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Carefree Truth
Issue #957, October 11, 2021
Issue #957, October 11, 2021
Mayor Les Peterson introduced Dr. Cort Monroe, the relatively new Superintendent of the Cave Creek Unified School District (CCUSD). Mayor Peterson noted that Dr. Cort came highly recommended and he has an excellent reputation within the community. Carefree fully supports all the efforts of the teachers and staff of the CCUSD.
Dr. Monroe thanked the Mayor for his kind words. He said the most important feature of CCUSD are the wonderful teachers and staff members, 7 of whom were to be recognized and awarded during the following Council agenda item, "Carefree Cares". Dr. Monroe appreciates the Town of Carefree's partnership with CCUSD. He feels their support, and thanked them for recognizing those 7 teachers and staff members. He is very proud of the school district. The schools have been open since September 20th, 2020, striving to meet the needs of the community.
CCUSD is the largest employer in the area, with approximately 650 employees. The current student enrollment is 4,894. The District boasts a 97% graduation rate, way above the state average. CCUSD encompasses 175 square miles within Carefree, Cave Creek, Rio Verde, North Scottsdale, and North Phoenix, with boundaries of Jenny Lynn Road to the north, Pinnacle Peak Road to the south, 182nd Street to the east, and 40th Street to the west. The average elementary school class has 24 students. CCUSD is the only Unified School District (USD meaning K-12) in Maricopa County that does not have current voter approved Maintenance and Operations (M&O) overides and/or bonds in place. The last bond approval was in 2014; the last override approval was in 2007. Below is the USD tax rates and voter approved overrides/bonds comparison slide:
Dr. Monroe thanked the Mayor for his kind words. He said the most important feature of CCUSD are the wonderful teachers and staff members, 7 of whom were to be recognized and awarded during the following Council agenda item, "Carefree Cares". Dr. Monroe appreciates the Town of Carefree's partnership with CCUSD. He feels their support, and thanked them for recognizing those 7 teachers and staff members. He is very proud of the school district. The schools have been open since September 20th, 2020, striving to meet the needs of the community.
CCUSD is the largest employer in the area, with approximately 650 employees. The current student enrollment is 4,894. The District boasts a 97% graduation rate, way above the state average. CCUSD encompasses 175 square miles within Carefree, Cave Creek, Rio Verde, North Scottsdale, and North Phoenix, with boundaries of Jenny Lynn Road to the north, Pinnacle Peak Road to the south, 182nd Street to the east, and 40th Street to the west. The average elementary school class has 24 students. CCUSD is the only Unified School District (USD meaning K-12) in Maricopa County that does not have current voter approved Maintenance and Operations (M&O) overides and/or bonds in place. The last bond approval was in 2014; the last override approval was in 2007. Below is the USD tax rates and voter approved overrides/bonds comparison slide:
The State Equalization Formula sends our local property tax dollars to other districts in the state, based on enrollment. This money does not stay with CCUSD. CCUSD is lobbying to change the wording of the "Additional Education Tax
ARS:15-992B". As it now stands, local property taxes are placed in the State General Fund. Of the anticipated
$8 million in 2021, none will come to CCUSD. The State distributes funding to provide equal dollars per weighted pupil for operations through a balancing of the local qualifying property tax rate and State Equalization Assistance, so that districts experience similar "effort" in raising education irrespective of property valuations within their boundaries. As property values increase, State Equalization decreases. Everyone in Arizona pays 50% of the qualifying tax rate, thus the "equalization" concept.
CCSUD, one of the top 5 rated school districts in the state, is doing more with less.
ARS:15-992B". As it now stands, local property taxes are placed in the State General Fund. Of the anticipated
$8 million in 2021, none will come to CCUSD. The State distributes funding to provide equal dollars per weighted pupil for operations through a balancing of the local qualifying property tax rate and State Equalization Assistance, so that districts experience similar "effort" in raising education irrespective of property valuations within their boundaries. As property values increase, State Equalization decreases. Everyone in Arizona pays 50% of the qualifying tax rate, thus the "equalization" concept.
CCSUD, one of the top 5 rated school districts in the state, is doing more with less.
The Fiscal Year (FY) 2021 Adopted M&O budget was $36,539,490. The revised Adopted M&O budget was $32,334,764, which reflects the decline in student count due to Covid. The Unrestricted Capital budget was $2.4 million. The State and Federal budgets are $7,278,961 (contains $2.3 million for the Enrollment Stability grant). The State and Federal dollars are restricted to certain uses. The estimated FY 2022 M&O Adopted Budget was $32,959,000.
For FY 2019, the average revenue per pupil in the U.S. was $15,656. Arizona ranked 48th, 65.9% below the U.S. average, just ahead of Idaho and Utah. If Districts want more, they have to go to the local taxpayers to say, "We want more for our kids".
FY 2021 has provided opportunities to streamline operations and realign the budget priorities. Because of a loss of enrollment of approximately 350 students due to Covid, CCSUD is a in a transition year for FY 2022. Approximately 10,000 students live within CCUSD's boundaries. The current capture rate is approximately 52%. Opportunities exist to increase enrollment. CCUSD is looking for long-term sustainable sources of revenue to maintain schools and programs as enrollment has been slowly declining.
The School Board voted to put a bond on the November 2nd, 2021 ballot. All the ballots are mail-in, and will arrive in the mail in the beginning of October. There are about 45,000 voters within the CCUSD boundaries, with the majority over the age of 55. The requested bond is expected to serve the District's capital needs to 2028-2030.
The $40 million bond, if passed, includes $4.7 million for a Technology refresh, $1 million for Health & Safety upgrades, $27.5 million for Facilities improvements, $3 million for Athletic Facilities improvements, and $3.8 million for transportation. In addition, passage of the bond would allow CCUSD to pay off the debt service on loans, bringing about $800,000 back to the M&O budget. The cost for the average homeowner with a home assessed at $557,880 would be approximately $8 per month. The cost for the average business owner with a business assessed at $1.4 million would be approximately $20 per month.
Mayor Peterson noted that Carefree recently was able to secure very favorable bond rates. This is a good, cost efficient time to get long term bonds.
Councilman Stephen Hatcher asked why CCUSD is only capturing 52% of the students within its boundaries and asked where the others are going. Dr. Monroe explained that there are many factors involved. They lost a lot of students to online learning due to Covid. CCUSD also suffers from school choice competition. Many in this area can afford to send their children to private schools. Many parents work in Scottsdale or Paradise Valley, and send their children to schools there. There is a successful Charter school within this district. He wants to make people aware of the great things at CCUSD so they would choose it. CCUSD out achieves other districts in academics. The principals and teachers are top notch. Bonds and overrides go a long way in helping to compete with other districts.
Mr. Hatcher asked if enrollment increases, will the State dollars follow that. Dr. Monroe acknowledged that enrollment is the key to everything in a state of school choice. With higher enrollment, schools can offer more programs and pay higher teacher salaries. This is a growing area, but not all new residents have school aged children. CCUSD needs to capture the students of those who are younger and have school age children. Enrollment is the driver of the budget.
Vice Mayor John Crane said passage of the bond would make CCUSD more attractive to parents, but asked what the District was doing to "sell" the schools to parents, to make people aware of what CCUSD offers, and what the advantages are of public schools. The Vice Mayor noted that he is a product of public schools and is a great believer in public education.
Dr. Monroe replied that when their principals were getting their advanced degrees, they never knew they would be marketers, talking to parents and giving tours. Education has changed so much under the guise of competition. CCUSD is on a mission to tell its story on social media. Lots of young parents communicate that way now. The District is also trying to bring people in to the events so they can feel the love the schools have for the kids and see the dedication of the teachers. What makes CCUSD different is that it is about people, relationships, families and community, with a small town mentality where they watch each other's backs. They have 7 wonderful schools and are like one big family, which appeals to people.
The Vice Mayor asked if the Equalization Formula applies to the revenue taken in by school bonds or does the District get 100% of it? Dr. Monroe explained that they get 100% of it. The Equalization Formula does not apply to bonds. CCUSD would work with bond experts to lock in a great rate. They also plan to have a small citizen oversight committee to provide trust to the taxpayers that the money would be used wisely and as intended.
Councilman Vince D'Aliesio noted that his bias to support CCUSD was not hidden. His kids have come up through CCUSD from pre-K. One just graduated this spring and is attending ASU on an academic scholarship, minoring in Chinese. He wants to get into government service, thanks to Principal Janeen Marlow at Horseshoe Trails implementing a Chinese program years ago. Two of his kids are sophomores at Cactus Shadows High School. His son plays football and his daughter dances, so the extracurricular activities are very important to his family. But why should those who live in this area without kids in the District care?
Dr. Monroe reported that:
#1. Home values increase when surrounded by excellent schools.
#2. Others paid it forward so students could get a good public education wherever people went to school. He is a firm believer in the Pay It Forward concept.
#3. In the next FY, property taxes will be about $90 lower for those with the average priced home, due to lower enrollment, and the bond will cost about $96, so it is close to being a wash. It is a very small investment and is the right thing to do for the students in order to prepare them for jobs in the future.
Mr. Hatcher asked how often the Equalization Formula is reviewed to be sure it is appropriate for the current environment. Dr. Monroe did not know the answer to that, but noted that the former Superintendent, Dr. Debbie Burdick, was working with legislator Heather Carter to make changes. His major goal is to lobby for change in that area. He believes that local taxpayer dollars should stay locally. He has a fundamental issue with the local tax dollars going elsewhere.
Councilman Mike Johnson said he has 2 granddaughters in CCUSD. They just moved from Paradise Valley and are very happy here. His daughter is a special education teacher and would like to teach in the District. Dr. Monroe replied that the Governing Board and the teachers "make the magic happen". They are always looking for great people. He told Mr. Johnson to have his daughter contact him.
Mayor Peterson thanked Dr. Monroe for a very insightful presentation. It gave them all an excellent understanding of the situation.
https://vimeo.com/625022866
Lyn Hitchon
Prepared by Carefree Truth
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