2017/2018 BUDGET

Board of Education March 23, 2017

AGENDA

Timeline Community Engagement

Online Budget Tool DAC/SAC Feedback

State of the Economy March Forecast / Proposed Legislation Governor’s Request

Jeffco FY 2017/2018 Budget Budget Assumptions

Use of One-Time Funds

Action – Board Direction on Budget Questions

TIMELINE

DEC

Kick Off School (SBB-

Student Based

Budgeting) and

Department (BFO-

Budgeting for

Outcomes) Processes

JAN/FEB

Community Engagement

Early Direction/ Feedback

MAR

Community Engagement

Results

DAC Final Report

Request Board

Direction

Build Budget

APR

Continue Building the

Budget

March Forecast

and Fine Tuning of Budget

Public Hearing

Proposed Budget

MAY

Budget Adoption

NOV

Governor’s Proposed

Budget

Community Engagement

COMMUNITY and STAFF ENGAGEMENT

Online Interactive Budget Tool

District Accountability Committee (DAC)/ School Accountability Committees (SAC) Recommendations

Cabinet Recommendations

Telephone Town Halls

All Leadership Meeting – District Leadership Feedback

We heard from community and staff through:

COMMUNITY and STAFF ENGAGEMENT

Tool was open 3 weeks – January 21 through February 10

Available in English and Spanish

Outreach through Communications Internal Media Channels (Leadership Memo, Messenger, website, dedicated parent email, customized text messages, customized district access points)

Response • 18,362 visitors • 5,366 responses • 585% higher than prior year

COMMUNITY and STAFF ENGAGEMENT

Results • Communicated to the Board of Education • Published on Jeffco’s website March 3.

► Employee Compensation •Increase by $12M

► Deferred Maintenance •<1% decrease

► School Based Expenditures •< $1 per student reduction

► Student Mental Health •4% decrease

► Athletics and Activities •2% decrease

► Districtwide Fees •24% or greater increase

► Technology •<1% decrease

► Central Staff Support •$1.4M decrease

► School Closures •Close 4 schools

Average Responses

COMMUNITY and STAFF ENGAGEMENT

► Fund the District Improvement Plan (DUIP)

► Support Employee Compensation

► Continue Student Behavioral/ Mental Health Support

► Maintain Current Student Based Budgeting (SBB)

Strong support for the tough decisions in order to utilize facilities and resources effectively.

COMMUNITY and STAFF ENGAGEMENT

Hosted 4 Town Halls • 3,958 Total Listeners

• 62% Do Not Support Closing Schools

• 94% Do Support Board Priorities including Compensation and Keeping Money in Schools

All Leadership Meeting − February 7, 2017

• Comments were gathered informally to be used for informational purposes only

State of the Economy

MARCH FORECAST KEY INDICATORS FROM THE STATE

State Economy Expanding with oil and gas

downturn ending Inflation Rate 2.8% Property Tax Residential Assessment

Rate (RAR) Change due to Gallagher amendment Drop in local share from schools TABOR refunds beginning in 2017/2018

Office of State Planning and Budget

2.7% inflation 8,109 student enrollment growth $45.4M increase to negative factor

2017/2018 ASSUMPTIONS GOVERNOR’S PROPOSAL

Proposed statewide assumptions per the Governor’s Budget Request released in November.

Governor’s Request $4.4M

Total General Fund

Increase $4.0M

Less Pass Through

to Charters $(.4M)

2017/2018 ASSUMPTIONS

If Residential Assessed Value (RAR) shortfall is not backfilled...

2017/2018 BUDGET – Scenarios

No Reductions

Needed Governor's

Proposal

Governor's Proposal and Loss of RAR

No New Funding and Loss of RAR

State Funding Change 20 13 4 (10)

2017/2018 Retirement/Turnover Estimate 7 7 7 7

Funded Enrollment Change (4) (4) (4) (4)

2016/2017 Retirement/Turnover Over Estimate 2 2 2 2

Net New Available Ongoing Resources 25 18 9 (5)

Target - Compensation Investment 25 25 25 25

Shortfall - (7) (16) (30)

Cabinet Reductions Needed - 7 16 20

SBB Reductions Needed - - - 10

Net - - - -

Jeffco FY 2017/2018 Budget

JEFFCO FY 2017/2018 BUDGET REDUCTION RECOMMENDATIONS

Board of Education has identified $19.8 million toward the targeted goal. ► $10.8M

from Cabinet Reduction List

► $9.0M District Savings/State Outlook

Unassigned $76,419,654 (13% of

Expenditures)

Assigned $49,262,544

JEFFCO FY 2017/2018 BUDGET 2016/2017 GENERAL FUND RESERVES

2015/16 Comprehensive Annual Financial Report

Multi-Year Commitment Reserve $17,006,337

TABOR Reserve $17,756,207

School Carryforward Reserve $14,500,000

Undesignated Reserve $52,725,000

Board of Education Policy Reserve $23,694,654

JEFFCO FY 2017/2018 BUDGET PROPOSED BUDGET ACTIONS

MOVE FORWARD WITH…

► Increased State Funding $4M in new state funds

► Incorporating Identified Reductions Budget office to build approved reductions in

the proposed budget book

► Increase Compensation by $19.8M Districtwide compensation placeholder

to be added to the proposed budget book

► One Time Use of Reserves On hold until state provides clarity on funding

JEFFCO FY 2017/2018 BUDGET RECOMMENDATIONS

WHAT IF SCENARIOS….

► Less than $4M in Funding from State BOE approved direction from Memorandum

of Understandings (MOU’s) with associations One-time use of funds Further reductions

► State Funding is Higher than $4M BOE approved direction from MOU’s

with associations

BOE direction for amounts beyond any MOU’s

JEFFCO FY 2017/2018 BUDGET RECOMMENDATIONS

Legislation must adjourn by May 10, 2017.

Depending on the date when final funding is known and the extent of changes from the Board, the budget team will either: adjust the proposed budget; or revise the budget, if needed, after option.

Late Budget Adjustments …

ACTION and NEXT STEPS

NEXT STEPS

MARCH

BOE meeting March 23, 2017 ► Board Direction

Budget office will incorporate all BOE direction into a revised projection to be presented in April

APRIL

BOE meeting April 20, 2017 ► First public

hearing for 2017/2018 Proposed Budget

► BOE direction on any revisions to be incorporated into the adopted budget

MAY

BOE meeting May 4, 2017 ► Budget adoption

for 2017/2018

QUESTIONS