A common perception is that Colorado school districts in the current school year (2009-10) have received the largest infusion of new money ever seen, with a 4.9 percent increase in per-student funding allocated by the State of Colorado. That’s only partially true, and it doesn’t give an accurate accounting of the real amount of revenue that is available for districts to spend this year.
Looking specifically at District 6’s revenue, we get funding from the State of Colorado on a per-student basis, plus some additional revenue from local Specific Ownership Tax (vehicle registration fees) and investment earnings. Here’s how each of those categories shapes up for our 2009-10 budget:
Student enrollment
We predicted that our student enrollment would increase slightly this year, by 0.8 percent, because of charter school growth and the opening of Trademark West alternative high school. That would bring in a small amount of new money, because we are funded on the number of students we have enrolled. We built the 2009-10 budget using that student enrollment projection. So far, our actual enrollment has come in almost exactly as predicted. We’re only off by a couple of students.
State of Colorado School Finance Act
Colorado increased the per-student allocation for school districts by 4.9 percent, in accordance with Amendment 23 and Referendum C. However, because the State did not have the revenue to actually pay for that increase, districts were ordered to “hold back” and not spend 1.9 percent until January 2010, when the State will see if it has enough revenue to allow districts to spend that money.
Specific Ownership and Investments
Vehicle registrations, and the Specific Ownership Tax revenue they provide to District 6, have decreased over the last year. And, like most people’s 401K’s or other investments, the District is not earning as much money on its investments as last year. Because we count on those investment earnings as a source of revenue, a drop in earnings means a drop in expected revenue.
Here’s how each of these areas tallies up for the 209-10 District 6 budget:
| School Finance Act + enrollment increase: | $7.2 million in increased funding |
| January 2010 “hold back” money: | - $2.5 million in funding |
| Specific Ownership and Investment Earnings: | - $1.3 million in funding |
| Total: | $3.4 million actual increase in revenues |
So how is District 6 spending that $3.4 million in additional funding this year?| + $58,000 | Cost decrease because of reduction in mandatory contributions to Capital Reserve Fund |
| + $441,000 | Cost decrease because of elimination of contract for Weld Opportunity High School |
| + $200,000 | Cost decrease in out-of-district tuition payments (we are paying less to the State for sending certain special-needs students to facilities outside of our district) |
| + $191,000 | Increase to the General Operating Fund, provided by allowable “indirect costs” transfers from grants |
| - $272,000 | Transfer to Charter Schools, because of their enrollment growth |
| - $50,000 | Transfer to the district’s insurance reserve |
| - $86,000 | Transfer to Colorado Preschool Program fund |
| - $671,000 | Funding of the district’s technology replacement cycle (was not funded at all in 2008-09 in order to save money that year) |
| - $60,000 | Facility lease cost for Trademark West, a new alternative program for students |
| - $120,000 | Increased cost of utilities at District 6 schools and facilities |
| - $1,944,000 | Increased cost of PERA contributions and health insurance premiums (for certificated, classified and administrative employees) |
| - $400,000 | Addition of five assistant principals (placed at four elementary schools and at Trademark West high school) |
| - $289,000 | Additional classroom support staff (primarily Special Education paraprofessionals) |
| + $5,125,000 | Cost decrease in salaries and benefits for 104.55 teachers (full-time equivalent) who retired, resigned or were non-renewed at the end of 2008-09 |
| - $5,528,000 | Cost increase to hire new teachers to fill vacancies created by previous year’s retirements, resignations and non-renewals, plus hire an additional 37.55 teachers (full-time equivalent) to reduce middle school class sizes, reduce special education workloads, and staff Trademark West |
Total: -$5,000 | Net "available" new money. Note that this is a negative number. District 6 is overspent by $5,000 and will need to reduce current costs to balance its budget.
Should any additional costs be added to the 2009-10 budget at this time, the district will need to cut an equal amount of spending out of this year’s budget. |