Colorado

Bracing for a ballot measure

In a high school auditorium on Tuesday, Douglas County school board members agreed a proposed ballot amendment could mean dramatic change for nearly 60,000 students in Colorado’s third-largest school district.

“We can’t start school until the tax revenues come in so you’re probably looking at a school year that’s maybe … March to December,” said board member Justin Williams. “Next year, we’re in serious jeopardy.”

Voters won’t decide on Amendment 61, a citizens’ initiative to limit government borrowing on the Nov. 2 ballot, for another ten weeks. But leaders in several school districts say they need to prepare now for its possible approval.

In a middle school near Winter Park on Tuesday, East Grand school board members discussed the option of shutting down the district for several weeks if 61 is approved.

“We don’t have a choice,” said Superintendent Nancy Karas. “If we don’t have the money, we can’t open the doors.”

Cash flow is immediate concern

Amendment 61 – one of a trio of initiatives assisted by anti-tax crusader Douglas Bruce – would severely limit school districts’ ability to borrow and would require they lower taxes by an amount equal to what was borrowed after the debt is paid.

But the provision of 61 of immediate concern to districts is its prohibition against any borrowing by the state. That led the state to suspend its interest-free school district loan program – which it borrows to fund – until after Election Day. And that means some districts will soon be out of cash.

Why? Because school districts depend heavily on local property taxes, which don’t really start flowing until March. About one in five of Colorado’s 178 districts annually rely on the state loan program for the cash they need to pay bills until they begin to receive property tax revenue.

In East Grand, for example, “We’re virtually asked to operate eight months before we receive any of our funding,” Karas said.

Colorado school districts once operated their budgets on a calendar year, putting the start of school closer to property tax collection. The state loan program was created “many, many years ago” when districts switched to a fiscal year with a July 1 start at the behest of state lawmakers, said State Treasurer Cary Kennedy.

State advances come up short for some

State leaders, while suspending the loan program, did agree to advance state education dollars to districts in need. Under Colorado’s School Finance Act, lawmakers set a minimum funding amount per student, pour local property taxes in first and then make up any gaps with state aid.

Typically, those state dollars are distributed in even monthly amounts over the course of the year. For 2010-11, though, because of the suspension of the state loan program, districts can get more of those dollars up-front.

State Treasurer Cary Kennedy

“They get more state aid in the fall and less in the spring but they’ll get their property tax revenues in the spring so it will balance out,” Kennedy said, “and there isn’t a loan program in place that would be affected by Amendment 61.

“For most districts in the state, they can sufficiently meet their cash flow needs,” she added. “We do have a few school districts … that have cash flow concerns in the month of October.”

State aid makes up, on average, 62 percent of total school funding. But six districts close to resort areas have such high property tax bases that they receive little in state aid. So advancing that aid doesn’t help much.

East Grand, a district of 1,438 students, will be short $300,000 by Nov. 2, Karas said. Only 3 percent of its budget comes from the state.

In Gunnison, a 1,818-student district that includes Crested Butte, business manager Stephanie Juneau is working on securing a $1.5 million bank loan to get the district through Dec. 15. That’s the earliest the state loan program could be reinstated if Amendment 61 fails.

The district will be out of cash in late October or early November, Juneau said: “Our school district receives no equalization from the state … we are 100 percent supported by our property taxes.”

Unnamed proponent alleges irresponsibility

A proponent for Amendment 61, who declined to be identified by name, said that “only about 20 percent of districts act so irresponsibly that they start the school year without having in hand the full revenue for their budget.”

Face of Amendment 61
The pro-61 website, cotaxreforms.com, doesn’t name its creators or identify contacts. But Natalie Menten, an unsuccessful 2008 candidate for state senator, has appeared in some media as the campaign coordinator for 61 and related measures 60 and 101. Check out her personal website here.

“Borrowing EVERY YEAR is like an indigent who pawns his watch at the end of every month until his welfare check comes in,” wrote the person in an emailed response to a request for comment by Education News Colorado.

Asked for identification, the response was “A volunteer from the campaign committee. Our identities are not important; public policies are more important than private personalities.”

Several district leaders denied the cash-flow issue is a sign of poor financial management.

Phil Onofrio, chief finance officer for Eagle County Schools, which includes Vail, said the district’s fund balance tops 20 percent.

“We’re considered relatively wealthy but if you get very little on a monthly basis, you would have to store huge amounts of money to not have to borrow during the year,” he said. “We would need to have 85 percent or so of our annual budget in the bank at the beginning of every year.”

Natalie Menten

Of Eagle’s $50 million budget, about $2 million comes from the state and the rest from local property taxes. “So that means 90 percent of our money comes in the last four months of the year,” he said.

The volunteer proponent, via email, said school districts would need only “one transition year” of deferring some expenses until spring to adjust to doing without the state loan program.

Karas, in East Grand, said that’s unrealistic when school districts have seen historic funding cuts averaging 6.31 percent statewide for 2010-11. Similar cuts are expected for 2011-12.

“We cut $450 a student from last year to this year,” she said. “We’ve cut $1.6 million from our budget in the last two years, we’ve laid off 16 percent of our staff … There’s no way to do that (deferring expenses until spring).”

District seek long-term solutions

While some districts are hustling to get dollars to make ends meet even before Nov. 2, more are focused on preparing for the aftermath of an Amendment 61 victory.

Onofrio, in Eagle County, will ask his school board on Wednesday to authorize obtaining a $15 million tax anticipation note to get the district through December. If 61 fails, the state reinstates its loan program and that money will pay off the note.

If 61 passes, Eagle is preparing paperwork to immediately seek $20 to $30 million in a Certificate of Participation or COP, a financial instrument similar to a bond issue but one that doesn’t require voter approval.

Similarly, Douglas County school board members instructed district staff on Tuesday to prepare $73 million in a COP if 61 is approved. Because the amendment would prohibit the use of certificates of participation after Dec. 31, districts will have a small window during which to obtain them.

Both Onofrio and Diane Doney, Douglas County’s executive director of business services, said the COPs would provide the necessary cash flow if the state loan program is eliminated – but at a price. The annual repayments, both principal and interest, on a COP come out of a district’s operating budget.

“If 61 passes, and we have to go out and secure debt for cash flow, the cost to our taxpayers is going to be about $5 million a year to have something that was interest-free before,” Doney said, referring to the state’s interest-free loan program.

In Eagle, “If we do a COP for this district for say $30 million over 30 years, the principal and interest payments are about $2 million a year, which will have to come out of our operating budget,” Onofrio said, “so we will have to reduce programs by that amount of money … fewer teachers, less supplies, whatever we have to cut to make those payments has to come away from kids.”

Jeffco, Denver, Cherry Creek weighing options

In East Grand, board members on Tuesday agreed to ask voters Nov. 2 to approve a tax increase for a bond issue for operating dollars. Bond money typically can be used only for construction or building, and not day-to-day expenses. But state lawmakers, citing Amendment 61, voted in May to allow an exception.

“It is a really tough decision to put that on the ballot when we know how the economy in Colorado is going right now,” Karas said.

Still, she said board members wanted voters to have the option of a bond, paid directly by taxpayers instead of from the district’s operating budget, rather than a COP. If the bond fails, East Grand will seek a COP.

“We believe if our community can bear the cost, they will,” Karas said. “But we also understand that if they don’t feel they can bear the cost, we won’t take that personally.”

If the bond question fails and the district cannot secure a COP, “The third option, unfortunately, would be to close down the district,” she added.

Other districts and their boards are still mulling their choices. Both Cherry Creek and Denver school districts have relied on the state interest-free loan program.

“We’re in the same boat as everyone else who uses it,” said Cherry Creek spokeswoman Tustin Amole. “Those are our operating funds until the property taxes are dispersed.”

David Suppes, chief operating officer for Denver Public Schools, said eliminating the state loan program “would create significant challenges with the district’s cash flow and our ability to fund ongoing operations.”

“We are looking closely at the potential impact on the district, as well as our options and strategies to address the funding difficulties that we’d face,” he said.

Jefferson County, the state’s largest school district, has not used the state loan program for several years because it’s built up enough reserves to cover its cash needs, said chief finance officer Lorie Gillis.

But the district has been tapping those reserves because of recent funding cuts, she said, and “because of the ongoing decline in funding, we may not be able to preserve that reserve level.”

“We haven’t ruled out any of the options that we’ve seen other districts have to take at this point,” Gillis said. “None of those things are off the table right now.”

Nancy Mitchell can be reached at [email protected].

Weekend Reads

Need classroom decor inspiration? These educators have got you covered.

This school year, students will spend about 1,000 hours in school —making their classrooms a huge part of their learning experience.

We’re recognizing educators who’ve poured on the pizazz to make students feel welcome. From a 9th-grade “forensics lab” decked out in caution tape to a classroom stage complete with lights to get first graders pumped about public speaking, these crafty teachers have gone above and beyond to create great spaces.

Got a classroom of your own to show off? Know someone that should be on this list? Let us know!

Jaclyn Flores, First Grade Dual Language, Rochester, New York
“Having a classroom that is bright, cheerful, organized and inviting allows my students to feel pride in their classroom as well as feel welcome. My students look forward to standing on the stage to share or sitting on special chairs to dive into their learning. This space is a safe place for my students and we take pride in what it has become.”

Jasmine, Pre-K, Las Vegas, Nevada
“My classroom environment helps my students because providing calming colors and a home-like space makes them feel more comfortable in the classroom and ready to learn as first-time students!”

 

Oneika Osborne, 10th Grade Reading, Miami Southridge Senior High School, Miami, Florida
“My classroom environment invites all of my students to constantly be in a state of celebration and self-empowerment at all points of the learning process. With inspirational quotes, culturally relevant images, and an explosion of color, my classroom sets the tone for the day every single day as soon as we walk in. It is one of optimism, power, and of course glitter.”

Kristen Poindexter, Kindergarten, Spring Mill Elementary School, Indianapolis, Indiana
“I try very hard to make my classroom a place where memorable experiences happen. I use songs, finger plays, movement, and interactive activities to help cement concepts in their minds. It makes my teacher heart so happy when past students walk by my classroom and start their sentence with, “Remember when we…?”. We recently transformed our classroom into a Mad Science Lab where we investigated more about our 5 Senses.”

 

Brittany, 9th Grade Biology, Dallas, Texas
“I love my classroom environment because I teach Biology, it’s easy to relate every topic back to Forensics and real-life investigations! Mystery always gets the students going!”

 

Ms. Heaton, First Grade, Westampton, New Jersey
“As an educator, it is my goal to create a classroom environment that is positive and welcoming for students. I wanted to create a learning environment where students feel comfortable and in return stimulates student learning. A classroom is a second home for students so I wanted to ensure that the space was bright, friendly, and organized for the students to be able to use each and every day.”

D’Essence Grant, 8th Grade ELA, KIPP Houston, Houston, Texas
“Intentionally decorating my classroom was my first act of showing my students I care about them. I pride myself on building relationships with my students and them knowing I care about them inside and outside of the classroom. Taking the time to make the classroom meaningful and creative as well building a safe place for our community helps establish an effective classroom setting.”

 

Jayme Wiertzema, Elementary Art, Worthington, Minnesota
“I’m looking forward to having a CLASSROOM this year. The past two years I have taught from a cart and this year my amazing school district allowed me to have a classroom in our school that is busting at the seams! I’m so excited to use my classroom environment to inspire creativity in my students, get to know them and learn from their amazing imaginations in art class!”

 

Melissa Vecchio, 4th Grade, Queens, New York
“Since so much of a student’s time is spent inside their classroom, the environment should be neat, organized, easy to move around in but most of all positive. I love to use a theme to reinforce great behavior. I always give the students a choice in helping to design bulletin boards and desk arrangements. When they are involved they take pride in the classroom, and enjoy being there.”

moving forward

After Confederate flag dispute at Colorado football game, schools pledge to bring students together

PHOTO: Marc Piscotty
Manual High students.

Acknowledging “we may never have a conclusive picture of what happened,” two Colorado school districts sought to move past a controversy over whether a Confederate flag was displayed at a football game and open a conversation between the two school communities.

The principal of Manual High, Nick Dawkins, wrote in a community letter over the weekend that the visiting Weld Central High School team “displayed a Confederate flag during the first quarter of the (Friday night) game, offending many members of the Manual community.”

Officials from Denver Public Schools and Weld County School District Re-3J released a joint letter Tuesday saying that based “on what we have learned to date, however, the Weld Central team did not display the Confederate flag.” At the same time, it said, multiple Manual eyewitnesses “reported seeing spectators who attempted to bring a Confederate flag into the game and clothing with flag images.”

Going forward, students from the two schools — one rural and one urban — will participate in a student leadership exchange that has student leaders visit each other’s schools and communities to “share ideas and perspectives,” the letter says.

“At a time in our country when so many are divided, we want our students instead to come together, share ideas and learn together,” says the letter, which is signed by the principals of both schools and the superintendents of both school districts.

The alleged incident took place at a time when issues of race, social injustice, politics and sports are colliding in the United States, making for tough conversations, including in classrooms.

Weld Central’s mascot is a Rebel. Manual, whose mascot is the Thunderbolts, is located in one of Denver’s historically African-American neighborhoods.

Dawkins in his initial community letter also said “the tension created by the flag led to conflict on and off the playing field,” and that three Manual players were injured, including one who went to the hospital with a leg injury. He also said some Manual players reported that Weld Central players “taunted them with racial slurs.”

Weld Central officials vehemently denied that their team displayed the flag. In addition, they said in their own community letter they had “no evidence at this point that any of our student athletes displayed racially motivated inappropriate behavior.”

They said district officials “do not condone any form of racism,” including the Confederate flag.

Weld Central fans told the Greeley Tribune that they didn’t see any Confederate flag.

Read the full text below.