Blazing New Trails - Connexions

The Social Justice Implications of the Deteriorating U.S. Economy on Public Schools 279
racial/ethnic minority students in 2007–2008, which constituted 37% of their total enrollment,
as compared to a statewide racial/ethnic percentage of 39% (Carpenter & Kafer, 2008). In this
category, the charter schools were fairly comparable to the state average.
While funding inequities do exist among Colorado school districts, these differences
are not as extreme as in Illinois. During the 2008-2009 school year, the per pupil expenditure
in Colorado ranged from a low of $4187 in Branson Reorganized District 82 in Las Animas
County to a high of $10,981 per student in Pritchett RE-3 School District in Baca County
(Comparison of Instructional Expenditures by Location, 2008-2009). Both of these districts
are located in rural areas of the state. Arapahoe County, with seven school districts, falls
primarily in Denver metropolitan area. Arapahoe County school district expenditures range
from a low of $5374 per student in Byers 32 J School District to a high of $7636 per student
in Deer Trail 26 J (Carpenter & Kafer, 2008). Thus, this county has a fairly tight spread of
funding levels. Denver County District 1, or the Denver Public Schools, operated upon a per
pupil expenditure of $5684 in 2008–2009 (Carpenter & Kafer, 2008).
School District Financial Health in Colorado
Like Illinois, Colorado does an analysis of the financial health of school districts. Unlike
Illinois, Colorado’s analysis is conducted by the Office of the State Auditor, assisted by the
Legislative Audit Committee. However, the type of analysis completed, as well as the financial
indicators utilized in this process have many similarities to those used in Illinois. Colorado
utilizes the following financial ratios in its analysis of school district financial health:
1. Asset Sufficiency Ratio (ASR). This ratio indicates whether the school district’s total
assets are adequate to cover all of its obligations or amounts owed. This ratio divides
the general fund total assets by general fund total liabilities.
2. Debt Burden Ratio (DBR). This ratio indicates whether the school district’s annual
revenue will cover its annual debt payments including principal and interest. This ratio
divides total government revenue of funds paying debt by total governmental debt
payments.
3. Operating Reserve Ratio (ORR). This ratio indicates the school district’s reserve to
cover future expenditures. This ratio divides the fund balance of the general fund by
the total fund general fund expenditures.
4. Operating Margin Ratio (OMR). This ratio indicates the amount added to the school
district’s reserves for every $1 generated in revenues. This ratio subtracts general fund
expenditures from general fund total revenue and divides by general fund total
revenues.
5. Deficit Fund Balance Ratio (DFBR). This ratio indicates the portion of annual revenue
the school district must generate simply to cover an existing deficit fund balance in a
governmental fund. This ratio is only calculated when a net deficit fund balance exists.
This ratio subtracts the fund balance of the general fund if the balance is positive, from
the total deficit fund balances (shown as an absolute value) and divides the total by the
total revenue in the deficit funds.
6. Change in Fund Balance Ratio (CFBR). This ratio indicates whether the school
district’s reserves in its general fund are increasing or decreasing. This ratio subtracts
the prior year fund balance of the general fund from the current year fund balance and
divides by the prior year fund balance. (Fiscal Analysis of Colorado School Districts,
2009)