Colorado faces an unprecedented budget challenge as costs exceed available revenues. Policymakers must determine how to maintain vital public services while reducing or eliminating non-essential ones, and encourage voters to address these issues. Public attitudes show mixed messages - taxes are not a top concern but trust in government is low. While most agree services are underfunded, voters reject tax increases. Fiscal leadership requires articulating shared goals and priorities, and using resources to achieve them while considering long-term implications. It means more than one-time fixes - it requires generating new revenues, reducing future costs, and building understanding.

1. What do we have to look forward to? Colorado Association of School Boards February 24, 2011 John Creighton

2. Facing Colorado right now… Unprecedented budget challenge: Costs of public services at current levels exceed available revenues. Unprecedented leadership challenge: How do we maintain the public services vital to our quality of life? How do we reduce/eliminate public services that aren’t vital to our quality of life? How do we encourage voters to sort out this mess at the ballot box?

5. Public attitudes toward budget crisis? Yes No Pew Research Center February 2011

6. Public attitudes toward budget crisis? Pew Research Center February 2011

7. What do conflicting views say about public? Nick Anderson, Houston Chronicle

8. Making sense of public attitudes What’s behind these mixed messages?

9. Public attitudes toward taxes Top Concerns for Colorado – volunteered (can name more than one issue): Jobs, wages, economy = 75% Health care/insurance = 25% Government Spending/Taxes = 11% Cost of living = 10% Survey review: Colorado Nonprofit Association Fall 2010

10. Public attitudes toward taxes Gallup Nationwide Survey December 2010 and Project New West

11. Public attitudes toward taxes Top Concerns for Colorado: Economy/jobs = 50% Education = 12% Illegal immigration = 11% Health care = 8% State budget = 7% Taxes = 3% Crime = 2% Roads/transportation = 2% Survey review: Colorado Nonprofit Association Fall 2010

12. Public attitudes toward taxes Taxes not on the list CBS News February 2011

13. Public attitudes toward taxes Satisfaction with Federal income taxes near 50 year high. Gallup Nationwide Survey April 2010

14. Public attitudes toward taxes Taxes rank low on people’s list of concerns when asked to choose from a fixed list of issues. Taxes barely register as a concern when people are asked an open ended question. Satisfaction with taxes is near a fifty year high. Taxes only rises as a concern when conflated with government spending and/or debt.

15. Public attitudes toward public services Majority of Coloradans agree public services underfunded: education basic health care public safety senior services highways and transit Survey review: Colorado Nonprofit Association Fall/Winter 2010

16. Public attitudes toward public services Coloradans voted overwhelmingly to defeat 60, 61 and 101. Amendment 60: No 75% Yes 25% Amendment 61: No 73% Yes 27% Proposition 101: No 68% Yes 33% 60, 61 and 101 defeated in every county. No vote > 60% on all measures in 56 counties No vote on 60 & 61 > 70% in 53 counties

17. Public attitudes toward budget Almost nine in ten Coloradans believe state budget is at least a “major problem.” Nearly thirty percent perceive the budget to be a crisis – up nine percent from one year ago. (Before Gov. Hickenlooper budget proposals.) A majority believe the budget is a long-term problem that won’t end as economy improves – one year ago, most attributed problem to poor legislative decisions. Voters are just as likely to have unfavorable as favorable views of TABOR (30% - 30%). Survey review: Colorado Nonprofit Association Fall/Winter 2010

18. Why people oppose raising taxes? Two answers rise above others: 37% = Recession not the right time 33% = Government won’t spend money wisely 13% = More taxes will lead to bigger government 7% = Higher taxes don’t seem necessary 4% = The budget doesn’t affect me Survey review: Colorado Nonprofit Association Fall/Winter 2010

19. Public attitudes toward government CBS News 2010

20. What about this mixed message? Satisfaction with taxes at a 50 year high. Trust in government at an all time low. Gallup 2010 Pew 2010

21. Is accountability & transparency the answer? Voters like all the ideas (75% or more agree): Limit administrative overhead Specifically earmark how money will be spent Annual independent audits Evidenced based budgeting Consolidate duplicative programs Transparent contracting processes Citizen oversight committees Survey review: Colorado Nonprofit Association Fall/Winter 2010

22. The public is asking… Where’s the leadership? 65% = Republicans and Democrats don’t work together on important issues facing the country. Pew Research Center February 2011

23. What fiscal leadership is not… One time actions that push problems down the road. Balancing budgets with deep cuts to valued services. Warning people, “It will be tough.” Assuring people, “Everything will be fine.” Using the budget crisis to accomplish politically expedient goals. Saying, “It’s in the voters’ hands.” Easy.

24. What fiscal leadership is… Articulating a clear vision… How can we make progress toward shared aspirations? How will we use public dollars to tackle critical challenges? What are the implications of our priorities and choices?

25. Fiscal leadership basics… Can you answer these questions? What are the aspirations and priorities of our community? This is the basis for local control, too. How are we using public money to accomplish these goals? How can we make better use of the public money we have? How can we get to a better place with more public dollars? How will our actions today affect what we’re able to do tomorrow? What are the implications of our choices?

26. What are our aspirations & priorities? Be the first choice for St. Vrain families Increase and improve instruction time for students Expand course offerings and focus programs Upgrade technology to ensure it is a learning asset Support teachers to succeed at the job we’re asking of them Manage class size Empower families to take more responsibility Minimize impact on working families and our community

27. The critical fiscal leadership question Will our budget decisions move us closer to or further from the aspirations and goals of our community?

28. What are we doing to stay on track? Generate new revenues Reduce future expenses Hold the line on current expenses Eliminate non-essential expenses Re-engineer Build a highly informed constituency

29. Local v Statewide Tax InitiativesFood for thought…

30. Larger context: Age of anxiety Schools encouraged to prepare all students for college; college being priced beyond the means of many family “Luxury” goods are common place; wages flat for 40 years “Discretionary” time on rise; overwhelmed by overscheduled lives Easier to connect than ever; people isolated, fewer close friends Access to unlimited information; shared knowledge losing currency Polls show tolerance on the rise; so is segregation Only 1 in 5 people satisfied with the way things are going; lowest level of satisfaction in 30 years (Gallup)

31. Larger context: Demand for “Prosumer” Experiences Given the opportunity, people will choose to design and manage their own experiences. Choice is only a starting point… Choose Customize Participate Create Socialize People will gravitate toward institutions that help them design and manage their own experiences — with advice not prescriptions.

32. Larger context:Declining authority of centralized institutions 20th Century problems fading away: Scarce resources Abundant resources High costs Low costs Cumbersome logistics Invisible logistics Limited communications Ubiquitous communications 20th Century solutions no longer valued: Mass market – what appeals to the most people Place based work Uniform schedules Centralized decision makers

33. Larger context:Institutions that flourish solve new problems Individual problems: Create, identify and organize options Inform and facilitate satisfying choices Give people access to tools of production, distribution, participation and collaboration Enable people to form ad hoc, short term and long term communities Help people sustain action over time Social problems: Accidental extremism Self-selected segregation Opportunities to develop democratic habits

34. For more information Slides: http://www.slideshare.net/JohnCr8on Blog: www.JohnCr8on.com Email: john@creighton.com