Orientation Community Engagement ~ Budget Task Force Denver Public Schools November 10, 2010

1. Need DPS Logo Orientation Community Engagement ~ Budget Task Force Denver Public Schools November 10, 2010

2. Presentation Outline • Purpose Statement • Key Points • District’s Strategic Focus • State of the State & District Finances • Next Steps • Appendices Denver Public Schools

3. Purpose Statement • While there are excellent schools in struggling districts and outstanding classrooms in underperforming schools, today there are no high-performing urban districts in the United States. • Three key factors heighten the level of concern: • The rapid pace of economic change. • A growing awareness that academic skills and knowledge increase a young person’s chances of leading a productive life. • The recognition that a poorly educated citizenry erodes not only the quality of a country’s workforce and its competitiveness, but undermines the potential of our democracy. • The task force is to articulate guiding principles to the benefit of the District’s strategic management of its financial resources. Denver Public Schools

4. Key Points • Severe Fiscal Crisis • Unprecedented revenue shortfalls • A Culture of High Expectations, Service, Empowerment & • Responsibility • Great People • Strategic Management of Resources • Family and Community Engagement • Instructional Core • Students • Teachers • Content • Focus on Results and Creating Long-term Value Denver Public Schools

5. District’s Strategic Focus • Mission Statement • We will lead the nation’s cities in student achievement, • high school graduation, college preparation, and college matriculation. Our students will be well-prepared for success in life, work, civic responsibility, and higher education. • Instructional Priorities • Effective teaching to support quality instruction. • Improve outcomes for English language learners. • Align standards-based instruction, material and assessments to meet our diverse students’ needs. • Provide all students access to high quality education by improving performance through turnaround strategies. Denver Public Schools

6. Major Policy Initiatives in Response to Past Challenges • Align Budget to Denver Plan • Align Budget Processes to Staffing Calendar • Competitive Employer / Employer of Choice • Greater Reliance Upon Student-Based Budgeting ~ Site-Based Management • Compensation Philosophy and Practices - Competitive Base Pay - ProComp - Staff Development • Increasing Operational and Fiscal Transparency • Focus upon Enrollment and Facility Optimization • Prudent management of retirement costs • Service Level Appraisal Denver Public Schools

7. District Strategic Focus – Management Challenges • Implementing a district-wide strategy when schools intentionally have different characteristics • Creating & Achieving a Coherent Organizational Design in Support of the Strategy • Developing and Managing Human Capital • Allocating Resources in Alignment with the Strategy • Using performance data to guide decisions and create accountability Denver Public Schools

8. State of the State & District Finances • State of State • Economic and Revenue Forecast (September 2010) • FY2010-11 Budget Balancing • FY2011-12 Proposed Budget • ARRA • State Fiscal Stabilization Funds • Formula Grants • Ed Jobs Act • $ to save or create education jobs • DPS’ Revenue Story • % of K-12 Education / School Finance Act • Mill Levy Overrides • Fund Balance Denver Public Schools

10. ARRA’s Four Guiding Principles • Spend funds quickly to save and create jobs • Improve student achievement through school improvement and reform • Ensure transparency, reporting and accountability • Invest one-time ARRA funds thoughtfully to minimize the funding “cliff” Denver Public Schools

11. DPS’ Priorities for School Reform ~ ARRA Aligned • Making progress toward rigorous college and career-ready standards and high-quality assessments that are valid and reliable for all students, including English language learners and students with disabilities • Establishing pre-K-to college and career data systems that track progress and foster continuous improvement • Making improvements in teacher effectiveness and in the equitable distribution of qualified teachers for all students, particularly students who are most in need • Providing intensive support and effective interventions for the lowest-performing schools. Denver Public Schools

12. Ed Jobs Act • The Education Jobs Fund (Ed Jobs) program is a new Federal program that provides $10 billion in assistance to States to save or create education jobs for the 2010-2011 school year. Jobs funded under this program include those that provide educational and related services for early childhood, elementary, and secondary education. • Governor Ritter directed funds to be released ‘through’ the state’s primary education funding formula (as created through the School Finance Act). • Colorado received $159,521,991 • Districts access to the funds is on a reimbursement basis • DPS eligible to receive $15,432,422 Denver Public Schools

13. The State, K-12 Education and DPS • K-12 is roughly 43% (+/-) of State’s General Fund • DPS is roughly 10% of Total Program Funding • PPR: Pupil Count • Timing • Composition • At-Risk • On-Line • Kindies • Full- vs. Part-Time • Graduate status Denver Public Schools

14. State of the State & District Finances Capital Program Funding • Funded out of PPR • w/out Bond, ability to pay-as-you-go inadequate • Purpose and Examples of Major Expenditure Commitments: • Annual IT maintenance agreements hardware and software • Annual COP payments • Annual building leases • Safety and Security • Contingency • Under Funded: • Example: Buses • Implications: • Compromise fulfillment of Denver Plan Denver Public Schools

15. DPS’ Budget Cycle: FY2011-12 School & Department Level Budget Development Preparation Finalization Planning • Challenges this year • Budget cuts • New Programs and Schools – how to identify funding • What will make this successful? • Executive Team – Determine threshold for cuts to schools in SBB by December 16th • Standardize department prioritization process and complete by December 8th • Key Dates: • Final Decisions on additional services to decentralize for innovation – December 3rd • Community Task Force Guiding Principles – December 8th • Innovation schools select autonomies – December 16th • Adopted –May 31 Feb 4 & 11 - Budget Forms distributed May 2– Proposed Budget Due May 31- Adopted Budget Due Dec 16 –District Puts/Takes Review Jan 12- Final Budget Decisions Oct 13 – Dec 8 Prioritization Process to include community input April 4 – 22 Budget Reviews Feb 7 – 18 One-on-one with Principals Feb 14 – Mar 11 One-on-one with Dept Mgrs

16. Task Force’s Next Steps • Task Force’s Charter: • The Task Force is being asked to articulate guiding principles to facilitate the strategic management of District resources. • Means: • Develop an understanding of current fiscal environment. • Articulate guiding principals that reflect such fiscal realities rather than goals that merely maintain the status quo. • Next Steps • Ask Questions • In the interim, familiarize yourself to own level of interest with Appendices Denver Public Schools

17. Task Force’s Next Steps ~ Future Meetings • Meeting # 2, November 17th • SBB in Detail • Meeting #3, December 1st • Short- and Long-Term Views • Prioritization Frameworks • Informed Trade-Offs • Meeting #4, December 8th • Guiding Principles • Close Denver Public Schools

18. Appendices ~ Reference Materials • DPS • The Denver Plan ~ Executive Summary • http://2010denverplan.dpsk12.org/pdf/DPS_10_Bro_English.pdf • Task Force Documents • School Finance ~ A to Z • Student Based Budgeting • http://budgetoffice.dpsk12.org/ • PELP • Coherence Framework • http://www.hbs.edu/pelp/framework.html Denver Public Schools

19. Appendices ~ Reference Materials • CDE • Understanding Colorado School Finance and Categorical Program Funding • http://www.cde.state.co.us/cdefinance/download/pdf/FY2010-11BrochureWeb.pdf • American Recovery and Reinvestment Act of 2009 • http://www.cde.state.co.us/scripts/federalstimulus/index.asp • Education Jobs Bill of 2010 • http://www2.ed.gov/programs/educationjobsfund/index.html • Colorado Legislative Council Staff, Economics Section • Focus Colorado: Economic and Revenue Forecast (September 20, 2010) • http://www.colorado.gov/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1251657800454&ssbinary=true • Governor’s Office of State Planning and Budgeting • Governor’s FY2010-11 Budget Balancing Package to the JBC – Oct. 10, 2010 • http://www.colorado.gov/cs/Satellite?c=Page&childpagename=OSPB%2FGOVRLayout&cid=1251581847868&pagename=GOVRWrapper • Governor’s FY2011-12 Budget Request to the JBC – Nov. 1, 2010 • http://www.colorado.gov/cs/Satellite?c=Page&childpagename=OSPB%2FGOVRLayout&cid=1251582132192&pagename=GOVRWrapper Denver Public Schools