Strategic Financial Plan

Transcription

1 Strategic Financial Plan

2 MISSION The mission of the Boulder Valley School District is to create challenging, meaningful and engaging learning opportunities so that all children thrive and are prepared for successful, civically engaged lives. VALUE STATEMENTS VISION We develop our children s greatest abilities and make possible the discovery and pursuit of their dreams, which when fulfilled will benefit us all. We provide a comprehensive and innovative approach to education and graduate successful, curious life-long learners who confidently confront the great challenges of their time. 1. We respect the inherent value of each student and incorporate the strengths and diversity of students, families, staff and communities. 2. Societal inequities and unique learning needs will not be barriers to student success. 3. We address the intellectual growth, health and physical development, and social emotional well-being of students. 4. We value accountability and transparency at all levels. GOAL #1 Boulder Valley School District will partner with students, families, staff, and community members to address the unique learning needs of each student and to create meaningful and engaging opportunities for each child. GOAL #2 Boulder Valley School District will ensure that each student meets or exceeds appropriate expectations relative to intellectual growth, physical development, and social emotional well-being. GOAL #3 - Boulder Valley School District will ensure that students, families, staff, and community members experience a safe, healthy, and inclusive environment. STRATEGIES USED TO ATTAIN GOALS a. Boulder Valley School District will assess the success of each child as well as the overall effectiveness of the school system using multiple measures. b. Boulder Valley School District will partner with parents and the larger community to help all students enter school ready to learn and continue to learn throughout their educational experience. c. Boulder Valley School District will attract, hire, and retain outstanding professionals at all levels of the organization. d. Boulder Valley School District will provide high quality professional development. e. Boulder Valley School District will increase community involvement, corporate partnerships, volunteer involvement, and legislative advocacy. 2

3 STRATEGIC PLAN During the school year, BVSD is focusing on six priority areas: Systems of Support, Literacy & Early Learning, Successful, Curious, Lifelong Learners, Educator Pipeline, Educator Growth & Development, and Parent & Family Partnerships. The BVSD community believes establishing and developing strategies within the guiding principles of Learning, Talent, and Partnerships is the most effective way to ensure student success. Systems of Support BVSD will build a strong foundation of safe, inclusive learning environments, support strong assessment practices, and create clear processes for instruction and layered interventions that meet students where they are and move them forward. Through these systems, teachers will personalize learning for all students. Literacy & Early Learning BVSD must ensure that all students are ready to meet changing literacy demands. The district will pull together expertise across the region to align literacy, language development, and early learning practices from Pre-K through high school graduation. As a result, BVSD employees hope and expect that all students will be able to read, write, persuade, listen, collaborate, dream, play, question, wonder, solve, connect, and contribute actively for life. Parent & Family Partnerships BVSD s School-Family Partnership Initiative endeavors to build collaborative relationships between schools, families, and the community to support the achievement, success and well-being of every child. BVSD recognizes that every family desires and has an essential role in their children s success. BVSD s School-Family Partnership Initiative will promote active partnership with families. Educator Pipeline The Educator Pipeline is the conduit that recruits, hires, and retains the high-quality talent that drives the lifelong success of our students. The educator pipeline is dedicated to creating a systematic, data-driven approach to hire and retain a diverse community of educators who reflect the student population. To that end, BVSD aims to identify key attributes of successful candidates, develop a comprehensive national marketing plan to attract talent, and create dynamic systems for orientation and retention. Successful, Curious, Lifelong Learners BVSD honors innovative teaching techniques that allow students to take the lead in learning, so we re committed to fostering students curiosity, interests, creativity, strengths, and passions. Educator Growth & Development BVSD s talent is the key to student success. By fueling learning, discovery, and advancement in all of our employees, the district will inspire a collaborative culture of growth for all. BVSD is committed to supporting relevant, high-quality professional development aligned with the school district s goals and measures of effectiveness, from required learning to innovative coursework. 3

4 UNDERSTANDING SCHOOL FINANCE IN COLORADO How Does Supporting Education Impact Your Taxes? Local tax money goes to the county treasurer who in turn distributes it to each governmental entity in the county. Doing the Math: State law sets the property tax assessment rate. In the 2018 collection year, homeowners will pay an estimated assessment rate of 7.2 percent of the actual assessed value of their home, while businesses will pay a 29 percent assessment rate. Here s how the math works for each $100,000 in home value: The 7.2 percent of assessed value is calculated to be $7,200. That s the amount on which taxes are based. One tax mill is equal to 1 cent on $10. So, $7,200 in value multiplied by equals $7.20 per mill. For example, in 2017, the BVSD tax rate was certified at mills or $ in taxes per year for each $100,000 of assessed home value. You can use the same formula to calculate your property taxes for your schools if you know your home s assessed value. The same calculations based on a 29 percent business rate net $1, in school taxes for each $100,000 of taxable business property. Amendments that affect school funding: TABOR: Colorado s Taxpayer s Bill of Rights, also known as TABOR, sets taxing and spending limits on all levels of government in the state, from special districts such as fire 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 significant limitations are: TABOR requires voter approval of tax increases. TABOR limits revenue collections. TABOR limits spending. TABOR also impacts district spending as the law requires that a school district hold 3 percent of expenditures in reserve. This reserve can only be spent in an emergency, which excludes economic conditions, revenue shortfalls, or salary and fringe benefit increases. A statute change in now allows a district to hold a letter of credit or utilize real asset value (buildings) as this 3 percent reserve, rather than cash. BVSD continues to hold a 3 percent cash reserve for its TABOR requirement. 4

5 Referendum C: In November 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 inflation plus population. With no increase to current tax rates, Referendum C allows the state to keep and spend the revenue it collects under current rates for five years. The revenue retained by this change will be used to fund healthcare, K-12 and higher education, pension plans for firefighters and police officers, and specifically identified Department of Transportation projects. The referendum s stated goal was to restore state budget cuts since 2001 and reset the base funding level. Amendment 23: In November of 2000, Colorado taxpayers approved Amendment 23 to the Colorado Constitution. This amendment identifies increases in funding to public elementary and secondary schools at a rate of inflation plus 1 percent for a total of 10 years, through the fiscal year, and then at the rate of inflation thereafter. The amendment s stated goal was to restore public education funding back to 1988 levels. Gallagher Amendment: In November 1982, Colorado voters passed the Gallagher Amendment, which divides the state s total property tax burden between residential and nonresidential (commercial) property. According to the Amendment, 45% of the total amount of state property tax collected must come from residential property, and 55% must come from commercial property. Further, the Amendment mandates that the assessment rate for commercial property, which is responsible for 55% of the total state property tax burden, be fixed at 29%. To maintain the 45/55 split, the current residential property rate is set at 7.2% BUDGET STABILIZATION FACTOR (Negative Factor) As a result of the Great Recession, the Budget Stabilization Factor was implemented. The legislature determined that Amendment 23 only applied to base per pupil funding. Under law, Colorado per pupil funding is made up of a base amount per student that is the same throughout the state. Added to this base are factors allocating additional per pupil funds by use of a state formula applied on a district-by-district basis. The factors include: poverty, cost of living, and size, and make up a large portion of Colorado s per pupil funding. Each year the legislature determines the amount of increased funding required under Amendment 23 and the School Finance Act. Then the Budget Stabilization Factor is applied against this total dollar amount, reducing overall funding. 5

6 STATE FUNDING Each year the state budget is crafted by the governor and legislature to determine how much of the total budget will be allocated to K-12 education. This Strategic Financial Plan overview is a guide to understanding the components that make up BVSD s budget, how it is created, and some of the priorities and choices it reflects. WHAT THIS MEANS FOR BVSD Total program funding, as calculated in the School Finance Act and approved by the Colorado State Legislature, was projected to be $225.9M for BVSD. For the ninth consecutive year, the Legislature decreased total funding by applying a Budget Stabilization Factor (negative factor) to reduce total program funding. For BVSD, this equates to lost state revenues in the amount of $28.3M, which is factored out of the above number. Even under these circumstances, district administrators are committed to the course our learning community is taking in as we work toward the vision, mission, and goals throughout all levels of the organization. 6

7 FUNDING SOURCES Schools are funded from three sources: state funds, local property tax, and vehicle registration fees, known as Specific Ownership Tax (SOT). Although the state determines individual school district funding levels, the amount contributed from the three different sources varies according to local assessed property valuation. Boulder Denver Poudre Jefferson Co. Littleton Douglas Co. Cherry Creek St. Vrain Colorado Springs D-11 Adams 12 Five Star Schools Aurora Per Pupil Funding Summary without Override State Funding Property Tax Specific Ownership Tax $7,572 $7,918 $7,662 $7,472 $7,366 $7,450 $7,623 $7,485 $8,550 $8,494 $8,187 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 As evidenced in these, because of higher assessed valuation, BVSD receives a larger portion of its revenue from local property taxes and therefore, the state contribution is less than peer districts. As a result, BVSD is estimated to receive $7,572 for each student FTE. Boulder Denver Poudre Jefferson Co. Littleton Douglas Co. Cherry Creek St. Vrain Per Pupil Funding Summary with Override State Funding Property Tax Specific Ownership Tax Override $9,886 $10,233 $8,896 $8,871 $9,168 $7,977 $9,551 $8,801 In order to ease the burden caused by the state s Budget Stabilization Factor, BVSD asked voters to approve override funding through additional mill levies. These override revenues increase the district s per pupil revenue to $9,886 in Colorado Springs D-11 Adams 12 Five Star Schools $9,451 $11,269 Aurora $9,286 $1,000 $3,000 $5,000 $7,000 $9,000 $11,000 7

8 GENERAL OPERATING FUND REVENUE MORE CONTROLLABLE 1991, 1998, 2002, 2010 voterapproved mill levy overrides CTE, Special Ed, READ Act, ELPA, Talented & Gifted Nonequalized SOT, Medicaid, Indirect Cost Reimb, Charters, Interest Earnings Policy Decisions Tuition: $ 761, % Local Elections (Referenda) Local Property Tax: $ 67,987, % School Finance Act State Funding: $ 50,873, % Local Property Taxes*: 167,137, % Specific Ownership Taxes: 8,611, % Other State Revenue Categorical Reimbursements: $ 9,055, % Other Revenue Specific Ownership Taxes: $ 9,421, % Other Revenue: 2,825, % Services Provided: 3,814, % Total: $ 320,488, % LESS CONTROLLABLE Tuition and fees Amounts received from the state and equalized SOT vary according to local assessed property valuation. *includes abatements and delinquent property taxes There are a variety of factors that impact the amount of money the district receives in its 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 above, the smaller funding sources are typically the ones over which the district has more control. For example, the district or the schools can control what kind of fundraising projects to have and how that money is to be used. However, at the other end of the spectrum, there is virtually no control over how many children live in the district and attend our schools. 8

9 Override Elections The BVSD electorate has control over passing local property tax increases for school funding which represents 21.5 percent of the district s General Operating Fund budgeted revenue. Socio-Economic Status The per pupil revenue is calculated taking into consideration the percentage of students in the district who are eligible for free and reduced lunch status. Equity in School Funding While tax dollars are collected locally for education, the state legislature determines how much funding each school district will receive. The SFA is aimed at ensuring that all children in the state receive an equitable educational experience and has devised a formula that evaluates various 19.4% free & reduced lunch eligible student population factors and determines the funding needed to provide an equitable educational experience in each school district. For the school year, it is estimated BVSD will receive $7,572 for each student full-time equivalent (FTE). The legislature has not determined an adequate level of funding to meet the expectations for educating all public school students. $69,022,644 override election revenue $7,572 per pupil revenue received from the state for each student full-time equivalent School Finance Act The SFA is a combined total the state s funding of BVSD s student FTE, local property taxes as determined by property assessed valuation, and equalized specific ownership taxes. Categorical Reimbursements 29,822.3 Total funded student FTE Other State Revenues are provided in the School Finance Act to support programs for specific groups of students or particular student needs. These programs are often referred to as categorical programs and include Special Education, Career and Technical Education, English Language Proficiency programs, and the READ Act. $9,055,951 reimbursement revenue 9

10 OVERRIDE IMPACTS The Colorado SFA was revised in 1994 creating Title 11, Article 50 of the Colorado Revised Statutes, which determines the base revenue of the General Operating Fund of the school district. This 1994 SFA set the standard mill levy at 40 mills for all districts. Due to dramatic increases in property values (assessed valuation) in some areas of Colorado (since 1994), the Act of 1994 was amended during the 2007 legislative session which froze the existing mill levy for most districts in the state, to reduce the pressure on state funding for local school districts. School Finance Total Program Funding $ 225,814,456 Minus: State Finance Act Funding (50,704,279) Equalized Specific Ownership Tax ( 8,611,341) School Finance Act Local Property Tax Amount $ 166,498,836 Plus: Override Elections: 1991 $ 7,062, ,600, ,000, ,360,176 Total Override Elections $ 69,022,644 TOTAL ESTIMATED GENERAL OPERATING FUND TAX LEVY $ 235,521,480 The total BVSD mill levy is estimated at mills which is applied to assessed valuation. For BVSD, the General Operating Fund mills have remained at since The district s 1991, 1998, 2002, and 2010 budget override (referendum) elections result in a levy of mills. The mill levy for abatements, refunds, and omitted property is mills The General Operating Fund mill levy totals mills, the Bond Redemption debt service mill levy is at mills, and the Transportation Fund mill levy is mills. The new Capital Construction, 0.00 Maintenance & Technology levy is 2.709, all totaling mills collectively General Fund Election Bond Redemption Transportation Abatements Operations & Technology 10

11 CAPITAL CONSTRUCTION, MAINTENANCE & TECHNOLOGY FUND 2016 Ballot Measure 3A approved by voters establishes an operational mill levy which will fund a portion of the $33.4 million in present ongoing maintenance, custodial, security, and technology expenditures. Resources from the levy will allow investment for ongoing preventative maintenance and repairs to extend facility life REVISED BUDGET AMOUNT Beginning Fund Balance $ 1.7M Property Taxes - Election $ 17.7M Total Resources $ 19.4M Purchased Services $ 4.0M Charter Expenditures 1.3M Other Uses 13.6M 3% TABOR Reserve 0.5M Total Expenditures and Reserves $ 19.4M Ending Fund Balance $ 0.0M TRANSPORTATION FUND The Transportation Fund was created to capture the expenses of transporting students to/ from school and after-school events. Funding is provided by the mill levy passed in 2005 (and is budgeted to collect the maximum amount authorized of $7.3 million in ), the CDE transportation reimbursement, paid usage by outside organizations, and chargebacks to other departments for BVSD activities. The fund continues to benefit from lower fuel costs, which are a reflection of both lower gas prices and the change in the nature of the bus fleet as we replace older diesel buses with new propane buses REVISED BUDGET AMOUNT Beginning Fund Balance $ 0.9M Property Taxes - Election 7.3M Other Sources 0.2M State Categorical Reimbursement 3.6M Transfer from General Fund 4.9M Total Resources $16.9M General fund resources freed up by the operational levy will be available to support the following areas: Maintain present level of educational services. Invest in preventative maintenance for buildings and equipment. Replace out-of-date textbooks and learning materials. Fund compensation and benefits for all employees. Provide training for staff. Employ educators to meet student needs. Initially the levy will generate $10 million a year. The Board of Education has authority to increase the levy to 4 mills in future years which would provide more than $25 million dollars a year for district investment in services. Total Expenditures and Reserves $ 16.9M Ending Fund Balance $ 0.0M 11

12 GENERAL FUND - FUND BALANCE In order to meet the challenges of school funding in Colorado and BVSD, the Board of Education adopted Policy DB in the spring of 2005, which dictated a minimum level of yearend fund balance in order to ensure the district s ongoing financial health. To further bolster the district s financial position and address the current economic challenges, the Board of Education updated this policy in January 2009, strengthening the requirements of the policy. The policy restricts the district from using onetime money for ongoing expenditures. This ensures programs are sustained with ongoing revenue. In addition, current policy specifies the amount to be held as a contingency reserve REVISED BUDGET AMOUNT Beginning Balance $ 34.6M Revenue 320.4M Total Resources $ 355.0M Expenditures $ 288.5M Transfers 45.0M Reserves 18.3M Total Uses $ 351.8M A totoal of 6.0 percent of General Operating Fund expenditures is reserved for TABOR (state-required 3.0%) and per current policy, as referenced above, the district reserves an Ending Fund Balance $ 3.2M additional 3.0%. The use of emergency reserves excludes factors related to economic conditions, revenue shortfalls, and district salary or fringe benefit increases Revised Budget - Numbers - Policy DB Calculation $ 320,488,432 Total Revenues (333,547,880) Less Total Expenditures & Transfers (150,000) Less one-time Revenue 1,650,955 Plus one-time Transfers 11,883,967 Plus one-time Expenditures & Carryover 325,474 Total Policy DB Ongoing Available $ 307,051 Net available ongoing funds after 6% reserves Following the requirements of this policy means BVSD will have to make annual budget adjustments so that new expenditures do not exceed new revenues and a moderate level of reserves is maintained. 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. Application of the policy means the district can make smaller adjustments over time rather than making dramatic cuts when the cost of programs has outgrown revenue sources. 12

13 DISTRICT SPENDING PATTERNS Major functional areas are reported annually in the district s financial documents. The financial reports document expenditures for the Combined General Fund which includes: General Operating Fund, Risk Management, Technology, Athletics, Community Schools Program, and Preschool Funds. (millions) Audited Audited Audited Audited Audited Audited Budget Instruction - Regular Programs Instruction - Special Programs* Student Support Services** Instructional Staff Services*** General Administration $131.5 $136.2 $145.0 $151.2 $158.9 $162.8 $ School Administration Business Services Operations and Maintenance Central Support Services Community Services Debt Service - Principal & Interest Total (Rounded) $256.9 $260.5 $283.9 $292.2 $305.3 $307.1 $336.5 *Special Programs: CTE, CoCurricular Activities, Talented & Gifted, Special Education, English Language Development. **Student Support Services: Counselors, Nurses, and Health Services. ***Instructional Staff Services: Librarians and Staff Development. 13

14 DISTRICT SPENDING PATTERNS (continued) (percentages) Audited Audited Audited Audited Audited Audited Budget Instruction - Regular Programs Instruction - Special Programs Student Support Services Instructional Staff Services General Administration School Administration 51.17% 52.30% 51.07% 51.72% 52.06% 52.99% 54.32% 16.73% 16.32% 16.07% 16.52% 16.33% 16.39% 16.57% 3.74% 4.02% 4.09% 3.88% 3.76% 3.80% 4.58% 3.42% 3.34% 3.69% 3.91% 3.87% 4.31% 4.23% 1.13% 1.16% 1.07% 1.22% 1.25% 1.48% 1.35% 7.19% 7.32% 6.86% 7.12% 7.11% 7.26% 6.86% Business Services 1.06% 1.19% 1.33% 1.33% 1.33% 1.36% 1.39% Operations and Maintenance Central Support Services 7.79% 8.12% 7.79% 7.78% 7.59% 5.83% 4.70% 4.65% 4.40% 6.23% 4.59% 4.70% 4.59% 3.89% Community Services 1.82% 1.82% 1.81% 1.93% 1.99% 1.99% 2.10% Debt Service - Principal & Interest 1.30% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% *Special Programs: CTE, CoCurricular Activities, Talented & Gifted, Special Education, English Language Development. **Student Support Services: Counselors, Nurses, and Health Services. ***Instructional Staff Services: Librarians and Staff Development. 14

15 PEER DISTRICT FINANCIAL COMPARISONS The district has a long history of providing financial comparisons to other Colorado school districts. The districts selected for comparison have been the top ten largest districts plus Littleton Public Schools. Littleton was included for its proximity, demographics, mill levy support and high student achievement. The following tables compare spending patterns and other fiscal data points related to district operations. 100% District Expenditures as a Percent of the Total Budget 90% 80% 24.4% 24.5% 25.2% 25.7% 25.9% 26.7% 26.4% 27.4% 27.9% 28.1% Operational Support 70% 60% 50% 9.1% 8.6% 8.3% 7.9% 8.7% 9.4% 9.3% 9.1% 9.1% 9.1% 5.1% 4.4% 4.1% 3.8% 3.2% 6.0% 7.8% 8.0% 7.7% 7.9% 6.1% 6.2% 7.8% 6.5% 6.2% 6.7% 6.9% 6.9% 6.9% 7.2% Buildings & Facilities Textbooks & Materials Administration 40% 30% 20% 53.5% 54.5% 54.7% 54.6% 54.3% 51.3% 51.3% 50.3% 49.6% 49.4% Teachers 10% 0% BVSD BVSD BVSD BVSD BVSD Peer Avg Peer Avg Peer Avg Peer Avg Peer Avg Source: Colorado Department of Education: School Accountability Report Pupil Membership District Staff Statistics 15

16 PEER DISTRICT FINANCIAL COMPARISONS (continued) CDE data include: Preschool-12 student membership; All district schools, inclusive of charter schools; The CDE category of Teachers captures all Regular Education Teachers, Special Education Teachers and Title I Teachers. 25 Student:Teacher Ratio BVSD BVSD BVSD BVSD BVSD Peer Avg Peer Avg Peer Avg Peer Avg Peer Avg PRESCHOOL-12 STUDENT MEMBERSHIP Peer Districts Net Change % Change % Annual Change Denver Public Schools 80,890 91,132 10, % 2.5% Jeffco Public Schools 85,751 86, % 0.1% Douglas County School District 63,114 67,470 4, % 1.4% Cherry Creek School District 52,589 54,815 2, % 0.8% Aurora Public Schools 39,696 41,797 2, % 1.1% Adams 12 Five Star Schools 42,990 38,818 (4,172) -9.7% -1.9% St. Vrain Valley School District 28,109 32,171 4, % 2.9% Boulder Valley School District 29,780 31,189 1, % 0.9% Poudre School District 27,510 29,682 2, % 1.6% Colorado Springs School District 11 29,509 27,911 (1,598) -5.4% -1.1% Littleton Public Schools 15,571 15,517 (54) -0.3% -0.1% TOTAL 495, ,849 21, % 1.1% 16

17 BVSD STUDENT POPULATIONS The district s student population is a diverse group made up of special education students, English language learners, talented and gifted students, and students eligible for free and reduced lunch. Student Enrollment Category CDE Preschool-12 Student Membership ,780 30,041 30,546 30,908 31,247 31,189 31,282 Funded Membership 29,544 29,718 30,145 30,566 30,875 30,837 30,985 Student Membership Not Funded English Language Learners ELL % of Funded Membership Free/Reduced Lunch Status FRL Statuts % of Funded Membership ,422 2,442 2,547 2,561 3,129 3,021 3, % 8.2% 8.4% 8.3% 10.1% 9.8% 9.7% 5,567 5,633 5,674 6,188 6,836 6,487 5, % 19.0% 18.8% 20.2% 22.1% 21.0% 19.3% Talented & Gifted 3,973 4,129 4,330 4,443 4,629 4,614 4,280 TAG % of Funded Membership 13.4% 13.9% 14.4% 14.5% 15.0% 15.0% 13.8% Out of District 2,211 2,158 2,337 2,426 2,488 2,516 2,501 OOD Students % of Funded Membership 7.5% 7.3% 7.8% 7.9% 8.1% 8.2% 8.1% Special Education 2,866 2,825 2,874 3,028 3,152 3,345 3,508 SpEd Students % of Funded Membership 9.7% 9.5% 9.5% 9.9% 10.2% 10.8% 11.3% 17

18 STUDENT OUTCOMES Overall, students in BVSD rank above state or national levels in areas of graduation rates, dropout rates, ACT scores, and meeting K-3 literacy benchmarks. 4 Year On Time Graduation Rate Percent Hispanic or Latino Economically Disadvantaged Limited English Proficient 40 Students with Disabilities 30 BVSD Overall 20 State Overall Year 5.0 Dropout Rate BVSD Totals (All Students) 3.5 Economically Disadvantaged Percent Hispanic or Latino 2.0 Limited English Proficient State Total Students with Disabilities Year 18

19 STUDENT OUTCOMES (continued) 30 College Readiness BVSD Percent ELL FRL HISPANIC SPED STATE Year 100% K-3 Students Meeting Spring Literacy Benchmarks Percent 80% 60% 68% 70% 67% 51% 50% 49% BVSD Overall ELL FRL 40% LATINO National 20% SPED 0% Year 19

20 CAPITAL IMPROVEMENT PLANNING BUILDING FOR STUDENT SUCCESS The Building for Student Success program is a bond-funded capital improvement program that will provide renovations to schools and facilities throughout BVSD. Funding for the program was generously approved by voters in 2014 and is managed separately from the district s general operating budget and other funds. These funds may only be used for construction or to purchase items such as furniture or equipment. Many students already are benefiting from improvements provided through the $643 million program which will eventually impact every school and facility. Identifying the need The program is driven by the Educational Facilities Master Plan which was developed through the efforts of BVSD staff and the board-appointed Capital Improvement Planning Committee. Over a two-year period, staff performed a building and site assessment on all district buildings, encompassing over 4.5 million square feet of district assets. In addition, the committee identified capital improvement needs beyond those of specific schools and worked with staff to prioritize the identified needs. Major goals of the master plan include: Improve the physical condition of schools by performing critical repair and replacement of building systems and finishes. Nearly 50% of the plan includes this type of work; Rebuild existing schools that are beyond repair including Emerald, Douglass and Creekside elementary schools; Provide new learning spaces or renovate existing spaces as needed for the expansion of full day kindergarten, expanded preschool, special education, fitness and physical development; Construct a new school in Erie for enrollment growth serving Pre K - 8th grade students; Provide safe, healthy, comfortable learning environments through security upgrades, asbestos abatement, ventilation upgrades and providing air conditioning in select buildings; Improve energy efficiency with lighting upgrades, HVAC upgrades, and ensuring systems are performing optimally; 20

21 Support innovative teaching methods to personalize learning and prepare students for college and careers and increase the use of instructional technology; Improve operational efficiency and functionality with improvements to districtwide support facilities. Impact on Budget Some of the improvements to facilities realized through the Building for Student Success program are expected to have a positive effect on the general fund. Some examples of anticipated cost reductions and potential revenue sources include: Predicted energy cost avoidance due to efficiency improvements. BVSD is working toward reducing overall energy consumption 20 percent by Xcel rebates Savings in water consumption costs associated with synthetic turf fields, irrigation improvements, and water reduction measures in schools Additional revenue associated with rental of the new synthetic turf fields as well as gyms at Manhattan and Meadowlark Food cost savings realized from buying more food in bulk made possible with increased storage at the District Kitchen Food Services payroll reductions due to elimination of production kitchens at schools 21

22 BUDGET DEVELOPMENT TIMELINE AND MILESTONES The annual budget development timeline follows a path through pre-determined milestones that are established by legislative actions, board of education decisions, district policies, contractual deadlines, information availability and state statute. In conjunction with the roadmap provided by the district s strategic plan, these milestones guide the development of the district s annual budget. Changes to programmatic offerings, either through redesign, reallocation or new implementation must fit within these decision points and data inputs to insure an accurate, thorough and thoughtful budget development process Budget Development Process Milestones Stakeholder Input Options: District Accountability Committee District Parent Council Community Budget Input School Leadership Public Comments at BOE Meetings Staff Communication 09 Jan DAC Draft Budget Priorities 23 Jan DAC Budget Priorities Report 20 Feb BOE Mid Year Financial Review 27 Feb Budget Development Priorities Approval 09 Jan Enrollment Update to BOE 12 Dec Budget Development Process 09 Jan BOE Budget Work Session 23 Jan BOE Budget Work Session 20 Feb BOE Budget Work Session 27 Feb Staffing Distribution Approval D e c e m b e r J a n u a r y F e b r u a r y 20 Dec State Current Year Revenue Forecast 09 Jan Close of Open Enrollment 19 Jan Initial Enrollment Projection 01 Feb Prior Year Consumer Price Index (CPI) Determined 28 Feb Preliminary Health and Dental Insurance Rates 10 Jan Convene CO General Assembly 28 Feb Open Enrollment Lottery Results 1-Dec 01 Mar Worker's Comp Premium Determined 01 Mar Preliminary Unemployment Expense Est. 19 Mar State Current Year Revenue Forecast 13 M a r c h 15 Mar Notification to BVEA of Potential Reduction in Force 15 Mar Review/ Update Enrollment Projections Feb April Staffing Allocations 10 Apr Preliminary Budget to BOE 17 Apr BOE Budget Work Session A p r i l 15 Apr Notice of probable PARA FTE to be affected 05 May Third Quarter Financials Board of Education Meeting 09 May Adjourn CO General Assembly 15 May Notification to all Employees Affected by Reduction in Force M a y 22 May Proposed Budget to BOE 22 May Proposed Budget Public Input Session 22 Board of Education Work Session Data Input Feedback Action 20 Jun State Current Year Revenue Forecast J u n e 30 Jun Deadline for Budget Approval by BOE 30-Jun

23 GOVERNOR S BUDGET Governor Hickenlooper s November 1 proposed budget for included funding for Pre-K12 enrollment growth, inflation at 3.0%, and reduced the Budget Stabilization Factor by $70M. The net projected PPR increase for BVSD is $342, or 4.5%. Included in the Governor s proposal is a statewide enrollment growth of 0.67%, but the Legislative Council Staff initial district-specific projection has an inflated BVSD student growth of 0.07%. Historically, the Governor s budget has been considered a floor for K-12 funding, with additional resources being allocated during the legislative session. With the recently enacted federal tax changes, projections by the Legislative Council include greater revenue for Colorado, which in turn creates optimism for a further reduction of the Budget Stabilization Factor in the fiscal year. ECONOMIC OUTLOOK Colorado For more than 50 years, the Colorado Business Economic Outlook has been compiled by industry leaders in the state, and presented by the Business Research Division of the Leeds School of Business at the University of Colorado Boulder. The information below was compiled from the Colorado Economic Forecast for 2018, presented on December 11, The Colorado economy continued to experience faster growth than the national economy in the first half of 2017, ranking Colorado third in the pace of GDP growth. Colorado outperforms in the nation and region despite a slowing growth rate. While per capita personal income is ranked 15th in the nation, and average annual pay are above the national average, the rate of income growth ranks 35th, below the national average. Colorado s unemployment rate stood at 2.5% in September, which is a strong indicator of the state s current talent shortage. The unemployment rate for Colorado is projected to remain low into 2018, and the tight labor market conditions are making it difficult for businesses to find the labor they need to maintain operations and for expansion. The tight labor market also creates upward pressure on wages in the metro Denver area, the labor market in which school districts must compete for qualified staff, including instructional, trades and professional ranks. With continued growth in the construction industry, there will continue to be increased cost pressures on construction projects resulting from the significant amount of school district capital construction projects approved in the November, 2016 election. Colorado s population is forecast to continue to grow but at a slowing rate was the only time the population in Colorado has increased by 100,000 since The population is forecast to increase by an estimated 90,600 in 2018 and 90,000 through The slowing growth is forecast due to a slowing economy, slowing birth rates, aging population, and slowing labor force growth. Although Colorado s population growth is forecast to be slow, it is projected to continue to grow at roughly twice the national rate. Colorado is forecast to increase from 1.7% of the U.S. population to 2.1% by Between 2010 and 2016, 96% of the state s population growth occurred in the Front Range and I-25 corridor, and 65% in the Denver Metro area. Other areas of the state have experienced a decline in population, with most of the counties experiencing declines are those on the Eastern Plains. This population growth, combined with housing unit growth behind household formation fuels the tight housing market, and puts pressure on the availability of staff for middle to low wage jobs, as well as growing families which drive school district student growth. 23

24 Boulder County Boulder County maintains a very strong and diversified economic base and continues to experience above average employment growth and some of the lowest unemployment rates in Colorado. These positive economic indicators in Boulder County have allowed the region to outperform local and national areas. According to the 2018 Colorado Business Economic Outlook: Data from the Bureau of Labor Statistics show employment in Boulder County increased 3.6% between September 2016 and 2017, creating an additional 6,600 jobs, compared to a 1.6% increase in Colorado during that period. In September 2017, the Boulder County unemployment rate was 1.9% (not seasonally adjusted) compared to state unemployment of 2.3% and a national rate of 4.1% (not seasonally adjusted). The area s large concentration of jobs in sectors with higher-thanaverage wages contributes to above-average incomes for area residents. The median household income for Boulder County residents was $74,615 in 2016 compared to $65,685 for Colorado residents, according to data from the U.S. Census Bureau. The University of Colorado Boulder offers internationally recognized aerospace research and education programs and is the #1 public university for NASA research funding. Several federally funded labs in the area conduct research in space, including the Laboratory for Atmospheric and Space Physics (LASP), the National Oceanic and Atmospheric Administration (NOAA), and the University Corporation for Atmospheric Research (UCAR). The business and economic outlook is very positive for Boulder County. The region s robust economy built on diverse high-tech and lifestyle industries, the University of Colorado Boulder flagship campus, a highly educated workforce, thriving entrepreneurial culture, and highly desirable quality of life inspires optimism heading into The Federal Housing Finance Agency All- Transactions house price index for Boulder County increased 10.8% from midyear 2016 to During the same period, the house price index for Colorado increased 10.4%. The Boulder County economy continues to benefit from high concentrations of companies and employment in key industry clusters, such as aerospace, biotechnology, cleantech, information technology, natural and organic products, outdoor recreation, and tourism. In addition to the presence of well-established Fortune 500 companies, many startup and early-stage companies in these industries are based in Boulder County. 24

25 BUDGET DEVELOPMENT PRIORITIES A recommended step within the Government Finance Officers Association Best Practices in School Budgeting, is for a district to develop and adopt a set of budget principles to help frame and guide budget deliberations. A set of principles, agreed to by the school board and the staff before the budgeting process begins can provide a means to assess what matters most in the budgeting process creating the most student learning with the money available. Budgeting principles should be developed collaboratively by the district s school board and the staff members who develop and recommend the budget. Since both parties have integral roles in developing, adopting, and, ultimately, implementing a budget, both parties must strongly support the principles and policies underlying the budget. º º Transparency and Progress Reporting Local common assessments º º Other Programs for Students Attracting, recruiting and retaining high quality staff Maintaining and ensuring adequate district operational functions º º School Facilities, Safety and Security To that end, the Board of Education, Superintendent, District Accountability Committee and senior staff collaborated to develop a set of budget priorities to guide the development of the budget. The following priorities were adopted by the Board of Education on February 27, 2018: Support to close the opportunity and achievement gaps º º Equity Support and differentiated funding for sub populations º º Social-Emotional Learning & Supports Counselors º º Investment in Literacy Instruction and Interventions º º Investment in Special Education Services º º Investment in English Language Development º º Program Evaluation and Effectiveness 25

26 ASSUMPTIONS AND ESTIMATES The development of the BVSD comprehensive budget is guided by the Strategic Plan, applying resources strategically in the areas of Talent, Learning and Partnerships, while supporting operational activities to ensure basic business functions, operations, compliance, risk-mitigation, health and safety as appropriate. Within these strategic areas, resources are applied as determined by a set of priorities, assumptions and estimates that change from year to year. For the fiscal year, the following data are being incorporated during the initial planning phase of budget development. Inflation - Denver-Boulder-Greeley Core Consumer Price Index (CPI) º º Final Bureau of Labor Statistics figure - 3.4% º º State budget (Long Bill) developed with 3.4% inflation Contract negotiations º º Longevity, salary schedule movement, working conditions º º 3.4 % employee salary cost of living adjustment (COLA) at CPI Student population growth - 0.1% (42.7 FTE) Adjusting classroom teacher FTE for enrollment changes (maintaining staffing ratios) Health/Dental Benefits - 5% rate increase PERA employer contribution impact from 2018 statutory rate increase Budget Stabilization Factor reduction º º Incremental BVSD reduction - $5.1M º º BVSD total Budget Stabilization Factor - $25.8M º º Incremental statewide reduction - $150.0M º º Statewide total Budget Stabilization Factor - $758.3M Contractual price escalations and operational expenditures Continued implementation of Strategic Plan priority focus areas ADDITIONAL RESOURCES For more detailed information on areas that guide the budget process, click on the related links noted on this page. Colorado Department of Education CDE-Critical Dates BVSD Bond Program BVSD Success Effect BVSD Budget Documents BVSD Audit Documents BVSD Quarterly Financial Statements Student Enrollment Data District Parent Council BVSD Financial Transparency cdefinance/fy201718dates businessservices/budget/ budgetarchivedpublications. aspx businessservices/accounting/ pages/acctg-archivedpub.aspx businessservices/accounting/ Pages/financialstatements. aspx Enrollment/Pages/PupilCount. aspx Pages/default.aspx FinancialTransparency/ Template/Pages/default.aspx 26

27 27

28 STRATEGIC FINANCIAL PLAN BVSD Education Center 6500 Arapahoe, Boulder, CO / bvsd.org bvsdsuccesseffect.org 28