The Board of Education approved the budget for the 2018-19 school year last week. We know you may have questions about our new funding, and we wanted to provide a breakdown of the key components of next year's budget. We also recognize there has also been some confusion about what is currently being negotiated with the Denver Classroom Teachers Association (DCTA). Here are your questions answered.
What is currently being negotiated?
In September of last year, DCTA and the district entered into a five-year master contract agreement after a long and difficult negotiation. The agreement was ratified by 89% of teachers. Under that five-year agreement, teacher compensation increased on average by 5.6% in 2017-18 and will increase 4.6% for 2018-19, for a two-year increase of slightly over 10%. As we discuss further below, we have been working very hard to push for increased state funding that would allow for more significant increases.
Although the negotiations about the annual compensation increases for teachers were concluded last year, the district and DCTA continue to negotiate the ProComp Agreement. This agreement controls how we spend the roughly $34 million that we receive each year from Denver taxpayers through the ProComp mill levy that pays for ProComp incentives, such as hard-to-serve and hard-to-staff. ProComp tax revenues only increase each year by inflation, which was 3.4% this year. Other than increases for inflation, there is no new revenue from ProComp. The discussions are how can we devise a clearer, fairer system for our existing ProComp dollars that will be more predictable, provide incentives for teachers to teach in our highest poverty schools, and build more base dollars over a teacher's career. Any changes to the existing ProComp agreement must by law remain consistent with the terms of the ProComp mill levy that DCTA and the district jointly put to voters in 2005.
How did the Board of Education allocate any new money received this year?
On April 12, the legislature passed the state's 2018-19 budget, and it was signed by the Governor on April 30. Next year's budget, including increases in our mill levies, provides the district with just short of $25 million in new funding, all of which will be spent on compensation. DCTA has been citing a figure double this number based on legislative estimates that do not yet, for example, take into account revenue decreases from the decline in the number of free lunch students in DPS. In addition, the figure used by DCTA includes $18.5 million that is required by law to go to charter schools (rather than district-run schools), as well as a $4 million shift in English Language Proficiency funding from grants to general fund, which is not new money but rather a reclassification by the state of existing funding. The actual increase in DPS general fund of $25 million is entirely directed toward compensation, including:
- A 4.6% increase to teacher compensation for the 2018-19 school year.
- A 3.4% average increase for all other employees.
- Additional increases in wages for our lowest-paid hourly workers, such as our food service workers and paraprofessionals.
- Setting aside money to cover some of the increased costs of PERA contributions for 2019-20 as required by the new PERA law.
How did the Board reallocate funding that was cut from district-level spending?
Knowing that the entire $25 million of increased district funding would go to compensation, we have made a series of cuts at the district level to increase key funding for our students. This includes additional funding for school-based special education supports, targeted funding to schools for students in high poverty, and funding for additional psychologists, social workers and nurses. The reductions in central office also allow us to reduce our deficit spending. We are projected this year to have an annual budget deficit of roughly $10 million, which is clearly not sustainable. That will be reduced to $6 million next year in deficit spending.
Where do we go next?
The district is committed to working with educators to grow the funding pie in Colorado so that we can better compensate our educators and better serve our students. Although we are investing an additional $25 million this year in compensation for our employees, we know this is not enough. We will continue to advocate alongside you for additional funding for K-12 education in Colorado. We refuse to be a state that funds its students at $2,500 per pupil below the national average. Colorado can do better. We believe that we are stronger and better able to accomplish these priorities when our district, teachers union and educators are united in a collaborative effort to increase the size of the funding pie.
Best,
Tom
