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Douglas County School District Re.1

School Finance 101FY 2009-10

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SCHOOL FINANCE 101

Determining Total Program funding:

Funded Pupil Counttimes

Total Per-pupil Fundingplus

At-risk Fundingplus

On-line Funding

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SCHOOL FINANCE 101FY 2009-2010

Behind the Formula:

DCSD’s Per Pupil Revenue

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Per-Pupil Revenue & Amendment 23 A constitutional amendment passed by the

state's voters in 2000. The amendment provides for minimum levels of increase in the statewide base per pupil funding amount and in categorical funding and sets a minimum increase in the state General Fund appropriation for school finance funding for public elementary and secondary education.

It requires an annual increase in the base per pupil funding in the school finance act and total state funding for categorical programs of at least the inflation rate plus one percentage point from FY 2001-02 through FY 2010-11 and by the inflation rate thereafter.

SCHOOL FINANCE 101

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

Property Taxes Specific Ownership Taxes

State Share Equalization

SCHOOL FINANCE 101

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OTHER FUNDING Categorical Program Funding:

In addition to Total Program funding, districts may receive state funding to pay for specific programs designed to serve particular student needs. Statewide total for 2009-10 = $191.3M; DCSD: $10.9M

Override Revenues: $33.7M Bonded Indebtedness: $625.8M

Small Attendance Centers Special Education

ELPA Transportation

Gifted and Talented Vocational Education

SCHOOL FINANCE 101FY 2009-2010

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SCHOOL FINANCE 101Calculating Your Property Taxes The taxable value of your property is a percentage

of the actual value (roughly 8%) and the resulting value is called the “assessed value.” 

To determine the amount of property taxes, multiply the assessed value times the decimal equivalent of the total mil levy (one tax mil is equal to 1 cent on $10.)

(i) Property Value x Assessment Rate = Assessed Value

(ii) Assessed Value x Mil levy = Property Taxes

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

HoldFY 2009-10 Funded Per Pupil Harmless & Total

School District Pupil Count Revenue Override Rev Per PupilSheridan 1,382.5 $9,015 $723 $9,738Englewood 2,802.5 $8,410 $1,126 $9,536Denver 68,384.0 $7,979 $1,129 $9,108Westminster 8,701.0 $7,927 $962 $8,889Commerce City 6,530.0 $8,097 $749 $8,846Mapleton 5,171.0 $7,704 $944 $8,648Adams 12 33,128.5 $7,576 $1,069 $8,645Cherry Creek 48,510.5 $7,240 $1,221 $8,461Boulder Valley 27,338.5 $7,231 $1,195 $8,426Aurora 33,280.0 $7,750 $671 $8,421Littleton 14,782.5 $7,160 $1,138 $8,298Jefferson 79,884.0 $7,197 $930 $8,127Douglas County 53,228.0 $7,040 $633 $7,673

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Ending Fund BalanceFund Balance as % of Revenue

$11,631,904

$7,533,607

$12,249,812

$16,949,728

$8,043,224

$10,971,001

$16,991,628

$14,216,316 $14,484,476

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

Ending Fund Balance FB as % of Revenue

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General Fund Fund Balance History

Actual Actual Actual Actual Actual

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Beginning Fund Balance $ 26,026,441 $ 29,746,583 $ 34,885,682 $ 33,900,988 $ 16,920,287

Total Revenue 303,053,948 326,303,746 358,133,869 389,968,712 438,541,212

Total Expense 299,333,806 321,164,647 359,118,563 406,949,413 439,032,134

Ending Fund Balance $ 29,746,583 $ 34,885,682 $ 33,900,988 $ 16,920,287 $ 16,429,365

Ending Fund Bal as % of Total Rev 9.8% 10.7% 9.5% 4.3% 3.7%

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Ending Fund Balance Fund Balance as % of Revenue

$12,249,812

$26,026,441

$29,746,583

$34,885,682$33,900,988

$16,429,365$16,920,287

$6,000,000

$11,000,000

$16,000,000

$21,000,000

$26,000,000

$31,000,000

$36,000,000

$41,000,000

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

Ending Fund Balance FB as % of Revenue

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Observations & Insights

Defining Realities Need to “live within our means” at odds with goal to

be competitive employer Revenues from the School Finance Act grow at a

rate less than expenses escalate: e.g. increase in PPR based upon CPI whereas total compensation package pressured to increase at some multiple of the CPI. “Do more with less” may mean “do less with less”

Significant number of pupils living within district boundaries seeking educational opportunities which are out-of-district

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Annual Increase in PPR v. SALARY(CPI + A23’s 1%):

FISCALYEAR

GROWTHIN PPR

SALARY

2003-2004 2.9% 4.70%

2004-2005 2.1% 4.40%

2005-2006 1.1% 3.00%

2006-2007 3.1% 5.50%

2007-2008 4.6% 6.35%

2008-2009 3.2% 2.70%

TOTAL 17.0% 26.65%

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FISCAL RISKS

State’s Fiscal Health Revenue Problems A-23 Funding

Compensation Philosophy Base Pay Other Pay Elements Performance Pay

Benefits Health Benefits PERA

Stakeholder Expectations

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Points To Remember

School Financing in Colorado is inadequate. Increased expenses and decreased revenues

means additional resources are necessary to maintain programs

District receives lowest student funding in the metro Denver

Numerous “value-added” programs are not funded by school finance (Security, Transportation, Technology, World Language, Graduation expectations).

DCSD can claim 2% to 10% of a home’s market value is attributable to the District’s strong performance