Board of Education Budget Retreat February 27, 2014 Agenda 1. - PowerPoint PPT Presentation

Specific Ownership Taxes (SOT) Revenue  SOT is a vehicle registration tax  Collected by counties and shared with taxing entities within the county based on property taxes levied and collected  Decreased for several years due to a drop in car sales resulting from the economic recession Revenue has rebounded due to the increase in consumer purchases  of durable goods in 2012/2013 and is expected to decrease slightly in 2013/2014 SOT  Five Year Trend: $29,000,000 $27,000,000 $24.7M $24.6M $25,000,000 $23.7M $23,000,000 $24.0M $23.5M $21,000,000 $19,000,000 $17,000,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 36

Interest Earnings Revenue  Interest earnings are earned on the pooled cash in the District  Distributed to each fund according to its ending fund balance  Decreased over the last 4 years due to a drop in interest rates and a drop in reserve balances Interest earnings are currently projected to remain flat due to flat  projections of reserve balances and anemic interest rates  Five Year Trend: Interest $3,000,000 $2.9M $2,000,000 $1.2M $1,000,000 $200K $150K $0.8M $0 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 37

Tuition, Fees, and Other Revenue  This revenue source is primarily comprised of revenue from fees for:  Athletics and Activities  Elective course fees  Building rentals  Indirect Cost Fees Gradual drop in this revenue source over the past 4 years due to an  increased number of at-risk students who have district fees waived  Projected to remain flat in 2012/2013 and a slight budgeted decrease in 2013/2014 Five Year Trend:  Tuition, Fees, and Other $16,500,000 $16.0M $16,000,000 $15.7M $15.5M $15.4M $15,500,000 $14.8M $15,000,000 $14,500,000 $14,000,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 38

Jeffco Public Schools Special Revenue Funds Revenue

Transportation Fund Revenue  Tuition, Fees, and Dues  Transportation fees instituted in fiscal year 2011/2012  Field trip fees Other Revenue   Transportation categorical revenue from the state Transfer in from the General Fund   Projected to increase in the out years due to projected increases in expense that are not offset by increases in other revenue Five Year Trend:  Transportation Revenue $22,500,000 $22.0M $22.0M $22.0M $22,000,000 $21,500,000 $21,000,000 $20.5M $20,500,000 $20,000,000 2011/2012 2012/2013 2012/2013 2013/2014 Actual Budget Estimate Budget 40

Campus Activity Fund Revenue  The Campus Activity Fund is funded via fees, donations, and fund raising revenue  Outdoor lab fees and Summer School fees moved to campus in 2012/2013  Collections of fees has declined as the at-risk population grows for whom fees are waived  Operating transfer in:  A transfer in from the General Fund to reimburse schools for waived fees to cover costs of materials for students are below poverty level  Five Year Trend: Campus Activity Revenue $27,000,000 $24.4M $25,000,000 $23.7M $23,000,000 $23.3M $22.8M $22.3M $21,000,000 $19,000,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 41

Grants Fund Revenue  The Grants Fund is funded via federal, state, and private sector grants  Two largest grants that the district receives are:  Special Education (IDEA) and Title 1  State grants include Gifted and Talented and Medicaid The peak in 2010/2011 and decline in 2011/2012 was due  to the one-time award of ARRA and EdJobs funds.  Federal sequestration will likely negatively impact revenues.  Five Year Trend: Grants Revenue $65,000,000 $61.2M $60,000,000 $55,000,000 $50,000,000 $45,000,000 $45.7M $46.3M $39.7M $40,000,000 $38.5M $35,000,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 42

Jeffco Public Schools Enterprise Funds Revenue

Food Service Fund Revenue  The food service fund is funded with:  Revenue from students who purchase lunches  Federal/State per meal reimbursement for serving free and reduced lunch Revenues in this fund have been steadily increasing over the last  several years due to:  Fee increase  Federal/State reimbursement rate increases  Growth in the free and reduced lunch population Five Year Trend:  Food Service Revenue $27,000,000 $26,000,000 $25.3M $26.0M $25,000,000 $24,000,000 $23.3M $24.2M $23,000,000 $22.7 $22,000,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 44

Child Care Fund Revenue  The Child Care fund is funded with:  Tuition from Preschool, Tuition Kindergarten, and School Aged Enrichment programs  Transfer in from the General Fund for the Colorado Preschool Program (CPP) slots awarded to at-risk preschoolers based on the per pupil revenue from the state  Several preschool, full day kindergarten, and school age enrichment programs were closed in 2011/2012 resulting in a decline in attendance  Tuition is expected to remain flat in 2013/2014, and the CPP transfer is expected to increase slightly due to an increase in PPR and the number of CPP slots awarded by the state. Five Year Trend:  Child Care Revenue $15,200,000 $14,800,000 $14.6M $14.6M $14.8M $14.7M $14,400,000 $14,000,000 $13.9M $13,600,000 $13,200,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 45

Property Management Fund Revenue  The Property Management Fund is funded with building rental fees for the use of district buildings and facilities  Revenue in the fund has been increasing slightly over the last few years, and is projected to remain flat in 2013/2014.  Five Year Trend: Property Management Revenue $2,400,000 $2,000,000 $1.8M $1.6M $1,600,000 $1.8M $1.6M $1.5M $1,200,000 $800,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 46

Jeffco Public Schools Internal Service Funds Revenue

Employee Benefits Fund Revenue  The Employee Benefits Fund is funded via insurance premiums  2009/2010 revenue included one-time premium relief funds from Kaiser. These funds are used to fund wellness programs for employees.  2013/2014 revenue is expected to decrease due to a change in the type of life insurance policy offered by the district.  Five Year Trend: Employee Benefits Revenue $10,000,000 $8.9M $9,000,000 $8,000,000 $6.9M $7,000,000 $6.5M $6.8M $6,000,000 $5.8M $5,000,000 $4,000,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 48

Central Services Fund Revenue  The Central Services Fund is funded via internal billings to charge other business units in Jeffco for services provided.  2013/2014 Revenue for this fund is expected to remain level. Five Year Trend:  Central Services Revenue $4,000,000 $3.7M $3.5M $3.6M $3,500,000 $3.7M $3.5M $3,000,000 $2,500,000 $2,000,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 49

Technology Fund Revenue  The Technology Fund is funded via  A transfer from the General Fund for infrastructure  Internal billings that technology charges other business units for services provided  Federal funds provided through the E-rate program Revenue fluctuates due to variability and timing of projects   2013/2014 Revenue is projected to increase to fund infrastructure  Five Year Trend: Technology Revenue $23,000,000 $21.8M $21,000,000 $20.2M $19,000,000 $19.6M $18.2M $18.0M $17,000,000 $15,000,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 50

Insurance Reserve Fund Revenue  The Insurance Reserve Fund is funded via  A transfer from the General Fund  Insurance claims Decrease in revenue in both 2011 and 2012 due to both a decrease  in insurance claim reimbursements and reduction in the general fund transfer due to budget reductions. Five Year Trend:  Insurance Reserve Revenue $12,000,000 $11,000,000 $10.9M $10,000,000 $9,000,000 $8.7M $7.7M $8,000,000 $7,000,000 $7.7M $7.5M $6,000,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 51

Jeffco Public Schools Capital Project Funds Revenue

Capital Reserve Fund Revenue  The Capital Reserve Fund is funded via  A transfer from the General Fund  This transfer is meant to cover operational capital renewal and repair  The transfer amount has been reduced over the past few years during economic strain  The transfer is inadequate to maintain our asset base according to industry standards  Proceeds from the sale of any property owned by the district Five Year Trend:  Capital Reserve Revenue $35,000,000 $29.6M $30,000,000 $26.6M $22.5M $25,000,000 $20,000,000 $21.9M $20.8M $15,000,000 $10,000,000 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 53

Building Fund Revenue  The Building Fund is authorized by the voters of Jefferson County  The Bond Fund is funded at one time from proceeds and the premium that was obtained at the time of the sale due to favorable market conditions  Revenue in future years will only be the small amount of interest that will continue to be earned on the balance of the bond proceeds until they are fully spent  Five Year Trend: 2012A Bond Revenue $140,000,000 $117.0M $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0M $0 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 54

Jeffco Public Schools Debt Service Funds Revenue

Debt Service Fund Revenue  The Debt Services Fund is funded via property taxes  Revenue is based on a millage rate that is set each year and is sufficient to raise the amount necessary to meet our debt repayment obligations  Revenue decreased in 2012 as part of the voter approved package for an increase in the operating mill levy which was offset by a decrease in the debt service mill levy  The decrease was possible due to the payoff of the 2007 debt issuance  Five Year Trend: Debt Service Revenue $400,000,000 $350,000,000 $351.0M $300,000,000 $250,000,000 $200,000,000 $133.5M $150,000,000 $100,000,000 $82.0M $50,000,000 $77.8M $50.5M $0 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Actual Actual Actual Estimate Budget 56

Jeffco Public Schools Trends – actuals & budget Handout Item #1

Jeffco Public Schools Enrollment Handout Item #2

Jeffco Public Schools FTE’s Handout Item #3

Jeffco Public Schools Charter Equalization Handout Item #4

Charter School Funding • 100% of the per pupil funding (PPR) from the state • 100% of special education funding per identified student (Tier A & Tier B) from the state • Share of previous Mill Levy override revenue as agreed to and communicated during the individual elections • Charter schools receive Bond and Grant funding • Charter school capital construction funding from the state 61

Charter District Purchased Services • Services purchased from the District as outlined in contract and per Colorado Department of Education; superintendent, board of education, county treasurer fees, financial services, benefits, technology, safety & security, insurance • Special education and English as a second language services per contract and within federal guidance • Other optional District services available for purchase; homebound student, student health, library, Warren Tech, Outdoor lab schools *This list is not all-inclusive of services available 62

Charter Funding Comparison Mill Levy overrides 1999 $35.8 million 2004 38.5 million 2012 39.0 million Total $113.3 million Mill levy override per total District FTE $1,414 Charter school override per FTE 247 Difference per FTE $1,167 Total redirection of funding to charters $7.4 million

Jeffco Public Schools Expenditures on <5 and >21 Under Construction

Jeffco Public Schools 2014/2015 Budget

Predicting Total Program 1. Student Membership vs. Student Funded Count 2. Per Pupil Revenue (Inflation) 3. Factors 4. State Budget (economy) 5. Legislative Decisions 6. State Education Fund 66

2013/2014 Total Program Revenue November - $519M • Governor’s Budget Request January - $527M • Governor’s REVISED Budget Request March - $518M • Initial Legislative Figure Setting April - $523M • Final Legislative Appropriation 67

2012 Mill Levy Override (MLO) Promises Made, Promises Kept • The $39M MLO was never presented as new funding for new things. • 2012 MLO was planned for funding existing programs/service levels/etc. that would have otherwise been cut. Remember, there were $45M of identified reductions that were planned for 2013/2014 due to the known budgetary shortfall that resulted from decreased state funding. 68

2012 Mill Levy Override (MLO) Promises Made, Promises Kept Operating (3A) • Maintain class sizes • Recruit and retain great teachers • Keep Outdoor Lab Schools open • Keep instrumental music in elementary schools • Preserve the work being done by teacher librarians Bond (3B) • No new square footage • Warm, Safe and Dry – roof replacements, upgrades to safety and fire protection systems, and many other necessary projects http://www.supportjeffcoschools.com/3a-and-3b- faq/money-from-3a-benefits-student-instruction/ 69

Current News from the State FY 13-14 FY 13-14 FY 14-15 Difference Adopted With Proposed Budget Supplemental Funding Approval from the State Funded 80,691 80,900 80,775 (125) Students Total Program (state plus local $620,459,464 $620,018,948 $635,188,442 $15,169,493 funds) Negative Factor ($92,765,972) ($95,613,803) ($94,056,146) $1,557,657 Total Program After Negative $16,727,151 $527,693,492 $524,405,145 $541,132,296 Factor Per Pupil $6,539 $6,482 $6,699 $217 Funding 70

Current News from the State on the 2014/2015 Budget • Jeffco’s Preliminary Overall Increase $16.7M – Charter Share - based on increased enrollment (~$3.0M - $4.0M) • Charter schools receive their per pupil revenue according to statute • These are dollars that must be forwarded on to charter schools and are not available to use for General Fund expenditures • Charter Boards determine how charter school funds are used just like Jeffco’s Board of Education directs the use for General Fund dollars. – The amount of increased funding in the General Fund for the Board of Education to make decision on is – $12.7M On-Going 71

One-Time vs. On-Going • One-Time Funds – – Like your savings account, when they are spent, they are spent – Not for on-going expenditures – Good for one-time expenditures ─ capital, technology, materials, equipment, etc. • On-Going Funds – – Funding that is expected to continue into the future – Good for operational expenditures ─ compensation, programs, etc. Bottom line – minimal flexibility in new dollars….

One-Time – Potential • Planned build up of reserves • State forecast includes economic dip the next few years • $10M ONE-TIME increase in reserves 2014/2015

Jeffco Public Schools 2014/2015 General Fund Projections and Assumptions Handout Item #5

Jeffco Public Schools Priorities – Staff and Board

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How ow What at Simo mon n Sinek: k: Start rt with h Why

Basis for Recommendations 100% Career r and College ge Con ontinu inuous Ready dy Effective ment Improve roveme and Build ilding ing Efficient Capacit city Building Bright Futures able Accoun ountabl Safety Sa ety to our Public Best t and Brightest ghtest

Mandated Increases Net – $5,000,000 • $3,727,200 PERA • Legislated increase Healthcare • $4,000,000 Reform Retirement, • $(4,700,000) Turnover Savings • Includes PERA • $1,899,100 Transfer Increase • Childcare, Capital, Risk, T echnology, Campus & Transportation – inflation & CPP Slots

Why? Why? Fed edera eral law l law Sta State Law e Law

Employee Compensation • $11,725,100* Compensation • Approximately 2.5% for all employees Leadership: Objective 1 Call to Action Global Ends Statement Ends Board Goals: Reading, Math, Writing, ALP Students, Remediation Rate *This is the cost to the General Fund only. There will be cost increases in other funds too.

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Special Education – $2.2M • Placement out of district Investment • Transportation • $1,500,00 Amount • $786,000 Call to Action Educational Research and Design: Objectives 2 and 3 Ends 1and 2 Ends Board Goals: Reading, Writing, and Math Why Federal Law Free and Appropriate Placement Programs to meet our obligations to special needs students

Special Education Potential Solution • Develop a district program Investment in a vacant school • $3,556,300 (2014-2015) Amount • $2,806,300 (on going) Current Costs: • 2012-2013: $4.5 million • 2013-2014: $5.5 million • 2014-2015: $6-$7 million??

Mobile Device Readiness • Mobile Device Readiness Investment (MDR) • $4,500,000 (on-going or Amount one-time) Call to Action Educational Research and Design: Objective 1 Business and Finance: Objective 2 Ends Ends 1, 2, and 3 Board Goals: Reading, Math, Writing, ALP Students Why Why Infra rastructure structure upgr grade des to suppo pport rt mobile ile dev evices ices and tes estin ing Phase ased d impleme lementa tation tion and dep eprecia eciation tion costs ts Changi ging ng instructiona uctional l landscape scape for the e future

Primary Literacy Board and District Goals • Increase the percentage of third graders reading at proficient and advanced from 80% Investment to 85%. Reduce the percentage of students in the unsatisfactory category by 1%. • $2,000,000 Amount Description & • Professional development, Materials, Literacy coaches for primary teachers, Rationale extended school year Call to Action Elementary Schools: Objective 1 Ends: 1, 2, and 3 Ends Board Goal: Reading Wh Why • Literacy eracy is essential ial to futur ure e success ss of our kids. • Board rd of Educa catio tion n Goal

Elementary Math Instruction Board and District Goals • Increase the percentage of fourth graders Investment who are scoring in the advanced and proficient category on math from 77% to 80%. • $4,000,000 (one time) Amount • $1,800,000 (on-going) • Includes staff development, math coaches for Description elementary, and materials for grades K-5 or 6. Call to Action Elementary Schools: Objective 1 Ends: 1, 2, and 3 Ends Board Goal: Math Why? y? Mat ath is is a ga a gate teway ay to to post-secondar econdary y ed educ ucat ation ion Changin ging g lands dscape e in in math in instructi uction on

Classroom Dashboard • Classroom Dashboard Investment Amount • $1,000,000 (on-going) • A dashboard for teachers that Description provides information instead of data Call to Action Educational Research and Design: Objective 1 Business and Finance: Objective 2 Ends 1, 2, and 3 Ends Board Goals: Reading, Math, Writing, ALP Students, Remediation Rate Why Why Data driven n instructi ction on is essent ential ial Use e technol nolog ogy y to analyze yze and deliver er the data as information ation Save e 1,417 hours for planning, ning, teaching, ing, and profession onal l develop opmen ment per school ool Next xt great leap in effective ve teaching ing

Data Security and Privacy • Data Security and Investment Privacy Enhancement • $560,000 Amount • Data Privacy Expert Description • Consulting funds for security oversight of data Call to Action Support Services: Objective 4 Ends Ends 4 Why Big data offers big challenges Recommended by Data Management Advisory Committee Best practice in Data Governance