1 Douglas County School District Re.1 School Finance 101 FY

2 SCHOOL FINANCE 101 Determining Total Program funding: Funded Pupil Count times Total Per-pupil Funding plus At-risk Funding plus On-line Funding

3 SCHOOL FINANCE 101 FY Behind the Formula: DCSD’s Per Pupil Revenue

4 Per-Pupil Revenue & Amendment 23 A constitutional amendment passed by the state's voters in The amendment provides for minimum levels of increase in the statewide base per pupil funding amount and in categorical funding and sets a minimum increase in the state General Fund appropriation for school finance funding for public elementary and secondary education. It requires an annual increase in the base per pupil funding in the school finance act and total state funding for categorical programs of at least the inflation rate plus one percentage point from FY through FY and by the inflation rate thereafter. SCHOOL FINANCE 101

5 Funding Per-pupil Revenue Two local sources of revenues are incorporated into the Public School Finance Act: Property Taxes and Specific Ownership (vehicle registration) Taxes. Funding for a school district's Total Program is provided first by local sources of revenues (the Local Share); if these local sources are insufficient to fully fund Total Program, state moneys fund any shortfall. Local Share Property Taxes Specific Ownership Taxes State Share Equalization SCHOOL FINANCE 101

6 OTHER FUNDING Categorical Program Funding: In addition to Total Program funding, districts may receive state funding to pay for specific programs designed to serve particular student needs. Statewide total for = $191.3M; DCSD: $10.9M Override Revenues: $33.7M Bonded Indebtedness: $625.8M Small Attendance CentersSpecial Education ELPATransportation Gifted and TalentedVocational Education SCHOOL FINANCE 101 FY

7 SCHOOL FINANCE 101 Calculating Your Property Taxes The taxable value of your property is a percentage of the actual value (roughly 8%) and the resulting value is called the “assessed value.” To determine the amount of property taxes, multiply the assessed value times the decimal equivalent of the total mil levy (one tax mil is equal to 1 cent on $10.) (i) Property Valuex Assessment Rate= Assessed Value (ii) Assessed Valuex Mil levy= Property Taxes

8 Financial Backdrop: DCSD receives lowest funding per student in Metro area

9 Ending Fund Balance Fund Balance as % of Revenue

10 General Fund Fund Balance History

11 Ending Fund Balance Fund Balance as % of Revenue

12 Observations & Insights  Defining Realities  Need to “live within our means” at odds with goal to be competitive employer  Revenues from the School Finance Act grow at a rate less than expenses escalate: e.g. increase in PPR based upon CPI whereas total compensation package pressured to increase at some multiple of the CPI. “Do more with less” may mean “do less with less”  Significant number of pupils living within district boundaries seeking educational opportunities which are out-of-district

13 Annual Increase in PPR v. SALARY (CPI + A23’s 1%): FISCAL YEAR GROWTH IN PPR SALARY %4.70% %4.40% %3.00% %5.50% %6.35% %2.70% TOTAL17.0%26.65%

14 FISCAL RISKS State’s Fiscal Health Revenue Problems A-23 Funding Compensation Philosophy Base Pay Other Pay Elements Performance Pay Benefits Health Benefits PERA Stakeholder Expectations

15 Points To Remember School Financing in Colorado is inadequate. Increased expenses and decreased revenues means additional resources are necessary to maintain programs District receives lowest student funding in the metro Denver Numerous “value-added” programs are not funded by school finance (Security, Transportation, Technology, World Language, Graduation expectations). DCSD can claim 2% to 10% of a home’s market value is attributable to the District’s strong performance