Douglas County School District Re.1 Preliminary Budget Fiscal Year 2010 – 2011 Presented to the Board of Education Tuesday April 20, 2010

BOE Presentations April 20, 2010 ~ Tonight May 18, 2010 June 15, 2010 Preliminary General Fund Budget May 18, 2010 Proposed General Fund Budget Proposed Non-General Fund (“Other”) Budgets June 15, 2010 Adoption of all Funds: FY 2010 – 2011 Budgets Per the April 20th meeting: -Incorporation of BOE approval of pre-existing and new fees -Incorporation of BOE approval of sharing of Mil Levy Override with Charters (needs to be easily found) within the BOE packet

Tonight’s Agenda District’s Budget Requirements Compliance Colorado and Federal Law Board Goals and Executive Limitations Preliminary 2010-11 General Fund Budget

The District’s Budget Requirements Colorado Law requires a district’s annual budget to be balanced and that a district not overspend appropriated monies. The budget must be adopted no later than June 30th. The Board’s Policy Book sets as a goal that the district demonstrate efficient use of its personnel, financial, technological and physical assets. To that end, the superintendent shall not fail to direct the resources of the district to most effectively enhance student potential.

Compliance with Board Goals & Executive Limitation EL 1 Compliance with Board Goals & Executive Limitation EL 1.5 Financial Planning & Budgeting Financial planning may not deviate materially from the Board’s Ends priorities, risk financial jeopardy or fail to be derived from a plan projecting at least five years.

FY 2010-2011 General Assumptions Non-Appropriation of the lease for HR North/Center for Staff & Community Development Going Forward: Revenue decreasing Expenses increasing Compensation -No salary changes -Pay for Performance to HAS -Dental/Vision to HAS Mil Levy Override Sharing: 3 year phase in Fees: 3 new ones Non-appropriation: Future year reductions maintain an operating practice of awarding compensation based upon: -Loss of state funding (again) in FY2011-12 -Steps and COLA -Staffing for growth in pupil counts -Increasing select operational line items by inflation / cost expectation -Does not include $ for staff currently paid from Bond fund -Any other assumption that would have a significant impact upon our future year forecasts but does not include anything in regard to Proposition 101 for A-60 or A-61

Reductions/Revenues for FY 2010-11 SUMMARY Central Offices/Services $7,875,000 Program Reduction/Reorganizations $5,350,000 School-Based Funding $15,500,000 Compensation $6,500,000 Pay for Performance $4,200,000 TOTAL $39,425,000 Fees for Services $3,300,000 TOTAL REDUCTIONS/REVENUES $42,725,000

General Fund Five Year Financial Projection for FY 2009-10 and FY 2010-11 Model #3: Budget Current Assumptions, Revenue Reduction, Cuts, No Overrides 2010-11 2011-12 2012-13 Revenue Assumptions: PPR Increase / (Reduction) (6.10%) (6.00%) 0 Fees Increase / (Reduction) Technology $1.3M flat flat = $1.3M total per year Transportation 0 0 0 Student Activity / Athletic $1M flat flat = $1M total per year Expenditure Assumptions: SBB Increase / (Reduction) Per Pupil ($250) ($250) $33.43 Salaries Increase / (Reduction) CPI 0.00% 0.00% 0.00% Wage Freeze Steps 0.00% 0.00% 0.00% No Steps Furlough Days 3 3 + 1 3 + 1 Total of 4 Days Staffing Increase / (Reduction) Growth No No No Hiring feeze Pay For Performance Medical Medical Cut No P4P FY'12/13 Medical 15% 10% 5% Dental 0% 0% 0% Vision 0% 0% 0% Transfer Increase / (Reduction) Capital ($4M) ($4M + $2M) flat Total of ($6M) Insurance ($130K) flat flat Student Activity / Athletics ($1M) flat flat Offset by Fee Increase Charter School Mil Levy Increase / (Reductions) $1.7M flat flat Operating Increase / (Reductions) ($3.2M) flat flat Letter of Credit $12.7M flat flat Total Change in Compensation Increase / (Reduction) Dollars (Inclusive of Prior Year) ($22.4M) ($44.6M) ($64.2M) Difference between Model #1 and Model #3 Percent (Inclusive of Prior Year) (6.38%) (12.13%) (16.58%) +(12.13%)-(6.38%)= 5.75% SBB Reduction Results in FTE Decrease** Elementary (1.66 FTE) +(1.66 FTE) - No assumption of how the increase in Middle (2.60 FTE) +(2.60 FTE) - SBB will be spent for 12/13 High (4.57 FTE) +(4.57 FTE) - SBB Reduction Results in Class Size Increase** Elementary 2 Pupils +2 Pupils - Middle 3.2 Pupils +3.2 Pupils - High 3.5 Pupils +3.5 Pupils - **Based on 80% of SBB in Certified Reduction

Pending Items for FY2010-11 School Finance Act Federal Dollars Assessed Valuation Uncertainty Health Insurance Changes Negotiations Resolutions State Economic Situation November Initiatives

Next Steps Finalization of School Finance Act Negotiations Insurance Plan Changes Updated Three Year Projections Proposed Budget for May 18, 2010