Frequently Asked Questions

A Mill Levy Override (MLO) is a voter-approved local funding measure that provides additional revenue directly to the school district. Unlike funding from the state of Colorado, MLO funding stays in the school district and is not offset by a reduction in state support. The additional local taxpayer support helps the school district maintain strong academic programs, retain and attract top-quality teachers and staff, improve student opportunities, and continue preparing students for long-term success

The 2023 voter-approved Mill Levy Override has delivered meaningful results for Douglas County School District. The funding has helped the school district recruit and retain top-quality teachers and staff, contributing to the lowest employee turnover rate of school districts in the Denver metro area. In addition, student achievement continues to rise (DCSD is now the top-scoring school district in the Denver metro area). It has also strengthened school safety by funding additional School Resource Officers (SROs) and Campus Security Specialists at all DCSD schools. However, our school district still has work to do to make sure our teacher and staff pay is more competitive with neighboring school districts and to better keep pace with inflation.
 

Neighboring school districts, including Cherry Creek and Littleton schools, continually pass voter-approved local measures to increase their funding. Because of this, our school district currently receives $2,000 less per student than Cherry Creek School District and Littleton Public Schools (equivalent to a gap of $130 million each year). Even though DCSD’s general administration spending is far lower than neighboring districts, and past MLOs have enabled the school district to make some progress in teacher pay, it is still challenging to pay competitively and keep pace with inflation. 

Each year, the Colorado General Assembly determines the base level of funding that each school district receives. That funding comes from a combination of local property taxes and state funding. Under the state funding formula, increases in local property values do not increase the school district’s funding or budget. Instead, when local property values increase, the state reduces its contribution to the district.
 

Public school districts, including Douglas County School District, receive the majority of funding from the state and local property taxes, with a small amount from federal sources. Funding for districts is provided first by local sources of revenue (property and ownership taxes). The state covers the rest based on a per-pupil equation called the School Finance Act. The formula starts with a base amount for each district and adds factors that reflect district characteristics and demographics, attempting to make adjustments for equity. 

Colorado allows individual school districts to ask voters to approve funding that goes beyond the state distribution through voter-approved tax revenue funding.

• Bonds can only be used for capital expenditures, such as major repairs, renovations, additions to schools and new schools. Bonds are not included in the district’s general fund and cannot be used for operating costs, such as salaries and benefits.
• Overrides (also known as mill levy overrides, or MLO) are generally used for operating expenses such as salaries and benefits, instructional programs, and classroom technology. Overrides are added to the general fund. However, MLO funds must be used as specifically outlined in ballot language. 

Mill Bond Oversight Committee 
The Douglas County School District has a Mill Bond Oversight Committee (MBOC) made up of citizens from across our community. The MBOC meets regularly to monitor the progress of the improvements and programs being implemented, and ensure that MLO/Bond expenditures are in alignment with ballot language approved by voters. 

Fiscal Oversight Committee
The Fiscal Oversight Committee (FOC) is made up of citizens from our community.  The FOC assists the Board of Education in fulfilling its fiscal oversight responsibilities. The FOC gathers information and facts  and makes recommendations to the Board in the areas of:

• Budget (Operating and Capital);
• Accounting, Audit, and Financial Reporting (Internal and External);
• Banking (Commercial and Investment); and
• Other fiscal matters as assigned by the Board. For example, the activities of the FOC may also include an assessment of federal and state legislation, policies, and regulations in respect of the fiscal operations of the District.

The DCSD Board of Education, finance team and oversight committees continually look for ways to more efficiently operate the school district. In fact, due to reduced public school funding at the state level, the school district will be cutting more than $15 million from its budget in the coming year. In addition, DCSD spends 3% on its administration versus the 5% statewide average, with more than 73% of the budget dedicated to teachers and paraprofessionals with direct student contact. All of this leaves very little room to cut more without touching the classroom.

Since 2013, DCSD’s overall tax rate has dropped significantly from 22.5 mills to 18.1 mills. Because past MLOs have been fixed dollar amounts, over time, as more homes are built and the population grows in Douglas County, the cost per household decreases. 
 

Mill Levy Overrides

Mill Levy Overrides (MLOs) can be used for ongoing operating expenses such as salaries and benefits, instructional programming and technology.  

Bonds

Bonds can only be used for capital needs such as major repairs/renovations, construction of new schools or expansions to existing schools, vehicles (including school buses), and infrastructure. The State of Colorado provides no funding for capital construction needs whether that be construction of new schools or capital investments in existing schools. 

School districts do not get a percentage of marijuana sales tax for district operational costs.

Marijuana is taxed in three ways:

1. Medical and recreational marijuana are both subject to the 2.9% state sales tax.
2. Recreational marijuana is subject to an additional 10% special sales tax (retail sales).
3. A 15% excise tax is paid when a recreational marijuana wholesaler transfers a shipment to a retailer.

So, where does that money go?

1. All of the state sales tax on medical and recreational marijuana and 85% of the special sales tax on recreational marijuana goes into the Marijuana Tax Cash Fund to pay for the corresponding costs of the legalization of marijuana such as health education, substance abuse prevention and treatment programs, and law enforcement and health care.
   • Schools can apply for a small portion of the money in the Marijuana Tax Cash Fund for school health professionals.
2. The remaining 15% of the special sales tax is allocated to local governments based on the marijuana sales within their boundaries (i.e. for parks and rec, libraries, etc.).
3. The first $40 million that is collected from the excise tax goes to a statewide grant fund called the BEST Program (Building Excellent Schools Today).
   • This money can only be used to support school construction or repairs.
   • Money is prioritized based on need with most being granted to lower funded rural school districts.
   • Once $40 million has been reached, any additional money collected from the excise tax can be allocated elsewhere by state legislators.

No….local monies that are approved by voters in the form of an MLO are a separate “bucket” of money above and beyond Per-Pupil Revenue. These monies are not considered when the state is determining the amount of Per-Pupil Revenue a district will receive. 

MLO dollars would NOT be used to arm our teachers. DCSD has incredible relationships with its local law enforcement partners (Castle Rock Police Department, Douglas County Sheriff's Office, Lone Tree Police Department, and Parker Police Department). MLO dollars would be used to help offset escalating costs for school resource officers to help keep current SRO to student ratios intact.