grassroots st. vrain

Grassroots St Vrain is an independent, non-partisan organization made up of nearly 1,000 volunteers committed to informing and activating citizens on education related issues in the greater St. Vrain Valley towns of Colorado.

• 2008 MLO / Bond Issue• Leadership St. Vrain • Great Education Colorado • Great Futures Colorado• DECIDE ballot initiative• Prop 101, Amendments 60 & 61• What’s to come?

Fiscal Education Network

A Project of theColorado Nonprofit Association

Purpose of Today’s Conversation

1. Understand the fiscal challenges facing Colorado

2. Invite you to host more conversations

3. Provide you with sources of information to learn more

Conversation Ground Rules• Understand the challenge and implications of the

problem – not everyone is ready to “debate” solutions.

• “Kitchen table” conversation – everyone participates; no one dominates.

• Keep an open mind. Listen carefully and try to understand others’ point of view.

• Help keep discussion on track.

• It’s okay to disagree, but don’t be disagreeable.Adapted from Harwood Institute for Public Innovation

Introductions

1. Name

2. Hobby or what brings you here today

Opening Questions

• What makes our community a good place to live?

• What public services and infrastructure are important to our quality of life?

• What have you heard about what’s going on with Colorado’s budget and funds for public services?

Colorado Voters must be Leaders

Consensus: Colorado is facing a long-term budget problem that won’t go away as the economy recovers.

Even a strong recovery and sustained job growth over the next 15 years is not enough [to solve the budget problems]. (DU: Center for Colorado’s Economic Future)

Coloradans have a unique responsibility to make decisions at the ballot box – budget fixes must be approved by voters.

Colorado voters have a duty to learn and make choices about how to balance people’s desire to be a low tax state and maintain services and infrastructure vital to our quality of life.

Public: What’s the right thing to do?

We don’t trust government: Coloradans, on average, perceive that government wastes 42 cents of every tax dollar. Trust in public officials at historic lows.

We oppose more spending cuts: Majority of voters agree cutting vital public services during a recession hurts our families and our economy, while reducing our quality of life.

We agree with how state funds are spent: Majority agree education, basic health care, public safety, senior services, highways and transit are underfunded and oppose more cuts.

We’re not sure if now is the time to act: Majority of voters are concerned about raising taxes during a recession.

Colorado Nonprofit Association: Review of Surveys, Fall/Winter 2010-11

Views about Budget Evolving

Almost nine in ten Coloradans believe state budget is at least a “major problem.”

Nearly thirty percent perceive the budget to be a crisis – up nine percent from one year ago.

A majority believe the budget is a long-term problem that won’t end as economy improves – one year ago, most attributed problem to poor legislative decisions.

Voters are just as likely to have unfavorable as favorable views of TABOR (30% - 30%).Colorado Nonprofit Association:

Review of Surveys, Fall/Winter 2010-11

Coloradans Value Public Services

Coloradans voted overwhelmingly to defeat 60, 61 and 101 in Nov. 2010 (all tax cut measures).– Amendment 60: No 75% Yes 25%– Amendment 61: No 73% Yes 27%– Proposition 101: No 68% Yes 33%

60, 61 and 101 defeated in every county.– No vote > 60% on all measures in 56

counties– No vote on 60 & 61 > 70% in 53 counties

11

Colorado Voters must Decide

“[T]he ball is back in the voters’ court. It now is up to the people of Colorado to decide what kind of place they want

their state to be.”

- Durango Herald, February 16, 2011

Colorado’s Fiscal Challenge

Imagine this Hypothetical Situation

• Imagine your child’s or grandchild’s elementary school grows from 250 to 300 students.

• Imagine that there is no increase in the budget. The school has to serve 20% more students with the same amount of money.

• Would that be sustainable?

• That’s what’s happening in the state of Colorado.

The State Has GrownSince 2001:• 700,000 more Coloradans

• 70,000 more students in K-12

• 35,000 more college students

• 150,000 more Medicaid recipients

• 2,500 more prisoners

Colorado Fiscal Policy Institute

Revenues Only Slightly Higher

Colorado Fiscal Policy InstituteChart prepared by Colorado Legislative Services staff

General Fund Revenue

6.6 5.5 5.5 5.8 6.1 7.0 7.5 7.7 6.7 6.4 7.1 7.34.0

5.0

6.0

7.0

8.0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Fiscal Year

Dollars in B

illions

Growth v Revenues

Colorado Fiscal Policy Institute

Spending Is Down

Mark Hillman, former Republican state treasurer and senate minority leader

2001 2010$2,000

$2,300

$2,237$2,211

Change in Per Capita State Spending

Revenues Are Losing Value

Colorado Department of Transportation

Political Consensus:Long-term, Structural

ProblemThe state’s budget problems arise not

just from recent difficult economic times, but originate from structural spending problems that allow recurring crises.

Colorado must implement policy changes that address the structural nature of the problem.

Independence Institute, Citizens’ Budget

What is a structural problem?

A problem that won’t go away even if the economy fully recovers.

The state can’t spend more than it has. Colorado constitution requires state to balance budget each year.

The costs of mandated and/or politically popular services and infrastructure exceed revenues.

Family Example

Bills for housing, transportation, food, clothing, education and entertainment exceed annual income.

Options:– Get another job/work more hours– Borrow – put it on the credit card– Reduce expenses

State ExampleColoradan’s expectations for education, public

safety, transportation, health care and human services and other public services exceed revenues.

Colorado must balance its budget each year. No credit cards.

Legislative options:– Reduce expenses (except for mandates)– Raise fees and close tax “loopholes” (controversial)– Use one time money and accounting “tricks” to get

through another year (e.g. Federal stimulus; move payday)

Voter options:– Eliminate mandates (e.g. Amendment 23)– Raise taxes

What happens when…

• The costs for public services exceed revenues?

• There are no prospects of new revenues?

24

Public services must be cut…

Governor Hickenlooper letter to JBC and Office of State Planning and Budgeting

Popula

tion

Infla

tion

K-12

Total

Actua

l

K-12

Per P

upil

K-12

"Sho

uld H

ave

Been"

Higher

Ed

Human

Ser

vices

Health

Car

e

Safet

y/Cor

rect

ions

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

4.50%5.40%

0.80%

-5.00%

-16.36% -16.44%

-3.70%

9.23%

3.72%

Change in Colorado 2007-08 to 2011-12

25

Public services must be cut…

Gov. Hickenlooper letter to JBC

Population Inflation Natural Resources

Local Affairs Agriculture Governor's Of-fice

Department of Administration

Department of Revenue

-70.00%

-60.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%4.50% 5.40%

-23.33%

-3.64%

-41.18% -41.18%

-63.64%

-38.95%

Changes in Colorado 2007-08 to 2011-12

26

Public safety services must be cut...

• Fort Lyons prison slated for closure (saves $3 million)

Eliminates 240 jobs in Bent County

• Eliminate prison educational programs (saves $3 million)

• Reduce mental health services for parolees (saves $2.6 million)

• Reduce corrections administrative costs (saves $1.3 million)

Denver Post summary of Gov. Hickenlooper budget, February 16, 2011

27

Recreation services must be cut...

• Close Bonny Lake State Park (Burlington)

• Close Switzer Lake State Park (Delta)

• Close Harvey Gap State Park (Rifle)

• Close Paonia State Park

Denver Post summary of Gov. Hickenlooper budget, February 16, 2011

28

Health and human services must be cut...

• Reduce spending on youth corrections

• Close youth mental health unit at Fort Logan

• Reduce Medicaid payments to doctors and nurses

Denver Post summary of Gov. Hickenlooper budget, February 16, 2011

29

Public employee pay must be cut...

• Cut state employee take home pay by 4.5%

• Third consecutive year no salary increases

• Second consecutive year reduced take home pay

• Reduce mileage reimbursement from 90% of IRS rules to 75%

Denver Post summary of Gov. Hickenlooper budget, February 16, 2011

Impact on St. Vrain

Source: St. Vrain Valley School District

FY 07 FY 08 FY 09 FY 10 FY 11 FY 1220,000

21,000

22,000

23,000

24,000

25,000

26,000

27,000

22,263

22,837

23,901

24,906

25,49325,800

St. Vrain Funded Pupil Count

Fu

nd

ed P

up

il C

ou

nt

Estimate

Impact on St. Vrain

Source: St. Vrain Valley School District

Ritter Budget

Hickenlooper Budget

FY 07 FY 08 FY 09 FY 10 FY 11 FY 12$5,600

$5,800

$6,000

$6,200

$6,400

$6,600

$6,800

$7,000

$7,200

$7,400

$6,255

$6,548

$6,742

$6,945

$6,635

$7,202

$6,255

$6,548

$6,742

$6,945

$6,635$6,734

$6,255

$6,548

$6,742

$6,945

$6,635

$6,190

St. Vrain Per Pupil Funding

Do

llar

s p

er F

un

ded

Pu

pil

Historic Amendment 23 Estimate

Impact on St. VrainA $26 Million Difference

Source: St. Vrain Valley School District

Estimate

FY 07

FY 08

FY 09

FY 10

FY 11

FY 12

- Hick

enloo

per

FY 12

- Hist

oric

A23$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$139 $150 $161 $173 $169 $160$186

St. Vrain Total Program Funding

To

tal

Pro

gra

m F

un

din

g i

n M

illi

on

s

St. Vrain Impact

Source: St. Vrain Valley School District

Student en-rollment

Total employees State retirement costs

Health insurance costs

Inflation Per pupil funding Total program funding

-20%

0%

20%

40%

60%

80%

16%

2%

68%

47%

8%-1%

15%

Changes in St. Vrain Since 2006-07

Remember this Hypothetical Situation

• Imagine your child’s or grandchild’s elementary school grows from 250 to 300 students.

• Imagine that there is no increase in the budget. The school has to serve 20% more students with the same amount of money.

• Enrollment in St. Vrain has grown 16% since 2007. Per pupil funding for FY 2012 will be less than in FY 2007. Total program funding for FY 2012 will be $13 million less than FY2010.(If Governor Hickenlooper’s budget is adopted.)

• Is this sustainable?

35

Are Future Cuts Acceptable?

“The state budget should expect cuts of the same magnitude in 2012, although not necessarily to schools.”

- Gov. Hickenlooper’s budget director, Henry Sobanet

Durango Herald, February 16, 2011

Colorado Voters must Decide

Is this okay?

Should reductions in public services be permanent?

Colorado voters can choose to say “Yes” or “No.”

Local v Statewide Tax InitiativesFood for thought…

<25% 25-49.9% 50-74.9% >75%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

82%63%

39%25%

Percentage of Colorado Schools Dis-tricts with Voter Approved MLO

Percentage of Students on Free/Reduced Lunch

Our Aspirations and Priorities

• Be the first choice for St. Vrain families

• Manage class size

• Increase and improve instruction time for students

• Expand course offerings and focus programs

• Upgrade technology to ensure it is a learning asset

• Support teachers to succeed at the job we’re asking of them

• Empower families to take more responsibility

• Minimize impact on working families and our community

Staying on Track

• Generate new revenues

• Reduce future expenses

• Hold the line on current expenses

• Eliminate non-essential expenses

• Re-engineer

Common QuestionsQ: Is the problem waste, fraud and abuse?

A: Contingency audits could save $200 million (shortfall in FY 2011-12 is $1.1 billion).– Greeley Tribune

A: Focusing on trimming the fat fails to address Colorado’s systemic budgetary problems.– Independence Institute, Citizens’ Budget

Common QuestionsQ: Is our money being well spent?A: Coloradans must decide.A: Here is what a family making $71,000 pays in state taxes and how

it is used.

Colorado Tax Tracks

Q: Is our money being well spent?A: Coloradans must decide.

Q: Is our money being well spent?A: Coloradans must decide.

Backseat Budgeter

Backseat Budgeter

Discussion Questions

• What do you make of this information?

• How does this square with what you’ve heard about state funding of public services?

• What questions do you have?

How You Can Help1. Help people understand Colorado’s fiscal challenge

– Host a conversation– Facilitate a conversation

2. Join groups working on this issue– Grassroots St. Vrain– Great Futures Colorado

3. Learn more– BackstreetBudgeter.com by Engaged Public —

www.backseatbudgeter.com– Bell Policy Center — www.bellpolicy.org– Colorado Fiscal Policy Institute — www.cclponline.org/fiscal_policy– Colorado Tax Tracks — www.colorado.gov/taxtracks– Independence Institute’s Citizens’ Budget —

http://tax.i2i.org/citizens-budget

Learn MoreColorado Nonprofit Association

Renny Fagan: rfagan@coloradononprofits.org

Mark Turner: mturner@coloradononprofits.org

303.832.5710www.coloradononprofits.org

Fiscal Education NetworkJohn Creighton: john@creighton.com;

303.682.0907www.slideshare.net/JohnCr8on

Future of Grassroots St. Vrain

State

District/Community Schools

GSV Coordinators/

Communications

Grassroots St. Vrain Committees

State

Great Futures CO LiaisonCO Legislature Updates

District/Community

SVVSD Admin. LiaisonSVVSD BOE Liaison

SVVEF Liaison

Schools

PTO Coordinators

GSV Coordinators / CommunicationsCoordinators = GSV meetings, agendas, facilitate discussion/strategies.Communications = Draft emails/ltrs, update blog, prepare presentations.Technical Support = Maintain Go Daddy/Salsa databases. Outreach = Develop new GSV membership throughout SVV community.