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?

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Fiscal Education Network

A project of the Colorado Nonprofit Association

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An Unprecedented 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 Colorado’s Economic Future)

The costs to maintain public services exceed the revenues to pay for them.

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Public attitudes toward budget crisis?

Pew Research Center February 2011

If state needs to balance its budget, should state increase…

Yes No

Taxes on business 41% 55%

Sales tax 30% 67%

Personal income tax 28% 68%

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Public attitudes toward budget crisis?

Pew Research Center February 2011

If state needs to balance its budget, should state decrease…

Yes No

Pensions of government employees 47% 47%

Funding for roads and public transportation

31% 67%

Funding for public colleges and universities

31% 66%

Funding for health care services 21% 76%

Funding for K-12 education 18% 79%

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Colorado General Fund Spending

(2011-2012 estimates)

K-12 Education41%

Human Services

9%

Health Care23%

Higher Educa-tion10%

Corrections9%

Other8%

Backseatbudgeter.com

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Colorado Spending

Colorado Fiscal Policy Institute, 2009

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Total

(45t

h)

K-12

Educa

tion

(32n

d)

Highe

r Edu

catio

n (4

8th)

Med

icaid

(49t

h)

Highw

ays

(48t

h)$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000 $5,246

$1,747

$270 $1,016 $342

$4,387

$1,523

$149 $540 $224

Per Capita SpendingColorado v U.S. Average

US AverageColorado

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Colorado Spending

Colorado Fiscal Policy Institute, 2009

P

Total

(47t

h)

K-12

Educa

tion

(48t

h)

Highe

r Edu

catio

n (4

8th)

Med

icaid

(49t

h)

Highw

ays

(48t

h)$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00 $140.52

$50.67

$7.16 $27.74 $8.87

$106.49

$41.16

$3.52 $13.11 $5.44

Spending per $1,000 of Personal IncomeColorado v U.S. Average

US AverageColorado

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Waste, Fraud & Abuse?

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Total Budget97%

Potential Savings3%

Contingency Audit Estimates

Greeley Tribune

“Focusing on trimming the fat fails to address Colorado’s systemic budgetary problems.” - Independence Institute, Citizens’ Budget

Estimates of the magnitude of our challenge: 5 to 30 times greater.

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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 and U.S. Census

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State Revenues Haven’t Kept Pace

Colorado Legislative Services and Fiscal Policy Institute

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General Fund

K-12 Students

Population Registered Vehicles

College Students

Medicaid Caseload

0%

20%

40%

60%

80%

100%

120%

7%15%

19%26% 31%

100%

Growth in Colorado 2001 - 2010

Per

cen

t G

rwo

t

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Why Don’t Revenues Keep Up?

Voters chose:• Strict limits on homeowner property tax• Strict limits on state sales and income tax revenues• Voter approval of any new tax increase

Legislators chose:• Cut sales and income taxes in 1990s and early 2000s

Other factors:• Recession• ~40% health care inflation over past decade• Aging population with more health care needs

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Taxes are Comparatively Low

Legislative Council

P

High Average Colorado Low$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00$163.89

$58.50$40.89 $37.50

Colorado State Taxes per $1,000 of Personal IncomeCompared to Nation

49 of 50

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Taxes are Comparatively Low

Legislative Council * - Collected Locally

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Sales

& U

se (4

4 of

45)

Indi

vidua

l Inc

ome

(28

of 4

3)

Corpo

rate

Inco

me

(42

of 4

6)

Prope

rty* (

27 o

f 50)

Mot

or F

uels

(32

of 5

0)0.00

10.00

20.00

30.00

40.00

50.00

60.00

48.3539.51

20.91

52.20

6.7019.68

20.12

3.29 2.8910.8920.74

1.55

29.82

2.908.71

0.33

Taxes Per $1,000 of Personal Income

High Average Colorado Low

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Colorado Tax Rankings

• Combined state and local tax burden = 34th

(Tax Foundation)

• Best states for retiree taxes = 5th

(MSN Money)

• Business tax climate = 15th

(Tax Foundation)

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Tax Collections Are in Decline

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Transportation Revenues Losing Value

Colorado Department of Transportation

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What happens when…

• Demand for public services grows more than revenues

• State required to maintain a balanced budget

• Legislators run out of one time “tricks”

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Public services must be cut…

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

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Inflation K-12 per pupil

Old Amend. 23

Higher Ed Human Services

Health Care

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

5.4%-2.6%

-12.3% -16.4%-3.7%

9.2%

Funding Change 2007-08 to 2011-12

Per

cen

tag

e C

han

ge

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Public services must be cut…

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

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Natural Resources

Local Affairs Agriculture Governor's Office

Department of Administra-

tion

Department of Revenue

-70.00%

-60.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

-23.33%

-3.64%

-41.18% -41.18% -63.64% -38.95%Changes in Colorado 2007-08 to 2011-12

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K-12 Education Needs?

Education News Colorado

P

2011

-12

Amen

d 23

2010

-11

Actua

l

2011

-12

Legis

latur

e

2011

-12

Gov

erno

r$4,600$4,800$5,000$5,200$5,400$5,600$5,800$6,000

State Funding for K-12 Education(in millions)

mil

lio

ns

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Higher Education Needs?

Colorado Department of Higher Education

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Competitive Restoration Losing Ground

Erosion Governor's Budget

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600 $1,500

$1,000

$760$550 $519

State Funding for Higher Education

Level of Funding

Mil

lio

ns

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Estimated Spending Needs for Select Service Areas

Service Area Goal Additional Need Source

Transportation Current “C” level service

$461 million/year Dept. of Transportation

Transportation “B” level service

$688 million/year Dept. of Transportation

Transportation Service and corridor planning

$1.3 billion/year Dept. of Transportation

CU Denver School of Public Affairs

Impact on St. Vrain

Ed News Colorado and St. Vrain Valley School District

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

$6,328$6,255

$6,548

$6,742

$6,945

$6,635

$6,190

St. Vrain Per Pupil Funding

Amend 23 Legislature Governor

Impact on St. Vrain$21 Million Less

Source: St. Vrain Valley School District

FY 07

FY 08

FY 09

FY 10

FY 11

FY 12

- Am

end

23

FY 12

- Leg

islat

ure

FY 12

- Hick

enlo

oper

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$139 $150 $161 $173 $169 $186$165 $160

St. Vrain Total Program Funding

To

tal

Pro

gra

m F

un

din

g i

n M

illi

on

s

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

• Maintain classroom experience

• 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

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“Expect more cuts.”

“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

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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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Learn More

• BackstreetBudgeter.com by Engaged Public — www.backseatbudgeter.com

• Bell Policy Center — www.bellpolicy.org

• Center for Colorado’s Economic Future (DU) — www.du.edu/economicfuture

• Colorado Department of Higher Education — http://highered.colorado.gov

• 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

• U C Denver School of Public Affairs — www.ucdenver.edu/academics/colleges/SPA

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Learn MoreColorado Nonprofit Association

Renny Fagan: rfagan@coloradononprofits.org

Andrew Lindstad: alindstad@coloradononprofits.org

303.832.5710www.coloradononprofits.org

Fiscal Education NetworkJohn Creighton: john@creighton.com;

303.682.0907

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• Talk to your family, friends and neighbors about what you have learned tonight.

• Collect email addresses to grow the Grassroots St Vrain contact lists and strengthen our local community network.

• Sign the petition to put Senator Heath’s proposition on the ballot.

• Carry a petition with you to collect signatures from your family, friends, and neighbors. Get trained tonight in only 15 minutes!!

What can you do?