LPS grapples with $4 million deficit
Fewer school-age children, economy to blame

(posted 10 29 08)Littleton Public Schools has faced budget challenges in the past. It is currently in that situation again as the economy and declining enrollment take their toll on district revenue and resources and result in a $4 million deficit for school year 2009-2010.

The economy is affecting LPS
Increasing costs are outpacing the district’s ability to generate revenue. Many of these rising costs, such as utilities, fuel, health insurance and required district contributions to the Public Employees’ Retirement Association (PERA) are beyond the district’s control.  In addition, the high number of home foreclosures nationally, which contributed largely to the current U.S. economic crisis, affects LPS directly.  These home foreclosures delay the collection of property taxes and in turn delay critical funding to public school districts.

Changes in the community are also affecting LPS
Schools are funded according to the number of children they serve.  There are fewer school-age children in the LPS attendance area than in the past, which results in less funding from the state for LPS schools.  For example, some elementary schools that used to serve more than 600 students 15 to 20 years ago now serve 200 or 300 students.  LPS continues to make every effort to market its excellent educational programs and has successfully attracted over 2400 students annually from outside district boundaries.

Millions have been cut in the past; keeping cuts away from the classroom has been a priority
LPS began managing down a $5.5 million deficit last year when central administration was cut by $1.5 million.   (For a number of years, LPS has had one of the lowest administrative costs per student for all districts in the Denver metro area.) $1.5 million in reserves was also used, which allowed the district to keep cuts away from the classroom for the past two years.  A $4 million deficit remains and must be managed for school year 2009-2010.

“LPS has made several difficult budget cuts over the years, some of which were absorbed by the central office and administration.  ” said Scott Myers, LPS chief financial officer.  “The reality is that years of previous budget cuts make it likely that the additional $4 million that must be reduced for school year 2009-2010 will affect schools.”
 
Financial Advisory Committee studying the issue
In August, 2008, the LPS Board of Education asked the district Financial Advisory Committee to study how to best approach the $4 million deficit for 2009-2010.  The committee has representation from parents, community members, teachers, and principals.  In this process, the committee is examining ways to find savings in programs, services, and staffing costs.   The committee is also looking at ways the district might be able to increase revenue over the long term.  Because education is a service industry, most costs are in people: nearly 85 cents of every dollar in the general fund.  It continues to be the Board of Education’s priority that all other areas be examined before making reductions at schools.

Next Steps
The Financial Advisory Committee continues to meet throughout October and will present its recommendations to the superintendent in November or December.  After the superintendent makes his recommendations, the Board will likely make final budget decisions for the 2009-2010 school year in December, 2008, or January, 2009. 

 Board of Education schedules series of meetings to discuss facility use issue;
Task Force to make its recommendations to the Board October 23
 
The Littleton Public Schools Board of Education has scheduled a series of meetings in anticipation of receiving recommendations from the Facility Use Task Force. The Board’s meetings regarding facility use are as follows:
 
Facility Use Task Force presents its recommendations
to the LPS Board of Education
* October 23, 2008
6:30 p.m.
Boardroom at the Education Services Center
5776 S. Crocker Street
Littleton, CO 80120
The Task Force report and presentation will be available online after this meeting.
 
Board to hold a workshop regarding the recommendations
of the Facility Use Task Force
October 27, 2008
6:30 p.m.
Arapahoe High School cafeteria
2201 E. Dry Creek Rd.
Centennial, CO 80122
 
Board to have continued discussion regarding
the recommendations of the Facility Use Task Force
Special Board meeting
* November 6, 2008
6:30 p.m.
Boardroom at the Education Services Center
 
Board scheduled to take action regarding facility use
Regular Board meeting
* November 13, 2008
6:30 p.m.
Boardroom at the Education Services Center
 
*Public comment will be heard at the October 23, November 6, and November 13 Board meetings.
 
Background
Last fall, the LPS Board of Education commissioned the formation of a Facility Use Task Force to find a method to best address the issue of underutilized facilities.    Facility use has been discussed as far back as the 1980s and 1990s. LPS continues to make every effort to market its excellent educational programs and has successfully attracted over 2,400 students annually from outside district boundaries. LPS has one of the highest – if not the highest – percentage of out-of-district students in the metro area. However, as trends show that there are fewer school-aged children in the LPS community and in surrounding communities and that the population is aging, the Board expressed that the time has come to address the issue of facilities.

The Task Force, which includes an outside consultant and a broad membership of parents, community members, teachers, classified staff and principals from elementary, middle, and high school levels, in addition to three district liaisons, began meeting last February.  The Task Force’s charge is to find a method to best address the issue of underutilized facilities and includes the recommendation of minimum and maximum school enrollment sizes. In an effort to complete its charge, the Task Force looked at many different kinds of data, trends, and analysis, identified the community’s values, and then developed criteria that honor those values and drove the rest of its process. This process then led to the generation of 17 different ideas.

The Task Force held a community forum last May and two additional community forums in September. Those in attendance had an opportunity to hear from Task Force leadership regarding the Task Force’s research, the values and criteria upon which its work is based, and the many ideas that have been generated as a result. They also had an opportunity to give feedback to the Task Force. This feedback has been incorporated into the Task Force’s report. About 1,000 parents, community members, and staff attended the two forums in September.

The Task Force is now wrapping up its nine months of work and is finalizing recommendations that will be presented to the Board Thursday, October 23. Task Force leaders say that the report will include a range of recommendations for the Board’s consideration, from reconfiguration of schools to minimum change.

“The focus of our work has always been on what is best for students.  It’s about maintaining excellence as LPS moves into 21st century learning, maintaining equity of opportunity for all students, and maintaining choice for parents and students,” said Tracie Rainey, Task Force co-chair. “This has never been about shutting schools, but rather about how schools might look different, how reconfiguring schools might be better for students.”

More information regarding the charge of the Facility Use Task Force and its ongoing work can be found online. The Task Force’s report and presentation to the Board will also be available online after the October 23, 2008 Board of Education meeting.