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New School Finance Act�����

October 2024

Colorado School Finance Project

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Who is CSFP?

  • Non-profit, non-partisan
  • Supported by school district contributions
  • School finance analysis for local and state policy makers since 1995
  • Governed by a board comprised of national and state experts on school finance

Our Mission: To compile, collect and distribute research-based, non-partisan information and data on topics related to school finance for state and local policymakers. CSFP also supports school districts by providing expertise, technical assistance and capacity building related to best practices in school finance.

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New School Finance Formula – HB24-1448

  • Implementation over 6 years, starting in FY 25-26
  • First-year cost of 6-year implementation: $95M
  • The Size Factor will be capped at 6,500 students
  • The Cost-of-Living Factor will be capped at 23% (see Appendix B)
    • Districts who have seen a loss from COL will be given the option to go to their voters to make up their loss of funding
  • Increase weights to .25 for at-risk, ELL, and Tier A SpEd
    • Special ed dollars to be dispersed to AUs
  • Increases minimum funded pupil count to 60
  • At-Risk concentration factor for districts under 6,500
  • 4-year averaging – districts held harmless during implementation period

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Access full bill here.

October 2024

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Locale Factor

  • New Locale Factor will be included to account for rural remoteness and geographical challenges.�Two locales (Town Remote, Rural Remote) receive an additional $100K
    • Rural Fringe - 0.15
    • Rural distant - 0.20
    • Rural remote - 0.25
    • Town fringe - 0.025
    • Town distant - 0.05
    • Town Remote - 0.10

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October 2024

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New Formula cont’d

  • Sustainability requirements – annual review by JBC and House and Senate Education to determine if funds are available for implementation.
    • Will look at local revenue, inflationary pressures, and state revenue
  • Capital construction increase funding for BEST and Charter Schools
  • Implementation of a working group to meet and determine a methodology for Mill Levy Match funds for override (see Appendix C)

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October 2024

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October 2024

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SMART Act Requirements

  • SMART Act – CDE must provide during the implementation period
    • Success and challenges of determining Total District funding
    • Reports concerning the budget that is being used at the school level and include performance snapshots
    • Trends and challenges with declining enrollment as well as influx of new arrival students
    • Include state-wide average of per pupil revenue for at-risk, ELL, SpEd
    • District average of per pupil revenue for at-risk, ELL, SpEd as well as per pupil revenue

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October 2024

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Access full fiscal note here.

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Questions?