District 49 lays out plan to balance budget; superintendent to bring fiscal-exigency resolution in January
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Summary
Superintendent Peter Holt told the board the district faces flat revenue, rising personnel and health-insurance costs and proposed program consolidation, targeted reductions and a January resolution declaring fiscal exigency to begin staff notice timelines; administration also plans to explore a future mill-levy override.
Peter Holt, superintendent of El Paso County Colorado School District 49, told the board Dec. 4 that the district is facing flat revenue even as expenses—especially personnel and health-insurance costs—have continued to climb. "We are experiencing flat revenue," Holt said, adding that enrollment has flattened and that the district recently refinanced about $43 million in certificates of participation.
Holt outlined a multi-pronged strategy to bring the budget into balance that includes program consolidations, administrative consolidations, targeted reductions in non-instructional positions and not backfilling some vacancies. On personnel he warned reductions would likely slow or reduce the breadth of some services: "We cannot reduce personnel without reducing our expectations for delivery of services," Holt said.
Holt told the board that a statutory mechanism known as a declaration of fiscal exigency would be required only in narrow circumstances (when reductions affect non‑probationary teachers). He said the administration intends to bring a draft resolution declaring a fiscal exigency to the Jan. 8 meeting to start the 30‑day statutory notice period, and explained the timeline in public session. "Our intent would be to bring you on January 8 a resolution declaring a fiscal exigency," he said.
Holt also discussed revenue options: selling surplus dedicated land as one‑time revenue, adjusting program fees that the district has held flat (transportation, preschool, co‑curricular), and pursuing a mill levy override (MLO) in a future election to fund recurring needs and salary schedules. He said refinancing actions already save roughly $3 million overall and about $250,000 annually.
Board members pressed on timing, fairness and alternatives. Jasmine Connolly, a music teacher who spoke during the first open forum, urged the board not to "balance the budget on the backs of hardworking teachers and paraprofessionals," saying cuts to instructional staff would widen learning gaps. Directors asked about the possibility of changing health‑insurance providers, selling property and the legal steps for any reduction in force. Holt said the administration will prioritize preserving classroom instruction and will be "scrupulous about honoring employment rights" and required processes.
Holt asked for board direction to draft the fiscal‑exigency resolution and for authorization to place discussion of an MLO on the annual planning summit agenda. The board recorded consensus to direct administration to draft the resolution for the Jan. 8 meeting; Holt noted that adopting a fiscal‑exigency resolution later will require a four‑vote (supermajority) board action.
Next steps: draft fiscal‑exigency resolution for Jan. 8, continued analysis of positions and programs to identify mission‑critical roles, and further public discussions including the annual planning summit in February about longer‑term revenue options such as an MLO.