Following a public hearing with no objections, the Englewood Board of Education has given its approval for a proposed budget for the 2024-2025 fiscal year.
The proposed budget, with projected revenues of $36.9 million and proposed expenditures of $36.8 million, is up 4% from the year before. It was approved at the board’s June 4 meeting.
Nicholas Elkins, executive director of budget and finance for the district, said there were no cuts for this fiscal year and any decreases in federal funding will be absorbed by an increase to general funds.
“Our overall budget increased by approximately $1.1 million based on recent assumptions from House Bill 24-1448 (a new funding formula) which has now passed in the Colorado state Senate,” Elkin said on June 4.
He said Gov. Jared Polis signed the bill in late May.
Additionally, he said there are several elements to consider when looking at the budget, including declining enrollment, inflationary pressure, a statewide $5 million decrease from Colorado’s Title I allocation, universal preschool, Healthy Meals for All and HB24-1448.
Elkins said the measure “creates a new school finance formula starting in fiscal year 2025-26, increases funding for K-12 education and increases student weights for At-risk, English Language Learner, and Special Education students.”
In a letter to the board, Elkins also said that the initial development of the budget was based on “enrollment trends and projects the number of students expected to attend school in the following year.”
“Enrollment has declined steadily over the years, which has resulted in a slight budget reduction,” Elkins said. “This budget reduction has been offset by additional revenue from HB24-1448 for the next school year.”
He said enrollment is anticipated to be down by about 63 students, and due to the declining enrollment numbers over the years, the district has been able to take advantage of Colorado’s per-pupil formula that considers a number of factors including cost of living, personnel costs, size and numbers of at-risk students. This formula allows districts to “average the current year enrollment with up to five of the past years’ enrollment to obtain the highest possible funded enrollment.”
“The district needs to plan on a funded pupil count averaging to about 2,200 students over the next three years; providing enrollment remains steady,” Elkins said. “Updated funding formulas based on HB24-1448 should support the district in fiscal year 2025-2026 forward. The district needs to maintain an adequate General Fund reserve for any future challenges.”
The budget summary shows enrollment of 2,249 in the just-concluded school year and a projection of 2,186 for the upcoming school year.
Elkins said based on recent assumptions from HB24-1448, per-pupil funding will increase to $12,572 for the district in fiscal year 2025-2026. He said it increased to $11,938 in fiscal year 2024-2025.
Other changes to the budget include an increase in salaries by 6% and in benefits by 1% year over year due to increases given to staff districtwide in fiscal year 2023-2024.
Elkins said purchased services are expected to be higher by 1% and property is lower by 4%. “
Supplies are expected to come in a little higher due to inflationary pressures of goods. PERA contributions remained constant at 21.61%; and the employee contribution rate has stayed constant at 11%,” he said.
Additionally, Elkins explained the district’s revenue stream has increased by $1.4 million due to the rise in assessed valuation within the city.
“This, coupled with the Supreme Court ruling to adjust mills by one mill annually, up to 27 mills, for the Mill Levy Correction Act, has increased the property tax revenues by nearly 14%,” Elkins said. “Specific ownership taxes are predicted to come in higher by 21% which increased due to the number of taxable automobiles.”
Due to the Debt Free Mill Levy (Ballot Question 4A) passed by Englewood voters in November, Elkins said the district was able to transfer operations, maintenance and technology expenses over to the district mill levy fund or Fund 6.
In January there was a 5% cost of living increase to staff salaries and, pending approval, the district expects a 3% increase by July 1.
Additionally, Elkins said the district created a new salary schedule for all classified employees including paraprofessionals, which went into effect shortly after the mill levy was passed. He said the new schedule ensured that all paras received about a 7.5% salary increase on Jan. 31.
