Negative factor expected to deter school budget
Citing the state’s recent revenue forecast, Holyoke Re-1J School Superintendent John McCleary warned the local school board that the use of the negative factor is probable in balancing the state budget.
Reporting at a March 22 work session prior to the local school board’s regular meeting, McCleary noted there seems to be very little debate over whether the state will need to use the negative factor to balance the budget. “The only thing being debated is about how much,” he added.
There’s a formula in the state statutes and Constitution that stipulates a certain dollar figure for funding for each school district. In recent years, the Legislature has said it doesn’t have the money to fund this.
The difference between the funding a school district was supposed to receive, by statute, and what it actually receives is called its negative factor.
The March forecast has identified a $700 million shortfall between new state revenues and legislated allocations, cited McCleary. It’s not clear how much of a revenue decrease this could mean for Holyoke School District, as a result of the negative factor increase.
Funding for the local school district involves about 54 percent from state share and 46 percent from local share.
To make matters more challenging, McCleary pointed out, funding on the local side is a bit tough, as well. Due to a decrease in gas well production, McCleary said that property tax revenues have decreased by about 4.6 percent.
This had a negative impact on the assessed valuation by about $3.5 million, which translates into a loss of $120,000 in local revenue for the school district.
Additionally, the Gallagher Amendment will be kicking in for fiscal year 2018, which will have an overall negative impact to the district, added McCleary.
Due to mandates in the Colorado Constitution under the Gallagher Amendment, residential property will be taxed at a rate lower than commercial property. Gallagher forces the state to maintain the ratio of property tax revenue at 45 percent for residential and 55 percent for commercial.
In order to maintain this ratio, the state will have to lower the residential assessment rate from 7.9 percent to 6.5 percent, which means another decrease in local revenue of about $74,000, said McCleary.
While the district can get a pretty close estimate of what they’re dealing with on the local revenue side, McCleary said they do not know the impact of increasing the negative factor on the state side.
“There are a variety of legislative initiatives that are underway that could havea positive impact on school funding. We will just have to see,” he added.
Until that time, he said, the district will be forced to take a conservative approach to developing the budget.
Estimated budget numbers find the district building a budget based on 588 funded students. The audited beginning fund balance is $1,359,080, and an estimated reserve increase of around $120,000 is anticipated. The budget also notes the $200,000 payout over five years for the BEST health insurance buyout.
With unknown negative factor impact on the budget, McCleary highlighted the current priorities:
—Making folks aware of the current situation.
—Controlling expenses over the next three months and carefully tracking potential ending fund balance.
—Doing its best to get a good estimate on student count.
—Making some conservative commitments on salary increases and adjustments.
—Monitoring and being strategic on upcoming purchases based on the October student count.
—Continuing to work and develop a budget that fits the needs, as well as addressing the reality of state and local funding.
—Communicating.
Classified salaries reviewed
Keeping in mind that the certified staff salary schedule saw significant increases to catch up two years ago, it is the plan to increase classified staff salaries this year.
Also coming into play with classified staff salaries over the next few years is the state minimum wage requirement that was approved by voters in November. Minimum wage will increase each year until it reaches $12 in 2020.
Board members reviewed a tentative spreadsheet for classified staff wage increases for 2017-18. The minimum wage increase to $10.20/hour Jan. 1, 2018, was a factor for the local proposal.
In the spreadsheet proposal reviewed at last week’s meeting, every classified staff member will receive at least a 4 percent bump in their wage. Those on the lower end, bumping to a new minimum wage requirement, could see up to a 7.5 percent increase. The salary schedule proposal will return to the April 4 board meeting.
Superintendent goal statements presented
McCleary presented six goal statements with performance indicators for his 2017-18 evaluation.
The goal statements involved increasing student achievement, retaining and developing quality personnel, maintaining fiscal responsibility, facilities management, communication/community outreach and extracurricular opportunities.
Additionally, final revisions were approved for the superintendent evaluation tool which was revised considerably in an effort led by board member Pat Wiebers.
Within that tool, the board moved the timeline for the self-evaluation process for them as a board to begin in June rather than to run concurrently with the superintendent evaluation.
Rockwell awarded construction bid
A report from the March 9 bid opening for the roof projects and lifeskills/structural project noted the low bid of $735,658 from Rockwell Construction of Wray was accepted. Two other bids were submitted for consideration.
Winter sports recapped
Activities director Sandra Rahe recapped the HHS and HJHS winter sports season, noting that individual awards nights have been scheduled for each sport in the upcoming weeks.
Specific goals for the winter sports team were shared.
For JH/HS wrestling, Rahe cited reorganizing coaching assignments and bringing in additional staff, as well as continuing to work with coaching staff to build interest in the program, and possibly exploring co-op options.
For JH/HS boys basketball, she mentioned development of a young team as eight seniors graduate and evaluating coaching assignments.
Increasing participation and continuing to improve overall skill were highlighted for JH/HS girls basketball.
Rahe also reported that new head and assistant HS coaches are needed for boys golf and volleyball next fall.
Other business
In other business at the March 22 meeting, the school board:
—Approved first reading of the following policies: school board member conflict of interest, voting method, federal fiscal compliance, federal procurement, bidding procedures, expense authorization/reimbursement, staff ethics/conflict of interest, and privacy and protection of confidential student information.
—Acknowledged Stacey Krogmeier’s gift of golf clubs to the girls golf team.