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.
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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
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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
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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
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6. Students and families are choosing St. VrainOur Enrollment Growth Continues
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Estimate
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
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* Office of Planning and Budget; Colorado Fiscal Policy Institute

8. But with a 20%+ cut in fundingCan St. Vrain Stay the Course?
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Amendment 23
Actual
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)
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10. The implication for SVVSD students?$24 Millions Less than Voters Expected
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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*
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* 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.
Employees
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13. How will Colorado compete in the 21st century?Impact on Families with College Students
SOURCE: Bell Policy Center
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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%
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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%)
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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.

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20. The impact is $2.75 per week for a household making $50,000
Estimated Tax Impact of Proposition 103
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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?
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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
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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)
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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
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Source: Colorado Fiscal Policy Institute, 2009

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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
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Source: U.S. Census

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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
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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

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