Leanne Emm, Associate Commissioner School Finance Division School Finance CASBO Leanne Emm, Associate Commissioner School Finance Division April 2015

Agenda BEST Program Rulemaking Hearing – May 13 Total Program Other Legislation 2

BEST Program Legislation/Budget Funding to upgrade/revise the statewide facility assessment database Funding for in-house team to do facility assessments and upgrades to the system to allow for interfaces with districts that do their own facility assessments Provide a refresh rate for the statewide facility assessment of approximately 2.5 years

BEST Program Marijuana Excise Tax – tax on the transfer from grower to retailer Amendment 64 Provides for the first $40 million annually of excise tax to be deposited to the Capital Construction Fund Through February 28, 2015 – almost $13 million Once funds are deposited to Capital Construction Fund, the dollars are available for BEST grants Marijuana Sales Tax – tax on retail sales Through February 28, 2015 – $25 million Funds distributed to counties, cities, and used for state programs $2.5 million for grants for school health professionals – due May 7 http://www.cde.state.co.us/healthandwellness/schoolhealthprofessionalgrantprogram 4

Public Comment Period Rules Accounting Rules Requires the Food Service Fund to be treated as a Special Revenue Fund Aligns with the FPP adoption of the recommendation Clarifies language in rules Defines the three month operating rule being based on nine month year Removes requirement to keep 30 percent threshold in reserves before charging indirect costs May charge directly, however cannot exceed the indirect cost rate Addresses other provisions noted in state statutes

Public Comment Period Rules Nutrition Rules Removes duplicative rules if already in federal regulations Clarifies language in rules Aligns nutrition and accounting rules Submit written comments for either rules prior to May 11 - http://www.cde.state.co.us/nutrition Rulemaking hearing – May 13 – State Board Room

Total Program Funding Formula Total Program Funding equals: =(funded pupil count x formula per pupil funding) + at-risk funding + online & ASCENT funding After Total Program is calculated, the Negative Factor is Applied

Base Per Pupil Funding 2014-15 Base Funding - $6,121.00 2015-16 Increase of $166.72 Inflation of 2.8% 2015-16 Base Funding - $6,292.39 Increase of $171.39

Formula Per Pupil Funding - Factors Base per pupil funding is adjusted by factors Cost of Living Personnel & Non-personnel costs Size of district Determine At-Risk Funding, On-line and ASCENT Funding Once Total Program is determined, the negative factor is applied 2014-15 – 12.97% 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 lunches On-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.

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.

Illustration of Two Districts 11

Assumptions FY2015-16 Long Bill Plus SB15-267 Every year, the School Finance Act is a piece of legislation that is brought forward to fund schools in the next budget year Fund growth and inflation Increase in local share One-time buydown of negative factor - $25 million HB15-267 as introduced, requires the negative factor amount to remain the same as prior year Estimate of negative factor for 2015-16 = $855 million

State of Colorado Total Program Funding *Subject to Legislative Approval

SB15-267 School Finance Act Has passed the senate on second reading Senate 3rd reading then on to the house Resources on CDE Website Legislative Summary Illustration of District by District Funding May 6 is last day of session

Other Legislation HB15-1339 – Transparency – Reporting of Expenditures Based on Financial Policies and Procedures Committee recommendation to submit school level expenditure data to CDE through pipeline financial submissions instead of posting it on each district’s website Third party vendor will compile and publish comparable data per statute HB15-1334 – Legislative Committee to Study School Finance

FPP Meeting May 29 – 9:30 – noon Jeffco Swink Mesa Valley (Grand Junction) Durango Centennial BOCES (Greeley) San Luis Valley BOCES (Alamosa) Pikes Peak BOCES (Colorado Springs)

School Finance Questions CASB