Colorado K-12 Funding

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Darrell Wilkins
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1 Colorado K-12 Funding Glenn Gustafson, Colorado Springs D-11 Deputy Superintendent/Chief Finance Officer & Nora Brown, Board Treasurer Colorado Springs D-11 1

2 Role of the Board of Education Financial Accountability (budget, audit, debt, and elections) Personnel Hiring Salary Schedule/Compensation Systems Establishes Graduation Requirements Adoption of Curriculum 2

3 State of Colorado 178 School Districts 21 Medium Districts (5,000 to 25,000 pupils) 3

4 Medium School Districts (5,000 to 25,000 Pupils) Mapleton 1 7,830.5 $7, Adams County 14 6,303.0 $7, Brighton 27J 15,302.5 $7, Westminster 50 8,361.5 $7, Littleton 6 13,808.5 $7, Eagle County RE 50 6,165.0 $7, Harrison D $7, Widefield D-3 8,381.5 $7, Fountain/Ft. Carson D-8 7,012.0 $7, Colorado Springs D-11 24,652.0 $7, Academy D-20 23,044.5 $7, Lewis-Palmer D-38 5,915.5 $7, Falcon D-49 20,757.5 $7, Roaring Fork RE-1 5,098.0 $7, Thompson R2-J 14,299.0 $7, Mesa County (GJ) 51 19,692.5 $7, Montrose Cty RE-1J 5,491.0 $7, Pueblo D-60 15,070.0 $7, Pueblo D-70, 8,775.5 $7, Windsor RE-4 5,412.0 $7, Greeley D-6 20,038.5 $7,

5 Basic School Finance Total Program Funding Total Program Calculation Per-Pupil Revenue x Pupil Count Total Program Components Property Taxes Specific Ownership Taxes (Yeah Hail!) State Equalization 5

6 Basic School Finance Per-Pupil Revenue (FY 16-17) Base Funding $6, Cost of Living Factor District Size Factor Personnel Cost Factor 90.50% Non-personnel Costs 9.50% Subtotal $7, At Risk Factor Negative Factor PPR $7,

70% Relative State and Local Shares of School Finance, 1983 to FY 2015-16 60% 57% State Share General Fund and State Education Fund

1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

7 70% Relative State and Local Shares of School Finance, 1983 to FY % 57% State Share General Fund and State Education Fund 66% 50% Local Share Mostly Property Taxes 40% 30% 43% TABOR 34% Am. 23 Mill Levy Freeze Note: Prior to 1993, K-12 funding was done on a calendar year basis.

8 English Language Proficiency Act (ELPA) Gifted & Talented Small Attendance Centers Special Education (ECEA) Transportation Vocational Education Basic School Finance Categorical Funding 8

9 Basic School Finance Mill Levy Overrides Maximum MLO 25% Governing Documents - Election Question - MLO Spending Plan Charter School Allocations Allowable for Capital or Operating 9

10 Colorado Negative Factor History : $830M : $830M : $880M : $1.004B : $1.001B : $774M : $381M Negative Factor What does this mean for school districts? State leaders warn of increasing negative factor 10

What the General Fund Pays For FY 2016-17 State Share

11 What the General Fund Pays For FY State Share FY General Fund Operating Budget $9.6 billion

School Finance Scenarios Going Forward Total Program Funding Projections LCS December 2015 Revenue Forecast State Share Local Share Billions of Dollars $8 $7 JBC Staff Recommendation $40.

12 School Finance Scenarios Going Forward Total Program Funding Projections LCS December 2015 Revenue Forecast State Share Local Share Billions of Dollars $8 $7 JBC Staff Recommendation $40.8M one-time increase in negative factor Eliminate negative factor Current law: constant $830.7M negative factor $6 Current funding level $5 FY FY FY FY FY

13 Amendment 23 Language Shall there be an amendment to the Colorado Constitution concerning increased funding for preschool through twelfth-grade public education, and, in connection therewith, requiring the statewide base per pupil funding for public education and funding for specifically defined categorical programs to grow annually by at least the rate of inflation plus one percentage point for fiscal years through and annually by at least the rate of inflation for fiscal years thereafter; 13

14 Hitting the Base! Colorado K-12 Funding Funding Above the Base FY 16/17 to FY 24/25 K-12 Negative Factor Cushion State Increase in Negative Factor (non K-12) Cumulative Increase in Negative Factor (non K-12) Inflation K-12 Base Inflationary Combined State # of Districts at Year Assumption Funding Increase Budget Cushion the Base FY $6, N/A $896,845,104 $0 $896,845,104 0 FY % $6, $ $595,098,671 $165,000,000 $165,000,000 $430,098,671 0 FY % $6, $ $619,851,633 $0 $165,000,000 $454,851,633 0 FY % $6, $ $311,418,269 $0 $165,000,000 $146,418,269 3 FY % $7, $ $329,025,044 $0 $165,000,000 $164,025,044 1 FY % $7, $ $128,935,362 $0 $165,000,000 $0 45 FY % $7, $ $87,631,745 $0 $165,000,000 $0 54 FY % $7, $ $62,142,494 $0 $165,000,000 $0 72 FY % $7, $ $55,903,117 $0 $165,000,000 $

15 What About Pot? Difference between Medical and Recreational K-12 Funding set at $40M for Capital Const Capital Constr through BEST grant Best Grant Criteria includes local property wealth D-11 unlikely to see ANY MJ funding 15

16 TABOR/Gallagher Article X, Section 20 of the Colorado Constitution FY92/93 Base Year Limits Government Growth to Inflation Plus Growth Spending and Revenue Limits Reserving Technique Ties to Audit TABOR Emergency Reserve = three percent Ratchet Down Effect! Gallagher Amendment - 55%/45% Ratio Assessed Property - Doesn t Affect Per-Pupil Revenue - Limits Bond and Mill Levy Override Revenues 16

Challenges K-12 Initiatives (SB 163/191/212, Early Literacy, testing requirements & standards) Competitiveness of Salary and Benefits Declining Physical Plants and Grounds Aging Vehicle Fleet

17 Challenges K-12 Initiatives (SB 163/191/212, Early Literacy, testing requirements & standards) Competitiveness of Salary and Benefits Declining Physical Plants and Grounds Aging Vehicle Fleet Technology Obsolescence Increasing PERA Pension Requirement Healthcare Costs and Affordable Healthcare Act Declining Reserves and Matching Grant Obligations Reporting Requirements and Automated Data Exchange 17

18 Questions? Glenn Gustafson Nora Brown

Thompson School District

Thompson School District Budget Development 2014-15 February 12, 2014 Presentation Overview 1. 14/15 Budget Development Process 2. Board Focus Areas 3. District Budget Overview All Funds 4. General Fund: