Board of Education May 7, 2015

2015/2016 Budget

Development Update

Agenda

FY 2014/2015 Forecast

2015 Efficiencies

FY 2015/2016 Updated Forecasts

Board Direction for the Budget

Timeline

General Fund Projection FY 2015

General Fund Projection FY 2015

2014/2015

Revised Budget Projections

Estimated

Budget

Revenue $ 657,142,100 $ 1,474,100 $ 658,616,200

Expenditures $ 596,619,500 $ (10,690,825) $ 585,928,675

Transfers $ 57,613,400 $ (1,346,178) $ 56,267,222

Revenues Over Expenditures $ 2,909,200 $ 16,420,303

Total Reserves $ 64,207,100 $ 77,718,186

Unassigned $ 36,088,483 $ 49,920,286

Percent of Unassigned

to Expenditures 6.05% 8.52%

$1.4M ‒ State share increased

$1.3M ‒ Transportation fuel savings

$10M ‒ Vacancy savings

$5.5M ‒ Retirement/turnover additional savings (used for Jefferson/Alameda plan)

FY 2015

General Fund Change Details

$5M ‒ One-time retention bonus for employees returning in August

$2M ‒ Additional funds to reserves to maintain unassigned at 6%

$4M ‒ One-time infusion to school carry forwards, approximately $50 per student

$2.5M ‒ Maximum one-time transfer to facilities

FY 2015

Staff Proposed Use of Underspend

2015 Efficiencies

Central departments continue to focus on efficiency

Priority Based Budgeting results in the summer of 2015

Prior year reductions not reinstated

Over $24M in unfunded identified needs for FY 2016

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Financial Services

► Additional support staff, unfunded mandates, enhanced contract and applicant tools ~ $492K

Insurance Reserve

► Premium savings ~ $250K

Technology

► Server changes, additional support for schools and school partnering ~ $575K

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Transportation

► Bulk purchasing, additional costs for school configuration changes, efficiencies for transporting special needs students ~ $157K

Facilities

► Additional training and resources for staff, grants, bulk purchasing ~$619K

Construction

► Expansion of project management modules ~$25K

Education Research and Design

► Permanent Educator Effectiveness, Choice Programming and Data Privacy and Reporting departments ~ $1.388M

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FY 2016 Budget

School Finance Act complete

► 2.8% inflation plus growth

► Buy down of the negative factor of $25M statewide

► Additional at-risk funding, outside of the school finance formula, $5M statewide

May Updated Financial Forecast

Amounts in millions Ongoing

School Finance Act $22

Pass through to Charters $(2.5)

Pass through to Child Care $(0.2)

General Fund $19.3

Jeffco’s Revenue Estimates

Jeffco’s Per Pupil Revenue

7,070

6,637

6,309 6,317

6,482

6,850

7,109 7,109

$5,000

$6,000

$7,000

$8,000

**2015/2016 – CDE has based Total Program and Per Pupil funding numbers on projected enrollment and adoption of the School Finance Act. **2016/2017 – Assumes the negative factor remains at the 2015/2016 level of $855M, and enrollment stays flat compared to 2015/2016.

2015/2016 Budget Development

Community Engagement

December

Board approved the community survey tool and plan for budget forums

January

Board approved final survey and forum documents.

Forums were held end of January

February

Online Budget Survey (3 weeks)

March

SPAC/SAC, district leadership and Cabinet budget priorities presented to Board

Compensation and facilities at the top of the priorities for all except the SPAC/SAC report

► SPAC/SAC asked for greater school autonomy resources

COMMUNITY AND STAFF ENGAGEMENT

Summary of Findings - All

COMMUNITY AND STAFF ENGAGEMENT

Cabinet/District Leadership

Compensation On-going Costs

PERA increase - Supplemental Amortization Equalization Disbursement (SAED) inc .50% $ 2,025,000

Affordable Care Act (ACA) additional benefits $ 3,000,000

1% Compensation increase $ 5,200,000

Compensation increase for targeted employees $ 1,152,000

Substitute teacher pay changes $ 763,000

Subtotal employee compensation package increase $ 12,140,000

Other Employer Costs

PERA increase - Amortization Equalization Disbursement (AED) inc .30% $ 1,215,000

Retirement and turnover savings $ (1,500,000)

Increase capital transfer for facility needs $ 3,000,000

Increase SBB funding for neighborhood schools. $27 per student. $ 2,014,000

Increase charter mill levy override equalization. $27 per student. Total $7,305,000. $ 186,000

Increased salary accrual, building utilities $ 2,000,000

General Fund transfers increases for other funds PERA increases, inflation $ 600,000

SBB benefit additions for added staff $ 700,000

Subtotal other employer costs $ 8,215,000

Net Proposed Increases $ 20,355,000

REVENUE ONGOING School Finance Act $19,300,000 Specific Ownership Tax 1,000,000 At-risk funding outside of the school finance formula 350,000 Move Kindergarten to the General Fund from the Child Care Fund 5,000,000 Investment Earnings, Fees and Other 200,000

Total Change in Revenue $25,850,000

EXPENDITURES Legislated PERA AED 0.3% 1,215,000 Legislated PERA SAED 0.5% 2,025,000 SBB Staff Additions Benefit Portion 700,000

Estimated Retirement and Turnover Savings (1,500,000) Affordable Care Act 3,000,000 Move Kindergarten to the General Fund 5,000,000 Salary Accruals, Utilities 2,000,000 At Risk Funding to Schools 350,000 Spend down of school carry forward 3,000,000 Increase in GF Transfers (Capital Reserve, Transportation, Insurance Reserve) 600,000 General Increase Placeholder TBD 12,460,000

Total Change in Expenditures

$28,850,000

JEFFCO’S

2015/2016 Assumptions

General Fund Projection FY 2016

JEFFCO’S GENERAL FUND

Reserves

2015/2016 BUDGET

Board Placeholders

Enter Placeholders on Interactive Projections Worksheet with Budget Team

Apr 2015

•Month of April -

• Develop Proposed Budget for May 26 Board of Education (BOE) Meeting

May 2015

•May 7 – Board Study Session

• Budget Update, Board Direction

•May 26 – Board Regular Meeting

• Presentation of Proposed Budget

• 1st Public Hearing (will include a revised forecast if any legislation is final.)

• Proposed budget must be presented to the BOE no later than June 1 per C.R.S. 22-44-108(1).

• BOE Final Revisions to Proposed Budget

Jun 2015

• June 11 – Board Regular Meeting

• 2nd Public Hearing; and

• Budget Adoption

2015/2016 Budget Development

Timeline

2015/2016 BUDGET DEVELOPMENT

Timeline

BOE meeting May 26, 2015

First public hearing to present the 2015/2016 Proposed Budget including Projection #3

BOE direction on any revisions to be incorporated into the adopted budget

BOE meeting June 11, 2015

Second public hearing for 2015/2016 budget adoption