Cherry Creek Schools finance chief outlines tight state funding, asks board to approve fiscal-year appropriation

Cherry Creek School District Chief Financial Officer Scott Smith told the Board of Education on June 9 that limited new state funding and temporary budget fixes mean the district must plan conservatively for the coming fiscal year and asked the board to approve the district's overall appropriations for the new fiscal year beginning July 1.

Smith summarized revenue and spending pressures and said the district secured about $9 million in new state funding for Cherry Creek Schools this year but still faces permanent funding shortfalls. "So tonight, what we are asking is that the board approve the appropriation, for all of the district funds," Smith said. He added that while the district has been able to give substantial raises recently, much of this year's budgetary relief relied on one-time measures: "More than half of this problem this year was solved by either one-time funding or temporary budgetary maneuvers."

Smith told the board that labor costs dominate the budget and that a 1% salary increase costs the district roughly $7.5 million. He said the district has provided nearly a 23% raise over the last four years and is proposing an approximate 3% increase this year, and that Cherry Creek continues to offer among the highest starting salaries in the state. "A 1% salary increase costs 7 and a half million dollars," Smith said. "We have the highest starting salary among our peer group and one of the highest starting salaries in the entire state."

Why this matters: Smith framed the budget in the context of statewide funding constraints and unfunded mandates. He cited the School Finance Act and the state's TABOR constraints as structural reasons K–12 funding has lagged, and he warned the board that conservative planning is necessary because durable state revenue increases are uncertain.

Supporting details: Smith said district enrollment is flat to slightly declining while the number and severity of special education needs are increasing, driving higher staffing needs. He listed specific cost pressures including rising utilities, insurance and health-care costs, and a new statewide dyslexia screener that he estimated will cost the district at least $500,000 per year to implement. He also described how bond funds are limited to capital projects and cannot be used for salaries or operating costs, and contrasted that with the mill levy (override) revenue, which pays personnel and day-to-day operations.

Board discussion: Board members thanked Smith and his team for multiple presentations over the year and asked clarifying questions. Director Bates, joining remotely from Ohio, said she had reviewed the draft budget and expressed support. Director Egan noted the importance of continued advocacy at the state level. President Garland asked for a per-pupil funding reminder; Smith said statewide average per-pupil funding is roughly $12,000 and that Colorado remains about $2,000–$3,000 below the national average on that metric. Garland compared that figure to a cited incarceration cost, saying the state spends about $56,000 per person to incarcerate someone, and restated the per-pupil figure as part of his comment.

Transcript evidence for this article appears in the board's discussion and Smith's presentation beginning when Scott Smith began speaking at the June 9 meeting and continuing through board questions and answers. The superintendent also reviewed district achievements and thanked staff earlier in the meeting.

Ending: Smith asked the board to approve the appropriation at the total-appropriation level so the district can begin operations July 1. The transcript records questions and acknowledgement from board members, but it does not record a formal vote on the appropriation during the portion of the meeting provided.