All Leadership Meeting. February 7, 2017

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1 All Leadership Meeting February 7, 2017

2 Crafting A Vision

3 Agenda Benefits Changes Budget Update and Insight Gathering Celebrations All Principals Hiring Season AP/Deans Variances

4 Benefit Changes Effective The Big Unknown (aka ACA) UnitedHealthcare medical plan option discontinued Recent court ruling necessitates changes in business rules Waive medical $/Split-contract medical $/Cash in excess of employer contribution toward medical Re-allocation of employer benefit dollars Increase employer contribution from $515 to $529 No more cash back if ER contribution exceeds medical premiums $10 per month employer contribution to FT employees enrolled in dental coverage $30 per month employer contribution to HSA if employee-only coverage in Kaiser HDHP

5 Communications Plan Leadership meeting/memo/mcminimee Minute mid February Letter home to UHC members February Leadership to show video to employees March to employees with waive medical March Personalized Kaiser meetings available for UHC members March - May Letter to split contract members - April Benefits Newsletter Overview - benefit changes for 2017 March April Getting prepared for OE May OE details

6 2017/18 BUDGET All Leadership February 7, 2017 (From BOE Study Session January 26, 2017)

7 AGENDA State of the Economy December Forecast / Proposed Legislation Governor s Request Jeffco FY 2016/17 Update Final Funded Student Count Retirement/Turnover Savings Jeffco FY 2017/18 Budget Reductions Background, Scenarios and Cabinet Recommendations Use of One-Time Funds Timeline and Next Steps Questions

8 State of the Economy

4% Economic Status Still in slow recovery Property Tax Residential Assessment

9 DECEMBER FORECAST FROM THE STATE Office of State Planning and Budget State Revenue Unchanged at 4.4% Economic Status Still in slow recovery Property Tax Residential Assessment Rate (RAR) Change due to Gallagher amendment Drop in local share from schools TABOR refunds beginning in 2017/18 $224.7 million above cap

reduced when residential property values outpace business

10 GALLAGHER AMENDMENT Maintains a constant ratio between property tax revenue from residential and business Assessment rate is reduced when residential property values outpace business property values Residential rates are impacted from population growth statewide

PROPERTY TAX CALCULATION Property valuations are set by the county assessor Current assessed values of the actual value of the property: Residential is 7.

11 PROPERTY TAX CALCULATION Property valuations are set by the county assessor Current assessed values of the actual value of the property: Residential is 7.96% Commercial is 29% Change, required by the Gallagher Amendment, would drop the residential assessed rate from 7.96% to 6.56% for 2017/18 Reduction of the rate results in lower local share for K-12 that the state will need to backfill

12 EXAMPLE PROPERTY TAX LEVY PROPOSED GALLAGHER CHANGE Current Estimate Actual Home Value $100,000 $100,000 Assessed Value $7,960 $6,560 1 Levied Mill $7.96 $6.56

Net effect to K-12 (factoring in inflation and growth) results in a $106 million funding shortfall

13 2017/18 GOVERNOR S BUDGET AMENDMENT Adjusted for the change in residential assessment rate and loss of local share in school finance total program Estimated loss to be covered by the state is $135 million Net effect to K-12 (factoring in inflation and growth) results in a $106 million funding shortfall Proposed to be covered with reductions to the Senior Homestead Exemption and with an increase in the marijuana tax

14 2017/18 ASSUMPTIONS November 2016 Governor s Budget Governor s Request $14.4M Less Pass Through to Charters $(1.4M) Total General Fund Increase $13.0M

15 2017/18 ASSUMPTIONS If Residential Assessed Value (RAR) shortfall is not backfilled... Governor s Request $4.4M Less Pass Through to Charters $(.4M) Total General Fund Increase $4.0M

16 2016/17 UPDATE

17 2016/2017 UPDATE Currently monitoring 2016/2017 assumptions for any adjustments needed to balance the budget. Budgeted 500 student decrease Final student counts are being finalized; anticipate this number will likely increase and require savings to cover. Budgeted $6M retirement/turnover savings Savings in excess of this amount is committed to address compensation opportunities. If this amount is higher than actuals, another shortfall will need to be covered. Current analysis to assumptions: October count (620) loss Retirement and turnover savings actual $9M

18 JEFFCO 2016/17 UPDATE FINAL FUNDED STUDENT COUNT Funded Count* 15/16 16/17 Change District-Managed Schools 73,859 73,240 (619) Charter Schools 7,563 7, Total District Funded Count 81,422 81,180 (242) *2016/2017 Per Pupil Funding - $7,237

19 2017/18 BUDGET

20 2017/18 BUDGET Background and Process Scenarios Cabinet Recommendations

21 Board of Education Study Session November 17, 2016 Background and Process Compensation for All #1 Board of Education Priority Current state outlook not positive Staff was directed to find funds to invest in compensation target $25 million One-on-One meetings throughout December District leadership partnered with budget and reviewed each division of the district. No set percentage directed. Focused on programs and activities. Cabinet reviewed and prioritized a reduction list.

22 2017/18 BUDGET Scenarios Amounts in Millions No Reductions Needed Governor s Proposal Governor s Proposal and Loss of RAR No New Funding and Loss of RAR State Funding Change (10) 2017/18 Retirement/Turnover Estimate Funded Enrollment Change (4) (4) (4) (4) 2016/17 Retirement/Turnover Over Estimate Net New Available Ongoing Resources (5) Target Compensation Investment Shortfall - (7) (16) (30) Cabinet Reductions Needed SBB Reductions Needed Net

A phased approach for implementing reductions and fee changes follows.

23 2017/18 BUDGET CABINET REDUCTION RECOMMENDATIONS District leadership has identified $20.4 million toward the targeted goal. A phased approach for implementing reductions and fee changes follows. This approach prepares the district to adjust for funding needs based on the range of scenarios from worst case to best case.

2017/18 BUDGET CABINET REDUCTION RECOMMENDATIONS Phase 1A $4,508,410 Phase 1B $7,987,008 Total $12,495,418 Phase 2 $4,554,204 Phase 3 $1,815,030 Phase 4 $1,534,299 TOTAL $20,398,951

24 2017/18 BUDGET CABINET REDUCTION RECOMMENDATIONS Phase 1A $4,508,410 Phase 1B $7,987,008 Total $12,495,418 Phase 2 $4,554,204 Phase 3 $1,815,030 Phase 4 $1,534,299 TOTAL $20,398,951 Detail for the phased reduction and fee changes is provided on the Cabinet General Fund Recommended Reductions spreadsheet, which will be available on BoardDocs by Friday, January 27, 2017.

25 Use of One-Time Funds

2015/2016 UNDERSPEND The General Fund ended the year with $24 million more than anticipated Factor out $8 million in school accounts $16 million remaining from 2015/16 to be used for one

26 2015/2016 UNDERSPEND The General Fund ended the year with $24 million more than anticipated Factor out $8 million in school accounts $16 million remaining from 2015/16 to be used for one time needs Board also built reserves in 2015/16 by an additional $12.6 million Recommendations: Supplement urgent facility needs (presentation to follow) Cover unforeseen state shortfalls

27 2016/2017 GENERAL FUND RESERVES School Carryforward Reserve $14,500,000 TABOR Reserve $17,756,207 Assigned $49,262,544 Multi-Year Commitment Reserve $17,006,337 Board of Education Policy Reserve $23,694,654 Undesignated Reserve $52,725,000 Unassigned $76,419,654 (13% of Expenditures) 2015/16 Comprehensive Annual Financial Report

28 Timeline and Next Steps

29 TIMELINE DEC Kick Off School (SBB- Student Based Budgeting) and Department (BFO- Budgeting for Outcomes) Processes JAN/FEB Community Engagement Early Direction/ Feedback MAR Community Engagement Results DAC Final Report Request Board Direction Build Budget APR Continue Building the Budget March Forecast and Fine Tuning of Budget Public Hearing Proposed Budget MAY Budget Adoption NOV Governor s Proposed Budget

30 NEXT STEPS Implement All Phase 1 Reductions Prepare for Implementation of Next Phases on March 16, 2017

31 QUESTIONS

32 Agenda Benefits Changes Budget Update and Insight Gathering Celebrations All Principals Hiring Season AP/Deans Variances

School Finance 101. Jeffco U September 29, 2018 Kathleen Askelson, Chief Financial Officer Nicole Stewart, Director-Budget and Treasury

School Finance 101. Jeffco U September 29, 2018 Kathleen Askelson, Chief Financial Officer Nicole Stewart, Director-Budget and Treasury School Finance 101 Jeffco U September 29, 2018 Kathleen Askelson, Chief Financial Officer Nicole Stewart, Director-Budget and Treasury AGENDA Colorado School Finance Individual District Finance Two-Part