Friday, March 12, 2010

State Budget Cuts

Jill Schumacher
Editor-in-Chief

This recession is the worst since the 1930s and has caused the steepest decline in state tax receipts on record and is causing a variety of issues for school district’s everywhere. Even after making deep cuts states continue to face large budget gaps. New shortfalls have opened up in the budgets of at least 41 states for the current fiscal year. In addition, initial indications are that states will face shortfalls as big as or bigger than they faced this year in the upcoming 2011 fiscal year. The school districts all over the country and especially in Colorado are being affected dramatically.
“The amount of money that we’re looking for this year in the cuts is the worst fiscal crisis that Aurora Public Schools has ever faced,” APS Superintendent John Barry said. “It’s going to take a lot of teamwork and a lot of communication.” The state of Colorado is facing a budget shortfall of at least $1 billion.
Colorado school districts have begun to indicate dramatic cuts are approaching—fewer teachers, reduced class offerings and larger class sizes. Schools districts have given out surveys to get support for specific cuts and formed focus groups with city leaders to help with decisions and are meeting with parents and staff to develop new ideas.
Right now it looks as these districts will face the following cuts:
• APS is facing between $18 and $20 million in funding cutbacks from the state for the 2010-11 school years, with $28 million in cuts to follow during the next two years.
• Jefferson County expects nearly $40 million in cuts over the next two years, on top of $23 million the district plans to pull from its reserves.
• Cherry Creek School District will have about $13 million cut from their budget. This is the first time in Cherry Creek School Districts history that the district’s revenue has decreased from one year to the next.
• Douglas County expects to lose at least $31 million from its budget next school year. The next two years Douglas County will have a budget deficit of more than $70 million.
• Denver Public school-level budgets will be cut 3.5 percent and the administration budget slashed 7 percent, for at least $30 million in savings.
Certain measures like using a portion of the district’s general fund balance and reducing the allocation to its capital reserve fund could begin within the next few months, while other possibilities could be implemented later in 2010, Barry said. The states’ fiscal problems will continue into the next fiscal year and likely beyond.
"This is as tough a time this school district has had in memory," said Barry. "We are trying now to think of every single possible place we can save money.”

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