Budget Matters

> >

Budget Matter$

LPS Board receives DU report regarding school finance

View the University of Denver Phase 2 Findings for 'Financing Colorado's Future: An Analysis of the Fiscal Sustainability of State Government' Study
K-12 Highlights & Implications of DU Phase 2 Findings Summary
DU Phase 2 Findings Summary

LPS Board approves budget for 2011-2012;

Mill levy funds will be critical to long-term financial stability in LPS

Thanks to the generous support of the Littleton Public Schools’ community, the mill levy election to increase funding to LPS in the annual amount of $12 million passed. The funds will be used to help maintain the very things the community values most in its schools:

• Maintain class size

• Maintain adequate numbers of well-qualified teachers

• Continue to provide a well-rounded education to all students, which includes art, music, and PE

• Continue to provide a safe environment for our students and employees

• Keep the level of excellence for preparation for success in college and the workplace

It was said from the beginning that mill levy funds are not a cure-all of LPS’ budget woes. Previous cuts are not likely to be restored. The funding will, however, allow LPS to stabilize and maintain what is currently in place.

Indeed, passage of 3A was critical to the district’s ability to stabilize and maintain what is currently in place, as the Colorado Legislature recently passed the largest funding cuts to public education in Colorado’s history for next school year. Each LPS student will receive nearly $500 less in state funding for his or her education in 2011-2012 than in 2010-2011. Combined with other uncontrollable cost increases such as the loss of federal stimulus funds and increasing insurance and pension costs, LPS will experience a shortfall of about $6.5 million for 2011-2012 compared to 2010-2011. It’s important to remember that this shortfall is in addition to the $14 million in cuts LPS has made to its general fund budget in the last three years because of the failing state and national economies and in turn Colorado’s inability to adequately fund K-12 education. Had the mill levy election not passed, LPS would be eliminating more than $6 million-worth of jobs and programs again for next year in addition to the $14 million that has already been cut in the last three years. The education of every LPS student would have suffered.

“We have always felt that there is no better place to be than in LPS, and passage of 3A is just another example of how this community takes care of its own and places a high value on what is best for future generations,” said LPS Board President Bob Colwell. “We are so blessed to serve this wonderful school district and these wonderful people. Thank you so much for passing 3A and for helping LPS keep its tradition of excellence.”

About half of the new mill levy money will have to be used to backfill the hole left by these state budget cuts. That means that only half of the mill levy funds will remain to help stabilize the district and maintain the current level of excellence in programming and staffing. It is clear that, due to state budget cuts, the mill levy funds will not stretch as long into the future as was hoped. In fact, it is anticipated that if state funding cuts continue, the mill levy funds could last three years or less.

Mill levy provides unique opportunity to address critical needs in key areas

Because of the timing of the election and property tax collections, about $11.5 million in mill levy funds will also be collected in the remainder of the 2010-2011 budget year. Because these funds are not earmarked in the current year’s budget, there is an opportunity to begin to replenish fund balances that were depleted in previous state budget cuts. There is also an opportunity to build a bridge to the future so that critical needs in key areas are not neglected and the things the community values most in its schools can be maintained in the future:

1. Replace $3 million of the depleted general fund reserves.
Currently reserves are at historically low levels because they had to be tapped to backfill several mid-year cuts from the state in recent years. History has proven that the state cannot be counted on to fully fund the Colorado School Finance Act as it is passed each year by the Colorado Legislature. Replacing some of the depleted reserve funds would give the Board of Education more flexibility to absorb further state cuts in the future. More is needed in reserves, but $3 million will help until more reserves can be replaced.

2. Keep LPS in compliance with Colorado Law.
Passage of Senate Bills 163 and 212 require Colorado school districts to implement the state’s new curriculum standards and a corresponding teacher training plan for continued student academic success and preparation for the 21st century work environment. In the past, the curriculum revision process addressed one content area at a time. However, the new Colorado Academic Standards require implementation of the new curriculum in 10 areas all at the same time. These areas include: mathematics; physical education and comprehensive health; drama and theatre arts; music; reading, writing, communicating; science; social studies; visual arts; world languages; and dance. Teachers need time for training and curriculum development. School districts must shoulder these costs themselves, and this will cost LPS about $1.1 million. It is important to know that these costly, unfunded mandates were passed into law and then passed along to local districts to fund and implement during a time of unprecedented state budget cuts.

3. Replace aging technology systems for student use in school libraries, and replace special education programs that are essential to keeping LPS in compliance with state and federal laws.
School library systems, which manage an inventory of 360,000 materials and are used by all teachers and students in the district, are currently 20 years old and are no longer supported by the manufacturer. In addition, the state will no longer allow LPS to use its current special education reporting software to submit data that is required by law. Replacement of these two critical systems is estimated to be $300,000.

4. Continue to develop interventions for students with the greatest needs.
This requires $400,000.

5. Backfill depleted escrow accounts.
The opportunity to escrow or “set-aside” funds for significant expenditures over time comes along only after a local election has been passed. All previously escrowed funds for curriculum and technology refresh set aside after passage of the 2004 mill levy election ran out in 2009. There is no funding currently set aside for these critical areas of need. A backfill of depleted escrow accounts for future expenditures in curriculum between $3.34 million and $7 million, and technology by another $3.34 million will build a bridge to support the district’s necessary student instructional resources refresh cycle.

LPS Board of Education members say this approach is fiscally conservative while allowing for some flexibility in the future. It addresses the Board’s Strategic Plan and also meets voters’ expectations. The Board places a high priority on transparency and therefore will revisit the spending plan several times a year during each quarterly financial update. “The state’s funding cuts over the past three years have led us to this point,” said LPS Superintendent Scott Murphy. “It’s important that we now take this opportunity to do what we can to ensure excellence into the future.”

View the White Paper,"Anticipated funding needs -- short and long term" .

State funding for schools cut again

(April 11, 2011)
Due to the state of Colorado's budget crisis and subsequent cuts to K-12 education, LPS students will likely receive almost $1,000 less per student for their education in 2011-2012 than Colorado law (Amendment 23) says they are entitled to receive. Notice how state cuts have eroded funding for LPS students in the last three years.

Governor's proposed K-12 funding cuts the largest in history;
would mean nearly $500 less per pupil in LPS for 2011-2012

(March 11, 2011)
If the Governor's proposed K-12 funding cuts go through, it would result in the largest funding cuts to public education in Colorado's history. In Littleton Public Schools, it would mean $466 less per pupil in 2011-2012 than in 2010-2011.

Keep in mind, the $466 cut per pupil would be in addition to the $14 million in cuts made in LPS over the previous three years. Adding the loss of Amendment 23 funding to mix means that overall, LPS very well might receive $1,000 less per pupil next year than it should be receiving. State funding for K-12 education in 2011-2012 is likely to be cut so drastically that it will be at the level it was in 2003-2004.

The Governor's recommended cuts translate to a state-funding loss of as much as $8 million for LPS in 2011-2012. Thanks to the community's passage of the $12 million mill levy override in November, 2010, LPS is not facing the tremendous budget challenges that some other districts are. Had the mill levy not passed, LPS would be facing $8 million in cuts for next year.

However, $8 million of the $12 million mill levy override might have to be used to fill the hole left by the Governor's budget cuts. The remaining $4 million of the mill levy funds will need to stretch over time in an effort to help stabalize the district and maintain the current level of excellence in programming, staffing, etc.

View the presentation from the March 10, 2011 LPS Board of Education meeting.

What's next?
The LPS Board of Education will continue to grapple with the various options as the state's Legislative Session moves forward. The LPS budget will be finalized in June.

---------------------------------------------------------------------------------

State slashes school funding again;
LPS budget to take hits this year and next

(9 23, 2010)
The Governor’s office announced earlier this week that the state’s budget is more than $1 billion short for next year and is more than $250 million short in the current year. As a result, Colorado school districts – many of which are still reeling from deep cuts for the current school year – will be hit again before the year is even over. And, another round of massive budgets cuts is on the horizon for the 2011-2012 school year.

What does this mean for LPS?
Based on current information from the Governor’s office, the state could withhold as much as $5 million from LPS in the current year. Additional cuts for the 2011-2012 school year could be in the range of $6 million to $10 million in LPS.

Thanks to the LPS Board of Education’s conservative planning, LPS is poised to use federal stimulus - or EduJobs – funding of about $2.8 million to help backfill the money the state will withhold this year. “We are fortunate that we saw the possibility of a mid-year rescission from the state and planned for it,” said Board President Bob Colwell. “But, federal stimulus money is one-time money, and after this year it will be gone. That means that we will be even more vulnerable to whatever state cuts are imposed on us next year.”

Colorado’s budget problems have already been applying pressure to the LPS budget for years. The district cut $14 million in the last three years - $7.5 million for the current year alone. Teachers and administrators were cut, class sizes went up, programs such as art, music, P.E., and foreign language were cut or eliminated, and supply budgets were rolled back to the level they were 20 years ago. Pay was reduced, the school year was shortened, all employees were furloughed, and two schools were closed.

Despite these tough budget times, LPS has been able to maintain excellence:

Highest graduation rate in the Denver metro area
90% of LPS graduates go on to college or other post-secondary opportunities
High schools are named as America’s Top High Schools in America by Newsweek Magazine
Number one as measured on state achievement tests
Nationally and internationally known as a leader in the use of technology in the classroom, with methods proven to increase student achievement
Award-winning performing arts programs and state champions in athletics and activities
18 percent of LPS students are open enrolled, which is the highest percentage of any district along the Front Range of similar size or larger
Earned the Governor’s Award for energy efficiency
Consistently earns the highest awards for fiscal management and reporting
One of the lowest administrative costs in the Denver metro area

However, this level of excellence continues to be compromised by the state’s budget problems. Jobs and programs were lost again this year, and that will only continue. This latest news from the state only confirms what LPS leaders have feared.

“As long as the state’s budget problems are our problems, we will continue to see our school system lose the very things that this community values the most,” said LPS superintendent Scott Murphy. “It has become very clear that we cannot rely on the state to fix this. We have to solve these problems locally for ourselves.”

The Big Budget Squeeze

View the presentation given by the Colorado Fiscal Policy Institute during the April 6, 2011 LPS Financial Advisory Committee meeting.
The Big Budget Squeeze

LPS thanks its community for passage of 3A! More.

View the presentation from the November 11, 2010 Board of Education meeting regarding next steps for planning for the use of 3A funds in the 2011-2012 budget and beyond.

Understanding Your School District Budget 2011-12

View the presentation from the April 22, 2010 Board of Education meeting regarding the impacts of Amendments 60, 61, and Proposition 101.

View the presentation from the April 8, 2010 Board of Education meeting regarding the budget.

View charts regarding general fund, five-year budget projections (August 2009)

View chart regarding LPS funding from Colorado for 2009-2010

Learn more about the LPS budget.

Finance Brochure