CASB - Cuts to school budgets are coming

Colorado Association of School Boards

Uncertain Times for District Budgets

Budgets. It seems there is little else to think about these days. The Governor’s Office of State Planning and Budgeting (OSPB) is no exception and has been expending a vast amount of energy trying to construct the 2010-11 state budget. Thankfully, along the way, OSPB is providing updates to the K-12 community and others.

Last week, CASB was given the following information from OSPB. Be mindful though, the scenarios are changing regularly, and nothing is certain at this time.

• There is little doubt that the $110 million given to districts to hold in reserve via the 2009 School Finance Act will be rescinded by the legislature. The OSPB does not think there will be an additional rescission, but this is a decision for the General Assembly to make in January, and it’s impossible to speculate whether a rescission will occur on an amount higher than $110 million.
• For fiscal year 2010-11, the OSPB has asked the Colorado Department of Education to construct options for cuts to school finance that fall into a range of 4 percent to 8 percent.
• Cuts are likely to be made to some or all of the school finance factors—adjustments made based on a district’s cost-of-living, number of at-risk students and size. Although a negative factor, a percentage cut across the board, would be the most equitable way to make the cuts, the Governor’s Office and others believe a negative factor would be considered a cut to the base and unconstitutional under Amendment 23. Nothing will be finalized until the General Assembly meets in January and deliberates with input from school finance stakeholders.
• OSPB is figuring a .6 percent increase to determine per pupil revenue (-.4 percent inflation plus 1 percent).

What is CASB’s approach to the FY 2010-11 cuts?

CASB believes the intent of Amendment 23 was to increase total base funding, the base plus factors, by inflation plus 1 percent. In other words, our opinion is that base funding is all funding outside of categorical funding. However, you can’t get blood from a turnip, and we realize the state is experiencing astronomical financial constraints. While we will fight for full funding, we know that K-12 is 43 percent of the state budget, and without some cuts to K-12, other essential services provided by the state; higher education, human services, corrections, etc., will be devastated. So we are approaching school finance in a strategic manner, working to get every dime possible for our schools but also ensuring that any cuts to funding that do occur are done in as equitably as possible.

As future economic forecasts are made in December and March, we will start to get a more certain picture of the 2010-11 budget shortfall and the implications on K-12 education. Until then we will continue to keep you apprised of what we know.