Presentation prepared by St. Vrain board members to help community understand short and long term choices.

1. Colorado’s 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. 2

3. With the 2008 Mill Levy & Bond Campaign…We 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 3

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 4

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 5

6. Students and families are choosing St. Vrain…Our Enrollment Growth Continues 6 Estimate Source: St. Vrain Valley School District

7. Over the past decade…Major 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 7 * Office of Planning and Budget; Colorado Fiscal Policy Institute

8. But with a 20%+ cut in funding…Can St. Vrain Stay the Course? 8 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 Colorado’s Economic Future) The costs to maintain public services exceed the revenues to pay for them. The state’s budget problems arise not just from recent difficult economic times, but originate from structural spending problems that allow recurring crises.(Independence Institute Citizens’ Budget) 9

10. The implication for SVVSD students?$24 Millions Less than Voters Expected 10 Source: CDE and St. Vrain Valley Schools

11. Meanwhile, SVVSD staff are…Stretching 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* 11 * 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 12

13. How will Colorado compete in the 21st century?Impact on Families with College Students SOURCE: Bell Policy Center 13

14. When students must compete in a global economy…Are we pricing college out of reach for the average Coloradoan? Increase in Median Household Income: 16% Increase in college tuition: 154% 14 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%) 15

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.16

20. The impact is $2.75 per week for a household making $50,000 Estimated Tax Impact of Proposition 103 17

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? 18

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 Island 10. Pennsylvania 19 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) 20

24. Compared to other states…Colorado 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 21 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 23 Source: U.S. Census

27. 24 By any reasonable standard,Colorado invests relatively little in education Source: Great Education Colorado