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  • PUBLIC SCHOOL FINANCE UPDATEJuly, 2011Leanne Emm Assistant Commissioner303-866-6202emm_l@cde.state.co.us

  • Agenda

    Where we have been

    Where we are

    Where we are going

    Other items of interest

  • Where We Have BeenFY2009-10 & FY2010-11

  • FY2009-10 Fiscal Health Analysis

    Produced by the Office of the State Auditor

    One district three warning indicatorsFive districts two warning indicators

    Two or more indicators districts provide information incorporated into report

    Present to Legislative Audit CommitteeAugust 22nd

  • FY2010-11 Year-EndFinal Per Pupil Funding

    Rescissions with Per Pupil Funding spreadsheet posted on the CDE website

    ADE financial data & allocations to Charters and CPP

  • FY2010-11 Accreditation Report

    Two new questions - Financial TransparencyC.R.S. 22-44-301 through 304

    Has the school district complied with all of the reporting requirements of the Public School Financial Transparency Act?

    Has the school districts charter school(s) complied with all the reporting requirements of the Public School Financial Transparency Act?

  • Financial TransparencyHB 10-1036 requires each Local Education Provider (LEP) to post financial information on-line, in a downloadable format, for free public access.

    LEP is defined as:A School District:A Board of Cooperative Services (BOCES);A Charter School Institute;A District Charter School; andAn Institute Charter School.

  • Financial TransparencyCommencing July 1, 2010:District Adopted Budget for FY09-10 and FY10-11District Financial AuditQuarterly Financial StatementsSalary Schedules or Policies

    Additionally Commencing July 1, 2011:Accounts Payable Check RegistersCredit, Debit and Purchase Card Statements

  • Financial TransparencyAdditionally Commencing July 1, 2012:Investment Performance Reports

    Personal information relating to payroll, including but not limited to payroll deductions or contributions, or any other information that is confidential or otherwise protected from public disclosure is not required to be posted.

  • Financial TransparencyAvailable online and updated within sixty days after the completion or receipt of the applicable report, statement, or document

    Maintain the prior two budget years financial information on-line until the end of the current budget year

    CDE Website template as prescribed by HB 10-1036http://www.cde.state.co.us/cdefinance/sfFinancialTransparency.htm

  • Where We AreFY2011-12

  • Per Pupil Funding - Base

    2011-2012Base Funding - $5,634.77Increase of $105.06 from prior yearInflation of 1.9%

    Amendment 23 1% is no longer in effect in 2011/2012

  • Per Pupil Funding - FactorsBase funding is adjusted by factorsCost of LivingPersonnel costsSize of districtAt-risk fundingOn-Line fundingCreates Total Program

    2011-2012SB230 - Negative Factor of 12.97% applied to Total Program

  • School Districts by Pupil Count

  • Per Pupil Funding Calculation Two Examples

  • Appropriated Total Program Funding by Component, With and Without Negative Factor

  • June 2011 Revenue ForecastsLegislative Council and OSPBBoth better than the March 2011 forecast.

    $67.5 million from SB11-230 potentially available

    Solid evidence of recovery still evidence of struggles slow recovery

  • Supplemental appropriation process next legislative session

    Changes in enrollment, at-risk, assessed values and specific ownership tax

    Not available until appropriated!$67.5 Million

  • Risks to Economic Recovery

    Nationally, 8.8 million jobs lost between January 2008 and February 2010

    Jobs added: 1.8 million

    Debt, housing, European economy, Japan, monetary policy and the Middle East will impact the recovery.

  • Colorado RisksTight credit for businesses and consumers.

    High debt and unemployment

    Uncertainty in financial and housing markets.

  • Where We Are Going FY2012-13

  • FY2012-13 June Forecast Late February 2012 actual inflation

    OSPB Legislative Council Inflation Estimate3.5%2.6%Potential Growth in Total Program$261 million$207 million

  • FY2012-13

    Potential is high for further reductions

    Growth in students and caseloads continue to pressure the General Fund

    State Education Fund balance diminishing

  • Other Topics of Interest

  • Changes the date in which the limit to bonded indebtness 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

    SB11-230 Bonded Indebtedness

  • Alternative School Finance ModelsPilot 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 August

    Additional information and the application may be accessed on the CDE website:http://www.cde.state.co.us/index_finance.htm

  • Upcoming Training SessionsStudent October Webinar Trainings from 9:30 11:30 on the following dates.

    Tuesday, August 9thWednesday, August 17thMonday, August 22ndFriday, September 2ndWednesday, September 7th

    The PSFU Audit Office will be providing resources and answering questions about pupil count audits.

    You may register for one of the trainings at:http://www.cde.state.co.us/scripts/StuOctWorkshop11/start.asp

  • Upcoming Training Sessions

    On-line Pupil Count WebinarWednesday, August 24th at 10:00 am

    Chart of Account Changes for FY2011-12 and FPP Handbook Update WebinarOctober timeframeAssuming the FPP Handbook changes have been approved by the FPP committee by this time

  • Other TopicsPossible Federal requirement for individual charter schools to have a separate independent annual financial audit performed and issued to its authorizer and the Department.

    The Governmental Accounting Standards Board (GASB) has recently issued exposure drafts related to Pension Accounting and Financial Reporting. These exposure drafts may impact the financial reporting and disclosures for school districts. If you have concerns, the GASB requests comments by September 30, 2011.

  • Questions?

    ******See also Colorado Revised Statutes 22-44-301 thru 304.***Source State of Colorado: General Fund Revenue - $7.12 Billion, 2011-2012. Budget in Brief. Joint Budget Committee, 2011. Web. 29 July 2011. . *Source State of Colorado: General Fund - $7.01 Billion, 2011-2012. Budget in Brief. Joint Budget Committee, 2011. Web. 29 July 2011. . *Source Long Appropriations Bill, SB11-209

    This pie excludes funding for administration (e.g., the State Board and CDE staff, CSAP, IT systems) and library programs (administered by CDE).*Sources1) Long Appropriations Bill, SB11-2092) "Public School Finance Act of 1994 - FY 2011-12." Public School Finance. Colorado Dept. of Education, 2008. Web. 29 July 2011. .

    The School Finance Act is funded with a combination of State General Fund; local funds including property tax and specific ownership tax and other state funds which include the State Education Fund and the Public School Fund.*Source Financing of Public Schools, SB11-230

    The states base per pupil funding for 2010/2011 is $5,529.71. The base funding is calculated annually and has been increasing by inflation plus 1% as required by Amendment 23.

    The inflation rate (or consumer price index CPI) in 2010 was 1.9% which is used to set the 2011/2012 base per pupil funding amount.

    *Source "Understanding Colorado School Finance and Categorical Funding." Public School Finance. Colorado Dept. of Education, 2008. Web. 29 July 2011. .

    Once the base funding has been set, the base has factors applied. These factors determine the per pupil funding amount by district and each district is different.Cost of living factor that attempts to reflect the differences between districts for the cost of housing, goods and services. Aspen has a higher cost of living factor than a small rural district. Personnel costs factor based on enrollment and incorporates cost of living for personnel.Size factor driven by enrollment and attempts to reflect purchasing power within districts. Small districts have greater size factor adjustments.At-risk funding based on the numbers of students qualifying for free lunchesOn-Line funding based on the number of students enrolled in an online program within the district. There are various rules that make a student eligible to be counted.

    Once these factors are applied to the base, a total per pupil funding amount is determined for district. This amount is then multiplied by the districts funded pupil count to arrive at total program funding.

    2010/2011 & 2011/2012 and each year thereafter:

    State Budget Stabilization Factor (Renamed to Negative Factor in SB230) this will be a negative factor that is intended to reduce total program funding across the state. Basically, this particular factor will be applied after a districts total program is determined using base funding and incorporating the above factors.

    *Source School Districts by Pupil Count. Chart. FY10-11. Colorado Legislative Council. Web. 29 July 2011. .

    This chart illustrates the distribution of pupils across the state of Colorado.*Source Increase in Statewide Base for Cost of Living. FY10-11. Colorado Legislative Council. Web. 29 July 2011. .

    This chart