Norwood Schools Bracing For a Storm

December 16, 2009

Governor Bill Ritter last week proposed a six percent reduction in Colorado public school funding — $260 million state-wide. With Colorado already hovering around 48th in the nation for education funding, schools will be hard hit.

David Crews, Norwood Public Schools superintendent, is counting on local money from mill levies to help his school through.

Crews said that the state currently spends about 43% of its budget on education.  “I don’t know how [the state is] going do it… how they’re gonna make the changes to correct that.”

Last week, the state’s Joint Budget Committee learned that constitutional limits on property taxes, set by voters over the past decades, have meant there could have been an additional $3 billion annual funding for public schools.

In budgeting for Norwood School district, Crews said that there are two big concerns. This first is student population, which is down this year, but within the average for the past thirty years or so. “The bigger concern now is, where is the state going to get the money? The state has to make cuts. That’s where I see a storm coming,” he said.

In 2011 public schools state-wide will lose Amendment 23 money, one percent on top of inflation, when that program ends. Under Amendment 23, per-pupil funding is required to keep pace with the rate of inflation. Additionally, between 2002 and 2011 an extra one percent is added each year in order to restore cuts.

Norwood school board has already had to make a $101k budget decrease this year. Due to revenue lost from lower student population and lost mineral lease money, the original Spring 2009 budget of $4.86 million had to be adjusted this past fall to $4.75 million.

Last year the state re-appropriated mineral lease money away from schools in lease districts. Instead of Norwood Public School receiving a hoped-for payment of about $60k, they received $10k, and the rest of the funds were sent to other schools across the state. Some schools received as much as $20k and some as little as $14. Yes, $14. “Of course, that income fluctuates year-to-year, but that was a big hit,” said Crews.

Colorado Department of Education staff told Crews to make two percent to 10 percent budget cuts for next school year, to prepare for the state’s cuts. “In a good year,” said Crews, “we could see an increase of four to five percent. Two to three percent in an average year.” Cuts could set the school back anywhere from one to five years in budgeting.

It’s not like the government can just raise taxes to deal with any of the state budget issues. Besides the fact that everyone is tightening belts right now, TABOR keeps tax changes in voters’ hands.

Two years ago SMC voters agreed (248 yes – 69 no) to a three-mill increase in the school’s general fund to support programming. At the same time, the state asked Norwood school to let go of three mills that were funding the construction bond that paid for the elementary and middle schools.

The school still receives just over six mills, instead of what would have possibly been nine, had voters still approved the increase in 2007. Crews said, “It’s possible that, before that bond is paid off in about ten years, the school will have to go to the voters again for a mill increase.”

How is the school going to deal with the cuts? Crews will ask teachers for a wish list in January, hope the $56k from the state doesn’t have to be returned, and at this point, Crews said, “We’re not looking at any RIF-ing — reduction in force.”

 The Board will, of course, look first at retirement, people who are moving away, or leaving the school. “It’s pretty thin right now,” said Crews of the programming. There isn’t much to cut. Eighty percent of the school’s annual budget goes to staff salaries.

NPS has over $1 million in reserves right now, whereas 15 years ago the school had $1500 cash on h and. That is one-time money, of course, and Crews would like to keep it there for emergencies like building repair. While some districts might use that money for raises, Crews said, “that’s just not sustainable.”

Crews said, “It is possible, however, that the state could look at our reserve and cut our funding based on that.” The reserve would cover about four-and-a-half months of salary and bills at this point, and the school could be expected to spend it down to help the state out of its quandary.

All cuts and losses aside, Crews said, “We’re in good shape compared to a lot of districts.” He added, however, “The storm is yet to come. We’re not out of it – we’re just getting into it.”