colorado budget impact on st vrain and prop 103

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Colorado’s Fiscal Challenges: Their Impact on St. Vrain

Author: johncr8on

Post on 12-Nov-2014




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Presentation prepared by St. Vrain board members to help community understand short and long term choices.


  • 1. Colorados Fiscal Challenges:Their Impact on St. Vrain
  • 2. Disclaimer
    Pursuant to 1-45-117, C.R.S., no District funds were used in the preparation or dissemination of information in this presentation. This presentation was prepared by non-District employees.
    This presentation is an expression of independent personal opinion by individuals who are not associated with any issue committee that may be formed to promote the passage of any ballot issue.
    This presentation is not coordinated with, or directed by, any issue committee.
    This presentation reflects the personal opinions of the presenter and does not necessarily express the official opinion of the District, its Board, administration, or its employees.
  • 3. With the 2008 Mill Levy & Bond CampaignWe Chose Excellence!
    Grassroots St. Vrainand concerned community members led a campaign advocating for students throughout our region.
    The MLO and Bond supported a vision to
    Increase program offerings focus schools & courses
    Increase instruction time
    Upgrade schools to support modern technology
    Keep class sizes reasonably low
    Provide teachers with competitive pay
    Build and upgrade schools to support growing community
  • 4. 2008 MLO and Bond provided resources for Pursuing excellence in education!
    Steady progress on student achievement
    16 schools of distinction (up from 12)
    23 schools of performance (up from 19)
    8 schools with improvement plans (down from 18)
    Increased instruction time for students at all levels
    Focus school programs STEM, IB, Tech, Leadership
    More advanced course offerings
    Technology equity and wireless schools initiative
    Online high school
    Building improvements Red Hawk, Frederick High
  • 5. And SVVSD is getting noticed Recognized as a Top District
    U.S. Department of Education Invest in Innovation Grant
    St. Vrain receives top scoreout of 1,700 applications.
    Bloomberg Businessweekranks our region among the
    Top 5 Affordable Communities with Best Public Schools
    Vandergrift (Pittsburgh), PA
    Lake Worth (Boca Raton), FL
    Middletown (Metro DC), MD
    St. Vrain Valley School District
    Santa Margarita (Orange County), CA
  • 6. Students and families are choosing St. VrainOur Enrollment Growth Continues
    Source: St. Vrain Valley School District
  • 7. Over the past decadeMajor Cuts to Education
    The state has grown by 700,000 people (15%). Number of K-12 students grown by 70,000 (15%) and college students 35,000 (31%).*
    General fund revenues are up 9%. Purchasing power down 11%.*
    Two recessions and 40% health care inflation.*
    Re-interpretation of voter approved Amendment 23 to balance budget resulted in
    $776 million reduction in K-12 funding
    $200 million reduction in higher education funding
    * Office of Planning and Budget; Colorado Fiscal Policy Institute
  • 8. But with a 20%+ cut in fundingCan St. Vrain Stay the Course?
    Amendment 23
    Source: CDE and St. Vrain
  • 9. Unprecedented Fiscal Challenge
    Colorado is facing an unprecedented, long-term fiscal challenge. Even a strong recovery and sustained job growth over the next 15 years is not enough [to solve the budget problems]. (DU: Center for Colorados Economic Future)
    The costs to maintain public services exceed the revenues to pay for them.
    The states budget problems arise not just from recent difficult economic times, but originate from structural spending problems that allow recurring crises.(Independence Institute Citizens Budget)
  • 10. The implication for SVVSD students?$24 Millions Less than Voters Expected
    Source: CDE and St. Vrain Valley Schools
  • 11. Meanwhile, SVVSD staff areStretching Every Dollar:
    $11+ million permanent savings and revenues.Millions more in grants and one time savings.
    Build America Bonds = $30 million ($1.5 per year)
    Bond savings = $17 million
    Grants = $8.2 million
    Restructuring & efficiencies = $4.25 million
    Salary freeze = $3 million
    Raise secondary class average 1 = $1.4 million
    Health care = $1.3 million
    Lowest administrative salaries in metro area 1.3% of budget*
    20% growth in students, no increase in administrators since 2005*
    * Central office administrators
  • 12. Plans for realizingAdditional Savings and Revenues
    K-8 school in Frederick
    Evaluate Spangler, Loma Linda and Heritage
    Grow St. Vrain Online Global Academy
    Home school support program
    Self-funding health insurance to better engage
    Community providers.
  • 13. How will Colorado compete in the 21st century?Impact on Families with College Students
    SOURCE: Bell Policy Center
  • 14. When students must compete in a global economyAre we pricing college out of reach for the average Coloradoan?
    Increase in Median Household Income: 16%
    Increase in college tuition: 154%
    Changes 1999-2009
    CU Boulder Historical Tuition
    I-News Colorado; U S Census Bureau
  • 15. Proposition 103
    Option A: Further reduce funds for education
    Raise college tuition
    Increase class sizes in K-12 schools
    Reduce instruction time and programs
    Lay-off teachers
    Option B: Return tax rates to 1999 levels for 5-years
    Return sales tax rate to 3% (from 2.9%)
    Return income tax rate to 5% (from 4.63%)
  • 16. How Will Money Be Used?
    • Tax estimated to raise $532 million for preschool, K-12 and higher education funding.
    • 17. Unlikely education funding will increase by $532 million dollars new revenues will offset decreases in local property tax revenues.
    • 18. Requires that education funding will not fall below 2011-12 levels.
    • 19. Supporters are clear: Proposition 103 is temporary relief.
  • 20. The impact is $2.75 per week for a household making $50,000
    Estimated Tax Impact of Proposition 103
  • 21. Proposition 103 Ballot Language
    Shall state taxes be increased $536.1 million annually in the first full fiscal year and by such amounts as are raised annually thereafter by amendments to the Colorado Revised Statutes concerning a temporary increase in certain state taxes for additional public education funding, and, in connection therewith, increasing the rate of the state income tax imposed on all taxpayers from 4.63% to 5% for the 2012 through 2016 income tax years; increasing the rate of the state sales and use tax from 2.9% to 3% for a period of five years commencing on January 1, 2012; requiring that the additional revenues resulting from these increased tax rates be spent only to fund public education from preschool through twelfth grade and public postsecondary education; specifying that the appropriation of the additional tax revenues be in addition to and not substituted for moneys otherwise appropriated for public education from preschool through twelfth grade and public postsecondary education for the 2011-12 fiscal year; and allowing the additional tax revenues to be collected, kept, and spent notwithstanding any limitations provided by law?
  • 22. Colorado is not New Jersey or Wisconsin
    Combined state and local tax burden rankings:
    New Jersey6. California
    New York 7. Minnesota
    Connecticut 8. Vermont
    Wisconsin9. Maine
    Rhode Island10. Pennsylvania
    Source: Tax Foundation
  • 23. National Tax RankingsSo Where Does Colorado Rank?
    Combined state and local tax burden = 39th
    (Tax Foundation)
    Best states for retiree taxes = 5th
    (MSN Money)
    Business tax climate = 15th
    (Tax Foundation)
    State tax burden as percentage of income = 49th
    (Colorado Legislative Council)
    2nd lowest state sales tax burden
    (Legislative Council, Colorado Department of Revenue)
  • 24. Compared to other statesColorado Invests Less in Public Services
    Total spending compared to other states = 45th
    K-12 spending = 32nd (48th as a percent of income)
    Higher Education spending = 48th
    Medicaid spending = 49th
    Highway spending = 48th
    Source: Colorado Fiscal Policy Institute, 2009
  • 25. 22
    By any reasonable standard,Colorado invests relatively little in education
  • 26. Colorado is not New Jersey or Wisconsin
    Per Pupil Funding
    New Jersey = $16,271
    Wisconsin = $11,078
    Colorado Average = $8,718
    Source: U.S. Census
  • 27. 24
    By any reasonable standard,Colorado invests relatively little in education
    Source: Great Education Colorado
  • 28. What If Proposition 103 Fails?Expect more cuts.
    In order to close the structural budget gap, public schools [must] be cut at least 19% in 13 of 14 years from now until FY 2024-25.
    • University of Denver Center for Colorados Economic Future, August 31, 2011
    The strong growth in revenue in FY 2010-11 is expected to be one-time in nature and 2011-12 revenue is expected to be essentially flat.
    • Gov. Hickenloopers budget director, Henry Sobanet, June 20, 2011
    Most likely we still will be having to cut in2012-13.
    • Rep. Mark Ferrandino, D-Denver, member of the JBC
    Education News Colorado, June 20, 2011
  • 29. 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