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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
25. 22
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
27. 24
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.