2. Budget Update Jeffco’s Future Parent Leadership Fall 2007

3. Agenda Budget Overview Environmental Scan Strategic Advice

4. District Personnel Summary Teachers & Other Certificated5,178 Support Staff1,561 Administrators/Professional & Technical 411 Other Hourly & Part-time4,300 Salaries and benefits are approximately 86% of the district’s budget

5. The Challenge of Jeffco Budgeting Declining resources (enrollment) Increasing expectations Increasing costs (inflation) Increasing mandates

6. 2008-2009 Revenue Changes… As we know them today… AssumptionAmount Revenues: State Funding (2.8% Cost of Living Increase) $15,372,000 1% from Amendment 23 (designed to make up for 10 years of public school under funding) $5,490,000 Enrollment (projected decline: 600 funded count) ($4,047,000) Charter School Revenue Allocation ($3,360,000) Other Revenue ($350,000) Subtotal: Revenues $13,105,000

7. 2008-2009 Expenditure Changes… As we know them today… AssumptionAmount Expenditures: Savings from Retirements ($5,420,000) Enrollment Expenditure Savings ($2,482,000) Amendment 23 Categorical Expenditures $212,000 General Increases – utilities/new schools & programs/teacher work year/class size/graduation/technology (net of carry forward) $2,600,000 Transfers (Capital, Insurance, Preschool) $128,000 Subtotal: Expenditures (without compensation increases) ($4,962,000)

8. 2008-2009 Compensation Assumptions… As we know them today…*** Assumption % COLA Placeholder Expenditures: Steps, Level Adjustments, and Variable Pay –Teachers and Classified Personnel: Steps and Levels –Administrators, Principals, and Assistant Principals: Variable Pay $10,440,000 Cost of Living Adjustments (2.3% Assumption) $10,000,000 PERA – Salary Increase & Legislative Changes $5,590,000 OCR Mandated Teachers $925,000 Benefits $4,000,000 Subtotal: Compensation Increases$30,955,000

9. Compensation Increases Reminder*** Compensation increases are subject to negotiations. No decisions have been made. COLA and benefits numbers are placeholders only.

10. 2008-2009: Combined Revenue and Expenditure Changes As we know them today… Revenue Changes… $13,105,000 Expenditure and Compensation Changes… $25,993,000 Revenue Increases Compared to Expenditure Increases ($12,888,000) Planned Efficiencies (in the past…reductions) $3,000,000 Planned Utilization of Mill Levy Override Dollars/Strategically Planned Spending ($9,888,000)

11. Good News Conservative spending in: Salary and Benefits Utilities Central Departments led to no more than $3,000,000 reductions for 2008-2009 and possibly less

12. Jeffco Enrollment

13. Jeffco Financial Projection

14. Colorado Context Finance Act –Amendment 23 dollars will end in 2010-2011- $5.0 million per year –Mill levy stabilization funding shifts funding from state to local funding –Jeffco receives $50 less per child than Douglas County, $132 less per child than Cherry Creek, and $137 less per child than Boulder Tax Code in our Constitution

15. National Context Colorado is: –48 th in the nation in K-12 spending –48 th in the nation in higher education spending Colorado spends $7,730 per student, $971 below the national average of $8,701. ($79.6 million for Jeffco Kids) (Colorado Legislative Council) (Center for Budget Policy and Priorities)

16. National Context Colorado is: –4 th lowest in state and local tax burden –2 nd lowest in business tax burden –6 th lowest in state sales tax rate –2 nd lowest in residential property tax burden Metro Denver Economic Development Corporation

17. Our Challenge: Educating the 21 st Century Student Small Class Sizes Rigorous Senior High Requirements Technology Well Trained Teachers Outstanding Leaders

18. Our Challenge: Educating the 21 st Century Student Guaranteed and Viable Curricula Textbooks and Materials Transportation Choice Safety and Security

19. Our Future Projected Reductions 2009-2010 –$5,000,000 2010-2011 –$7,000,000 2011-2012 –$9,000,000

20. Proactive and Thoughtful in Planning Strategic Use of the 2004 Mill Levy Override Budgeting for Results Staffing Study Pay for Performance Technology Refresh Program

21. Mill Levy Overview History of Mill Levies 1998: Defeated 1999: $45 Million Authorized $35.8 Million Collected 2004: $38.5 Million Collected

22. Public Perceptions 56% think property taxes are “about right” 25% think property taxes are “too high” 58% of all voters think funding for Jeffco schools should be increased 62% of parents believe funding for Jeffco schools should be increased 51% of those over 60 believe that funding for Jeffco schools should be increased

23. What Options Do We Have? Transportation Mill –A levy for excess transportation costs –Estimate ~ $15 M per year ~ 2 mills –2 mills = $48 per year on $300,000 home Special Building and Technology Mill –Up to 10 mills for 3 years –Estimate - $70 M per year on 10 mills –10 mills = $238 per year on $300,000 home

24. Mill Levy Options Mill Levy Override for the General Fund $22,233,869 Available Plus $9.2 Million Because 3A Passed in November $31,433,869 ($74 on a $300,000 home)

25. Strategic Thinking and Advice When should Jeffco go to voters for funding increases? What type of mill levy override election makes sense to you? What other advice do you have as we begin this dialogue with our parents?

26. What if…

27. Organizational Change Two roads diverged in a wood and I… took the one less traveled and that has made all the difference… Robert Frost 1874-1963

28. Our Mission To provide a quality education that prepares all children for a successful future