Understanding the Budget

Understanding the D51 Budget

How School Funding Works in Mesa County Valley School District 51

Every year, Mesa County Valley School District 51 develops a budget to support the educational programs, services, and operations that help students learn, grow, and succeed.

School finance in Colorado is unique and can be difficult to understand. Funding comes from multiple sources, many of which are legally restricted to specific purposes. As enrollment, state funding, and operating costs change, the District adjusts its budget to continue providing high-quality educational opportunities while maintaining long-term financial stability.

This guide provides an overview of how the District receives funding, how those resources are allocated, and the financial principles that guide budget decisions.

WHERE DOES OUR FUNDING COME FROM?

District 51 receives funding from a variety of sources, including state funding, local property taxes, grants, and other local revenue. In the District’s primary fund, the General Fund, the largest source of operating revenue comes through Colorado's School Finance Act, which determines funding largely based on student enrollment.

Additional revenue sources support specific programs, services, or capital investments. Many of these funding sources are legally restricted and may only be used for specific purposes.

How Are District Resources Allocated?

District 51 allocates its resources to support student learning and the many services required to operate safe, effective schools. While classroom instruction represents the District's largest area of investment, educating students also requires transportation, nutrition services, technology, facilities, student support services, school administration, and other essential operations.

The following charts show District expenditures from two different perspectives.

Resources by Program

This view shows how District resources are allocated across the District's major programs and services, from classroom instruction to transportation, facilities, student support, and District operations.

Major Program Definitions:

Major Program Definitions:

1. Instructional Programs-Instruction includes those activities dealing directly with the interactions between staff and students. Teaching may be provided for students in a school classroom or in another location (e.g., a home, hospital co-curricular activity location, etc.) Instruction may be provided through approved media such as television, radio, telephone or correspondence. Instruction includes the activities of paraprofessionals (aides) or classroom assistants of any type which assist teachers in the instructional process.
2. Support Service Programs-Support service programs are those activities which facilitate and enhance instruction. Support services include school-based and general administrative functions and centralized operations for the benefit of students, instructional staff, other staff, and the community.

Pupil Support Services-Activities designed to assess and improve the well-being of students and to supplement the teaching process. These services pertain to interaction between students and teachers by designing the educational program for the needs of individual students. Examples of these services include attendance, counseling, health, psychological, audiology, speech therapy, occupational therapy, physical therapy, equity/diversity, media, library, instructional technology, curriculum, staff development, assessment, pupil personnel administration, and supervision of instructional programs.
General Administration Support Services-Activities concerned with establishing and administering policy for operating the District. These services include Board of Education, legal, tax assessment and collection, audit, executive administration, and executive directors of instruction.
School Administration Support Services-Activities concerned with overall administrative responsibility for a school or a combination of schools. Examples of these services include principals, assistant principals, clerical staff, and other assistants, as well as supplies, postage, and copy machine costs.
Business Support Services-Activities concerned with paying, transporting, exchanging and maintaining goods and services for the District. Included are the fiscal and internal services necessary for operating the District. These services include fiscal, purchasing, warehouse, printing, maintenance and operations of plant, custodial, grounds maintenance, vehicle servicing and maintenance, pupil transportation, and indirect costs (reimbursement) for grant administration.
Central Support Services-Activities, other than general administration, which support each of the other instructional and supporting services programs. These activities include planning, research, development, evaluation, information, staff, data processing and risk management services. Examples of these services include communications, human resources, technology, risk management, volunteer, supervision of student services, and research/program evaluation/assessment.

3. Operation of Non-Instructional Service Programs-Non-Instructional Services. Activities concerned with providing non-instructional services to students, staff or the community.

Community Services and Other Support Services-Community service and other support service programs include non-instructional services provided to students, staff, or the community.

4. Other Uses/Debt Services-A number of outlays of governmental funds are not properly classified as expenditures, but still require budgetary or accounting control. These include debt service payments (principal and interest) and certain transfers of moneys from one fund to another.

RESOURCES BY TYPE

This view shows how District resources are allocated across major expenditure categories, such as salaries, benefits, purchased services, supplies, and capital outlay.

Expenditure Type Definitions:

Expenditure Type Definitions:

Salaries-Amounts paid for personal services to both permanent and temporary District employees, including personnel substitutes.

Benefits-Includes health insurance, district-paid life insurance, Medicare, and the employer portion of the Public Employee Retirement Association (PERA).

Purchased Professional and Technical Services-Services which by their nature can be performed only by persons or firms with specialized skills and knowledge. Examples of these services include audit, legal, consultant, and in-service/workshop fees.

Purchased Property Services-Services purchased to operate, repair, maintain and rent property owned or used by the District. These services are performed by persons other than District employees. Examples of these services include water, sewer, repairs and maintenance, rentals, and contracted services for property.

Other Purchased Services-Amounts paid for services rendered by organizations or personnel not on the payroll of the District. These services include field trips, student transportation, in-service, communications, printing, advertising, travel, and registration.

Supplies-Amounts paid for items that are consumed, worn out or deteriorated through use. Supplies are made up of several categories and include: instructional supplies, text books, library books, software, natural gas, electricity, freight, and maintenance supplies. Included in the Nutrition Services fund are food, commodities and non-food supplies.

Property-Expenditures for acquiring capital assets (including land or existing buildings), improvements of grounds, all types of equipment, technology, vehicles, and furniture and fixtures.

Other Uses of Funds-Amounts paid for goods and services not otherwise classified. These expenditures include dues and fees, principal and interest on bonds or leases, indirect charges, and other miscellaneous expenditures.

Transfers-Transfers from one fund to another fund are shown as revenues (transfers in) and expenditures (transfers out).

One District, Multiple Funds

One of the most common misconceptions about school finance is that all District money goes into one account.

Like most public school districts, Mesa County Valley School District 51 uses fund accounting to manage public resources. Fund accounting separates financial resources into individual funds, each established for a specific purpose and maintained as a separate accounting entity. This helps ensure resources are used in accordance with state law, voter approval, grant requirements, and other legal or financial restrictions. District 51's budget is organized into five primary fund categories:

Fund Category	Purpose
Governmental Funds	Support the District's day-to-day educational programs and operations, including instruction, preschool, charter schools, and other educational activities.
Capital Project Funds	Account for voter-approved construction projects, major facility improvements, and other capital investments.
Special Revenue Funds	Support specific programs that are legally restricted to designated purposes, such as Nutrition Services, grants, and student activities.
Debt Service Funds	Account for the repayment of voter-approved bonded debt.
Internal Service Funds	Support District-operated services such as medical, dental, and risk management insurance programs.

💡 Did You Know?

Fund accounting helps ensure public resources are used only for their intended purpose. Money collected or received for one purpose generally cannot be spent for another.