Public School FinanceColorado Department of Education

May, 2011

Leanne EmmAssistant Commissioner

CDE’s Strategic Initiatives• Standards• Assessments• Accountability and Support• Educator Effectiveness• Training and Awareness• Innovation and Choice

Human Services/Health Care25%

Higher Education9%

Corrections/Judicial13%

Education (K-12)43%

General Government, 4%

Other7%

Colorado State General Fund Budget2010/2011

Source: Joint Budget Committee; Appropriations Report: Fiscal Year 2010-11

SB11-230 – as amended in House

• Very simple School Finance Bill for 2011-2012

• Reduces the original appropriation from 2010-2011 by $227.5 million

• Applies a negative factor (currently known as budget stabilization factor)• 12.97%

• Sets the total program for 2011-2012 to $5.211 billion

2011 Legislative Session

• House Amendment also:

• Identified $67.5 million as potentially available next year

• Based on excess revenues if available

• Would be used to fund changes in enrollment, at-risk, assessed values and specific ownership tax

• Would need to go through the supplemental appropriation process – next legislative session

• Not available until appropriated!

2011 Legislative Session

• SB11-230 as amended

• Changes the date in which the limit to bonded indebtedness is determined

• Mainly benefits those districts that are hitting their limit and is declining in assessed value

• Changes the date to measure the limit to previous December valuation

2011 Legislative Session

SB11-230 As AmendedFinancing of Public Schools

Total Program Funding Original Amount – HB10-1369

$5,438,295,823

Less amount identified in SB11-230

($227,500,000)

Total Program Funding – SB11-230

$5,210,795,823

2011 Legislative Session

SB11-230 As AmendedFinancing of Public Schools

Total Program Funding IF FULLY FUNDED 2011-2012

$5,987,109,016

Less amount identified inSB11-230 – NEGATIVE FACTOR

($776,313,193)

Total Program Funding – SB11-230 $5,210,795,823

2011 Legislative Session

• SB11-230 as amended – sets target

• Actual student counts, at-risk counts, assessed values, specific ownership tax will change throughout the year

• Creates supplemental appropriations which increase or decrease the original

2011 Legislative Session

2008-09 Actual 2009-10 Actual 2010-11 Current 2011-2012 Proposed SB11-230

$-

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$6,000,000,000

State of ColoradoTotal Program Funding

Gaps represent rescissions and legislative actions

Per Pupil Funding - Base• 2010/2011

– Base Funding - $5,529.71• Increase of $22.03 from prior year• Inflation of -.6 + 1% Amendment 23 = .4%

• 2011/2012– Base Funding - $5,634.77

• Increase of $105.06 from prior year• Inflation of 1.9%

• Amendment 23 1% is no long in effect in 2011/2012

Per Pupil Funding - Factors• Base funding is adjusted by factors

– Cost of Living– Personnel costs– Size of district– At-risk funding– On-Line funding

Creates Total Program

• 2010/2011 & 2011/2012– State Budget Stabilization Factor– SB230 renames to Negative Factor

Colorado Summary Statistics2010/2011

• District enrollments range from 49 to 81,192 funded students– Total funded students in the state: 798,676– Growth of over 37,000 students in three years!

• Average district total program per pupil funding – Per formula - $7,290– AFTER 2010/2011 budget rescission- $6,811– 2010/2011 average per pupil cut - $479

Average Total Program Funding Per Pupil Estimates for 2011/2012

• Average total program per pupil funding – Per formula - $7,429– Proposed - $6,467 (School Finance Act SB11-230 as

amended)

• Proposed changes from formula– SB11-230 as amended - $962 per pupil less than

full funding

Total Program Funding2011-2012

State Share64%

Local Share36%

2010-2011 2011-2012 Change

Assessed Values $91.08B $84.504B ($6.57 B) (7.2%)

Property Taxes $1.88B $1.74B ($.142B)(7.6%)

Specific Ownership Taxes $.138B $.138B -0-

Local Share Estimates2011-2012

Implications of Total Program Funding

• Revenue to schools lower than the prior year – extremely rare

• Options for school districts:– Increase revenue through mill levy override

election or other means– Winning competitive grants– Decrease expenditures– Use reserves– Combination of all of the above

Other Legislation of Interest• HB11-1055 – Facilities for Charter Schools – PI• HB11-1089 – Charter School Grant Applications - Signed• HB1115 – Construction Retainage – Concur to pass• HB11-1277 – Statutory Changes - Concur to pass• SB11-001 – Knowledge Based Economy Fund – PI• SB11-074 & 079 – PERA Contribution Rates & Bids for

non-instructional support – PI• SB11-109 – Income tax check-off – passed House with

amendments - negligible• SB11-259 – Mill levy override incentive – PI• SB11-266 – Background Checks – School Contractors –

Concur to pass

SFSF & EdJobs• Ideally funds spent by June 30, 2011

– If carryforward to September 30 – MORE REPORTING– Ed Jobs could go longer, but not encouraged!

• Documentation for expenditures

• Submit Request for Funds for reimbursement– This does not come automatically

• Website: http://www.cde.state.co.us/cdefisgrant/Allocations

• Contact: Elizabeth Conway – 303-866-6886

IDEA ARRA Funds• Ideally - funds spent by June 30, 2011

– If carryforward to September 30 – MORE REPORTING

• May need to reclassify expenditures to spend funds

• Strategy:– spend ARRA first, then General Fund then regular IDEA

• Website: http://www.cde.state.co.us/cdefisgrant/Allocations

• Contact: Vicki Graham – 303-866-6129

Alternative School Finance Models• Pilot program authorized by HB10-1183 to encourage

school districts and charter schools to collect data that will be used to compare the effects of alternative school finance funding models with those of the current funding method.

• Districts/charter schools apply to participate – applications available in early Fall

• No applications received in 2010

• What would it take to incentivize a district/charter school to participate in the study?

Date Reminders• Financial Policies & Procedures

– June 24 – Jeffco• Grants Fiscal & ESLU – IDEA – see SCOOP

– June 14 – BOCES– June 15 – Large AUs– June 16 – Small AUs

Date Reminders• Financial Policies & Procedures

– June 24 – Jeffco

• Grants Fiscal & ESLU – IDEA – see SCOOP– June 14 – BOCES– June 15 – Large AUs– June 16 – Small AUs

Resources• Colorado Department of Education –

www.cde.state.co.us• Colorado Legislative Council – www.colorado.gov/lcs• Colorado Associate of School Executives –

www.co-case.org• Colorado Association of School Boards –

www.casb.org• Colorado School Finance Project – www.cosfp.org• Great Education Colorado - www.greateducation.org• EdNews Colorado - www.ednewscolorado.org• The Bell Policy Center – www.thebell.org