Dear Faculty, Parents and Community Members,

 

The purpose of this letter is to keep you informed regarding our current operating budget, our efforts to develop a plan to address our deteriorating facilities, activities we are engaging in both locally and at the state level to impact our financial situation and our general plans and approach to managing these going forward.

 

VISION & MISSION

 

Moffat County School District has adopted a mission and vision that we use as the basis for all decisions we make; from developing a curriculum, to budgeting, to transportation.

¯    Mission - All students will achieve at high levels, in a safe, quality learning environment

¯    Vision - We will become a collaborative team committed to achieving high levels of student and staff learning, focusing on targets and results.

 

As you read the information below, remember that this is the basis for the decisions we have or will make in future.

 

BUDGETING

 

Budgeting for a school district is a 6-month process that we are entering the final phase of right now.  We begin the process in December by developing a set of assumptions that will drive our revenue and expenditure forecasts.  We then develop a preliminary forecast under those assumptions while always keeping our core values and mission in mind.  This may appear easy, but developing an accurate forecast is sometimes as difficult as forecasting the weather.  It is very difficult to predict the price of fuel and utilities, the cost of health insurance, the amount of federal funds, which are contingent on what Congress does, our very volatile mineral revenue and variable specific ownership taxes.  Add to that a constantly changing enrollment and you have a pretty complex picture.

 

Just before Christmas last year we were forecasting quite a difficult financial picture for the school district in the near term.  In the 2007-2008 budget we had predicted to spend a significantly greater amount of money than we thought we would be taking in, obviously not an acceptable situation.

 

Knowing we were entering a time of financial uncertainty and pending crisis we knew we had to act to change the revenue and expenditure variables we had control over to prevent this potential crisis from becoming a reality.  With our core values and mission in mind we embarked on a plan to avert a financial crisis in Moffat County schools. That plan included the following key points:

 

¯    Be as transparent as possible, giving the staff and community financial facts regarding our current revenue and expenditures as well as our best forecast at any point in time along the way.

¯    Develop an action plan to change the school finance law, to increase our share of state funding to impact our status as the lowest per pupil funded school district in the State of Colorado.

¯    Reduce our expenditures to a level that we could sustain without continued deficit spending while not sacrificing our core values and mission.

¯    If we exhaust finding additional revenue sources and cut our expenditures to a level that risked our core values and mission, ask our community to support our schools through an increase in the mill levy in order to maintain the quality of education.

 

CURRENT REVENUE STATUS

 

Using more current information than we had in December, we are projecting that Moffat County School District will receive an increase in revenue from previous years.  This increase can be mainly attributed to three factors:  

  1. We were successful working with Representative Al White, Governor Ritter and the state legislature to amend the school finance law to increase minimum floor funding for our district.  This minimum funding will be phased in over two years and will generate an additional $273,000 for next year and an additional $377,000 for the following years
  2. A recent boom in mineral revenue from oil and gas leases and production
  3. An increase in specific ownership tax revenue which reflects CraigÕs growing economy

 

STATUS OF EXPENDITURE REDUCTIONS

 

Significant reductions in forecasted expenditures have been made including:

 

¯    Reducing the number of employees or length or contracts through attrition.  This includes administrator contracts, teachers, aides, and custodians

¯    Cutting our operation & supply budgets 10% or more in every school and department

¯    Reducing our extracurricular expenditures without eliminating programs

¯    Limiting capital expenditures to absolute necessities

 

 

STATUS OF FUND BALANCES

 

During the past few years we have been spending down our fund balance (our savings account) at a rate of approximately $500,000 per year. Our preliminary forecast in December showed that we would have to spend $1,000,000 of savings to maintain the current level of our educational program.  This is double the amount of savings spent in previous years and reduces our savings to low levels that are unacceptable. 

 

As we refined our revenue projections we felt it appropriate to include increases in volatile revenue sources such as minerals and specific ownership taxes due to the continued strong economic activity in the county.  As a result, we are now forecasting to spend down our fund balance approximately $400,000 instead of the budgeted $1 million. While still not acceptable, this is a substantial improvement!

 

We had previously been considering a recommendation to ask the community to support a mill levy override, but the above changes have allowed us to go another year without asking for this support.  We will continue our efforts to increase other revenue sources and reduce expenditures where appropriate and in line with our core vision and mission.

 

 

CHANGES TO THE BUDGET

 

Fortunately, our effort to increase revenue has given us an opportunity to add back some of the previously eliminated expenditures.  Our staff and community input regarding budget cuts helped us define what was closest to our core vision and mission.  Top priorities were:

¯    Attracting and retaining highly qualified staff by maintaining competitive salary and benefits

¯    Maintaining low class sizes and aide support

¯    Supporting core curriculum and interventions

 

With our commitment to our core vision and mission in mind, we are now reinstating some previously eliminated expenditures:

 

¯    Reinstate teachers at the primary level to maintain class sizes between 18-22

¯    Give our teachers a salary increase equal to cost of living increase of 3.35%

¯    Continue with teacher leaders which builds a strong foundation for instruction and coordinating our intervention efforts

 

Of course we will continue to monitor our financial situation on an on-going basis and make adjustments as necessary.

 

FACILITIES UPDATE – WE WANT YOUR INPUT!

 

Moffat County SchoolÕs aging facilities are a major concern.  To address these facility needs, the Board of Education has tentatively decided to move forward with a bond issue to renovate our school buildings and build a new middle school, grades 6-8. The initial plan calls for reconfiguring the schools by converting CIS into a fourth elementary school.  All four elementary schools would house grades Pre-K through 5th.  The preliminary total cost of the project is $28 million with approximately $15 million for a new middle school.

 

As a next step in gathering community input, Neenan Company in partnership with Moffat County School District will host a series of public forums to gather input regarding the boardÕs recommended projects.  The school board invites the public to attend these informative and interactive design sessions.

 

¯    Wednesday, June 6th - ÒConditions of SatisfactionÓ Meeting – This will be an overview of the boardÕs initial recommendations, with an interactive community input session.  If you can only make one meeting this is the best one to attend.

¯    Thursday, June 7th  - New Middle School - ÒCollaborative Design Work SessionÓ – This all day session is designed to solicit more detailed input, and begin developing actual project designs.

¯    Friday, June 8th – All other building upgrades - ÒCollaborative Design Work SessionÓ - solicit more detailed input for our other building upgrades.  A couple of examples that are currently being considered are

o      Adding a larger cafeteria to East Elementary,

o      Reconfiguring CIS to accommodate Preschool and kindergarten,

o      Redesigning each schoolÕs main entry for increased security and safety.

o      Upgrading all heating, ventilation and lighting

 

The all-day ÒCollaborative Design Work SessionÓ will be flexible and individualized, where you may drop in anytime for as long as you would like to share your ideas, or just observe the process. The end product of these work sessions will be a preliminary design for each schoolÕs upgrades and a new middle school.  We would love to have you attend and give us your thoughts.

 

 

Pete Bergmann

Superintendent

Moffat County School District