DENVER PUBLIC SCHOOLS 2021-22 PROPOSED BUDGET - MAY 6TH, 2021 - BOARDDOCS
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Denver Public Schools
2021-22 Proposed Budget
May 6th, 2021
The Denver Public School Budget
● Budgets reflect the
values of an
organization
● The DPS Budget is a
plan for all the
expenses and
revenues for the
school year 2021-22
2
What is the Proposed Budget?
● A Financial Plan to execute the values and strategy
of the Denver Public Schools
● Review financial drivers, risks, and outlook for DPS
Budget
● Staff Recommendation to the Board of Education for
the 2021-22 budget
● Colorado Law requires 21 day notice between
proposing a budget and adopting a budget
3
DPS Budget Timeline
Fiscal Year Ends Beginning of Fiscal
Year
Vote on Adopted Budget
One Month after Proposed JUN JUL
Budget - June 10th
Proposed MAY AUG
Budget- May 6th
#5 BAC Meeting
May 10th APR SEP Fall
Adjustments
Annual for Schools
#4 BAC Budget Cycle
Meeting
Official Pupil
MAR OCT
Membership
Count (October
Count)
• Central Supports FEB NOV #1 BAC:
Budget Development Kick-Off
(Departments) Meeting
JAN DEC
#2 BAC
• #3 BAC Meeting
Meeting
• Amended Budget
• Financial State of the District
4
I. What is the policy context
for the 2021-22 Budget?
Planning for a New Superintendent &
Transition Priorities
5
Building on our foundation
DENVER CRISIS TRANSITION
PLAN PRIORITIES PRIORITIES
FUTURE
DPS
2014-20 2020-21 2021-22
6
Transition Priorities 2021-22
We will focus on our language learners, students with disabilities,
students experiencing poverty, and students of color in our priorities.
Focusing on these priorities must take the shifting financial environment and enrollment context
into account.
Equity
Dismantle oppressive systems and structures rooted in
racism and classism, and center students and team
members with a focus on racial and educational equity.
Accelerate Learning by Re-envisioning
Education
We are committed to accelerating learning by providing a
culturally and linguistically sustaining education that
enables us to re-envision rather than repeat the district's
historical inequities to provide an equitable education for
ALL of our students.
Social-Emotional & Mental Health
Address the social-emotional and mental health needs of
all students and employees.
Our Foundation: Ensuring the health and safety of all students and employees.
Budget Advisory Committee in 2020-21
Meeting Key Topic Areas
October Review enrollment, mission of BAC, overview of DPS budget, DPS budget outlook
December Areas of focus for addressing budget challenges, review Student Based Budgeting,
preview Amended Budget
January Financial State of the District, Amended Budget, 2020 Mill Levy & Mental Health
Funding
March Mental health Pilot and Dec 2020 Stimulus Funding
May Proposed Budget & Total View of Stimulus Funds (May 10th)
Budget Advisory Committee
● DPS is the ONLY DISTRICT to create a Budget Advisory Committee to support community
engagement through the challenging financial times of COVID-19
● Chartered through Board Policy BDFD
● Advisory committee to the Board of Education to support budget development, review key
budget assumptions (enrollment, economic forecasts)
● Engages using the Inform, Consult, Involve, Collaborate stakeholder approach
The full Budget Advisory Committee Charter can be found on DPS Boarddocs:
https://go.boarddocs.com/co/dpsk12/Board.nsf/files/BSKS2C6F45FC/$file/4.01%20Finance%20and%20Budget%20Advisory%20Committ
ee%20Proposed%20Charters%2008172020%20MH.pdf 8
KEY BUDGET PRINCIPLES
Given that context, and the goal of continuous improvement, the following principles
will guide budget development for FY22
● School budgets
○ Provide additional funding to directly support students in school budgets
directed at Transition Priorities with 2021 Mill Levy
○ Increase funding to ensure that school purchasing power is protected for
increased costs of staff
○ Enrollment changes do affect school budgets both positive & negative
● Continue to emphasize efficiency in Central Supports
○ Central team members supported and lead Re-Envisioning Education work
in Semester 2 as well as supported directly in school buildings as
quarantines and other COVID-19 dynamics limited staffing
● Invest in Transition Priorities: Any additional funding or identified savings should be
redirected recovery of learning loss, physical & mental health and other Transition
Priorities
9
LEGAL FRAMEWORK
The Board of Education approves the Budget for the School District
● Adoption of the Budget is Legally Required by June 30 (C.R.S. 22-44-103(1))
○ Approval of Fund Appropriations: The formal approval of the
“appropriation resolution” is the formal Adoption of the Budget (C.R.S.
22-44-107)
● A Proposed Budget must be provided to the Board of Education at least 30 days
prior to the adoption of the budget (C.R.S 22-44-108(1)(c))
● An Amended Budget must be approved by January 31st of the school year (C.R.S.
22-44-110(5))
10II. What are the key
revenue drivers for the
2021-22 Budget?
State funding, enrollment, and stimulus
allocations
11ECONOMIC OUTLOOK
▪ COVID-19 & Vaccine Roll Out: Economic activity returning to
normal levels would have a positive impact on both income and
sales taxes which are the primary drivers of state revenue
Overall ▪ State Revenue: Legislative Council in March 2021 reported positive
Economic state revenue returns and optimistic forecast for the remainder of
Update fiscal 2020-21 for the state of Colorado
▪ Property Taxes: Denver property taxes MAY increase by 1 mill
(~2%) as a result of the of the action required in the legislature
pertaining to School Finance Act Mill Levy
▪ Governor’s Budget/State Budget: Governor Polis’ budget request
to return the Budget Stabilization Factor to 2019-20 levels is
anticipated to pass; this plus 2% increase for inflation results in Per
Pupil State Revenue for Denver forecasted at $9740 per pupil
▪ Enrollment: Projected increase from 2020-21 levels, but final
FY 2021-22 enrollment will not be known until Fall 2021
Budget
Impacts ▪ Expenses: Compensation expenses are budgeted to rise by 2% for
all employees unless an agreement was already in place
▪ Stimulus: DPS has been allocated over $200M in funding for use at,
and in support of, district managed schools from the federal stimulus
funds from Dec 2020 and March 2021
12School Year 2020-21 Forecast
State Funding Impacts:
● December forecast: Revenues exceeded previous projections
● Governor’s Budget: Return to 2019-20 Levels of Budget Stab. Factor - Likely
Best Case Scenario
○ ~$601M increase for K-12 + Cost of Living (2.0% forecasted)
○ ~$61M increase or $845 increase in PPR for DPS
○ 2.0% Inflationary increase is about $175 per student & ~$12M to DPS
Source: Governor’s Proposed Budget
13STIMULUS FUNDING - DECEMBER 2020 and
March 2021
Substantially
spent
•Expenses within the Federal Guidance
• Accelerated Learning (called “Learning Loss” in federal guidance)
• Social emotional & mental health needs
• Safe reopening
• Air Quality
NOTE: “Supplant” requirement which typically does not allow use of federal funding on some
previously local expenses is not a requirement for ESSER II and ESSER III
14FOCUS ON INTEGRITY - STIMULUS FUNDS
Levels of approval and compliance with DPS Stimulus Funds
GOVERNANCE,
STRATEGY,
IMPLEMENTATION:
DPS Board sets Policy
in coordination with
Community
Stakeholders. DPS
Superintendent and
Staff design strategy
and implement the plan
aligned to Board
governance
LEGAL COMPLIANCE:
Federal Stimulus
expenditures have 3 levels
of accountability for legal
compliance with the grant:
1) DPS Staff review
2) CDE
3) External Independent
Auditors
15Enrollment Projections for 2021-22
K-12 Projections
2020-21 K-12 Projections
2021-22
1) Back to “normal” AND all
students re-enroll
2) Budgeted Assumption
Oct. Count
Back to “normal” AND some
2020-21
students re-enroll
3) Back to “normal” BUT
students do not re-enroll
4) Continue to lose
enrollment, but not as many
as this year
● Enrollment projections forecasted to decrease since January of 2020 when
schools last developed budgets
● Elementary schools and schools in shrinking regions are most likely to see
sharpest declines
● Preliminary enrollment data indicates a risk of lower enrollment than
budgeted 16What are the main revenue assumptions
for the 2021-22 Budget?
● State budget restores k-12 funding (Budget Stabilization
Factor) to 2019-20 levels
○ Inflation is 2% and the increase in Amendment 23 funding
● Stimulus funding provides substantial one time funding
● Enrollment is a major risk for 2021-22 & for all subsequent
years
17III. What are the key
expense drivers for the
2021-22 Budget?
School budgets, compensation,
stimulus, and school supports
18TOTAL OPERATIONAL BUDGETS
2021-22 Proposed Budget
• 72% of funding is directly in DPS Managed Schools or Charter School Budgets
• Field Supports are typically expenses in school building but not school budgets
• Central supports include supports directly serving students including FACE, College and
Career, Curriculum, Technology Supports & others 19EQUITY WEIGHTED FUNDING FORMULA
Why does DPS use a student weighted formula? Focus on Equity
Highest FRL schools
receive 61% higher per
pupil funding than lowest
FRL schools on average
• Funding each student smooths funding cliffs
• Weights for students in poverty, language learners, students with
disabilities, gifted & talented
• Required Staffing Minimums and Guardrails
▪ ALL SCHOOLS must staff appropriate resources for Students with Special Needs, English
Language Learners, and voter approved Mill Levy Programs such as Art, PE, technology
▪ Any deviations must be approved by the Regional Instructional Superintendent and appropriate
school support
20Teacher & SSP Compensation is the Single
Largest Expense in the DPS Budget
DPS compensation increases for Teachers & SSPs since 2018-19
• Total Compensation for teachers (median) is estimated to be $88,511, including salary of $68,595,
health benefit credit of $5,066, and pension/other benefits of $14,851
• Returning salary for individual teachers will increase ~4.7% because all teachers will be provided
2% COLA + “step” (and “grade” if applicable). The average anticipated increase is forecasted at
3.8% because not all staff are projected to return next year
• These increases reflect high level of retention compared to historical levels
21DPS Managed Schools:
Use of Stimulus Funds
Stimulus in School Budgets
● $16M allocated to Schools for 2021-22
Budgeted Expenses in Schools: $16M
● Accelerated Learning: $12M
○ Expenses include: Intervention Teachers, Mild/Moderate Teachers, Instructional
Reading/Writing/Tutoring Paraprofessionals, ELA-S Teaching & Intervention, other
instructional roles, Instructional & PD Extra Pay, and materials
● Social Emotional & Mental Health: $4M
○ Psychologist/Social Workers, Guidance & Educational Counselors, Restorative Justice
Coordinator, Professional Service Providers
○ 2020 Mill Levy (approved by Denver voters) added $7M from 2020 Mill Levy to budget in
2021-22 specifically for Nursing and Social Emotional Supports
● All Expenses must be CDE approved expenses and aligned to Transition
Priorities
○ DPS Finance team through Grants Administration reviews grant programs for compliance
including allowed expenditures
22FEDERAL STIMULUS FUNDING: 2021-2024
Totals are for 3 School Years ending in 2023-24
● The district is committed to allocating stimulus funding in alignment with
the district’s transition priorities and strategies.
23Aligning Stimulus to Transition Priorities
Summary Explanation Est. Prelim.
Budget $
Our Foundation: Ensuring the health and safety of all students and employees.
Fund Approved Expenses Currently Budgeted in General Fund;
Approved Expenses for General Operations & Fiscal
Assumed 3 Years of Funding stepped down ($20M, $10M, $5M ~$35M
Health
respectively)
Air filters, ventilation, and other facilities expenses to improve air quality
Ventilation & Air Quality (HVAC) ~$25M
in schools
Operations for Revenue Programs (Food/Nutrition &
Funding for expenses that cannot be offset because of lower revenues ~$12.2M
Disc Link)
Refresh devices for teachers and students, outfit outdoor classrooms,
Technology ~$10M
ensure students have access to internet
Accelerate Learning by Re-envisioning Education / Social-Emotional & Mental Health
DPS Managed School Budgets (Direct Allocation) Assumed 3 Years of Funding in Budgets with some school discretion ~$28.7M
Accelerated Learning Design groups for reimagining education ~$28.7M
Assumed 3 Years of Funding in Budgets to support enrollment loss and
Virtual School / Mitigating Funding Loss for Enrollment ~$26.6M
or virtual program at DOHS and Elementary
Initial estimate from SEO of need for compensatory education for
Compensatory Education ~$12.1M
students with IEPs and other specialized needs
Funding for expenses based on lessons learned during the 21-22 school
Lessons Learned & Year 2 Course Corrections ~$10.3M
year
Total Recommended Uses ~$188.6M
24IV. CURRENT FIVE YEAR
OUTLOOK
Based on the Amended Budget for
2020-21 and Proposed Budget for
2021-22
255-YEAR OUTLOOK- REGULAR OPERATIONS
General Fund Only - Without Future Approved Support from Federal Funds
Years in gray are below TABOR requirement
● The long term outlook shows a recurring operating deficit of ~2%
● New revenue or expense adjustments will be needed long term to
sustain the financial health of the organization
● FY20-21 Expense includes $14.8M Use of Federal Stimulus - which
was part of the Adopted Budget for 2020-21
26UPDATED 5-YEAR FINANCIAL OUTLOOK
FY 2020-21 Amended Budget and PROPOSED FY 2021-22 Budget
Upside Risks: Downside Risks:
● Federal stimulus can be used to ● Compensation grows faster than revenue
support eligible costs and a more
balanced budget for 2020-21, ● Uncertain enrollment for 2021-22 and
2021-22, 2022-23, 2023-24 beyond
● ~$27M structural deficit to solve after
● 2020-21 will likely finish SPENDING
stimulus ends; fund balance ~$80M
LESS than budgeted because of
below 10% of revenue target by 2024-25
remote operations and larger carry
forward for schools
27LONG TERM OUTLOOK
Planning for a sustainable future
The general operating deficit during normal operations is
about 2% of expenses
How did we get here?
● Declines in enrollment and operating smaller schools is expensive in all school
districts - not just Denver
● Compensation across DPS is the largest cost. DPS budgeted for $730M in
salary+benefits in 2021-22 (General Fund Only). 1% of that is $7.3M.
○ When compensation costs or agreements increase faster than revenue, the
budget can become easily imbalanced
Is this a big deal?
● DPS plans to use federal stimulus for approved expenses to support a healthy
operating budget for the next few years
● We need to start planning now to be ready for the end of federal support
28V. OTHER FUNDING
SOURCES
29THANK YOU DENVER VOTERS - DPS BOND FUNDS
Bond Fund (41) • In November 2020, voters approved a $795M bond for
DPS - with over 79% approval from Denver voters
• Over $100M of that was approved to provide budget
relief to the General Fund/Capital Reserve and the
direction is to fund as much capital costs in bond funds
and not in the General Funds
• Annual debt service relief with $80M for Northfield
COP payback, $11M for Kepner COP payback and
$9M for the purchase of CLA
• Others costs include capital allocations (through
FY24) for ERP, yellow bus purchases, security &
facilities white fleet, refrigerated trucks/vans for food
services as well as other emergency capital projects
Summer 2021 Projects Food Services
Gym Renovation at Fire Suppression/
Lalo Delgado Crawl Space Repair Greenhouse
Galvanized Piping
Outdoor Fields at
Hydroponics Farm at $5.5M deployed in School $25M for 1st Round Heat Mitigation
Loretto Heights (Fairview, Merrill, Smith, Valverde, Force, Grant)
Bruce Randolph Determined Funds
Commence planning and Continued MyTech
Turf Fields Dennis
design for Montbello Build and Expansion to all
Campus and North
new FNE Campus (Ceylon) 6-12 students
Not all inclusive 30OTHER FUNDING SOURCES
Sources In Addition to the General Fund
Notes
• Other Fund appropriations include $7.9M interfund transfers from the general fund (Athletics,
Food Services, EGTC)
31V. APPENDIX
32TOOLS TO UNDERSTAND THE DPS BUDGET
Available on the DPS Financial Transparency Page
▪ DPS Citizen Guide
▪ A brief booklet describing the sources and uses of funding within DPS
▪ Individual School Budgets – Summarized Government Sources and Expenses
▪ Charter Schools
▪ DPS Managed Schools
▪ DPS 2020-21 Adopted Budget
▪ A detailed summary of financial schedules and board resolutions
appropriating funds for the 2020-21 school year
▪ DPS 2021-22 Proposed Budget
▪ A detailed summary of financial schedules and board resolutions appropriating
funds for the 2020-21 school year
All available at DPS Financial Transparency Website:
https://financialservices.dpsk12.org/financialtransparency/
33Budget Advisory Committee Members Name Role/Representing Angela Cobián Denver Public Schools Board of Education, Treasurer & Chair John Adams Denver Public Schools Employee Associations Jennifer Bacon Denver Public Schools Board of Education, Vice President Scott Baldermann Denver Public Schools Board of Education Pam Bisceglia Special Education Advisory Committee Chuck Carpenter Chief Financial Officer Leslie Cordova Denver Classroom Teachers Association (DCTA) Aminah Ford Student Board of Education Robert Giron English Language Acquisition District Advisory Committee (ELA-DAC) Alise Kermisch District Accountability Committee Nadia Madan Morrow Executive Director, Multilingual & Non-Bargained Employees Bobby Thomas Denver School Leaders Association Jim Carpenter Deputy Superintendent of Operations; non-voting member of BAC* Katie Hechavarria Interim Executive Director Finance; non-voting member of BAC* *Non Voting Members 34
November 2020: Governor’s Budget Proposal
● The Governor’s Budget Request adds substantial funding to K12
● The School Finance Act is not finalized until late spring and could be
lower than the Governor’s request 352020-21 Enrollment
After being within a ±0.2% variance from K-12 Projections to October
Count for the previous 4 years, this year we missed by 1.83% (1.6k)
students, mostly in K-5, due to COVID.
2020-21
January Oct. Count
Grade Projections 2020 Variance Variance %
K 6831 6261 -570 -8.34%
1 6810 6515 -295 -4.33% ES:
-1,403 (-3.48%)
2 6608 6418 -190 -2.88%
3 6524 6352 -172 -2.64%
4 6748 6633 -115 -1.70%
5 6739 6678 -61 -0.91%
6 6680 6599 -81 -1.21%
MS:
7 6805 6835 30 0.44% -88 (0.48%)
8 6712 6675 -37 -0.55%
9 7702 7713 11 0.14%
10 6778 6754 -24 -0.35% HS:
11 6020 5924 -96 -1.59% -98 (0.37%)
12 5870 5881 11 0.19%
K-12 86827 85238 -1589 -1.83%SCHOOL ALLOCATIONS SUMMARY
Proposed Allocations School Year 2021-22 – January School Budgeting
▪ Changes for next year include new Nursing/Whole Child funds from 2020 Mill Levy, and
discussion around using funds previously provided for SPF Performance growth to increase
mild/moderate funding at schools with large caseloads
37DPS Managed Schools:
Use of Stimulus Funds
Stimulus in School Budgets
● $16M allocated to Schools for 2021-22
Budgeted Expenses in Schools
● Accelerated Learning: $12M
○ Intervention Teachers - $3.8M (42 FTE)
○ $2.1M Extra Duty Pay (after school learning, extended day,
summer school)
○ Mild/Moderate Teachers - $1M (11 FTE)
○ Other FTE (Teachers and ProTech roles) - $2.6M (31 FTE)
○ Instr Paraprofessionals (Read/Writing) - $1.1M (34 FTE)
○ ELA-S Teaching & Intervention - $965K (11 FTE)
○ Other Non-Salary (Books, Supplies, etc) - $500K
● Social Emotional & Mental Health: $4.0M
○ Psychologist/Social Workers - $1.5M (17.5 FTE)
○ Guidance Counselors - $600K (7 FTE)
○ Restorative Justice Coordinators - $470K (11 FTE)
○ Educational Counselors - $350K (6.25 FTE)
○ Professional Service Providers - $580K
● All Expenses must be in categories we know are allowed expenses
from our work with CDE & also aligned to Transition Priorities
38Teacher + SSP Compensation & Central School
Supports Total Budgets
Teacher & SSP Compensation represents total amount budgeted at
district-managed schools for salary and benefits of DCTA bargaining unit
employees from general fund. 392020-21 Budget Reduction Recap
Reductions applied to Central School Supporting Departments in FY21
● $14.9M total reduced from the FY21 adopted budget for central
school supporting departments
○ An additional $2.2M was reduced in central school supporting
departments during the budget adoption process
● Of that amount, $7.0M were one-time reductions and have been
returned to departments for the FY22 budget year
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