding 1,132 student enrollment growth $52M decrease to budget stabilization factor
2020/2021 STATE REVENUE – NOV 2019 Jeffco Funding Assumptions LESS PASS THROUGH TO Charters, Colorado Preschool Program (CPP), JEFFCO’S JEFFCO’S and Innovation STATE REVISED TOTAL Schools (est) FUNDING GENERAL FUND $(1.9M) INCREASE $18.5M $16.6M
2020/2021 ASSUMPTIONS NOV 2019 Budget Stabilization Factor For 2020/2021 , the governor’s proposal JEFFCO PUBLIC SCHOOLS will decrease the budget Total Per Pupil Funding for 2020/2021 stabilization factor by: per the governor’s revised proposal $52M Statewide ( before budget stabilization factor applied) Jeffco’s Share $4.6M $9,102 Increases Jeffco’s Per Pupil Revenue by $56 $(572) Quick Facts about budget stabilization factor: FY 2020 buy down was $100M $8,530 Factor peaked in 2012/2013 at $1.0B statewide Funding ( after budget Cumulative impact loss to Jeffco since inception stabilization factor applied) (2010/2011 through 2019/2020) $755M
2020/2021 OPTIONS FOR INCREASING AVAILABLE RESOURCES, IF DIRECTED Central reductions identified of $2.1M, if directed: List and Budgeting for Outcomes (BFO) forms attached to agenda in BoardDocs NOTE: There are no reductions to 5A directives or District Accountability Committee (DAC) recommendations Additional reductions, if directed: Central Schools by reducing the student based budgeting (SBB) base factor
MARCH 16, 2020 FORECAST
LEGISLATIVE COUNCIL STAFF Presentation March 16, 2020
OFFICE OF STATE PLANNING AND BUDGET Presentation March 16, 2020 The economic outlook is extremely uncertain Downward revenue revision means less budget available Recession odds are increasing, with potentially significant budget impacts Budgeting to a range… Appropriate funds conditionally
STATUS OF SCHOOL FINANCE ACT Legislation paused for Covid-19 until March 30, 2020 Joint Budget Committee is working on the long bill (full state budget) that will include recommendations for school finance Special sessions of the legislature can be requested by the governor or two thirds of the members of the house
Adjustment Scenarios For No Buy Down of Budget Stabilization Factor and No New Funding
2020/2021 ADJUSTMENT SCENARIOS Scenario 1 Scenario 2 Scenario 3 Scenario 4 Governor’s No BS No New Proposal Factor Buy Funding Down State Funding Increase $16.6 $12.5 $.0 $.0 5A Mill Levy Inflationary Increase .6 .6 .6 .6 Retirement/Turnover Savings (credit to expenditures) 6.0 6.0 6.0 6.0 Total 2020/2021 Estimated New Available Resources $23.2 $19.1 $6.6 $6.6 Mandated PERA Increase .5% $2.6 $2.6 $2.6 $2.6 Loss of Revenue from 350 Student Decrease 3.0 3.0 3.0 3.0 Staff compensation – directed by BOE 03/11/20 17.0 17.0 17.0 .0 Unallocated / Reduction needed to balance budget .6 (3.5) (16.0) 1.0 Total Expenditure/Revenue Adjustment Assumptions $23.2 $19.1 $6.6 $6.6
2020/2021 BUDGET DIRECTION NEEDED 1. Scenario 1 – Governors Proposal Leave compensation placeholder No further adjustments from governors proposal 2. Scenario 2 – No BS Factor Buy Down Leave compensation placeholder Implement $3.5M in reductions to cover loss of budget stabilization factor ($52M) 3. Scenario 3 – No New Funding Leave compensation placeholder Implement $16M in reductions to cover loss of no new funding from the state 4. Scenario 4 – Remove all increase assumptions until final school finance act
NEXT STEPS
NEXT STEPS Budget team builds Proposed Budget starting in March continuing through April If significant changes in legislation occurs, additional BOE meeting may be needed in April Further direction on May 7 with legislation finalized Budget adoption is scheduled for June 4
COMMUNITY ENGAGEMENT Community Survey Launched week of March 9 Community to choose top three and highest priority for budget investments Closes April 27
COMMUNITY ENGAGEMENT (continued) Two Budget Forums – April 6 (Lakewood High School) 6pm (cancelled) April 25 (central location TBD) 9am • Overview of state school finance process • District specific budget • Dialogue on priorities • Community responses recorded via budget survey NOTE: May switch to Facebook Live if public forum is not advised Public Comment for Budget – May 7
QUESTIONS
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