Article Contributed on: 11/6/2009 12:24:16 PM
State embargoes $6.7 million district had set aside
Officials with Cherry Creek Schools say the financial future of public education funding in the state is becoming more and more uncertain.
The state recently took the rare step of embargoing $6.7 million in funding the district had put aside until January 2010, said Cherry Creek School Board Treasurer Jim O'Brien at a recent school board meeting.
"It appears unlikely that those funds will be released to the school district," O'Brien said.
The embargoed funds, he said, are in addition to the $1.7 million the state took back from per-pupil funds already paid to the district in the last fiscal year.
The bad economy also had led to a drop in tax revenues paid to the district, he said. During the last fiscal year, collection of specific ownership taxes declined for the third straight year, decreasing from $16.8 million to $15.9 million .
The drop represents a 5.36 percent reduction for the Cherry Creek district.
"This year, the budget weighs so heavily," said Cherry Creek School District Superintendent Mary Chesley in a statement. "It's not just a balance of the bucks, it's how do we balance maintaining educational excellence?"
The bleak financial out look comes despite recently passed bond and mill-levy measures. The funds from 3A and 3B, approved by voters in 2007, are not sufficient to offset deeper than expected state cuts, according to estimates from the district.
The mill levy, 3A, helped the district maintain programs and meet existing obligations for the current fiscal year and will prevent steeper reductions next year. 3B has provided bond funds to build a new elementary school, transportation facility and instructional support center, as well as renovate existing buildings.
The school board recently approved an $8.6 million cost containment plan in the current budget to offset reductions in state revenue due to the economic downturn, according to the district.
Administrative and non-classroom expenditures were reduced $3.2 million and maintenance and some technology expenditures were refinanced. Overall, annual capital expenditures were reduced by $2.9 million for the current fiscal year.
The picture for the 2010-11 school year is even more uncertain, O'Brien said. The state is estimating public education will have reduced funding next year over the current year in the range of $140 million to $350 million.
For each $100 million in reduction, Cherry Creek's revenue could be reduced to the tune of $6.3 million to $22 million.
Joey Kirchmer: 303-954-2650 or kirchmerj@yourhub.com