STEAMBOAT SPRINGS SCHOOL DISTRICTFUNDING SOURCES and EXPENSE BUDGET

Frequently Asked Questions

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To educate and inform the Steamboat Springs community on how Colorado and Steamboat

Springs Schools are funded and how the district budget is spent.

Finance Task Force Mission

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Fiscal Year 2017 SSSD Revenue Budget = $26,162,550

Excludes transfers of $1,047,550 to other funds. Net revenue = $25,115,0003

The School Finance Act formula calculates Total Program Funding:

How are SSSD Schools Funded?

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All districts start at the same base funding + the following factors:• Cost of Living - reflects the differences in the costs of housing, goods, and

services for each district. (SSSD is ranked has the 8th highest factor)

• Personnel Costs - varies by school district based on enrollment.

• Size - recognizes purchasing power differences among districts for example smaller districts (under 4,023) receive increased funding.

• At-Risk Students - recognizes expenses among districts vary, as pupil populations vary.

• SSSD $7.4K (133), Hayden $9.7K (64), Soroco $10k (62), Moffat $7.1(171)

Factors in Per Pupil Funding

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SSSD Total Funded Pupil Count (FPC) Trend

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Average growth rate over 10 years is 2.5%

How is Total Program Funded 2016-2017?

• Colorado State=65% & Local=35%...SSSD State=51% & Local=49% • SSSD 2016-2017 Total Program Funding = $18,544,870 (71% of total

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How was Total Program Funded 2006-2007?

• Colorado State=52% & Local=48%...SSSD State=12% & Local=88%• Property Tax, Specific Ownership Tax and State Share = $12,778,8838

Taxpayer Bill of Rights (TABOR), 1992

• Prohibits any tax increase without a vote of the people.

• Places strict limits on how much revenue the government organization can keep and how much it can spend.

• Excess revenue must be refunded or adjusted down for years following.

Debrucing

• Districts have the ability through a voter approved election to “De-bruce.” 174 out of 178 have De-Bruced. Those 174 district’s School Finance Mill Levy has been Frozen since 2007.

• By “Debrucing” TABOR rules don’t apply.

• SSSD has “Debruced” all revenue except the property tax portion related to the school finance/education Mill Levy. Financial Impact of not De-Brucing is $37.2 million to SSSD taxpayers since 2007.

TABOR and Debrucing

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Change in Local Contribution to Total Program

• When assessed valuation growth rate is higher than Tabor revenue growth rate (inflation x pupil count) the Mill decreases.

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Local Property Tax % of Total Program

School Finance Mill

“IF” De-Bruced School Finance Mill

Response to the Great Recession - The Negative Factor

• Between 2009 and 2013, Colorado experienced the Great Recession and the beginning of an economic recovery. During this time, the Colorado State Legislature first instituted mid-year rescissions, and then created the Negative Factor (SB 15-267) to balance the state’s budget.

• Acts as a reduction to other existing factors.

• Calculated by first determining the total state program.

• Reduces the statewide total program as determined by the Senate.

• Applies the same percentage to each district.

• Supreme Court upheld Negative Factor in 2015.

The Biggest Impact to School Funding

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The Negative Factor Impact on SSSD Funding

• Impact of the Negative Factor in 2016-2017 is $967 per pupil or $2.5 million.12

The Negative Factor Impact on SSSD Funding

• Impact of the Negative Factor since 2011 = nearly $17 million in lost revenue.13

• There is no specific funding source for capital renewal, deferred maintenance, and major capital projects without voter approval.

• Before 2011, school districts were required to spend approximately $300 per pupil on capital projects and deferred maintenance.

• 2011 Negative Factor reduced funding to schools statewide by $5.680 billion. For SSSD, the portion of lost revenue since 2011 was $17 Million.

• SSSD, like many across the State, focused on maintaining Student Instruction and Programs instead of maintenance.

• The district allocates a portion of its general fund to Capital projects. For 2017 $250,000 will be spent on a bus, a tractor and truck for snow removal and grounds.

The Negative Factor Impact on SSSD Deferred Maintenance

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The Education Fund

• Education Fund was established in 1993 to administer the ½ cent sales taxes approved by the voters and was extended by voters in subsequent elections.

• In 2009, voters approved “to share, in its sole discretion, some portion of the proceeds of the ½ cent sales tax with the other districts in Routt County…”

• For 2016-2017 SSSD was granted $2,501,667 to Steamboat Springs School District - approximately 10% of SSSD overall revenue.

• The 2016-2017 allocation for SSSD nearly was 80% of the fund. The remaining funds go to South Routt 5%, Hayden 5%, Community Grants 5% and Collaborative Grants 5%.

• The fund must be reinstated by voters in November 2019.

Other Major Sources of Revenue for SSSD

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• Mill Levies 10%

– Hold Harmless 1994 $1.064 Million

– Cost of Living 2001 $773K determined by CDE

– Mill Levy Override 2006 $800K (attract and retain quality staff).

• Other local tuition and fees 5%

• Other state funding 2%

• Federal funding 1%

Other Major Sources of Revenue for SSSD

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STEAMBOAT SPRINGS SCHOOL DISTRICTEXPENSE BUDGET

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• Approved by elected officials on the Board of Education

• 2016-2017 Budget = $25,275,000

• $160,000 Deficit (expenses higher than revenue)

• 83.4% Salaries and Benefits

• 62.4% on Salaries

• 21.0% on Benefits

• Other expenses include Utilities, School Supplies, District Supplies, Tech & Instructional Software, Network, & Hardware, Insurance, Maintenance, Custodial, Transportation Supplies, MS & HS Extracurricular and Debt Service

SSSD Budget Overview - Where does the money go?

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Budget Year 2016-2017$25,275,000

SSSD Budget Overview - Where does the money go?

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Salary and compensation depends on the position:

• ALL Employees: determined from market survey data conducted by an independent company Oehm Consulting.

• Teachers & Classified: negotiated through Collaborative Bargaining Team (CBT)

– increased using “steps” and “lanes” - “Steps” refer to how many years a teacher has been teaching, and “lanes” refer to how much education the teacher has.

• Superintendent: contract and salary is approved by the Board of Education.

Salary Structure

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Salaries and Benefits Overview-All Funds

2016-2017 = $21,514,15921

TOTAL Full-Time Equivalent (FTE) Employees = 304.87

Two largest categories (83.4%) of the expenses - Salaries and Benefits

Administration = 11.5 FTE Superintendent, Principals, Assistant Principals, Director of Teaching & Learning

Teachers/Licensed Staff = 181.47 FTE Classroom teachers, Specials GT, ELA, Special Education, Coaches, Interventionist, Counselors, Media, Nurses

Professional Support = 15.25 FTE Directors of Finance, Human Resources, Food Service, Technology, Maintenance and Transportation. Technology Staff, Superintendent Assistant, Central building Secretary, Grant Writer, Data Specialist

Para Professional / Classified Support = 42.6 FTE

Classroom, Preschool, Special Education, Health, Media, Athletic Coaches, Campus Supervisor

Classified Office Support = 14 FTE Building Secretaries, Registrars, General Accountant, Payroll Manager,

Other Classified Support = 40.05 FTE Maintenance, Custodial, Food Service, Mechanics, Bus Drivers

SSSD Budget Overview - Where does the money go?

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Annually, Expenses want to grow faster than Revenues.

• On the revenue side, the district annual “raise” is limited to Total Program growth (71%) and the State budget.

• On the expense side, our staff costs (salaries and benefits) representing 83.4% of our expenses continue to rise faster than our revenue growth.

• A compensation committee was formed to review and analyze all staff compensation for competitiveness and sustainability.

• SSSD currently has a reserve fund balance ($7 million) to give us time to make adjustments.

Expense Pressures - Goal is a Balanced Budget

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STEAMBOAT SPRINGS SCHOOL DISTRICTFUTURE OUTLOOK

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• Student growth

• State funding changes

• Existing or additional priorities that arise to meet the goals of the overall strategic plan.

• Continued need for additional resources from unfunded mandates.

– SB191, PARCC, READ ACT, Graduation Guidelines, School Readiness

• SSSD prioritized student facing initiatives hoping that the negative factor would be temporary.

• The Negative Factor has been ruled constitutional and schools need to adjust facility needs and other expenses and programs accordingly.

Future Budget Pressures

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OPERATIONS - State law enables districts to ask for additional revenue for operations through a voter approved Mill Levy.

1. General Override - Maximum is 25% of Calculated Total Program, 118 of 178 district have passed such measures. SSSD is at 12.9% of Total Program FY16.

2. Transportation Override - Allows a district to capture the remaining To and From Transportation expense that the State does not reimburse.

3. Full Day Kindergarten Override - Allows a district to collect the remaining amount that the State does not fund Full Day Kindergarten students, currently .42 FTE.

Other Ways to Fund Schools - Operations

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CAPITAL PROJECTS - Four distinct avenues for a school district to meet its capital/building needs:

1. Bonded Indebtedness - A district may hold an election to authorize it to issue bonds to meet its capital needs.

2. Special Building and Technology Fund - A district may hold an election to authorize it to levy up to ten mills for not longer than three years.

3. Special Building and Technology Fund Part B - a district may hold an election to authorize a mill levy without restrictions on amount and time frame

4. Building Excellent Schools Today (BEST) - Provides a new funding structure for school capital construction projects.

Funding Capital Projects

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Many school districts across the state are experiencing the same budget situations with both capital, deferred maintenance and operations.

• 24 of 178 school districts in Colorado have bonds elections this November 2016, totalling $4,238,800,000.

• Seven districts have bond elections with matching BEST grants.

• 24 school districts have ballot elections for Mill Levy Overrides totalling $177,323,584.

• One district is asking voters for an Operational Mill Levy Override, $10,000,000.

• One district is asking voters to approve Full Day Kindergarten Mill Levy.

• One district is asking for a Transportation Fund Mill Levy, $127,000.

• Three districts are renewing sales tax measures for education.

• One district is asking for a Property Tax Increase, $510,000

Statewide Budget Shortfalls and Current Election

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Amendment 64 (legalization of recreational marijuana) promoted the idea that the tax money raised would go to building and maintaining public schools.• The first $40 million of the 15% Excise tax is deposited into the

BEST program, remaining goes to Public School Fund.

• In 2015, the state collected $2.6 million above that $40 million cap.

• Distributed through BEST (Building Excellent Schools Today), awards grants for the construction of new schools, general construction and renovation of existing schools.

• Most BEST grants require funds to be matched by the district.

Marijuana Tax Impact

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• Due to SSSD not being De-Bruced, the property tax contribution towards education has been declining since 1992, when it was 40.080. In 2007, it was 16.149(where Non De-Bruced district’s Mills were frozen) and is 9.985 in 2016. Not being De-Bruced has reduced SSSD Local Property Tax contributions by $37.2 Million since 2007.

• Negative Factor since 2011 is roughly equal to $17M which is roughly the deferred maintenance costs.

• The district prioritized student facing initiatives hoping that the negative factor would be temporary.

• Expenses want to grow faster than revenue.

Highlights

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