Understanding Your School District Budget  Annual Spending Plan  To provide quality instruction and educational programs  Ensures taxpayers’ money is spent efficiently and reasonably  Goal of achieving the School District Mission Our Mission “Our students will independently grow and learn in a safe, positive, and challenging atmosphere, where faculty, staff, and parents are enthusiastic about the teaching and learning process.”

Budget ProcessBudget Process  Review current financial condition  Prepare financial projections  Utilize assumptions to drive revenue and expenditure forecast  Projections presented to various district committees and the Board and are updated quarterly

Budget PerspectivesBudget Perspectives  The Home Perspective  Student achievement, class size, available programs, qualifications of teachers and other staff  The School Perspective  Effectively perform their jobs and provide a quality education to students  The District Perspective  Strategic Plan  The Community Perspective  Fiscally responsible with the taxes paid on their homes, businesses, and vehicles  Today’s students will be the leaders and taxpayers for subsequent generations.

How Does the Typical Student Use $9,325?

Amendments that Affect School Funding  Taxpayer’s Bill of Rights (TABOR)  Requires voter approval of tax increases  Limits spending  3% expenditures in reserve  Amendment 23  Increases K-12 funding for 10 years at inflation plus 1%, then at the rate of inflation

Colorado School Finance Act  Colorado School Finance Act (SFA)  Equity through factors – At-Risk, Cost of Living, Personnel Cost Factor, & District Size  Three sources of funding  local property tax  state funds  specific ownership tax

Colorado School Finance Act

Local ReferendaLocal Referenda  Hold Harmless Override  1997 Override  $1,900,000  Additional Override Available  $1,845,315

Local ReferendaLocal Referenda

5-Year History of MCSD Mill Levies

What Does it Cost to Raise $1.0 Million?

Budget Budget

The Funding Driver – Enrollment

General Fund RevenueGeneral Fund Revenue GENERAL FUND REVENUE SOURCES Policy Decisions Tuition & Fees$ 556,5052.9% Local Elections 1997 Mill Levy Override 1,899,7649.8% Hold Harmless 277,9321.4% School Finance Act State Funding 3,170, % Local Property Taxes 10,211, % Specific Ownership Taxes 640,4463.3% (equalized) Other Revenue Other State Revenue Taxes 675,8233.5% Earnings on Investments 7,5000.0% County/Federal Mineral Leases 780,0004.0% Division of Wildlife 2,0000.0% Specific Ownership Taxes 259,5541.3% (non-equalized) Federal Grants 845,2584.4% TOTAL$ 19,327, % LESS CONTROLLABLE REVENUE GENERAL FUND REVENUE SOURCES Policy Decisions Tuition & Fees$ 556,5052.9% Local Elections 1997 Mill Levy Override 1,899,7649.8% Hold Harmless 277,9321.4% School Finance Act State Funding 3,170, % Local Property Taxes 10,211, % Specific Ownership Taxes 640,4463.3% (equalized) Other Revenue Other State Revenue Taxes 675,8233.5% Earnings on Investments 7,5000.0% County/Federal Mineral Leases 780,0004.0% Division of Wildlife 2,0000.0% Specific Ownership Taxes 259,5541.3% (non-equalized) Federal Grants 845,2584.4% TOTAL$ 19,327, % LESS CONTROLLABLE REVENUE

Budget Budget  School Budget Law CRS :119  “A statement shall be submitted with the proposed budget describing the major objectives of the educational program to be undertaken by the school district during the ensuring fiscal year and the manner in which the budget proposes to fulfill such objectives.”  Guiding Principles  Remain true to our core beliefs – mission, vision, and aims – Student learning results, collaboration, continuous improvement, and systemic student interventions.  To meet all Federal and State Mandates.  Implement a zero based budget process - All district programs and services will be considered for redesign, reduction, supplementation or elimination using our core beliefs  Consider reduction through salary freezes, furlough days, attrition, and other means.  Explore revenue generating options

Budget Calendar Budget Calendar

Budget Budget  Revenues  Total Program –Governor’s Budget Request  Inflation Increase of 2.6%  Negative factor the same as  Statewide average per pupil funding increase of $ or 3.4%  MCSD per pupil funding increase of $ from $6, to $6,523.61

Budget Budget

 Expenditures  PERA mandated annual increase of 0.9% of total wages  Health Insurance 9% Increase  Step Increases Average  3% Teachers and Classified  2% Administrators/Directors

Budget Budget  Fund Balance  Difference between MCSD’s Assets and Liabilities, Balance Sheet items  Snapshot at 6/30 every year  MCSD uses the fund balance to fund operations from July-March. This working capital, represents operating liquidity.

Budget Budget

Steps/PERA/MedicalForecast Budget$/PupilBudget$/PupilBudget$/Pupil K-12 Pupil Count 2, Beginning Fund Balance$6,497,294$3,003$5,295,159$2,469$4,093,024$1,909 Revenue Local$13,693,811$6,330$13,693,811$6,386$13,693,811$6,386 County$332,000$153$332,000$155$332,000$155 State$4,264,265$1,971$4,264,265$1,989$4,264,265$1,989 Federal$830,000$384$830,000$387$830,000$387 Allocation to CRF/IRF-$240,000-$111-$240,000-$112-$240,000-$112 Allocation to MCHS Athletics-$30,000-$14-$30,000-$14-$30,000-$14 Allocations to MCHS Activities$0 Allocations to CMS Athletics$0 Allocation to CMS Activities$0 Allocation to Food Service$0 Total Revenue$18,850,076$8,827$18,850,076$8,846$18,850,076$8,846 Expense Instruction$12,482,610$5,770$12,482,610$5,821$12,482,610$5,821 Support Services-Pupils$1,235,520$571$1,235,520$576$1,235,520$576 Support Services-Staff$998,270$461$998,270$466$998,270$466 General Administration$396,234$183$396,234$185$396,234$185 School Administration$1,330,931$615$1,330,931$621$1,330,931$621 Fiscal Services$196,794$91$196,794$92$196,794$92 Operations and Maintenance$2,293,569$1,060$2,293,569$1,070$2,293,569$1,070 Pupil Transportation$637,363$295$637,363$297$637,363$297 Staff Services$62,921$29$62,921$29$62,921$29 Other Support Services$3,000$1$3,000$1$3,000$1 Insurance$350,000$162$350,000$163$350,000$163 Administrative Costs$65,000$30$65,000$30$65,000$30 Total Expense$20,052,211$9,269$20,052,211$9,351$20,052,211$9,351 Ending Fund Balance$5,295,159$2,448$4,093,024$1,909$2,890,889$1,348 26% 20% 14% Required Reserves Tabor $700,000 30% BOE $6,015,663 Questar $- Total Required Reserves (Tabor and BOE) $6,715,663 Undesignated Reserve-$1,420,504 -$2,622,640 -$3,824,775