Frequently Asked Questions

Why CCSD needs bond and budget elections?

The state of Colorado, through the use of the Budget Stabilization Factor, is underfunding the Cherry Creek School District by $50 million annually. A budget election is recommended in order to:

• • Deliver on our promise of excellence for every child, every day – even in the face of a pandemic;
  • Recruit and retain the best teachers, and keep class sizes small to ensure student success;
  • Continue the district’s commitment to having mental health workers in every school;
  • Maintain a focus on health by keeping a registered nurse in every school;
  • Ensure access to technology for all who need it so they can be successful in the classroom or through remote learning;
  • Decrease the impact of unprecedented budget cuts from the state.

What is a bond election?

A bond election is required in the state of Colorado for a school district to incur long-term debt (debt for more than a one-year period). A school district usually issues a general obligation bond for new school construction and building capital improvements, renovations and repairs. The debt instrument (general obligation bond) will allow a school district to borrow money at the lowest interest cost, on a competitive basis, due to the credit quality of the district. The investment earnings to investors are exempt from federal income taxes.

• • A bond election is to approve CCSD’s issuance of general obligation bonds to fund capital needs.
  • Capital needs are generally defined as assets that have a useful life over one year.
  • Types of expenditures include building new schools; equipping and furnishing new schools; repairing, renovating, improving and enlarging existing facilities, including updating heating and ventilation systems, roofs, wiring and plumbing; and other major costs including larger technology purchases, safety and security systems and innovation projects.
  • Requires approval by CCSD voters.
  • Funded through personal and business property taxes.
  • The Cherry Creek School District has a strong credit rating and is able to issue tax-exempt general obligation bonds at a very low interest rate.

What is a budget election?

A school district may elect to spend more property tax revenue for day-to-day operational expenses than is allowed under the constraining state law for the Public School Finance Program. This includes expenses such as teacher and other employee compensation, school supplies, computers, technology, providing transportation, utility costs, professional training, etc.

• • Local overrides are available to provide additional revenue for CCSD initiatives and operational expenses. This funding is in addition to the school funding formula determined by the state of Colorado.
  • Types of expenditures would include personnel costs to maintain class size; curriculum and instructional supplies; computers and technology; and other expenses related to CCSD’s commitment to academic excellence and the highest quality educational programs.
  • Requires approval by CCSD voters.
  • Funded through personal and business property taxes.
  • Colorado state statute limits local overrides to 25% of CCSD’s total program.