Boulder Valley. Boulder Valley Board of Education. School District

Transcription

1 Budget Perspectives

2 Boulder Valley Board of Education District A Helayne Jones, Ed.D., President helayne.jones@bvsd.org voic fax: Term Expires: 2007 District E Patti J. Smith patti.smith@bvsd.org voic fax: N/A Term Expires: 2009 District B Leslie Smith, Ph.D. leslie.smith@bvsd.org voic fax: N/A Term Expires: 2009 District F Jean Paxton jean.paxton@bvsd.org voic fax: Term Expires: 2009 District C Angelika Schroeder, Ph.D., Vice Pres. angelika.schroeder@bvsd.org voic fax: Term Expires: 2007 District G Teresa Steele, Treasurer teresa.steele@bvsd.org voic fax: Term Expires: 2007 District D Ken Roberge ken.roberge@bvsd.org voic fax: Term Expires: 2007 Superintendent of Schools George F. García, Ed.D. Boulder Valley School District Web Site: Address: 6500 Arapahoe, P.O. Box 9011 Fax: communications@bvsd.org Boulder, CO Phone:

3 What s Inside Introduction...3 The home perspective... 4 Class size... 5 BVSD special programs... 6 School choice... 7 The fi nancial impact of choice... 7 The school perspective... 8 Employee compensation... 8 The work environment... 9 School staff and budget allocations... 9 School resource allocations... 9 Other school funds Sample budgets The district perspective Working within state and federal regulations General operating fund The funding driver: enrollment What controls district revenue Your dollars at work in BVSD The community perspective Equity in school funding State equalization The big picture Building the budget Financial policy and fiscal responsibility Important dates This booklet was produced by the Budget Services and Communications departments of as a service to the Boulder Valley community. Questions concerning its content may be directed to the Budget Services Department at

4 2

5 Budget Perspectives A look at the budget from multiple points of view January 2007 Everyone has a stake in the public schools. The public education system adds to our community s quality of life and supports a healthy economy. Businesses are more likely to locate to a community that has good schools to educate the children of its employees and to provide a pool of future employees. Good school systems also equate to stronger property values. With its strong commitment to academic excellence and equity of educational opportunity, Boulder Valley has a long tradition of high-quality public schools that have the full support of the com mu ni ty. The purpose of this publication is twofold. First, the Boulder Valley Board of Education and Superintendent want residents to understand school finance issues and the process used to create a budget that is fiscally responsible and supports the needs of all students. Second, this publication should clarify the importance of the district budget for all 211,000 Boulder Valley residents, regardless of one s connection to the schools. Development of an annual budget is one of the most important responsibilities of a board of education and superintendent. The superintendent must present a budget and Colorado state law requires the board to adopt a balanced budget prior to a new fiscal year, which starts July 1. The Boulder Valley Board of Education has the responsibility to adopt a budget that will ensure a quality education for all students and financial stability within its available resources. Like the budgets of other public institutions, the Boulder Valley School District budget has far-reaching effects, well beyond the 4,000 employees and more than 28,000 students in the district. Multiple budget points of view A school district budget is complex. It usually is presented from the view of the elected governing body, the board of education. However, each stakeholder sees the budget from a more personal vantage point, whether from the home, the school, the district or the community. This publication examines the budget from multiple viewpoints to help all stakeholders connect their perspective to the total picture. 3

6 Our Mission The Boulder Valley School District challenges students to achieve their academic, creative and physical potential in order to become responsible, contributing citizens. The Home Perspective Students & Parents It is through strategic planning of the budget that the Boulder Valley School District can achieve its mission. The annual spending plan is a blueprint for the district to provide quality instruction and educational programs for all students, in order to achieve academic excellence and equity of educational opportunity. Students are BVSD s top priority in all decision-making. The first strategic priority of the district is to maximize learning and achievement, and Boulder Valley students have a tradition of success in academics and school-sponsored activities. Budget decisions are based in large part on this priority. Our Vision is to graduate students in the New Century who have the knowledge, skills and personal characteristics that will make this world a safer, more thoughtful and more inclusive place in which to live. Recent academic achievements include: BVSD graduates in the Class of 2006 were awarded more than $17 million in scholarships, included 27 National Merit Finalists, and scored well above state and national averages in the ACT and SAT college-entrance exams. A continued emphasis on reading and writing and a renewed emphasis on math paid div i dends, based on student performance on the Colorado Student Assessment Program (CSAP) tests. The drop-out rate and completion rate for Boulder Valley high school students remain better than state averages. Out of 57 ratings received on the state School Accountability Reports (SARs) in Dec. 2006, Boulder Valley received 46 ratings of excellent or high. Twenty-five of our schools merited the John J. Irwin School of Excellence Award which is presented to schools scoring in the top 8 percent statewide. This is an exceptional performance by a district that provides a variety of programs for all students in our diverse communities. 4

7 Parents are closely connected to the through their child s school and educational needs. Class size, available programs, and qualifications of teachers and other staff are essential considerations for parents and become important components of the total budget picture. Class size One important factor in assuring academic achievement is to ensure that each student gets the attention he or she needs. To accomplish this, the Boulder Valley Board of Education has made a commitment to keeping class sizes as small as possible and providing additional instructional support during literacy periods. Class size is the number of students assigned to a classroom teacher. Student-teacher ratio factors in all the instructional staff in a school, such as music, art, physical education, literacy and ESL teachers. The number of teachers to be assigned at each school and grade level is a fundamental decision made at the district level. Since 2002, the board has aimed to reduce class size to 20:1 in kindergarten and first grade and to 18:1 in kindergarten through second grade in targeted, high-needs schools. Currently, the criteria in determining this specific allocation of resources is under evaluation. As part of the District s budget development process, the board strives to align scarce resources with student needs in order to realize the greatest possible impact upon student achievement. The cost of reducing class size must be considered when allocating the district s resources. The Boulder Valley budget office estimates that it costs more than $1.15 million to reduce student-teacher ratio by only one student district wide at the elementary level. For example, an additional 21 teachers would be required to lower the current elementary student-teacher ratio by one student. No budget decisions can be made without considering class size and student-teacher ratios. Class sizes have declined in grades K-5 from where they were five years ago. The trend is illustrated by the charts and tables on the following page. The charts also show the difference between class size and student/teacher ratio. The student-teacher ratio is smaller than class size because Boulder Valley has focused resources on hiring additional teachers for targeted programs such as literacy. The additional staff allows students to work in smaller groups with teachers and receive more individual attention during the school day. 5

8 Elementary Class Size vs. Student Teacher Ratio Class Size - Elementary (estimated) Student-Teacher Ratio (estimated) Teachers ( ) Elementary Class Size vs. Student-Teacher Ratio -- 5-Year History Kindergarten at 0.50 FTE. / Charters Not Included. / Literacy Teachers are not included in Class Size. Elementary Class Size in Grades K-1 compared to Grades 2-5 Class Size - Grades K Class Size - Grades Students per Class Elementary Class Size Grades K-1 Grades 2-5 Advanced Placement & Pre-AP After-School Sports & Activities Advancement via Individual Determination (AVID) Collaborative Literacy Intervention Project (CLIP) Connections Dropout Prevention English as a Second Language International Baccalaureate (IB) K-12 Literacy Teachers Literacy Tutors Multicultural and Diversity Read to Achieve Special Education Talented and Gifted Vocational Education Native Language Tutors BVSD special programs Some of Boulder Valley s non-classroom teachers who make our student-teacher ratio so low, work in specialized programs tailored to different student learning styles and needs. These programs are another way that Boulder Valley can meet the educational needs of every student. Parents have access to special programs for their child at the school. All are paid from the general operating fund or state or federal grant funds. The list of special programs in BVSD is extensive. A sampling of the most common programs is listed to the left*. *Note: These programs are staffed by both classroom and specialized teachers. 6

9 School choice Boulder Valley parents also are closely connected to the concept of school choice, which allows them to select schools with programs and learning environments that best meet their child s needs. State law allows parents the option of enrolling in schools other than the assigned neighborhood school when space is available. Boulder Valley currently has seven focus schools, ten neighborhood schools with focus programs and five charter schools. Because nearly one-third of BVSD students use the choice option, open enrollment is managed at the district level using consistent guidelines. Student FTE 28,000 27,000 26,000 25,000 24,000 23,000 22,000 Total Student FTE 23,132 22,644 23,664 24,124 24,124 Total District 24,582 25,074 24,520 24,331 26,703 26,312 25,943 25,733 25,140 25,334 25,482 25,418 26,790 26,644 26,630 26,740 24,926 24,884 24,955 24,829 General Only (excluding Charters) The chart to the left shows total district enrollment over the past 14 years (top line). The lower line is the general fund enrollment, which does not include charter schools. The difference in the two refl ects the growth in charter enrollment since Note: General Only includes Pre-K through 12th grade and Facility Students. The financial impact of choice An increase in school choice options through charter school growth has budget implications in a district with declining or stable enrollment such as BVSD. Neighborhood and focus schools are funded from the BVSD general operating fund and charter schools are funded through a separate charter fund. Charter schools buy back some centralized support services such as payroll, financial management and legal advice, as well as sharing in district-wide responsibilities like special education and English as a Second Language services. When a student enrolls in a charter school, state funding follows the student to the charter fund. As charter school enrollment grows, enrollment in the remaining BVSD schools declines because Boulder Valley is not growing significantly in total number of students. While charter schools do attract some new students to BVSD from home schools, private schools and other districts, the overall student decline in non-charter schools is not enough to reduce school operating expenses by the same dollar amount that is transferred. The result is smaller student headcount and funding for the general operating fund. 7

10 The School Perspective Teachers, Support Staff, and Prin cipals Employees are Boulder Valley s most valuable assets. One of the strategic priorities of the board is to recruit and retain a high-quality, committed staff so that Boulder Valley students can receive the best instruction and educational programs. Boulder Valley employees share parents and students desire for student success and the budget decisions that make it possible. However, employees have some personal interests in the budget as well. Employee compensation Education is a profession that relies on people teachers and support personnel. Personnel costs (salaries and benefits) account for nearly 90 percent of Boulder Valley s $190.3 million general operating fund expenditures. While budget discussions often focus on teachers, one cannot overlook the importance of the school support personnel approximately half of the total district workforce whose jobs ensure that teachers can focus their attention on the students. Boulder Valley provides district-paid benefits and offers additional benefits which can be purchased by the employee. Benefits include the following: Health Insurance The district pays up to $4,086 toward employee insurance annually. Dental Insurance The district pays up to $431 toward employee insurance annually. Life Insurance The district provides $20,000 per employee. Public Employees Retirement Association (PERA) The district pays percent of salaries and is increasing each year. Disability Insurance The district pays for long-term disability. Flex Medical and Flex Dependent Care This program is administered by the district for employees who choose to reduce their tax burden by paying for medical and childcare expenses with pre-tax dollars. The district contributes $120 per employee to a flex medical plan. 8

11 The work environment Employees also have an interest in the budget beyond their paychecks. The budget also funds the necessary equipment, supplies and training that enable employees to fulfill their job responsibilities and to grow in their professions. Through staff development and training activities, Boulder Valley employees can enrich their skills and job satisfaction. School staff and budget allocations Principals are the managers of their schools and must be accountable to multiple groups at the school level such as parents, students and staff. They also are accountable at the district level to the superintendent, his staff and the Board of Education, and they must also meet multiple state and federal requirements. Principals make recommendations for hiring the staff to carry out the educational programs and they manage the school s non-salary (operating) budget, known as a school resource allocation (SRA). Instead of a staff budget based on dollars, schools receive an allocation of staff positions called full-time equivalents (FTE). The FTE allocation is based on each school s student enrollment and programmatic needs. Enrollment estimates are made in the spring so that principals can receive preliminary FTE allocations and make programming decisions. Staffing is adjusted in August when the students arrive and actual enrollment is known. Staff positions for special programs, such as special education, talented and gifted, or English as a Second Language, are allocated by the district based on the number of students who will need those services. School resource allocations Each school receives a school resource allocation (SRA) based on the school s enrollment. About 80 percent of the total SRA in Boulder Valley is applied to instructional needs at the school site. The SRA pays for classroom budgets, copiers and paper, office supplies, library materials, custodial supplies, field trips and limited staff and curriculum development. Principals work with their staffs and school improvement teams (SITs) to decide how to budget the SRA in ways that best support the school s goals and needs. 9

12 This chart is a sample SRA for a K-8 school with about 850 students. Library Services/Technology $11,100 Workroom/Printing/Postage 11,300 Copier/Repairs 15,000 Custodial Supplies 9,700 Staff Development/Training 8,000 Classrooms 20,000 Specialists 2,500 Special Populations 1,800 Talented and Gifted 3,000 School s Contingency 2,000 Miscellaneous 700 TOTAL $85,100 Classroom budgets are an important part of the SRA for teachers. The sizes of individual classroom budgets vary at each school, ranging from $300 or $500 to as high as $1,000 or more. Many classroom budgets are supplemented by the school s parent organization. Teachers use their classroom budgets to buy student instructional materials, many of which must be replaced each year. They are always looking for other funding sources grants, donations, fund-raising dollars for supplies for special projects and field trips. Other school funds Most of the expenses of operating a school are not included in the SRA, but are managed from the district level. These expenses include staff salaries, benefits, utilities and building maintenance. The total costs of operating a school come from multiple funding sources. On pages 12-14, sample school budget charts have been created to illustrate these various funding sources for the elementary, middle and high school levels. The numbers are based on general trends in Boulder Valley schools and do not represent an actual school. However, all Boulder Valley principals are able to provide the specific detail for their school. Some costs of operating a school are not reflected in these sample budget sheets. Expenses such as itinerant psychologists, social workers and other special education staff (those who serve multiple buildings) and shared costs of programs and services such as instrumental music teachers are budgeted at the district level. 10

13 Following is a description of what the columns on the sample budgets represent: General Fund includes Non-SRA and SRA money. The school can choose how to budget SRA funds (as shown in the sample on page 10) and allocate educational staff across classrooms. Non-SRA includes utilities, salaries and benefits for the staff FTE positions as well as for hourly employees. An FTE equivalent for hourly positions is included in the FTE column. Other Funds include money from the Community Schools Fund, which provides custodial FTE and supplies for Community School programs at the school site. The Grants Fund column includes positions paid by state, federal and local grants. The Athletics Fund provides for extra-duty contracts and other services for interscholastic athletic programs for middle and high schools. The Fees and Fund Raised columns include optional student fees approved by the Board of Education that are collected for classes and any money raised by the school and PTO/PTA organizations. These columns are shaded in the examples and the principal at each school can provide the specific numbers. 11

14 General Fund Other Funds Fund Raised Sample Elementary Staff Additional Community Capital Fees & (Budgeted Expenditures) FTE Non-SRA SRA Allocation School Grants Athletics Reserve Fund Raised PTO/PTA 1. Instruction: Regular Education* $1,059,551 $19,729 $171,156 Departmental Budgets Vocational Education $0 $0 Talented and Gifted $0 $131 $4,784 Struggling Readers $11,193 Student Achievement $16,229 Copy Machine $7,450 $0 Other 2. Co-Curricular & Athletics: Activities** $4,114 $0 Supplies** Clubs Athletic Extra Duty Contracts*** $0 Athletic Transportation*** $0 Athletic Equipment/Supplies*** $0 Athletic Prof Services*** $0 Athletic Rental*** $0 Athletic Field Trip*** $0 Other $0 3. Special Instruction: Special Education $573,966 $0 $41,194 English as a Second Language $184,912 $0 $23,979 Other 4. Instructional Support: Student Services (SASI) $88 Counseling $0 $0 Staff Development $37,035 $843 $0 $0 Library $42,518 $2,649 $0 Health Room $10,688 $0 Other $0 5. School Administration: Principal's Office $187,402 Copy Machine Supplies $2,671 Equipment Other $0 6. School Maintenance & Ops: Custodian $83,044 $4,229 Custodial Supplies $3,707 $3,040 Utilities $111,189 Other Totals: $2,294,419 $37,268 $32,206 $7,269 $236,329 $0 $0 $0 $0 * Includes Literacy ** Includes Sponsor of Student Activities and Intramurals *** Interscholastic Athletic Programs School Grand Total: $2,607,491 Note: This sample is of a typical elementary school. It does not reflect district averages. 12

15 General Fund Other Funds Fund Raised Sample Middle Staff Additional Community Capital Fees & (Budgeted Expenditures) FTE Non-SRA SRA Allocation School Grants Athletics Reserve Fund Raised PTO/PTA 1. Instruction: Regular Education* $1,981,719 $31,385 $0 Departmental Budgets Vocational Education $0 $0 Talented and Gifted $0 $2,042 $6,888 Struggling Readers $0 Student Achievement $0 Copy Machine $9,843 $5,442 Other 2. Co-Curricular & Athletics: Activities** $31,363 $0 Supplies** Clubs Athletic Extra Duty Contracts*** $35,502 Athletic Transportation*** $0 Athletic Equipment/Supplies*** $3,025 Athletic Prof Services*** $2,705 Athletic Rental*** $0 Athletic Field Trip*** $4,975 Other $0 3. Special Instruction: Special Education $212,708 $790 $0 English as a Second Language $68,816 $0 $21,457 Other 4. Instructional Support: Student Services (SASI) $694 Counseling $164,232 $554 Staff Development $0 $1,728 $0 $0 Library $71,133 $6,052 $0 Health Room $0 $0 Other $0 5. School Administration: Principal's Office $337,307 Copy Machine Supplies $4,269 Equipment Other $0 6. School Maintenance & Ops: Custodian $128,882 $4,229 Custodial Supplies $5,403 $1,773 Utilities $99,788 Other Totals: $3,095,948 $62,760 $6,888 $6,002 $21,457 $46,207 $5,442 $0 $0 * Includes Literacy ** Includes Sponsor of Student Activities and Intramurals *** Interscholastic Athletic Programs School Grand Total: $3,244,704 Note: This sample is of a typical middle school. It does not reflect district averages. 13

16 General Fund Other Funds Fund Raised Sample High School Staff Addl Community Capital Fees & (Budgeted Expenditures) FTE Non-SRA SRA Allocation School Grants Athletics Reserve Fund Raised PTO/PTA 1. Instruction: Regular Education* $5,767,483 $138,267 $53,626 Departmental Budgets Vocational Education $59,751 $0 Talented and Gifted $59,207 $0 $8,024 Struggling Readers $0 Student Achievement $38,028 Copy Machine $16,216 $16,054 Other 2. Co-Curricular & Athletics: Activities** $113,754 $0 Supplies** Clubs Athletic Extra Duty Contracts*** $201,655 Athletic Transportation*** $0 Athletic Equipment/Supplies*** $19,680 Athletic Prof Services*** $36,132 Athletic Rental*** $18,800 Athletic Field Trip*** $48,200 Other $37, Special Instruction: Special Education $1,061,095 $3,568 $0 English as a Second Language $285,140 $725 $2,950 Other 4. Instructional Support: Student Services (SASI) $979 Counseling $385,314 $385 Staff Development $0 $2,250 $0 $0 Library $122,604 $2,376 $113 Health Room $0 $0 Other $0 5. School Administration: Principal's Office $759,428 Copy Machine Supplies $17,765 Equipment Other $ School Maintenance & Ops: Custodian $319,957 $4,229 Custodial Supplies $17,904 $2,947 Utilities $361,474 Other Totals: $9,295,207 $200,435 $46,052 $7,176 $56,821 $361,842 $16,054 $0 $0 * Includes Literacy ** Includes Sponsor of Student Activities and Intramurals *** Interscholastic Athletic Programs School Grand Total: $9,983,587 Note: This sample is of a typical high school. It does not reflect district averages. 14

17 The District Perspective Working together At the district level, the superintendent and his staff work closely with the elected board of education to ensure that the budget plan takes into account all six strategic priorities. Each year the Boulder Valley Board of Education and the superintendent bear the responsibility of adopting a budget that will ensure quality education for all students and fiscal stability within available resources. For the coming year, Boulder Valley must create a balanced budget in the face of projected flat enrollment, financial and legislative uncertainty, increases in the cost of employee benefits and contract agreements. In addition to supporting learning in the classroom, budget considerations must include the behind-the-scenes support provided throughout the district. While district operational expenses do not appear in individual school resource allocations, each school site relies on the district to carry out numerous functions so that maximum learning and achievement can occur at the school. These functions include keeping the district current with state and federal regulations, developing curriculum and instruction to meet state standards, managing a multi-million dollar budget, and the basic operations of the organization. Consider these examples of how BVSD s central office staff supports the schools: Schools are assisted in maintaining accreditation by the district s standards-based curriculum, CSAP testing and data collection, and analysis for required reports and accountability documentation. Teachers and staff are able to advance their skills and improve the work they do through professional development. Schools have electricity and heat because the business office keeps the bills paid. Employees can count on getting paid because the payroll office processes time sheets and issues paychecks every month. Classrooms have textbooks and other learning materials as a result of the procurement and materials management team that processes orders and makes regular deliveries to the schools. Schools are fully staffed because the Human Resources Division manages and supports a quality hiring process and retains quality employees by addressing employee issues responsively. Many students are able to get to school or have a school lunch thanks to the district s transportation and food services departments. BVSD Strategic Priorities: Maximize learning and achievement Foster collaboration and partnerships Value diversity and promote understanding Hire a high-quality, committed staff Manage assets responsibly Plan and assess for continuous improvement 15

18 Working within state and federal regulations Increasingly, state and federal regulations determine the environment in which Boulder Valley must operate, from establishing funding levels to setting academic achievement standards. Between 1988 and the passage of Amendment 23 in 2000, funding for education in Colorado failed to keep pace with inflation. However, district-level responsibilities increased significantly during the same period. The number of central administrative positions funded out of the district s general operating fund are actually fewer today than in 1988 when the district had 40 schools and a student population of 19,963. Today, there are 54 schools and a pupil count of 26,914 in Boulder Valley Schools as of October See below for a list of some of the major responsibilities that have been added since What s new since 1988 Bilingual education Board policy reviews and revisions Changes to state School Finance Act Charter schools Colorado Basic Literacy Act CSAP testing Data for analysis and decisionmaking District surveys Demographic changes, including more second language learners and lowincome students Numerous federal regulations that require tracking and regular reports, such as Omnibus Transportation Employee Testing Act, Gun- Free Schools Act, Children s Online Privacy Act, Digital Millennium Copyright Act and the Equal Access Act Increased litigation Heightened need for safety, security and environmental responsibility More schools and building additions No Child Left Behind Act and other Federal laws and regulations Open enrollment and schools of choice Section 504/Americans with Disabilities Act Standards-based education State accreditation requirements State reporting requirements State standard chart of nancial accounts TABOR requires new budget processes and monetary reserves Technology advancements 16

19 General operating fund While the district budget has many funds, the general operating fund is the largest. Most of the funds have strict limitations on how they can be used. These restrictions are set by the state and federal governments. The general operating fund has the most discretionary money of any fund and pays for district operating expenses. It is where the superintendent and board of education can make the most spending decisions. More information about the various funds that comprise the total budget can be found in chapters 3, 7 and 8 of the Revised Adopted Budget on the BVSD web site at The funding driver: enrollment Although the School Finance Act determines how much money the school district will receive per pupil, the funded pupil count is the real driver of school funding. Because the School Finance Act distributes funds on a per pupil basis, the number of students enrolled in a district determines the amount of funding the district receives. The funded pupil count is the number the state uses to determine funding. It refers to the number of full-time students enrolled in a district. Because not all students (kindergartners for example) attend school on a fulltime basis, the funded pupil count can be different from the total enrollment. The official pupil count occurs each October and produces the funded pupil count numbers. As illustrated in the tables below, when enrollment increases, revenue increases. When enrollment declines, the district loses revenue. The Funding Equation (06-07 budgeted) Per Pupil Revenue: (PPR) $6,315 Funded Pupil Count: x (FPC) 26,914 Fewer Students = Fewer Dol lars School Finance Act Funding: $169,961,910 Opportunity Cost in Dollars of 100 Few er Stu dents Per Pupil Revenue: (PPR) $6,315 Funded Pupil Count: x (FPC) <100> Lost Revenue: <$631,500> 17

20 The chart on the following page illustrates the level of control the district has over its revenue sources: Policy Decisions: The Board of Education can make policy decisions on what the district charges for its tuition and fees. This controllable revenue source comprises only 0.1 percent of total revenue. Local Elections: The Boulder Valley electorate has control over passing local property tax increases for school funding which represents 15.2 percent of BVSD s budgeted revenue. The Board of Education can only recommend to place a referendum on the ballot. School Finance Act: State legislators determine BVSD s revenue from the School Finance Act. Boulder Valley voters have some control over who our state representatives are and how they vote on education issues. This revenue comprises almost 80 percent percent of BVSD s budgeted revenue for The Board of Education has no control over the School Finance Act. Other Revenues: Non-equalized speci c ownership tax and interest earnings make up the remaining 5.1 percent of revenue, and they are controlled primarily by economic factors that are completely outside of BVSD s control. For many years, Boulder Valley was a growing district. In recent years, the rate of enrollment growth started to decline. In , the district experienced its first enrollment decrease in a decade. This year, the funded pupil count is 124 higher than last year. However, the district is also graduating some of its largest high school classes ever. Overall, the district s enrollment appears to be flattening out to a fairly steady level. Students 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 BVSD Grade Distribution: 10-Year High-Low and Actuals K Grade Level The bars indicate the range of the highest and lowest enrollment for the past 10 years. The top of the lower bar is the lowest enrollment in 10 years. The top of the upper bar reflects the largest enrollment. The small square indicates this year s enrollment for each grade. What controls district revenue? There are a variety of factors that impact the amount of money the district receives in the general operating fund from its different funding sources. The district and/or its constituents have more control over some factors than others. As you can see from the diagram on the following page, the smaller funding sources are typically the ones over which we have more control. For example, the district or the schools can control what kind of fund-raising projects we want to have and how that money is to be used. But at the other end of the spectrum, we have little control over how many children live in our district and attend our schools. 18

21 BVSD General Operating Fund Revenue Sourc es Policy Decisions Tuition $226, % Local Elections Local Property Tax $32,374, % (Referenda) More Controllable Revenue School Finance Act State Funding: $57,382, % Local Property Taxes* $104,134, % Specifi c Ownership Taxes: $8,281, % (equalized) Other Revenue Other State Revenue Taxes $7,350, % (categoricals) Specifi c Ownership Taxes $2,606, % (non-equalized) Other Revenue $668, % Interest Earnings $500, % Total $213,524, % Less Controllable Revenue *includes abatement and delinquent local property tax 19

22 Your dollars at work in BVSD The dollar bill illustration on page 21 provides a breakdown of how the general operating fund bud get is allocated for the entire district. It takes into account all the factors con sid ered by parents, teachers and support staff, principals, and the district. The largest share of the general fund, 77 percent, is allocated to instruction the programs and staff that parents consider when making enrollment de ci sions. The cost of the staff salary and benefits is part of the cost of instruction. This includes the instructional support provided by coun se lors, librarians, nurses, family service staff, literacy teachers, tech nol o gy support, and others. (A full list is included in the accompanying chart.) School administrations and operations, which includes the principals, maintenance, and custodial services, accounts for nearly 17 percent. Districtwide sup port ac counts for just over 6 per cent of the total bud get and includes the central administration, human resources, information tech nol o gy, business services, and debt re lat ed to en ergy conservation projects. For every dollar in the BVSD budget, 77 cents is spent on instruction at schools 17 cents is spent on administration and overhead at schools, e.g. principals, custodians, bus drivers, etc. 6 cents is spent on districtwide overhead, e.g. payroll, human resources, technology support, etc. 20

23 1 Footnotes 1. A Transportation Fund was developed after voters approved the 2005 Transportation mill levy in November This fund accounts for all the transportation services within the District and is no longer budgeted for in the General Operating Budget. 21

24 Your dollars at work in BVSD The following list further identifies the District s program offerings and support services within the ma jor categories shown in the dollar bill graphic on the previous page. The school sample budgets shown on pages also follow this format. CATEGORY GROUP % OF % OF TOTAL PROGRAM BUDGET GROUP BUDGET INSTRUCTION REGULAR EDUCATION $ 96,199, % GENERAL INSTRUCTION - ALL LEVELS 81,977, % ELEMENTARY SPECIALISTS (ART, MUSIC, PE) 6,097, % ELEMENTARY LITERACY 2,345, % INSTRUMENTAL MUSIC 1,993, % DROPOUT PREVENTION 760, % MIDDLE LEVEL LITERACY / SECONDARY LITERACY 842, % STRUGGLING READERS 353, % K-3 LITERACY 377, % CHINOOK % STUDENT ACHIEVEMENT % CONNECTIONS 187, % COMPUTER REPLACEMENT PROGRAM 148, % INTERNATIONAL BACCALAUREATE 200, % MULTI-CULTURAL 110, % HISPANIC STUDY SKILLS 52, % CULTURAL DIVERSITY 42, % SUMMER SCHOOL 360, % EXPELLED STUDENT SERVICES 18, % HIGH SCHOOL OPTIONS 330, % VOCATIONAL EDUCATION $ 2,796, % COCURRICULAR EDUCATION AND ATHLETICS $ 1,240, % TALENTED AND GIFTED EDUCATION $ 1,307, % TOTAL INSTRUCTION $ 101,543, % SPECIAL INSTRUCTION SPECIAL EDUCATION $ 26,291, % LITERACY AND LANGUAGE SUPPORT SERVICES $ 5,238, % TOTAL SPECIAL INSTRUCTION $ 31,530, % INSTRUCTIONAL SUPPORT STUDENT SERVICES $ 5,475, % COUNSELING SERVICES 3,227, % NURSING AND HEALTH SERVICES 1,379, % DROPOUT PREVENTION 214, % FAMILY RESOURCE SCHOOLS 148, % TRANSLATION SERVICES 97, % SOCIAL WORK SERVICES 135, % FAMILY ADVOCATE PROGRAM 88, % OTHER STUDENT SERVICES (i.e. STUDENT ACCOUNTING; PLACEMENT SERVICES) 184, % INSTRUCTIONAL STAFF SUPPORT $ 7,825, % LIBRARY SUPPORT SERVICES 3,388, % TECHNOLOGY SPECIALISTS 627, % K-3 LITERACY 921, % ADMIN AND EVALUATION OF LEARNING SERVICES 701, % COMPUTER REPLACEMENT PROGRAM 383, % CULTURAL DIVERSITY 314, % CURRICULUM DEVELOPMENT COUNCIL 346, % MEDIA SUPPORT SERVICES 228, % STAFF DEVELOPMENT 242, % MIDDLE LEVEL LITERACY 158, % INDUCTION 144, % INTERNET SUPPORT SERVICES 87, % OTHER INSTRUCTIONAL STAFF SUPPORT 279, % TOTAL INSTRUCTIONAL SUPPORT $ 13,300, % 22

25 CATEGORY GROUP % OF % OF TOTAL PROGRAM BUDGET GROUP BUDGET SCHOOL ADMINISTRATION AND OPERATIONS 5 SCHOOL ADMINISTRATION $ 15,147, % PRINCIPAL'S OFFICE 14,784, % COMPUTER REPLACEMENT PROGRAM 112, % SCHOOL ADMINISTRATION SERVICES 73, % SCHOOL LEVEL SUPPORT 96, % OPEN ENROLLMENT 78, % OTHER SCHOOL ADMINISTRATION (i.e. CHINOOK; HIGH SCHOOL OPTIONS) 2, % OPERATIONS AND MAINTENANCE $ 16,691, % MAINTENANCE & OPERATIONS 15,809, % ENVIRONMENTAL SERVICES 411, % ADMIN OF MAINTENANCE AND OPERATIONS 463, % OTHER MAINTENANCE SERVICES (i.e. ZONE MAINTENANCE; RELAMPING) 7, % TOTAL SCHOOL ADMINISTRATION & OPERATIONS $ 31,838, % DISTRICT WIDE SERVICES AND COMMUNITY OBLIGATIONS GENERAL ADMINISTRATION $ 2,795, % SUPERINTENDENT 671, % TAX COLLECTION FEES 417, % SECONDARY EDUCATION SUPPORT 264, % LEGAL SERVICES 283, % ELEMENTARY EDUCATION SUPPORT 317, % ADMIN OF GENERAL SUPPORT SERVICES 278, % STAFF NEGOTIATIONS SERVICES 141, % GRANT PROCUREMENT 77, % ELECTION SERVICES 69, % OTHER GENERAL ADMINISTRATION (i.e. AUDIT; BOARD OF EDUCATION) 275, % BUSINESS SERVICES $ 2,286, % CENTRAL SERVICES $ 5,944, % INFORMATION SYSTEMS SERVICES (INFORMATION TECHNOLOGY) 2,788, % HUMAN RESOURCES 1,156, % TELECOMMUNICATIONS 690, % COMMUNICATION SERVICES 444, % RESEARCH AND EVALUATION SERVICES 356, % PLANNING SERVICES 251, % INSURANCE MANAGEMENT SERVICES 112, % COMPUTER REPLACEMENT PROGRAM 62, % SUBSTITUTE OFFICE 46, % RECRUITMENT 31, % OTHER CENTRAL SERVICES (i.e. TELEVISING BOARD MEETINGS) 2, % ENTERPRISE OPERATIONS (DISTRICT PRINT SHOP) $ 94, % DEBT SERVICES (PAYMENTS ON DEBT) $ 946, % TOTAL DISTRICT WIDE SUPPORT $ 12,068, % GRAND TOTAL GENERAL OPERATING FUND $ 190,281, % Footnotes Footnotes: 1 Category is a grouping of like SRE accounts within the CDE Chart of Accounts Category Group is a direct is title a grouping of the SRE (Special of like Reporting SRE accounts Element) within within the CDE the Chart CDE of Accounts. Chart of Accounts. 3 Program is the Program or Project title from the CDE or BVSD Chart of Accounts. 4 "% of Group" equals budgeted dollars for that program divided by the "06-07" Budget" for that Group (SRE). 2. Group is a direct title of the SRE (Special Reporting Element) within the CDE Chart of Accounts. 3. Program is the Program or Project title from the CDE Chart of Accounts. 4. % of Group equals budgeted dollars for that program divided by the Budget for that Group (SRE). 5. A Transportation Fund was developed after voters approved the 2005 Transportation mill levy in November This fund accounts for all the transportation services within the District and is no longer budgeted for in the General Operating Budget. 23

26 The Com munity Per spective Boulder Val ley tax payers Amendments that affect school funding TABOR and Referendum C Colorado s Taxpayer Bill of Rights, passed in November 1992, also referred to as TABOR, sets taxing and spending limits on all levels of government, from special districts such as re protection and schools to county and state governments. TABOR s primary objective is to restrain the growth of government as stated in the Colorado Constitution. TABOR has many provisions that impact school funding from the state. The most signi cant limitations are: TABOR requires voter approval of tax increases TABOR limits revenue collections TABOR limits spending TABOR also impacts spending in districts as the law requires that school districts hold 3 percent of expenditures in reserves. These reserves can only be spent in an emergency situation which excludes economic conditions, revenue shortfalls or salary and fringe bene t increases. On November 1, 2005, Colorado voters passed Referendum C which temporarily overrides the current TABOR revenue formula that limits annual growth in state revenues to the rate of change of in ation plus population. With no increase in current tax rates, Referendum C allows the state Based on U.S. Census figures, about 80 percent of Boulder Valley households do not have children in school, yet all patrons have a stake in education. The public schools contribute to the general economic health of a community, and good schools typically equate to higher values for property owners. Therefore, the majority of Boulder Valley stakeholders are connected to the schools through the taxes paid on their homes, businesses and vehicles. These individuals may also contribute to school fundraisers, Impact on Education, or other projects that help supplement the tax-funded education budget. Boulder Valley taxpayers also receive an intrinsic value from their investment in public education. Well-educated youth will be prepared for the jobs of the future and leadership roles in our community and country. Today s students will be the leaders and taxpayers for subsequent generations. All Boulder Valley residents pay taxes that support the schools some directly through property and specific ownership taxes and others indirectly when businesses pass on the cost of taxes through the price of goods, services and rent. The chart on page 26 shows a five-year history of mill levies for Boulder Valley taxpayers. Over time, district tax rates have declined due to a rise in assessed valuation with increases linked to approved tax increases. Tax dollars are collected locally for education, but the state legislature determines how much funding each school district will receive through the Colorado School Finance Act. A complex set of state tax laws and constitutional amendments including TABOR, Referendum C and Amendment 23 affect the funding allocation for districts. Equity in school funding The Colorado School Finance Act is aimed at ensuring that all children in the state receive an equitable educational experience. The act outlines a for mu la to determine the funding level for providing an eq ui ta ble educational ex pe ri ence in each school district. The total per pupil funding includes a base amount (currently $4,717.62) which is the same for all school dis tricts plus ad di tion al amounts called factors. Factors vary by district and com pen sate for financial differences among districts such as cost of living, size, at-risk stu dent population and per son nel costs. The State legislature can make chang es in the way the fac tors are cal culated each year. 24

27 In the chart that fol lows, this is rep re sent ed by the to tal dol lar amount for each bar. For the school year, Boul der Val ley is allocated $6,315 for each student in the dis trict. State equalization Schools are funded from basically three sources: local property tax, state funds and vehicle registration fees (known as specific ownership tax). Al though the state determines individual school district funding levels, the amount contributed from the three different sources varies according to lo cal property values. The charts on the following page show that Boulder Valley, with a higher as sessed valuation, receives most of its rev e nue from lo cal prop er ty tax es and the state con tri bu tion is less than peer dis tricts. Con verse ly, districts whose property valuations are low er receive more fund ing from the state. In addition to the state funding, Colorado law allows local school districts to ask voters to approve override funding through an additional mill levy. This is paid entirely with increased local property taxes. Boulder Valley voters generously approved such overrides in 1991, 1998, 2002 and All of these overrides were to help the district with operating costs. Funding from the most recent facilities bond approval in 2006 is restricted to capital expenditures, as were the last two such bond approvals in 1994 and Except with approved increases, the overall mill levy declines over time with a rise in assessed valuation. MILLS Year History of Boulder Valley Mill Levies General Fund: Election: Abatements: Bond Redemption: Transportation Fund: assessed valuation certifi ed at $4,164,972,283 - Bond Redemption Mills are capital construction mill levies - Transportation Mills are mills approved by voters to keep and spend the revenue it collects under current rates through fi scal year The goal of this referendum is to restore state budget cuts since 2001 and reset the base funding level, temporarily reversing the ratchet effect of TABOR. The requirements of Amendment 23 of 2000 have protected K-12 funding to some extent, and future revenue increases can be expected at only the statutory formula rate. Ballot Measure 3A (2006) Facilities Bond Program On November 7, 2006, voters approved a $296.8 million capital improvement bond issue for capital additions, upgrades, or replacements at each BVSD school. District administrative and operational staff, in cooperation with learning services staff have begun the planning process necessary to determine a fi nancing and construction schedule to implement an ambitious six-year construction timetable beginning in the spring of The fi rst bond sale which will increase property taxes $44 annually on an average Boulder and Broomfi eld County home with an assessed valuation of $330,000 is tentatively scheduled for March When all bonds are sold by 2012, this average property tax impact will be $100 annually. The bond work plan is bound to the BVSD Educational Facilities Master Plan as approved by the Board of Education in June In addition BVSD was required by the bond s ballot language to establish a citizens bond oversight committee to monitor adherence to the facilities plan as well as to that plan s budget. That committee has been established. 25

28 The following charts illustrate Boulder Valley s funding sources compared to other school districts in Colorado Per Pupil Funding Summary - without Override State Funding Property Tax Specific Ownership Tax Northglenn $6,666 Aurora Littleton Colorado Springs Jefferson St. Vrain Cherry Creek Douglas Poudre Denver Boulder $6,603 $6,146 $6,217 $6,211 $6,254 $6,305 $6,130 $5,989 $6,839 $6,315 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Per Pupil Funding Note: For the school year, Boulder Valley will receive $6,315 for each full-time student in the district. The additional funding through tax overrides is capped by state regulation, and Boulder Valley is currently at its limit and has no opportunity for local revenue growth. Boulder Valley has the highest local support for schools in the region. Recently, more districts have approved or are planning to ask voters for mill levy overrides and they are starting to catch up to Boulder Valley in spending per student Per Pupil Funding Summary - with Override State Funding Property Tax Specific Ownership Tax Override Northglenn Aurora Littleton Colorado Springs Jefferson St. Vrain Cherry Creek Douglas Poudre Denver Boulder $7,404 $6,846 $7,230 $7,235 $7,231 $6,254 $7,190 $6,842 $6,775 $7,936 $7,528 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Per Pupil Funding Notes: 2005 assessed valuation estimate at $4,154,385,963. Bond Redemption Mills are capital construction mill levies. Abatement mills are related to assessed valuation appeals. Election Mills are for additional funding in the form of overrides approved by voters. General Fund Mills are associated with School Finance Act funding. A Transportation mill levy override of was approved by voters in November The increase in mills supports the Computer Replacement Program by locally funding transportation costs that are not reimbursed by the state, thereby freeing up funds to be used for replacing computers. 26

29 The big picture In addition to determining the funding for schools, the state is responsible for funding other public services like prisons and transportation. Each year, the state budget crafted by the governor and legislature determines how much of the total budget will be allocated to education. The portion allocated for K-12 education is divided among 178 school districts throughout the state using formulas in the state s School Finance Act and TABOR. These formulas determine how much money each district will receive per pupil as well as how much of that funding is paid by the state and how much is paid through local taxes. After the state determines the funding, each district determines how to fund its local system including every school within the district. FY State of Colorado Budget by Function General Governm ent 0.7% Corrections & Judicial 12.5% Other 5.1% K-12 Education 42.2% Hum an Services / Health Care 29.4% Higher Education 10.1% Source: Colorado Governer s Budget Building the budget The superintendent prepares a budget that considers the needs and values of students, parents, employees, principals and taxpayers and presents it to the Board of Education. In the final stages of the budget process, the Board must balance the needs of students, parents and employees with the fiscal responsibility it has to the taxpayers. The Board is the final decision-maker on the budget. 27

30 Your State Legislators Colorado Senate Sen. Joan Fitz-Gerald, D-Golden, Senate District 16 Represents: Western Boulder County and adjacent areas Committees: Senate President; Executive Committee, Legislative Council; Senate Services Chair Phone: joan.fi state.co.us Sen. Brandon Shaffer, D-Longmont, Senate District 17 Represents: Eastern and Northeastern Boulder County Committees: Assistant Senate Majority Leader; Judiciary Chair; Health and Human Services Phone: state.co.us Sen. Shaun Mitchell, R-Broomfi eld, Senate District 23 Represents: City and County of Broomfi eld and adjacent areas Committees: Health and Human Services; Judiciary; Legal Services Phone: state.co.us Sen. Ron Tupa, D-Boulder, Senate District 18 Represents: Central Boulder County Committees: Senate Majority Caucus Chair; Education Vice Chair; Local Government Phone: state.co.us In the months ahead, school boards and superintendents in all Colorado districts face several budget challenges. In Boulder Valley, some of the issues the Board and the superintendent must consider for the budget include: Projected flat enrollment resulting in fewer financial resources from the state An increase in employer contributions to Public Employment Retirement Association (PERA) Expected health insurance premium increases of about 10 percent No options for local voters to increase local revenue sources Impact of decisions made by the 2007 Legislature Cost of negotiated contracts with employee groups The bond work plan is bound to the BVSD Educational Facilities Master Plan as passed by the Board of Education on June 13, In addition BVSD was required by the bond s ballot language to establish a citizens bond oversight committee to monitor adherence to the facilities plan as well as to that plan s budget. That committee has been established. All bond expenditures must be administratively or operationally related to the capital improvement plan contained in the facilities master plan. Financial policy and fiscal responsibility The changing economic climate in Colorado and Boulder Valley prompted the Board to adopt Policy DB in Spring 2005 which dictates a minimum level of year-end fund balance in order to ensure the district s ongoing financial health. This policy restricts the district from using one-time money for ongoing programs. Any ongoing program maintenance or growth must be sustained with ongoing revenue. The adoption of this policy means Boulder Valley will have to make annual budget adjustments so that new expenditures do not exceed new revenues. Because the district has in the past funded necessary programs with fixed revenue provided by override funds, the cost of these programs will eventually exceed the fixed revenue stream. Using the policy now means the district can make smaller adjustments over time rather than making dramatic cuts in several years when the cost of programs have outgrown revenue sources. The policy was recommended by Boulder Valley s external auditors and commended by the Colorado Department of Education s 28

31 Accreditation Consultant. The five key requirements of the policy include: The General Operating Fund budget will be developed so that the total of annual ongoing expenditures, transfers, and incremental increase in required reserves does not exceed annual revenues. If the General Operating Fund ends any fiscal year with a surplus of revenues beyond expenditures, this amount can only be used for one-time operating expenditures in subsequent years. In addition, the General Operating Fund budget will be developed containing an ending fund balance equal to or greater than the required TABOR reserve on a generally accepted accounting principles (GAAP) basis. The budgets for all other funds will be developed to include, at a minimum, the required TABOR reserve. The General Operating Fund budget will be developed on a generally accepted accounting principles (GAAP) basis. The General Operating Fund budget is in compliance with these fund balance requirements. Important dates Superintendent George Garcia will discuss development of the budget with employees during staff meetings at selected buildings. In April, when better estimates of state funding and increased expenses are known, the preliminary budget will be presented to the Boulder Valley Board of Education at a work session. Interested employees and members of the community can learn more about the budget process during a community budget forum to be hosted by the District Accountability Committee in April. Watch the BVSD web site at for dates and times. Additional information More information about the budget, including the Revised Adopted Budget and Directing Resources Toward Student Achievement, is available on the district web site at Information may also be obtained by calling the BVSD Budget Services Department at Colorado House of Representatives Rep. Alice Madden, D-Boulder, House District 10 Represents: Eastern and Southern parts of City of Boulder Committees: House Majority Leader; Executive Committee Legislative Council Phone: alice.madden.house@ state.co.us Rep. Claire Levy, D-Boulder, House District 13 Represents: Western Boulder County, Gilpin County and Clear Creek County Committees: Judiciary; Transportation and Energy Phone: claire.levy.house@ state.co.us Rep. Jack Pommer, D-Boulder, House District 11 Represents: Northern parts of City of Boulder and City of Longmont. Committees: Appropriations Vice Chair; Joint Budget Committee Phone: jack.pommer.house@ state.co.us Rep. Dianne Primavera, D-Broomfi eld, House District 33 Represents: Southern Boulder County, City and County of Broomfi eld and adjacent areas Committees: Health and Human Services; Transportation and Energy Phone: Rep. Paul Weissmann, D-Louisville, House District 12 Represents: Eastern and Southeastern Boulder County Committees: Appropriations; State Affairs Chair Phone: paul.weissmann.house@ state.co.us 29

32 Budget Development Timeline The budget is a plan for balancing expenditures with revenues. The plan is based on estimates of data that become better known as the year progresses. 30

33 31

34 2006 November - December Development/Implementation of Budget Process 2007 January - May Budget Input and Development January - February Superintendent Budget Information Forums and Presentations Six Budget Information Forums at selected school sites as well as presentations before DAC, DPC, PAC, and TAC to discuss preliminary fiscal information March Employee Groups, through their leadership, meet with the Superintendent to discuss fiscal issues and provide budget input A selection of focus groups, including Principals and SIT members to provide budget input to the Superintendent * * Input from Principal/SIT and Employee group meetings to be shared with DAC and BOE once submitted to Superintendent DAC Budget Subcommittee reviews budget input and provides preliminary recommendations to DAC and BOE April Board of Education Budget Work Session Superintendent s Public Budget Forum on Preliminary Budget hosted by District Accountability Committee Budget Options/Preliminary Budget Discussed by Board of Education at BOE Meetings May DAC submits written recommendations on budget to BOE and the Superintendent Board of Education Review of Proposed Budget June Board of Education Finalization and Approval of Proposed Budget DAC = District Accountability Committee BOE = Board of Education SIT = School Improvement Team DPC = District Parent Council TAC = Teachers Advisory Council PAC = Principal Advisory Council July Fiscal Year - July 1, 2007 The BVSD Board of Education generally meets the 2 nd and 4 th Tuesday of each month 32

35 SUPERINTENDENT S CABINET George F. García, Ed.D., Superintendent Christopher King, Ph.D., Deputy Superintendent Robert Hammond, Chief Operations Officer Rebecca McClure, Chief Personnel Officer Judy Skupa, Ph.D., Assistant Superintendent for Learning Services Joe Sleeper, Executive Director of Operations Melissa Mequi, Esq., Legal Counsel Ellen Miller-Brown, Ph.D., Director of Middle Level Education Sheri Williams, Ed.D., Director of Elementary Education Sandy Ripplinger, Director of Elementary Education Briggs Gamblin, Director of Communications

36 Excellence and Equity Boulder Valley School District Excelencia y Equidad