FY B UDGET U PDATE B OARD OF E DUCATION M EETING Tuesday, April 15 th, 2014 Douglas County School District

ANTICIPATED INCREASES IN REVENUES Inflation and Pupil Count growth Buy-down of Negative Factor - $110 M These two items result in a PPR increase of $356/FPC* to $6,752/FPC 5,000 additional Colorado Preschool Program (CPP) slots –Currently 25 slots contemplated for DCSD – funded at 0.5 PPR/FPC *FPC – Funded Pupil Count 2

ANTICIPATED INCREASES IN EXPENSES Increases in compensation –Salary: 1-3% depending upon final legislation ($3M - $9M) –Medical Expenses: average 8.42% total premium increase ($1.3M) –PERA contribution rate increase: 0.9% ($2.4M) SBB Increases –$105/student one-time in FY will be ongoing in FY –$50/student increase to cover increased salary and benefit costs ($2.6M) –$50/student additional increase depending upon final legislation ($2.6M) COP Lease Payment Fund –Retirement of 2003 COP and sale of 2014 COP with proceeds of $15M –Increased lease payment by $600,000 (net) annually New Energy Performance Contract (Wilcox and ThunderRidge) –$226,000 annually 3

BUDGET SCENARIOS – NEIGHBORHOOD SCHOOLS 4 Worst Case Scenario (Governor’s Budget) Best Case Scenario (Superintendents’ Request) Likely Scenario (Student Success Act as of 4/10/14) Increased Medical Benefits$1.3M Increased PERA Contribution$2.4M $105 SBB becomes Ongoing$5.5M Student Computer Refresh$1.8M $2.1M $50 per Student SBB$0.0M$2.6M Pay Increase (1% = $3.0M)$0.0M$9.0M$4.5M TOTAL$11.0M$22.6M$18.4M

MISCELLANEOUS NOTES RELATED TO SCHOOL FINANCE Student Success Act and School Finance Act – 2 bills House floor last week, Senate this week End of Legislative Session is May 7 th $5M for financial transparency for CDE $20M for READ Act $13M for charter facilities Postpone implementation of Average Daily Membership 5