May 21, 2004

"Very Difficult"
2004-2005 Budget Proposed

Superintendent Jerry Wartgow presented to the Board of Education this week a proposed $565.6 million budget for the 2004-2005 school year that retains focus on the district’s three goals and continues the ongoing effort to strengthen the district-wide literacy program.

"The proposed spending plan will allow schools to work with students to continue to boost reading and writing skills and keep up the district-wide momentum we now enjoy," said Superintendent Wartgow. "Coupled with our new mill levy resources, which target dollars to schools in a way that will greatly enrich academic experiences for all students, this budget keeps a strong focus on our three goals."

Superintendent Wartgow characterized the budget building process as "very, very difficult."

The proposed budget includes compensation increases for all employees, including a 2.6 percent increase for teachers and other staff represented by the Denver Classroom Teachers Association, 1.7 percent for principals and 1.49 percent for all other employees.

The proposed budget reflects an anticipated increase in revenues from the state of $12.7 million - or 2.6 percent. Local sources of revenue (excluding the mill levy funds and charter school Amendment 23 grants) are up by $1.7 million.

While overall revenues increased, three main issues required that reductions be made in school and central office spending in order to present a balanced budget.

First, the district’s contribution to the Denver Public Schools Retirement System is currently under funded. An additional $7.9 million is required to boost the contribution rate from 4.98 percent to 8.12 percent. (This is largely due to lower market returns in recent years on investments of the pension system.)

Second, district enrollment is anticipated to increase next school year by 826 students (from kindergarten through grade 12). However, the district charter and contract school enrollment is expected to grow by 2,093 while enrollment in all other schools is expected to drop by 1,267 students. The anticipated drop in enrollment in neighborhood schools and the increase in charter school enrollment will generate a net increase in expenditures of $7.7 million. (The district passes through about 97 percent of per-pupil funding for those students enrolled in charter and slightly less for contract schools. Five new charter schools are opening next year, bringing the district’s charter school total to 17. In addition, there will be one more contract school.)

Third, the district is continuing an effort to eliminate the previous use of one-time funding sources from the base budget. This adds an additional $6.2 million cost to the 2004-2005 budget.

With these factors and others, the anticipated revenue is $25.3 million short of the anticipated expenses.

As a result, the budget reflects reductions that total $25.3 million, or 4.7 percent, as a remedy to make ends meet.

The proposed budget captures central office budget reductions totaling $8.7 million (13 percent of current year spending) and $8 million in school budgets (3 percent of current year spending).

Other reductions include $5.3 million from reserves and one-time reductions, $700,000 from use of RTD for high school transportation, $300,000 from alternative school budgets and $300,000 saved from closing a school.

"We know that schools have been asked to make changes based on budget pressures this year and we know that in many cases the cuts have led to some difficult decision-making," said Superintendent Wartgow. "However, the overall number of teachers per student should not vary too much from the current year because of the additional resources being provided to schools through the mill levy." Many schools are reducing teacher positions, he noted, because enrollment is projected to drop – not because of the district’s budget reductions.

The new mill levy funding, approved by voters in November 2003, is earmarked for specific programs. The $20 million mill levy funds in the proposed budget provide $6.5 million for art and music teachers in elementary schools, $3.5 million to expand all-day kindergarten and early childhood education opportunities, $3.5 million for new textbooks, $2.5 million to revitalize 13 neighborhood schools; $2 million to support middle and high school reforms; and $2 million to increase funding for repairs and maintenance.

Under state law, the Board of Education must adopt a balanced budget for 2004-2005 by June 30. A special budget hearing is scheduled for Thursday, June 3 and the Board may consider final adoption Thursday, June 17.


Secondary Reform Commission Begins

The Board of Education this week approved members of the new Secondary School Reform Commission, a group charged with exploring changes to improve the district’s graduation rate and lower the district’s dropout rate.

The 21-member commission had its first meeting Friday, May 21 and will make recommendations, among other things, for the best use of the $2 million (approved by voters last November as part of the mill levy initiatives,) that’s earmarked for reform of secondary schools.

The commission will be chaired by Board vice-president Lucia Guzman and Dorothy Horrell, president of the Bonfils-Stanton Foundation.

Members include:

Ex-officio members will be Jeff Buck, teacher, South High School; Ann Greenfield, principal, Merrill Middle School; and Mario Williams, principal, George Washington High School.


Meal Prices Increased Slightly

The Board of Education this week approved a slight increase in the cost of breakfast and lunch for those students who pay full price. Families may still apply for the program that provides free and reduced-price meals; reduced-price meals are not affected by the new schedule.

The increases are approved by the state Department of Education.

In elementary schools, breakfast will increase from $.75 to $.85; lunch will increase from $1.25 to $1.40.

In middle schools, breakfast will increase from $.90 to $1.00; lunch will increase from $1.50 to $1.65.

In high schools, breakfast will increase from $.90 to $1.00; lunch will increase from $2.00 to $2.20.

The price charged to adults will increase from $1.25 to $1.50 for breakfast and $2.25 to $2.50 for lunch, excluding milk.

The Food and Nutrition Services Department of Denver Public Schools operates as an enterprise fund and receives no support from the district’s general fund.

The increases will take effect with the 2004-2005 school year, four years after the last such increase.


Consistent Student Fee Policy Eyed

The policy that governs student fees would be repealed and re-enacted under a proposal presented to the Board of Education this week.

The change is designed to meet legal requirements and to set consistent district-wide fees for various items, including textbooks and library resources, expendable items and other miscellaneous items.

The proposed policy includes a waiver provision and requires schools to clearly specify whether the fees are voluntary or mandatory.

The Board could take final action on the proposal at the June 17 meeting.


ATU Labor Agreement Approved

The Board of Education this week approved an agreement with the Amalgamated Transit Union that converts existing 240-day relief drivers to 180-day relief drivers and converts existing 190-day regular drivers to 180-day regular drivers, among many other changes.

The agreement generates a total reduction in the ATU’s labor agreement by $659,000.

"We have great bus drivers," said Board member Bruce Hoyt. "Thanks for helping DPS in these difficult budget times."


Principals Appointed

This week the Board of Education approved seven principal appointments, including:


Board Notes

In other action this week, the Board of Education:

This page was last updated: Friday, May 21, 2004 at 10:34:45 AM

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